[Federal Register Volume 87, Number 228 (Tuesday, November 29, 2022)]
[Proposed Rules]
[Pages 73259-73267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25952]
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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. 228 / Tuesday, November 29, 2022 /
Proposed Rules
[[Page 73259]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2021-BT-STD-0031]
RIN 1904-AF19
Energy Conservation Program: Energy Conservation Standards for
Oil, Electric, and Weatherized Gas Consumer Furnaces
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 need for amended energy conservation standards for
non-weatherized oil-fired furnaces (``NWOFs''), mobile home oil-fired
furnaces (``MHOFs''), weatherized gas furnaces (``WGFs''), weatherized
oil-fired furnaces (``WOFs''), and electric furnaces (``EFs''). The
analysis is set forth in the Department's accompanying preliminary
technical support document (``TSD'') for this rulemaking. DOE will hold
a public meeting via webinar to discuss and receive comment on the
preliminary analysis. The meeting will cover the analytical framework,
models, and tools 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 30, 2023.
Meeting: DOE will hold a webinar on Monday, December 19, 2022, from
1:00 p.m. to 4:00 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-0031. Follow the instructions for submitting
comments. Alternatively, interested persons may submit comments,
identified by docket number EERE-2021-BT-STD-0031, by any of the
following methods:
Email: [email protected]. Include the docket
number EERE-2021-BT-STD-0031 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.
To inform interested parties and to facilitate this rulemaking
process, DOE has prepared an agenda, a preliminary TSD, and briefing
materials, which are available on the DOE website at: https://www.regulations.gov/document/EERE-2021-BT-STD-0031-0011.
Docket: The docket for this activity, which includes Federal
Register notices, comments, webinar 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-0031. 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. 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)
597-6737. Email: [email protected].
Ms. Kathryn McIntosh, U.S. Department of Energy, Office of the
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0121. Telephone: (202) 586-2002. Email:
[email protected].
For further information on how to submit a comment, review other
public comments and the docket, or participate in the webinar, 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
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
[[Page 73260]]
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 NWOFs, MHOFs, WGFs, WOFs, and EFs (collectively, oil, electric,
and weatherized gas consumer furnaces), the subject of this document.
(42 U.S.C. 6292(a)(5)) EPCA prescribed initial energy conservation
standards for these products (42 U.S.C. 6295(f)(1)-(2)), and directed
DOE to conduct two cycles of rulemakings to determine whether to amend
these standards. (42 U.S.C. 6295(f)(4)) 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)) DOE must make the analysis on which a
determination is based publicly available and provide an opportunity
for written comment. (42 U.S.C. 6295(m)(2)).
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Pub. L. 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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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 Preliminary Analysis to collect data and
information to inform its decision consistent with its obligations
under EPCA.
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products, including oil, electric, and
weatherized gas consumer furnaces. 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, some covered products and equipment have most of their energy
consumption occur during periods of peak energy demand. The impacts of
these products on the energy infrastructure can be more pronounced than
products with relatively constant demand. 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.
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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).
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DOE has initially determined the energy savings for the candidate
standard levels evaluated in this preliminary analysis rulemaking are
``significant'' within the meaning of 42 U.S.C. 6295(o)(3)(B).
To determine whether a standard is economically justified, EPCA
requires that DOE determine whether the benefits of the standard exceed
its burdens by considering, to the greatest extent practicable, the
following seven factors:
(1) The economic impact of the standard on the manufacturers and
consumers of the products subject to the standard;
(2) The savings in operating costs throughout the estimated average
life of the covered products in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products that are likely to result from the standard;
(3) The total projected amount of energy (or as applicable, water)
savings likely to result directly from the standard;
(4) Any lessening of the utility or the performance of the products
likely to result from the standard;
(5) The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
(6) The need for national energy and water conservation; and
(7) Other factors the Secretary of Energy (Secretary) considers
relevant.
(42 U.S.C. 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.
Table I.1--EPCA Requirements and Corresponding DOE Analysis
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EPCA requirement Corresponding DOE analysis
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Significant Energy Savings............. Shipments Analysis.
National Impact
Analysis.
Energy Use Analysis.
Technological Feasibility.............. Market and Technology
Assessment.
Screening Analysis.
Engineering Analysis.
Economic Justification:
[[Page 73261]]
1. Economic impact on manufacturers and Manufacturer Impact
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.\4\
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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\4\ 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)) DOE's current test procedures for consumer furnaces
address standby mode and off mode energy use.\5\ In this rulemaking,
DOE intends to consider such energy use when analyzing any amended
energy conservation standards it adopts in the final rule.
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\5\ The DOE test procedures for consumer furnaces appear at
title 10 of the Code of Federal Regulations (``CFR'') part 430,
subpart B, appendix N.
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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 of the preliminary TSD, which details the preliminary
analyses and summarizes the preliminary results of DOE's analyses. In
addition, DOE is announcing a webinar 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''), DOE notes that it is deviating from the
provision in appendix A regarding the pre-NOPR stages for an energy
conservation standards rulemaking. Section 6(a)(2) of
[[Page 73262]]
appendix A specifies 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.
As discussed further in section II.B of this document, prior to
this notification of the preliminary analysis, DOE published a request
for information (``RFI'') in the Federal Register in which DOE
identified and sought comment on the analyses conducted in support of
the most recent energy conservation standards rulemakings for oil,
electric, and weatherized gas consumer furnaces. 87 FR 4513 (January
28, 2022; ``January 2022 RFI''). In the January 2022 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 oil, electric, and weatherized gas
consumer furnaces. 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 January 2022 RFI. As such, DOE is not publishing a framework
document.
DOE notes that it is also deviating from section 6(d)(2) of
appendix A, which specifies 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
instead provide a 60-day comment period. As discussed, DOE previously
published the January 2022 RFI to determine whether any new or amended
standards may be warranted for oil, electric, and weatherized gas
consumer furnaces. 87 FR 4513. DOE requested comment in the January
2022 RFI on a variety of issues to aid in the development of its
technical and economic analyses and included a 31-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
rulemaking and the recently published notice of proposed rulemaking for
energy conservation standards for non-weatherized gas furnaces and
mobile home gas furnaces, which included a separate 60-day comment
period.\6\ Therefore, for this preliminary analysis, DOE has determined
that a 60-day comment period in conjunction with the January 2022 RFI's
prior 31-day comment period provides sufficient time for interested
parties to review the preliminary analysis and develop comments.
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\6\ DOE recently published a notice of proposed rulemaking and
request for comment for non-weatherized gas furnaces and mobile home
gas furnaces. 87 FR 40590 (July 7, 2022). See docket number EERE-
2014-BT-STD-0031, available at: www.regulations.gov/docket/EERE-2014-BT-STD-0031.
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II. Background
A. Current Standards
EPCA established the energy conservation standards that apply to
most consumer furnaces currently being manufactured, in terms of
minimum annual fuel utilization efficiency (``AFUE''). The original
standards established a minimum AFUE of 75 percent for mobile home
furnaces. For all other furnaces, the original standards generally
established a minimum AFUE of 78 percent. However, Congress recognized
the potential need for a separate standard based on the capacity of a
furnace and directed DOE to undertake a rulemaking to establish a
standard for ``small'' gas furnaces (i.e., those having an input of
less than 45,000 Btu per hour). (42 U.S.C. 6295(f)(1)-(2)) Through a
final rule published in the Federal Register on November 17, 1989, DOE
initially established standards for small furnaces at the same level as
furnaces generally (i.e., a minimum AFUE of 78 percent). 54 FR 47916,
47944.
EPCA also required DOE to conduct two rounds of rulemaking to
consider amended standards for consumer furnaces. (42 U.S.C.
6295(f)(4)(B)-(C)). In addition, EPCA requires a six-year-lookback
review of energy conservation standards for all covered products. (42
U.S.C. 6295(m)(1)) In a final rule published in the Federal Register on
November 19, 2007 (November 2007 final rule), DOE prescribed amended
energy conservation standards for consumer furnaces manufactured on or
after November 19, 2015. 72 FR 65136. The November 2007 final rule
revised the energy conservation standards to 80-percent AFUE for non-
weatherized gas-fired furnaces (``NWGFs''), to 81-percent AFUE for
weatherized gas furnaces (``WGFs''), to 80-percent AFUE for mobile home
gas-fired furnaces (``MHGFs''), and to 82-percent AFUE for non-
weatherized oil-fired furnaces (``NWOFs'').\7\ 72 FR 65136, 65169.
Based on market assessment and the standard levels at issue, the
November 2007 final rule established standards without regard to the
certified input capacity of a furnace. Id. Compliance with the amended
standards established in the November 2007 final rule was to be
required beginning November 19, 2015. Id.
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\7\ Although the November 2007 final rule did not explicitly
state the standards for oil-fired furnaces were applicable only to
non-weatherized oil-fired furnaces, the NOPR that preceded the final
rule made clear that DOE did not perform analysis of and was not
proposing standards for weatherized oil-fired furnaces or mobile
home oil-fired furnaces. 71 FR 59203, 52914 (October 6, 2006). Thus,
the proposed standards that were ultimately adopted in the November
2007 final rule only applied to non-weatherized oil-fired furnaces.
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Following DOE's adoption of the November 2007 final rule, several
parties jointly sued DOE in the United States Court of Appeals for the
Second Circuit (``Second Circuit'') to invalidate the rule. Petition
for Review, State of New York, et al. v. Department of Energy, et al.,
Nos. 08-0311-ag(L); 08-0312-ag(con) (2d Cir. filed Jan. 17, 2008). The
petitioners asserted that the standards for furnaces promulgated in the
November 2007 final rule did not reflect the ``maximum improvement in
energy efficiency'' that ``is technologically feasible and economically
justified'' under 42 U.S.C. 6295(o)(2)(A). On April 16, 2009, DOE filed
with the Court a motion for voluntary remand that the petitioners did
not oppose. The motion did not state that the November 2007 final rule
would be vacated, but indicated that DOE would revisit its initial
conclusions outlined in the November 2007 final rule in a subsequent
rulemaking action. DOE also agreed that the final rule in that
subsequent rulemaking action would address both regional standards for
furnaces, as well as the effects of alternate standards on natural gas
prices. The Second Circuit granted DOE's motion on April 21, 2009. DOE
notes that the Second Circuit's order did not vacate the energy
conservation standards set forth in the November 2007 final rule, and
during the remand, they went into effect as originally scheduled.
On June 27, 2011, DOE published a direct final rule (``DFR'') in
the Federal Register (``June 2011 DFR'') amending the energy
conservation standards for residential central air conditioners and
consumer furnaces. 76 FR 37408. Subsequently, on October 31, 2011, DOE
[[Page 73263]]
published a notice of effective date and compliance dates in the
Federal Register (``October 2011 notice'') to confirm amended energy
conservation standards and compliance dates contained in the June 2011
DFR. 76 FR 67037. The November 2007 final rule and the June 2011 DFR
represented the first and the second rounds, respectively, of the two
rulemakings required under 42 U.S.C. 6295(f)(4)(B)-(C) to consider
amending the energy conservation standards for consumer furnaces.
The June 2011 DFR and October 2011 notice of effective date and
compliance dates amended, in relevant part, the energy conservation
standards and compliance dates for three product classes of consumer
furnaces (i.e., NWGFs, MHGFs, and NWOFs).\8\ The existing standards
were left in place for three classes of consumer furnaces (i.e.,
weatherized oil-fired furnaces, mobile home oil-fired furnaces, and
electric furnaces). For one class of consumer furnaces (WGFs), the
existing standard was left in place, but the compliance date was
amended. Electrical standby mode and off mode energy consumption
standards were established for non-weatherized gas and oil-fired
furnaces (including mobile home furnaces) and electric furnaces.
Compliance with the energy conservation standards promulgated in the
June 2011 DFR was to be required on May 1, 2013 for non-weatherized
furnaces and on January 1, 2015 for weatherized furnaces. 76 FR 37408,
37547-37548 (June 27, 2011); 76 FR 67037, 67051 (Oct. 31, 2011). The
amended energy conservation standards and compliance dates in the June
2011 DFR superseded those standards and compliance dates promulgated by
the November 2007 final rule for NWGFs, MHGFs, and NWOFs. Similarly,
the amended compliance date for WGFs in the June 2011 DFR superseded
the compliance date in the November 2007 final rule.
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\8\ For NWGFs and MHGFs, the standards were amended to a level
of 80-percent AFUE nationally with a more-stringent 90-percent AFUE
requirement in the Northern Region. For non-weatherized oil-fired
furnaces, the standard was amended to 83-percent AFUE nationally. 76
FR 37408, 37410 (June 27, 2011).
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After publication of the October 2011 notice, the American Public
Gas Association (``APGA'') sued DOE \9\ in the United States Court of
Appeals for the District of Columbia Circuit to invalidate that rule as
it pertained to NWGFs. Petition for Review, American Public Gas
Association, et al. v. Department of Energy, et al., No. 11-1485 (D.C.
Cir. filed Dec. 23, 2011). The parties to the litigation engaged in
settlement negotiations which ultimately led to filing of an unopposed
motion on March 11, 2014, seeking to vacate DOE's rule in part and to
remand to the agency for further rulemaking. On April 24, 2014, the
Court granted the motion and ordered that the standards established for
NWGFs and MHGFs be vacated and remanded to DOE for further rulemaking.
As a result, the standards established by the June 2011 DFR for NWGFs
and MHGFs did not go into effect, and thus, required compliance with
the standards established in the November 2007 final rule for these
products began on November 19, 2015. As stated previously, the AFUE
standards for WOFs, MHOFs, and EFs were unchanged, and as such, the
original standards for those product classes remain in effect. Further,
the amended standard for NWOFs were not subject to the Court order, and
went into effect as specified in the June 2011 DFR. The AFUE standards
currently applicable to all residential furnaces,\10\ including the
five product classes for which DOE is analyzing amended standards in
this preliminary analysis, are set forth in DOE's regulations at 10 CFR
430.32(e)(1)(ii) and (iii). Tables II.1 and II.2 present the currently
applicable standards for NWOFs, MHOFs, WGFs, WOFs, and EFs, the subject
of this preliminary analysis.
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\9\ After APGA filed its petition for review on December 23,
2011, various entities subsequently intervened.
\10\ DOE divides consumer furnaces into seven classes for the
purpose of setting energy conservation standards: (1) NWGFs, (2)
MHGFs, (3) WGFs, (4) NWOFs, (5) MHOFs, (6) WOFs, and (7) electric
furnaces. 10 CFR 430.32(e)(1)(ii). As noted previously, DOE has been
analyzing amended standards for NWGFs and MHGFs as part of a
separate, ongoing rulemaking.
Table II.1--Federal Energy Conservation Standards for NWOFs, MHOFs,
WGFs, WOFs, and EFs
[AFUE]
------------------------------------------------------------------------
AFUE
Product class (percent)
------------------------------------------------------------------------
Non-weatherized oil-fired furnaces (not including mobile 83
home furnaces).........................................
Mobile Home oil-fired furnaces.......................... 75
Weatherized gas furnaces................................ 81
Weatherized oil-fired furnaces.......................... 78
Electric furnaces....................................... 78
------------------------------------------------------------------------
Table II.2--Federal Energy Conservation Standards for NWOFs and EFs
[Standby and off mode electrical power consumption]
----------------------------------------------------------------------------------------------------------------
Maximum standby mode Maximum off mode
electrical power electrical power
Product class consumption PW,SB consumption, PW,OFF
(watts) (watts)
----------------------------------------------------------------------------------------------------------------
Non-weatherized oil-fired furnaces (including mobile home 11 11
furnaces).................................................
Electric furnaces.......................................... 10 10
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B. Current Process
On January 28, 2022, DOE published the January 2022 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 oil, electric, and weatherized gas consumer
furnaces. 87 FR 4513. Specifically, through the published notice and
request for information, DOE sought data and
[[Page 73264]]
information that could enable the agency to determine whether amended
energy conservation standards would: (1) result in a significant
savings of energy; (2) be technologically feasible; and (3) be
economically justified. Id. As noted in section III.C of this document,
based on its preliminary findings, DOE did not analyze potential AFUE
standards for WOFs and EFs, and did not analyze new standby mode or off
mode standards for WGFs or WOFs because DOE tentatively determined that
there would be no energy savings from doing so.
Comments received to date as part of the current process have
helped DOE identify and resolve issues related to the preliminary
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the
comments received.
III. Summary of the Analyses Performed by DOE
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=59.
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 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 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 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.
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 oil, electric, and
weatherized gas consumer furnaces. 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 analyzed, DOE estimates
the manufacturer production cost (``MPC'') for the baseline as well as
higher efficiency levels.\11\ 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).
---------------------------------------------------------------------------
\11\ DOE did not consider amended AFUE standards for WOFs and
EFs as part of this preliminary analysis because DOE tentatively
determined that there would be no energy savings from doing so. For
WOFs, DOE is not aware of any models on the market, and thus, there
would be no potential energy savings from amending the AFUE standard
for WOFs. For EFs, the AFUE of models on the market is already
nearly 100 percent and DOE is not aware of technologies that would
further improve the AFUE. Further, DOE did not consider new standby
mode and off mode standards for WGFs or WOFs. For these classes, DOE
has previously concluded in the June 2011 DFR that these products
are packaged with either an air conditioner or heat pump, and that
the standards for these products, specified in terms of power
consumption in watts (PW,OFF) and Seasonal Energy
Efficiency Rating (``SEER''), already account for the standby mode
and off mode energy consumption for these classes. 76 FR 37408,
37433.
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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. 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.
[[Page 73265]]
D. Markups Analysis
The markups analysis develops appropriate markups (e.g., retailer
markups, distributor markups, contractor markups) in the distribution
chain and sales taxes to convert MSP estimates derived in the
engineering analysis to consumer prices, which are then used in the LCC
and PBP analysis. At each step in the distribution channel, companies
mark up the price of the product to cover business costs and profit
margin.
DOE developed baseline and incremental markups for each actor in
the distribution chain for consumer furnaces. 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.\12\
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\12\ 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 oil, electric, and weatherized gas consumer
furnaces.
E. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of oil, electric, and weatherized gas consumer
furnaces 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 efficiency. The energy use
analysis estimates the range of energy use of oil, electric, and
weatherized gas consumer furnaces 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 amended standards at specific efficiency levels (referred
to as candidate standard levels).\13\ 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 oil, electric, and weatherized gas consumer furnaces sold from 2030
through 2059.
---------------------------------------------------------------------------
\13\ 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 (``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
products 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 1.15 quads of potential full-
fuel-cycle (FFC) energy savings at the max- tech efficiency levels for
consumer oil, electric, and weatherized gas furnaces. Combined
potential FFC energy savings at Efficiency Level 1 for all product
classes considered in this preliminary analysis are estimated to be
0.96 quads. 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 CRE 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,
[[Page 73266]]
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=59. Participants are responsible for ensuring
their systems are compatible with the webinar software.
B. Procedure for Submitting Prepared General Statements for
Distribution
Any person who has an interest in the topics addressed in this
document, or who is representative of a group or class of persons that
has an interest in these issues, may request an opportunity to make an
oral presentation at the webinar. Such persons may submit 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
notification of availability of preliminary technical support document
before or after the webinar, but no later than the date provided in the
DATES section at the beginning of this document. Interested parties may
submit comments, data, and other information using any of the methods
described in the ADDRESSES section at the beginning of this document.
Submitting comments via 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
[[Page 73267]]
and, if possible, they should carry the electronic signature of the
author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: one copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
notification of the availability of the preliminary technical support
document and request for comment.
Signing Authority
This document of the Department of Energy was signed on November
21, 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 22, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-25952 Filed 11-28-22; 8:45 am]
BILLING CODE 6450-01-P