[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Proposed Rules]
[Pages 68931-68942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24925]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 87, No. 221 / Thursday, November 17, 2022 /
Proposed Rules
[[Page 68931]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2022-BT-STD-0017]
RIN 1904-AF41
Energy Conservation Program: Energy Conservation Standards for
Miscellaneous Gas Products
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notification of data availability and request for comment.
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SUMMARY: On June 14, 2022, the U.S. Department of Energy (``DOE'')
published a request for information (``RFI'') regarding energy
conservation standards for miscellaneous gas products (``MGPs''). In
that RFI, DOE specifically sought stakeholder input and data on a
variety of topics including, but not limited to, product categories,
energy use, shipments, and technology options. Based on the information
that DOE collected in response to stakeholder input, data that has been
identified and collected by DOE, and data collected during confidential
manufacturer interviews, DOE is publishing this notification of data
availability (``NODA'') to provide stakeholders with additional
information and to provide an additional opportunity for public input.
DOE requests comments, data, and information on all aspects of the
NODA.
DATES: Written comments and information will be accepted on or before
December 19, 2022.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at www.regulations.gov under docket
number EERE-2022-BT-STD-0017. Follow the instructions for submitting
comments. Alternatively, interested persons may submit comments,
identified by docket number EERE-2022-BT-STD-0017, by any of the
following methods:
Email: [email protected]. Include the docket number
EERE-2022-BT-STD-0017 in the subject line of the message.
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.
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.
Docket: The docket for this activity, which includes Federal
Register notices, comments, and other supporting documents/materials,
is available for review at www.regulations.gov. All documents in the
docket are listed in the www.regulations.gov index. However, 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-2022-BT-STD-0017. The docket web page contains instructions on how
to access all documents, including public comments in the docket. See
section IV of this document for information on how to submit comments
through www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Ms. Julia Hegarty, 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-
0729. Email: [email protected].
Mr. Pete Cochran, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: 202-586-9496. 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. Background
II. Deviation from Appendix A
III. Discussion
A. Scope
B. Analysis
1. Market and Technology Assessment
a. Market Assessment
b. Descriptions of Pilot and Ignition Systems Identified on the
Market
c. Technology Options
2. Screening Analysis
3. Engineering Analysis
a. Design Options
b. Teardown Analysis
4. Energy Use Analysis
5. Life-Cycle Cost and Payback Period Analyses
6. National Impact Analysis
7. Manufacturer Impact Analysis
IV. Public Participation
A. Submission of Comments
B. Issues on Which DOE Seeks Comment
V. Approval of the Office of the Secretary
I. Background
The Energy Policy and Conservation Act, Public Law 94-163, 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 of EPCA \2\ established the Energy
Conservation Program for Consumer Products Other Than Automobiles. EPCA
also grants DOE authority to establish coverage and prescribe energy
conservation standards for additional consumer products. (See 42 U.S.C.
6295(l)(1))
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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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On June 14, 2022, the U.S. Department of Energy (``DOE'') published
a request for information (``RFI'') regarding potential energy
conservation standards for
[[Page 68932]]
miscellaneous gas products (``MGPs''). In that RFI, DOE solicited
information from the public to help DOE determine whether potential
standards for miscellaneous gas products would result in significant
energy savings and whether such standards would be technologically
feasible and economically justified. DOE noted that such information
would prove useful in the event DOE moved forward with a final coverage
determination. Subsequently, in a final determination published on
September 6, 2022 (``September 2022 Final Coverage Determination''),
DOE determined that MGPs, which are comprised of decorative hearths and
outdoor heaters, qualify as covered products under EPCA. 87 FR 54330.
DOE is publishing this NODA to get additional comment and input on
the extensive data that has been collected to date and to help inform
DOE as to whether energy conservation standards for MGPs would result
in significant conservation of energy and be economically justified and
technologically feasible, consistent with its obligations under EPCA.
II. Deviation From Appendix A
In accordance with section 3(a) of 10 CFR part 430, subpart C,
appendix A (``appendix A''), DOE notes that it is deviating from the
provision in appendix A regarding the length of comment periods for the
pre-NOPR stages for an energy conservation standards rulemaking.
Section 6(d)(2) of appendix A specifies that the length of the public
comment period for pre-NOPR rulemaking documents will not be less than
75 calendar days. For this NODA, DOE has opted instead to provide a 30-
day comment period. In the June 2022 RFI, DOE initiated a review to
determine whether potential energy conservation standards would satisfy
the relevant requirements of EPCA for miscellaneous gas products. 87 FR
35925. The June 2022 RFI provided 30 days for submitting written
comment, data, and information. In light of the previous 30-day comment
period associated with the June 2022 RFI, DOE believes a 30-day comment
period is appropriate and would provide interested parties a meaningful
opportunity to comment on the clarifications, data, and accompanying
analyses presented in this NODA.
III. Discussion
This NODA presents various data that DOE has collected to date,
through the June 2022 RFI, confidential manufacturer interviews, and
other efforts. DOE intends to use this information to help determine
whether energy conservation standards for MGPs would result in
significant conservation of energy and be economically justified and
technologically feasible.
A. Scope
In the September 2022 Final Coverage Determination, DOE established
coverage for miscellaneous gas products and codified definitions for
``miscellaneous gas products'', ``decorative hearth product'', and
``outdoor heater'' in 10 CFR 430.2. 87 FR 54330. Specifically, DOE
defined ``miscellaneous gas products'' to mean decorative hearth
products and outdoor heaters. Further, DOE provided definitions for
both decorative hearth products and outdoor heaters. A ``decorative
hearth product'' means a gas fired appliance that--
(1) Simulates a solid-fueled fireplace or presents a flame pattern;
(2) Includes products designed for indoor use, outdoor use, or
either indoor or outdoor use;
(3) Is not for use with a thermostat;
(4) For products designed for indoor use, is not designed to
provide space heating to the space in which it is installed; and
(5) For products designed for outdoor use, is not designed to
provide heat proximate to the unit.
And an ``outdoor heater'' means a gas-fired appliance designed for
use in outdoor spaces only, and which is designed to provide heat
proximate to the unit. 10 CFR 430.2.
In response to the June 2022 RFI, several commenters expressed
confusion and/or concern related to the scope of a potential MGP energy
conservation standard rulemaking.\3\ (The American Public Gas
Association, National Propane Gas Association, and American Gas
Association (``Gas Associations''), No. 8 at p. 2; Hearth and Home
Technologies and the Outdoor GreatRoom Company, No. 6 at p. 1; Hearth,
Patio, & Barbecue Association (``HPBA'', No. 7 at pp. 3-4) For example,
the Gas Associations stated that the June 2022 RFI did not provide
enough information to determine which products would potentially be
subject to a future energy conservation standard rulemaking.
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\3\ The comments received in response to the June 2022 RFI will
be addressed in a subsequent rulemaking stage. However, select
comments are referenced in this discussion in order to address
commenters' confusion and concerns about the scope of this
rulemaking. A parenthetical reference at the end of a comment
quotation or paraphrase provides the location of the item in the
public record. Specifically, the parenthetical references provide a
reference for information located in Docket No. EERE-2022-BT-STD-
0017, which is maintained at www.regulations.gov. The references are
arranged as follows: (commenter name, comment docket ID number, page
of that document).
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DOE recognizes that a wide range of products meeting the
definitions of decorative hearth product or outdoor heater
(collectively, miscellaneous gas products) are available on the market,
including, for example, vented gas log sets, gas fire pits, gas stoves,
and gas fireplace inserts. And, while MGPs share similarities in form,
function, and operation, DOE also recognizes that the different
products that comprise MGPs may have different design characteristics,
usage patterns, installation environments, and may offer differing
utility for consumers. These factors can significantly influence an
analysis of whether potential energy conservation standards would
result in significant energy savings and would be technologically
feasible and economically justified. In order to both provide more
certainty for stakeholders regarding which MGPs would potentially be
subject to energy conservation standards and ensure that DOE's analysis
reflects the differences between certain types of MGPs, DOE has
tentatively identified four distinct groups of MGPs for the purpose of
conducting its energy conservation standard rulemaking analysis. The
products within each representative group tend to have similar (or in
some cases identical) ignition systems and are often certified to the
same industry safety standards. The four groups of representative
products are:
Indoor vented gas log sets;
Other indoor vented decorative hearth products (includes
all other decorative hearth products that are not gas logs, including
gas fireplaces, gas stoves, and gas fireplace inserts);
Outdoor decorative hearth products (which includes outdoor
decorative fireplaces, fire pits, fire bowls, fire columns, and fire
tables); and,
Outdoor patio heaters (which includes pyramid-style patio
torch heaters, radiant patio torch heaters, and infrared heaters).
The first three representative product groups fall under the
definition of ``decorative hearth product'' while the final group meets
the definition of an ``outdoor heater.'' Performing separate analyses
on each representative product group will enable DOE to better account
for the differences among the products that comprise MGPs.
In addition to the general comments about the scope of potential
energy conservation standards discussed in the prior paragraphs,
commenters also had comments and questions about specific MGPs. For
instance, some commenters
[[Page 68933]]
requested additional clarity regarding the distinction between outdoor
heaters and hearth heaters, especially in cases where a heater has a
dual indoor and outdoor certification. (The Air-Conditioning, Heating,
and Refrigeration Institute, No. 9 at p. 1; Madison Indoor Air Quality,
No. 5 at pp. 1-2). In response, DOE notes that the definition for an
outdoor heater requires that the appliance be ``designed for use in
outdoor spaces only'', and therefore a product that is certified for
use both indoors and outdoors would not meet the definition of an
outdoor heater. DOE also notes that hearth heaters, which are similar
to decorative hearth products except that they are designed to provide
heat to the indoor space in which they are used,\4\ are not included
within the scope of this NODA. Hearth heaters are addressed as part of
a separate rulemaking process.\5\
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\4\ See 87 FR 36249, 36253.
\5\ See Docket No. EERE-2022-BT-STD-0018, available at:
www.regulations.gov/docket/eere-2022-bt-std-0018.
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Commenters also sought clarification on whether gas lights would
meet the definition of decorative hearth products because they present
a flame pattern, are designed for outdoor use (at least), are not
designed to be operated with a thermostat, and are not designed to
provide heat proximate to the unit. (Hearth, Patio, & Barbecue
Association, No. 7 at pp. 3-4) However, DOE has tentatively excluded
gas lights from the current analysis due to a lack of information
pertaining specifically to these products. Absent sufficient data, DOE
has tentatively concluded not to analyze standards for these products
at this time. Commenters also stated that if products with propane
tanks include a continuous pilot, the pilot would not be left on
because doing so would drain the fuel tank. (Hearth and Home
Technologies and the Outdoor GreatRoom Company, No. 6 at p. 10) DOE
agrees that continuous pilot lights are unlikely to be left on for
products with propane tanks. DOE has tentatively concluded that
portable propane products should not be included in this analysis
because there would be minimal energy savings associated with removing
standing pilots from these products.
Issue 1: DOE requests comment regarding these four representative
product groups.
Issue 2: DOE requests comment on its tentative decision to exclude
gas lights and portable propane products from the current analysis. DOE
also requests comment on an appropriate definition for gas lights in
order to distinguish them from other miscellaneous gas products, as
well as data specific to gas lights. DOE also requests comment on
whether any other products should be excluded from the current
rulemaking.
B. Analysis
1. Market and Technology Assessment
DOE generally develops information in a 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. In this NODA,
DOE presents initial findings from its review of the market and
technologies for MGPs, as well as findings related to the design
options that could improve the energy efficiency or reduce the energy
consumption of MGPs.
a. Market Assessment
As an initial step in analyzing the market for MGPs, DOE reviewed
the market to identify the MGPs currently available and constructed a
database of these products that includes information on their
characteristics, such as whether the main burner is lit by a pilot
ignition system or the main burner is lit directly without a pilot,
ignition methods of the pilot (if applicable) or main burner (e.g.,
electronic ignition, piezo ignition, etc.), pilot light control system
(if applicable) (e.g., continuous pilot, intermittent pilot, or pilot
on demand), the main burner input rate, and other characteristics.
Additional details about DOE's definitions of these features are
discussed in section III.C.1.b. of this document. As a starting point
in constructing a database for the current analysis, DOE reviewed the
list of manufacturers identified in the technical support document
(``TSD'') for a NOPR for hearth products published on February 9, 2015
(``February 2015 NOPR'').\6\ (See Docket EERE-2014-BT-STD-0036.)
Although the scope of the February 2015 NOPR differed from the scope of
MGPs, as defined in 10 CFR 430.2, DOE notes that many of the
manufacturers identified for that analysis also manufacture MGPs. DOE
collected information on MGPs available from many of these
manufacturers from brochures, specification sheets, installation
manuals, and other manufacturer literature available on manufacturer
websites. DOE also reviewed the Natural Resources Canada (``NRCan'')
database for gas fireplaces to identify additional manufacturers and
models of MGPs.\7\ Before adding any products from NRCan's database,
DOE first ensured these products are available for sale in the United
States. DOE supplemented data from NRCan's database with data gathered
directly from manufacturer websites. Lastly, DOE reviewed retailer
websites and conducted internet searches for MGPs to identify any
additional manufacturers that were not identified in either the
February 2015 NOPR or in NRCan's database and gathered information on
their models. DOE notes that the scope of the February 2015 NOPR was
different than the scope of this NODA,\8\ and similarly, the
definitions and scope of this NODA are not the same as the models
listed in the NRCan database, which includes fireplace heaters.
Therefore, DOE assessed each model individually and only included
models in its database that meet the definition of MGPs. DOE's product
database for MGPs currently includes information on over 3,500 models
and 64 brands, but DOE is continuing to research additional
manufacturers and models. To provide further context for the MGP
market, the following paragraphs discuss the relevant domestic and
international manufacturers of MGPs that DOE has currently identified.
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\6\ On December 31, 2013, DOE published a notice of proposed
determination of coverage (``NOPD'') for hearth products in the
Federal Register. 78 FR 79638 (``December 2013 NOPD''). In the
December 2013 NOPD, DOE proposed to define ``hearth product'' as a
gas-fired appliance that simulates a solid-fueled fireplace or
presents a flame pattern (for aesthetics or other purpose) and that
may provide space heating directly to the space in which it is
installed. However, DOE later withdrew the December 2013 NOPD in the
bi-annual publication of the Regulatory Agenda and the February 2015
NOPR was never finalized. 82 FR 40270, 40274.
\7\ NRCan's database of gas fireplaces is available here:
oee.nrcan.gc.ca/pml-lmp/index.cfm?action=app.search-recherche&appliance=FIREPLACE_G. (Last accessed October 5, 2022.)
\8\ The scope of the February 2015 NOPR included ``hearth
heaters'' which are not included within the scope of MGPs.
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The 64 brands of MGPs that DOE identified from its current database
were found to be associated with 36 manufacturers. Many of these
[[Page 68934]]
manufacturers import or privately label MGPs. From this list of
manufacturers, DOE has so far identified 19 original equipment
manufacturers (``OEMs'') with domestic manufacturing facilities for
MGPs sold in the United States. Of those 19 OEMs with domestic
manufacturing, 12 offer indoor vented gas log sets; 6 offer other
indoor vented decorative hearths; 3 offer outdoor patio heaters; and 16
offer outdoor decorative hearths. DOE understands that many companies
are OEM for key products but also source portions of their product
offerings. Publicly available information was insufficient to
consistently discern which specific product lines at a company are made
versus private labeled.
Based on the DOE-compiled product database, DOE identified the
manufacturers in Table III.1. DOE identifies OEMs with domestic
manufacturing facilities with an asterisk.
Table III.1--Manufacturers by Product Group
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Other
indoor Outdoor
Indoor vented Outdoor decorative
Manufacturer vented gas decorative patio hearth
log sets hearth heaters products
products
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Aei, Corporation........................................ ............ ............ X ............
American Gas Log, LLC *................................. X ............ ............ ............
Arizona Fasteners Corporation *......................... X ............ ............ X
AZ Patio Heaters, LLC................................... ............ ............ X X
Cal Spas Inc............................................ ............ ............ ............ X
Crown Verity............................................ ............ ............ X ............
Empire Comfort Systems, Inc *........................... X X ............ X
Enerco Group, Inc....................................... ............ ............ X ............
Ferrellgas Partners, L.P................................ ............ ............ ............ X
Gas-Fired Products, Inc *............................... ............ ............ X ............
Golden Blount *......................................... X X ............ X
Hargrove Manufacturing Co *............................. X ............ ............ X
Hearth Products Controls Co *........................... ............ ............ ............ X
Heatmaster, LLC *....................................... X ............ ............ X
HNI Corporation *....................................... X X ............ X
Infrared Dynamics, Inc.................................. ............ ............ X ............
IR Energy............................................... ............ ............ X ............
Island Industrial Services *............................ ............ X ............ X
Ksp Group, Inc *........................................ ............ ............ ............ X
Lava Heat Italia........................................ ............ ............ X ............
Lennox *................................................ X X ............ X
Lume Fire, LLC.......................................... ............ ............ ............ X
Mr. Bar-B-Q Products LLC................................ ............ ............ X X
Napoleon Systems & Developments Ltd..................... X X ............ X
Novacap Industries...................................... ............ ............ ............ X
Procom Heating, Inc *................................... X ............ X X
R.H. Peterson Co *...................................... X ............ ............ X
Rasmussen Iron Works, Inc *............................. X ............ X ............
R-Co Inc *.............................................. X ............ ............ X
S[oacute]las *.......................................... ............ ............ ............ X
Spark Modern Fires, LLC................................. ............ ............ ............ X
The Home Depot Inc...................................... ............ ............ X X
The Outdoor Greatroom Company LLP *..................... ............ ............ ............ X
Travis Industries, Inc *................................ ............ X ............ X
Wayfair Inc............................................. ............ X X X
Well Traveled Imports, Inc.............................. ............ ............ X X
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* OEMs with domestic manufacturing.
Issue 3: DOE requests comment on the OEMs identified for each
representative group: indoor vented gas log sets; other indoor vented
decorative hearths; outdoor patio heaters; and outdoor decorative
hearths. Additionally, DOE requests data on the number of OEMs with
domestic production facilities for each group. DOE also requests
comment on names of OEMs of MGPs that DOE did not identify in Table
III.1.
b. Description of Pilot and Ignition Systems Identified on the Market
DOE has identified several ignition system and pilot light
technologies available on the market, which DOE has tentatively defined
in order to provide a common understanding of these technologies
between stakeholders and DOE for the purposes of this analysis.
DOE is aware of the following types of main burner ignition
systems:
Pilot ignition, in which the main burner is ignited by a
pilot light; and
Direct Main Burner Ignition, in which the main burner is
ignited directly (i.e. the absence of a pilot light).
Additionally, DOE is aware of the following ignition methods that
can be utilized with either pilot ignition or direct main burner
ignition:
Electronic Ignition, in which an electronic spark
automatically lights the pilot or main burner and which uses line power
connection and/or battery power;
Push-button Battery Ignition, in which a spark is manually
generated by pushing a button to light the pilot or
[[Page 68935]]
main burner and which uses energy from a battery to create the spark;
Manually-lit Ignition, in which the pilot or main burner
is manually lit using a match or lighter;
Piezo Ignition, in which a piezo material creates a spark
to ignite the pilot or main burner without the need for a battery or
connection to line power; and,
Hot Surface Ignition, in which a material that is heated
through electricity is used to ignite the pilot or main burner.
Issue 4: DOE seeks comment regarding whether there are any ignition
methods that are not captured in this section, or if any of the listed
methods are not applicable to MGPs. DOE also seeks comment on whether
the above descriptions for each ignition method accurately reflect the
industry's understanding.
Additionally, DOE has observed the following types of pilot lights:
Continuous pilot (or ``standing pilot''), in which the
pilot is capable of burning indefinitely until manually turned off;
Intermittent or interrupted pilot, in which the pilot is
automatically lit when it is needed to light the main burner, and it
turns off automatically once the main burner turns off again or once
the main burner is lit; and,
Pilot on-demand, in which the pilot is automatically lit
and burns continuously as long as the main burner is operated within a
preprogrammed period of time (e.g., 7 days) and the pilot is
automatically shut off if the main burner is not operated within the
preset time period.
Finally, DOE has found that some products are capable of using more
than one of the ignition method or pilot light types described above.
For example, DOE has observed products that provide an option to switch
between intermittent pilot ignition, continuous pilot ignition, and/or
on-demand pilot ignition. However, DOE notes that an MGP with an
ignition system that features an option to select a continuous pilot
mode, regardless of whether it can also operate in intermittent pilot
and/or pilot on demand modes, meets DOE's definition of a continuous
pilot system since it is capable of operating continuously until the
pilot is manually extinguished. Further, such product would not meet
the definition of an intermittent pilot or pilot on demand because the
pilot will not necessarily turn off automatically when operating in
continuous pilot mode.
Issue 5: DOE seeks comment regarding whether there are any pilot
light technologies that are not captured in this section, or if any of
the listed technologies are not applicable to MGPs. DOE also requests
comment about any subsets of MGPs in which it would not be feasible to
implement the aforementioned technologies. DOE also seeks comment on
whether the above descriptions for each pilot light technology
accurately reflect the industry's understanding. Finally, DOE seeks
comment on the potential combinations of ignition systems and pilot
lights that are available on the market, and on the prevalence of these
combinations in each product group.
c. Technology Options
In its initial review of the market and technology, DOE has
identified seven technology options that would be expected to improve
the efficiency or reduce the energy consumption of MGPs, which include
the following:
Optimized air-to-fuel ratio. The mixture of air and fuel
for combustion determines key flame aspects for many MGPs, in
particular the flame color, height, and heat output. In order to
achieve flame characteristics that mimic wood-burning flames, gas-fired
MGPs utilize a ``rich'' mixture, that is, the ratio of air to fuel is
low. For many natural gas products, primary air is in fact not pre-
mixed, and what is burned is nearly 100 percent natural gas. This
results in a tall yellow flame. For propane products, air is pre-mixed
with fuel prior to combustion.
Optimized burner port design. Gas burners for many MGPs
comprise tubes with holes or slots through which the gas exits and
combusts. The holes or slots are designed with particular sizes and
patterns in order to achieve the desired flame pattern or aesthetic.
While the primary objective of optimizing gas burner ports is to
achieve the desired flame pattern, the ports could also be optimized to
deliver an acceptable flame aesthetic while reducing the amount of fuel
consumed.
Improved simulated log design. Many MGPs incorporate
cement, fiber, or ceramic logs that are designed to simulate the look
of wood logs. The log shapes are optimized in conjunction with the
burner design. The combination of the burner design and log shape,
size, and placement results in the overall aesthetic for the product.
Additionally, logs must be designed in conjunction with the burner to
ensure that flames do not impinge on the logs themselves, as this
causes the flame to cool and form soot. The log shape, size, placement,
and material may be optimized to potentially impact the energy
efficiency and/or energy use of products that include these design
elements.
Improved pan burner media/bead type. Many MGPs include an
ember material that glows and radiates when heated. In pan type
burners, sand is used to cover the burner and results in a flame
pattern. In some products, glass beads may be used in place of
simulated logs for effect. These media could potentially be selected to
produce a satisfactory flame pattern while reducing the required gas
consumption.
Reflective walls and/or other components inside combustion
zone. For MGPs that include a firebox or other enclosure, the interior
walls could potentially be painted with a reflective coating. This
could potentially give the illusion of more or taller flames, thereby
reducing the fuel required to achieve a satisfactory aesthetic. This
technology would only apply to the subset of products that include an
enclosure surrounding the flame.
Intermittent pilot. Intermittent pilot ignition systems
are described in section III.C.1.b of this document and reduce the
amount of fuel burned by the pilot when the main burner is not in use.
Pilot on-demand. Pilot on-demand ignition systems are
described in section III.C.1.b of this document and reduce the amount
of fuel burned by the pilot when the main burner is not in use.
Issue 6: DOE requests comment regarding whether these technology
options would impact the energy efficiency and/or energy use of MGPs.
In addition, DOE requests comment on whether any other technologies are
available to reduce the energy consumption of MGPs.
2. 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 commercially viable, existing
prototypes will not be considered further.
(2) Practicability to manufacture, install, and service. If it is
determined that mass production of a technology in commercial products
and reliable installation and servicing of the technology 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. If a technology is determined to
have a significant adverse impact on the utility
[[Page 68936]]
of the product to subgroups of consumers, or 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) Safety of technologies. 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 technology has
proprietary protection and represents a unique pathway to achieving a
given efficiency level, it 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.
DOE tentatively expects to screen out optimized air-to-fuel ratio,
optimized burner report design, improved simulated log design, improved
pan burner media/bead type, and reflective walls and/or other
components inside combustion zone because of the potential negative
impact on the aesthetics, and therefore utility, of MGPs. In contrast,
DOE has tentatively determined not to screen out intermittent pilot
ignition or pilot on-demand ignition.
Issue 7: DOE seeks comment regarding its tentative conclusion that
only intermittent pilot ignition and on-demand ignition pass the
screening criteria. DOE also requests comment on whether any other
technology options should pass the screening analysis.
3. Engineering Analysis
The purpose of the engineering analysis is to establish the
relationship between the efficiency and cost of MGPs. 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 (or in
this case, each representative product group), 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 life-cycle cost (``LCC'') and payback period (``PBP'')
analyses and the national impact analysis (``NIA'')). In this NODA, DOE
presents initial inputs and outputs for the engineering analysis and
solicits relevant data and information.
a. Design Options
As discussed in the June 2022 RFI, DOE is considering whether a
prescriptive design requirement would be appropriate for MGPs. 87 FR
35925, 35929. As noted in section III.C.2 of this document, DOE has
tentatively found that only intermittent pilot ignition and pilot on-
demand ignition would pass the screening criteria. For this NODA, DOE
tentatively focused its initial engineering analysis on the impacts of
a prescriptive design requirement that would prohibit the use of a
continuous pilot or pilot on-demand, as opposed to a performance-based
design standard and associated test procedure, because an intermittent
pilot ignition can reduce energy consumption of MGPs as compared to
continuous pilot and pilot on-demand ignition systems.
Additionally, as discussed in section III.B of this document, for
this analysis, DOE has tentatively divided MGPs into four
representative groups for analysis. For each of these groups, DOE
identified a baseline design that represents the most energy-
consumptive designs typical of that group. Specifically, for each MGP
product group, DOE has tentatively identified a standing pilot ignition
system as a baseline design characteristic. DOE has received feedback
from stakeholders that outdoor propane heaters which are not
permanently installed should not be included in its analysis because
the pilot on those units are not intended to stay lit when the product
is not in use. In its market research, DOE did identify propane-burning
products which provided instruction to extinguish the pilot when the
unit is not in use. However, DOE notes that the tentative description
of standing pilots which DOE is considering for this rulemaking (as
discussed in section III.C.1.b) considers a standing pilot to be a
pilot which is capable of burning indefinitely until manually turned
off. DOE notes that pilot systems for outdoor propane heaters which
provide additional instructions to extinguish the pilot light do not
match the description of an intermittent pilot because the pilot is not
necessarily extinguished automatically when the main burner is shut
off. Therefore, DOE has tentatively included outdoor propane heaters in
the analysis because they often include ignition systems that meet the
description of standing pilots.
Additionally, for each of the four product groups, DOE conducted
market research to evaluate what design options are often incorporated
in conjunction with standing pilot ignition that provides basic
functionality. Any components that are necessary for the product to
ignite the main burner and provide the necessary functionality are
included, while components that provide remote on/off functionality,
variable flame height, etc. are not included. These design options are
outlined in Table III.2.
Table III.2--Baseline Design Characteristics of Each Product Group
------------------------------------------------------------------------
Typical design characteristics for
Product group products including standing pilot
------------------------------------------------------------------------
Indoor vented gas log sets........ Standing pilot with manually-lit
pilot, on/off switch, and millivolt
gas valve.
Other indoor vented decorative Standing pilot with piezo ignition
hearth products. for pilot, on/off switch, and
millivolt gas valve.
Outdoor patio heaters............. Standing pilot with manually-lit
pilot and on/off switch.
Outdoor decorative hearths........ Standing pilot with piezo pilot
igniter and on/off switch.
------------------------------------------------------------------------
Issue 8: DOE requests comment regarding the baseline design
characteristics identified for each product group. DOE also requests
comment regarding whether additional clarity is needed regarding the
baseline design characteristics and the components in each design.
DOE then identified an alternative design for each product group
that could reduce the energy consumption of a standing pilot light. As
discussed,
[[Page 68937]]
DOE tentatively focused its initial engineering analysis for this NODA
on the impacts of a prescriptive design requirement that would prohibit
the use of a continuous pilot or pilot on-demand ignition systems.
Therefore, direct main burner ignition designs and other designs that
do not include pilots would not be affected by this rulemaking. The
design options typically found in products that include intermittent
pilot ignition and that offer similar consumer utility as comparable
products with constant pilot ignition systems are listed in Table III.3
for each of the four aforementioned product groups.
Table III.3--Design Characteristics Associated With Products That Do Not
Use Continuous Pilot or Pilot On-Demand
------------------------------------------------------------------------
Alternate design characteristics for
Product group products without standing pilot
------------------------------------------------------------------------
Indoor vented gas log sets........ Intermittent pilot with electronic
ignition, on/off switch, and
battery backup.
Other indoor vented decorative Intermittent pilot with electronic
hearth products. ignition, on/off switch, and
battery backup.
Outdoor patio heaters............. Intermittent pilot with electronic
ignition and on/off switch.
Outdoor decorative hearths........ Intermittent pilot with electronic
ignition and on/off switch.
------------------------------------------------------------------------
Issue 9: DOE requests comment regarding the alternate design
characteristics identified for each product group.
b. Teardown Analysis
For the current analysis, DOE plans to use physical teardowns to
estimate the cost to replace a continuous pilot with an intermittent
pilot. A physical teardown is an approach wherein DOE physically
dismantles a commercially available product, component-by-component, to
develop a detailed bill of materials (``BOM'') for the product. The
BOMs incorporate all materials, components, and fasteners (classified
as either raw materials or purchased parts and assemblies, and
characterize the materials and components by weight, manufacturing
processes used, dimensions, material, and quantity.
DOE uses the BOMs from the teardowns as inputs to calculate the MPC
for the representative product for each product type and for each
ignition type discussed in section. The materials and components in the
BOMs are converted into dollar values using a computer cost model. DOE
collects information on labor rates, tooling costs, raw material
prices, and other factors as inputs into the cost estimates.
For this NODA, DOE has developed draft MPCs using teardowns of
models from each of the for representative product groups. To compare
only the cost difference between standing pilot and intermittent pilot
models in each product group, DOE assessed the differences in major
components including the gas valve, the pilot assembly (pilot, sparker,
flame sensor, ignitor, thermocouple, etc.), the power supply, and the
battery pack, as applicable. DOE did not include costs for additional
features such as remote controls and accompanying remote receivers.
Remote control functionality may be found more commonly on intermittent
pilot ignition systems than on continuous pilot ignition systems, but
are not necessary for either type of ignition system, and therefore DOE
did not account for costs associated with such features.
For purchased parts, DOE estimates the purchase price based on
volume-variable price quotations and detailed discussions with
manufacturers and component suppliers. For parts fabricated in-house,
the prices of the underlying ``raw'' metals (e.g., tube, sheet metal)
are estimated on the basis of 5-year averages to smooth out spikes in
demand. Other ``raw'' materials, such as plastic resins, insulation
materials, etc., are estimated on a current-market basis. The costs of
raw materials are based on manufacturer interviews, quotes from
suppliers, and secondary research. Past results are updated
periodically and/or inflated to present-day prices using indices from
resources such as MEPS Intl.,\9\ PolymerUpdate,\10\ the U.S. geologic
survey (``USGS''),\11\ and the Bureau of Labor Statistics
(``BLS'').\12\ The cost of transforming the intermediate materials into
finished parts is estimated based on current industry pricing.
---------------------------------------------------------------------------
\9\ For more information on MEPS Intl, please visit:
www.meps.co.uk/ (Last accessed Sept. 23, 2022).
\10\ For more information on PolymerUpdate, please visit:
www.polymerupdate.com (Last accessed Sept. 23, 2022).
\11\ For more information on the USGS metal price statistics,
please visit www.usgs.gov/centers/nmic/commodity-statistics-and-information (Last accessed Sept. 23, 2022).
\12\ For more information on the BLS producer price indices,
please visit: www.bls.gov/ppi/ (Last accessed Sept. 23, 2022).
---------------------------------------------------------------------------
The MPC is, in part, a function of the annual production volume
since the production volume typically impacts the price the manufacture
pays for sourced components. The production volumes used in this
analysis are intended to reflect an average manufacturer in each
product group and are shown in Table III.4.
Table III.4--Estimated Product Volumes for MGPs
------------------------------------------------------------------------
Annual
Product group production
volume
------------------------------------------------------------------------
Indoor vented gas log sets.............................. 8,750
Other indoor vented decorative hearth products.......... 17,500
Outdoor patio heaters................................... 8,750
Outdoor decorative hearths.............................. 8,750
------------------------------------------------------------------------
The results of the engineering analysis performed for this NODA are
shown in Table III.5. The MPCs of the ``baseline design'' reflect the
cost to manufacture a basic design of a product that utilizes a
continuous pilot in each category, while the MPC for the ``alternate
ignition system'' reflects the MPC to manufacture an identical product
that utilizes an intermittent pilot ignition system rather than a
continuous pilot system. The MPC difference accounts for all design
changes necessary to replace the continuous pilot system with the
intermittent system.
[[Page 68938]]
Table III.5--Estimated Typical Manufacturer Production Costs
----------------------------------------------------------------------------------------------------------------
Alternate ignition
Product group Baseline design Baseline MPC system Alternate MPC
----------------------------------------------------------------------------------------------------------------
Indoor vented gas log sets........ Standing pilot with $223.95 Intermittent pilot $274.42
manually-lit pilot, with electronic
on/off switch and ignition, on/off
millivolt gas valve. switch, and battery
backup.
Other indoor decorative hearth Standing pilot with 340.30 Intermittent pilot 365.80
products. piezo ignition for with electronic
pilot, on/off ignition, on/off
switch, and switch, and battery
millivolt gas valve. backup.
Outdoor patio heaters............. Standing pilot with 235.32 Intermittent pilot 294.45
manually-lit pilot with electronic
and on/off switch. ignition and on/off
switch.
Outdoor decorative hearths........ Standing pilot with 167.17 Intermittent pilot 252.99
piezo igniter (for with electronic
lighting the pilot) ignition and on/off
and on/off switch. switch.
----------------------------------------------------------------------------------------------------------------
Issue 10: DOE seeks comment regarding the estimated MPCs for each
product group. Further, DOE seeks specific cost information and data
about MGP ignition system components. These components include the gas
valves, the pilot assembly, the power supply, and the battery pack.
Issue 11: DOE seeks feedback regarding the average production
volumes used in this analysis, and whether these values are
representative of the MGP market.
DOE converts MPC to the manufacturer selling price (``MSP'') by
multiplying by the manufacturer markup. MSP is the price the
manufacturer charges its first customer, when selling into product
distribution channels. MSPs include direct manufacturing production
costs (i.e., labor, materials, and overhead estimated in MPCs), non-
production costs (i.e., SG&A, R&D, and interest), and profit.
The manufacturer markup accounts for manufacturer non-production
costs and profit. DOE multiplied MPCs by an industry average
manufacturer markup of 1.5 to estimate MSPs.
Issue 12: DOE requests feedback on the industry average
manufacturer markup of 1.5 and whether this value is representative of
the MGP market. Additionally, DOE requests feedback on whether the
average manufacturer markups varies significantly across four groups:
indoor vented gas log sets, other indoor vented decorative hearths,
outdoor patio heaters; and outdoor decorative hearths.
4. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of MGPs at different efficiencies in representative
U.S. single-family homes, and multi-family residences, and to assess
the energy savings potential of increased MGP efficiency. The energy
use analysis estimates the range of energy use of MGPs in the field
(i.e., as they are actually used by consumers). The energy use analysis
provides the basis for other analyses DOE performed, particularly
assessments of the energy savings and the savings in consumer operating
costs that could result from adoption of amended or new standards.
In order to estimate the energy consumption of standing pilot
lights in MGPs, DOE must estimate the fraction of consumers that leave
their standing pilots on all year long vs. those that shut off the
standing pilot during some portion of the year. Table III.6 presents
standing pilot usage data from a survey of hearth products in U.S.
homes.\13\ The average operating hours for standing pilot lights from
this survey are 4593 hours per year. The survey primarily included
respondents with indoor fireplaces, log sets, or stoves, although a
small fraction of survey respondents had outdoor units. For outdoor
decorative products, DOE does not have any data suggesting that
standing pilot usage behavior is substantially different. For outdoor
heaters, DOE assumed in the proposed and final coverage determination
that standing pilot usage is 50 percent that of outdoor decorative
hearth products. 87 FR 6786, 6791. For portable propane outdoor units,
such as portable outdoor patio heaters, DOE assumes that standing
pilots are never left on as that would quickly drain the portable tank.
---------------------------------------------------------------------------
\13\ Siap, D. et al. (2017), ``Survey of Hearth Products in U.S.
Homes'', Lawrence Berkeley National Laboratory. (Available at:
ees.lbl.gov/publications/survey-hearth-products-us-homes) (last
accessed Oct. 4, 2022).
Table III.6--Standing Pilot Usage
------------------------------------------------------------------------
Fraction of
Standing pilot use consumers
------------------------------------------------------------------------
Always on............................................... 35%
Off when hearth is off.................................. 33%
Off in summer........................................... 32%
---------------
Total............................................... 100%
------------------------------------------------------------------------
As discussed in section III.C.1.b, an on-demand pilot will turn off
automatically after a certain period of time (typically one week), but
not immediately after the unit is turned off. Survey data \14\ suggest
that MGP users use their products at least once a week on average
during the heating season and therefore the average period between last
use and automatic turn-off is one week. As a result, on-demand pilot
lights operate for a similar amount of time during the heating season
as standing pilots.
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
Issue 13: DOE seeks comment regarding the estimated MGP operating
hours for standing pilots.
5. 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.
In order to estimate the LCC and PBP for MGPs, DOE must estimate
several input parameters including average product lifetime, repair and
maintenance costs, and the distribution of different ignition types in
the market.
[[Page 68939]]
In the February 2015 NOPR, DOE estimated that the average lifetime
of MGPs was 15 years, with a minimum lifetime of 5 years and a maximum
lifetime of 30 years.\15\ This lifetime estimate was the same across
all product categories. DOE continues to estimate the same average
lifetime for MGPs.
---------------------------------------------------------------------------
\15\ See chapter 8 of the Technical Support Document for the
February 2015 NOPR. (Available at: www.regulations.gov/document/EERE-2014-BT-STD-0036-0002) (last accessed Oct. 4, 2022).
---------------------------------------------------------------------------
In the February 2015 NOPR, DOE estimated repair costs for standing
pilot lights and intermittent ignition systems.\16\ These estimates are
presented in Table III.7 and Table III.8, corrected to 2021$ using the
Consumer Price Index. Labor hours are estimated from RSMeans 2022 data.
---------------------------------------------------------------------------
\16\ Id.
Table III.7--Repair Cost Estimates
----------------------------------------------------------------------------------------------------------------
Total labor
Repair description Group hours Cost
----------------------------------------------------------------------------------------------------------------
Standing Pilot Ignition....................... Indoor Vented Gas Log Sets...... 1.50 $39.10
Indoor Other Decorative Hearth 1.50 62.40
Products.
Outdoor Patio Heaters........... 1.50 107.73
Outdoor Decorative Hearths...... 1.50 107.73
Intermittent Ignition......................... Indoor Vented Gas Log Sets...... 1.50 127.80
Indoor Other Decorative Hearth 1.50 97.57
Products.
Outdoor Patio Heaters........... 1.50 177.75
Outdoor Decorative Hearths...... 1.50 177.75
----------------------------------------------------------------------------------------------------------------
Table III.8--Labor Cost Estimates
----------------------------------------------------------------------------------------------------------------
Cost per labor-hour
Crew type Crew description Laborers per -------------------------------
crew Bare costs Incl. O&P *
----------------------------------------------------------------------------------------------------------------
Q1 *.................................. 1 Plumber, 1 Plumber 2 $37.70 $61.50
Apprentice.
----------------------------------------------------------------------------------------------------------------
In the February 2015 NOPR, DOE estimated that approximately 14
percent of MGPs would experience an ignition system failure over the
lifetime of the product. If the failure occurred in the first year, DOE
assumed that the cost was covered by warranty; if the failure occurred
between 2 and 5 years, the consumer only paid labor costs; and if the
failure occurred after 5 years, the consumer paid labor and material
costs for the repair.\17\ DOE continues to estimate these same repair
costs for MGPs.
---------------------------------------------------------------------------
\17\ Id.
---------------------------------------------------------------------------
In order to estimate the fraction of consumers impacted by an
energy conservation standard at a given efficiency level, DOE must
estimate the distributions across different efficiency levels in the
market. A 2017 survey on hearth products in U.S. homes found that, at
the time, most consumers had MGPs with a standing pilot, as seen in
Table III.9.\18\ A more recent examination of models available on the
market (from retailer/manufacturer websites and product literature from
manufacturers of MGPs, as discussed in section III.C.1.a) shows some
variation among product groupings. In particular, there are fewer of
Other Indoor Vented Decorative Hearths, Outdoor Decorative Hearths, and
Outdoor Patio Heaters with a standing pilot. In particular, portable
propane units that fall within outdoor decorative hearths and outdoor
patio heaters do not have a standing pilot as that would quickly drain
the propane tank. DOE does not intend to analyze these portable propane
products. The updated estimates based on DOE's recent market research
are shown in Table III.10.
---------------------------------------------------------------------------
\18\ Siap, D. et al. (2017), ``Survey of Hearth Products in U.S.
Homes'', Lawrence Berkeley National Laboratory. (Available at:
ees.lbl.gov/publications/survey-hearth-products-us-homes) (last
accessed Oct. 4, 2022).
Table III.9--Ignition Type Distribution in the No-New-Standards Case
From 2017 Survey
------------------------------------------------------------------------
Market share
Ignition type (percent)
------------------------------------------------------------------------
Standing Pilot.......................................... 67
Intermittent Pilot...................................... 19
Manually-lit............................................ 14
---------------
Total............................................... 100
------------------------------------------------------------------------
Table III.10--Ignition Type Distribution in the No-New-Standards Case
From Available Models on the Market in DOE's Current Database
------------------------------------------------------------------------
Pilot type by Share
Product group category (percent)
------------------------------------------------------------------------
Indoor Vented Gas Log Sets........ Intermittent or On 23
Demand Pilot.
Standing Pilot...... 72
Direct Main Burner 5
Ignition.
Other Indoor Vented Decorative Intermittent or On 64
Hearth Products. Demand Pilot.
Standing Pilot...... 36
Direct Main Burner 0
Ignition.
Outdoor Decorative Hearths........ Intermittent or On 28
Demand Pilot.
Standing Pilot...... 27
Direct Main Burner 45
Ignition.
Outdoor Patio Heaters............. Intermittent or On 8
Demand Pilot.
Standing Pilot...... 22
[[Page 68940]]
Direct Main Burner 70
Ignition.
------------------------------------------------------------------------
Issue 14: DOE seeks comment regarding the estimated MGP lifetime,
particularly if there are differences among product categories (such as
indoor/outdoor products).
Issue 15: DOE seeks comment regarding the estimated MGP repair
costs.
Issue 16: DOE seeks comment regarding the estimated distribution of
ignition types among MGPs and the estimated fraction of products with
main burners that are manually lit.
6. 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 standards at specific efficiency levels (referred to as
candidate standard levels).\19\ 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 MGPs sold from 2029-2058.
---------------------------------------------------------------------------
\19\ The NIA accounts for impacts in the 50 states and U.S.
territories.
---------------------------------------------------------------------------
DOE evaluates the impacts of new or amended standards by comparing
a case without such standards with standards-case projections (``no-
new-standards case''). The no-new-standards case characterizes energy
use and consumer costs for each 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.
In order to estimate national impacts from 30 years of MGP
shipments, DOE must project future MGP shipments for each product
grouping based on historical shipments. For the February 2015 NOPR, DOE
received total historical shipment data from HPBA, however these data
included product categories that are not part of the current MGP
analysis.\20\ DOE notes that patio heaters were not included in the
submitted shipment data. DOE received additional data from HPBA to
clarify the categorization of some product groupings. From these data,
DOE estimated the market shares of various product types as shown in
Table III.12. Some of these product categories do not fall under the
definition of MGP, therefore the corrected market shares of MGP product
categories from the shipment data is shown in Table III.12. From these
market share and historical shipment data, DOE estimates total
historical MGP shipments as shown in Table III.13. DOE notes that
outdoor portable propane units are included in these market share
estimates and requests comment on their market share, so that they may
be excluded from the analysis.
---------------------------------------------------------------------------
\20\ See chapter 9 of the Technical Support Document for the
February 2015 NOPR. (Available at: www.regulations.gov/document/EERE-2014-BT-STD-0036-0002) (last accessed Oct. 4, 2022).
Table III.11--Market Share of Product Categories From Submitted Shipment
Data
------------------------------------------------------------------------
Market share
Product type (percent)
------------------------------------------------------------------------
Vented Fireplace........................................ 50.4
Unvented Fireplace...................................... 4.1
Vented Stove............................................ 4.1
Unvented Stove.......................................... 0.5
Vented Insert........................................... 7.2
Unvented Insert......................................... 0.2
Vented Gas Log.......................................... 6.7
Unvented Gas Log........................................ 20.1
Outdoor Units (Excluding Patio Heaters)................. 6.7
---------------
Total............................................... 100.0
------------------------------------------------------------------------
Table III.12--Market Share of MGP Product Categories Estimated From
Previous Data
------------------------------------------------------------------------
Market share
Product group (percent)
------------------------------------------------------------------------
Indoor Vented Gas Log Sets.............................. 8.2
Indoor Other Decorative Hearth Products................. 75.8
Outdoor Patio Heaters................................... 7.8
Outdoor Decorative Hearths.............................. 8.2
---------------
Total............................................... 100.0
------------------------------------------------------------------------
Table III.13--Estimated Historical Shipments of MGPs
------------------------------------------------------------------------
Total
historical
Year shipments of
MGPs
------------------------------------------------------------------------
2005.................................................... 1,338,749
2006.................................................... 1,029,272
2007.................................................... 892,789
2008.................................................... 621,562
2009.................................................... 365,983
2010.................................................... 385,108
2011.................................................... 334,687
2012.................................................... 345,119
2013.................................................... 464,216
2014.................................................... 319,885
2015.................................................... 412,812
2016.................................................... 379,017
2017.................................................... 416,992
2018.................................................... 406,917
2019.................................................... 377,377
2020.................................................... 395,499
2021.................................................... 455,259
------------------------------------------------------------------------
A more recent examination of models available on the market (from
retailer/manufacturer websites and product literature from
manufacturers of MGPs) based on DOE's current market database (as
discussed in section III.C.1.a) shows some variation from the above
market shares. These market shares are shown in Table III.14. DOE again
notes that outdoor portable propane units are included in these market
share estimates and requests comment on their market share, so that
they may be excluded from the analysis.
Table III.14--Market Share Breakdown of MGP Product Groups in Current
Database
------------------------------------------------------------------------
Market share
Product group (percent)
------------------------------------------------------------------------
Indoor Vented Gas Log Sets.............................. 48
[[Page 68941]]
Other Indoor Vented Decorative Hearth Products.......... 6
Outdoor Patio Heaters................................... 8
Outdoor Decorative Hearths.............................. 38
------------------------------------------------------------------------
Issue 17: DOE seeks comment regarding the estimated shipments of
MGPs and the market shares of different MGP product categories. In
particular, DOE requests comment on the market share of portable
propane outdoor units so that they may be excluded from the analysis.
7. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (``MIA'') is to
identify and quantify the impacts of any potential new and/or amended
energy conservation standards on manufacturers. DOE conducts the MIA in
three phases, and further tailors the analytical framework based on the
comments it receives. In Phase I, DOE creates an industry profile to
characterize the industry and identify important issues that require
consideration. In Phase II, DOE prepares an industry cash-flow model
and considers what information it might gather in manufacturer
interviews. In Phase III, DOE's contractors interview manufacturers and
assesses the impacts of standards both quantitatively and
qualitatively.
As part of DOE's rulemaking process, DOE's contractors reached out
to MGP manufacturers to conduct confidential manufacturer interviews in
2022. The interviews covered a range of topics, including manufacturer
key concerns, technology options, production costs, conversion costs,
financial metrics, market shares, shipment levels, manufacturer markup,
and competitive concerns. Given the sensitive nature of these topics,
the interviews were conducted under nondisclosure agreement with DOE's
contractors to ensure attributable data and sensitive business
information was maintained as confidential. Only aggregate information
was provided to the Department. DOE's contractors conducted interviews
with manufacturers that sell product in each of the groups: indoor
vented gas log sets, other indoor decorative hearth products, outdoor
patio heaters, and outdoor decorative hearths. The interviews provided
broadest coverage of indoor vented gas log set manufacturers. The
interviews included manufacturers that account for 39% of indoor vented
gas log sets models in the DOE-compiled product database.
IV. Public Participation
A. Submission of Comments
DOE will accept comments, data, and information regarding this NODA
no later than the date provided in the DATES section at the beginning
of this document. Interested parties may submit comments, data, and
other information using any of the methods described in the ADDRESSES
section at the beginning of this document.
Submitting comments via www.regulations.gov. The
www.regulations.gov web page will require you to provide your name and
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[[Page 68942]]
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).
B. Issues on Which DOE Seeks Comment
Issue 1: DOE requests comment on its tentative decision to exclude
gas lights and portable propane products from the current analysis. DOE
also requests comment on an appropriate definition for gas lights in
order to distinguish them from other miscellaneous gas products. DOE
also requests comment on whether any other products should be excluded
from the current rulemaking.
Issue 2: DOE requests comment regarding these four representative
product groups.
Issue 3: DOE requests comment on the OEMs identified for each
representative group: indoor vented gas log sets; other indoor vented
decorative hearths; outdoor patio heaters; and outdoor decorative
hearths. Additionally, DOE requests data on the number of OEMs with
domestic production facilities for each group. DOE also requests
comment on names of OEMs of MGPs that DOE did not identify in Table
III.1.
Issue 4: DOE seeks comment regarding whether there are any ignition
methods that are not captured in this section, or if any of the listed
methods are not applicable to MGPs. DOE also seeks comment on whether
the above descriptions for each ignition method accurately reflect the
industry's understanding.
Issue 5: DOE seeks comment regarding whether there are any pilot
light technologies that are not captured in this section, or if any of
the listed technologies are not applicable to MGPs. DOE also requests
comment about any subsets of MGPs in which it would not be feasible to
implement the aforementioned technologies. DOE also seeks comment on
whether the above descriptions for each pilot light technology
accurately reflect the industry's understanding. Finally, DOE seeks
comment on the potential combinations of ignition systems and pilot
lights that are available on the market, and on the prevalence of these
combinations in each product group.
Issue 6: DOE requests comment regarding whether these technology
options would impact the energy efficiency and/or energy use of MGPs.
In addition, DOE requests comment on whether any other technologies are
available to reduce the energy consumption of MGPs.
Issue 7: DOE seeks comment regarding its tentative conclusion that
only intermittent pilot ignition and on-demand ignition pass the
screening criteria. DOE also requests comment on whether any other
technology options should pass the screening analysis.
Issue 8: DOE requests comment regarding the baseline design
characteristics identified for each product group. DOE also requests
comment regarding whether additional clarity is needed regarding the
baseline design characteristics and the components in each design.
Issue 9: DOE requests comment regarding the alternate design
characteristics identified for each product group.
Issue 10: DOE seeks comment regarding the estimated MPCs for each
product group. Further, DOE seeks specific cost information and data
about MGP ignition system components. These components include the gas
valves, the pilot assembly, the power supply, and the battery pack.
Issue 11: DOE seeks feedback regarding the average production
volumes used in this analysis, and whether these values are
representative of the MGP market.
Issue 12: DOE requests feedback on the industry average
manufacturer markup of 1.5 and whether this value is representative of
the MGP market. Additionally, DOE requests feedback on whether the
average manufacturer markups varies significantly across four groups:
indoor vented gas log sets, other indoor vented decorative hearths,
outdoor patio heaters; and outdoor decorative hearths.
Issue 13: DOE seeks comment regarding the estimated MGP operating
hours for standing pilots.
Issue 14: DOE seeks comment regarding the estimated MGP lifetime,
particularly if there are differences among product categories (such as
indoor/outdoor products).
Issue 15: DOE seeks comment regarding the estimated MGP repair
costs.
Issue 16: DOE seeks comment regarding the estimated distribution of
ignition types among MGPs and the estimated fraction of products with
main burners that are manually lit.
Issue 17: DOE seeks comment regarding the estimated shipments of
MGPs and the market shares of different MGP product categories. In
particular, DOE requests comment on the market share of portable
propane outdoor units so that they may be excluded from the analysis.
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 November 7,
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 November 10, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-24925 Filed 11-16-22; 8:45 am]
BILLING CODE 6450-01-P