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    <VOL>88</VOL>
    <NO>241</NO>
    <DATE>Monday, December 18, 2023</DATE>
    <UNITNAME>Contents</UNITNAME>
    <CNTNTS>
        <AGCY>
            <EAR>
                Agriculture
                <PRTPAGE P="iii"/>
            </EAR>
            <HD>Agriculture Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Farm Service Agency</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Forest Service</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87385</PGS>
                    <FRDOCBP>2023-27672</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Army</EAR>
            <HD>Army Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87409-87410</PGS>
                    <FRDOCBP>2023-27728</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Census Bureau</EAR>
            <HD>Census Bureau</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Manufacturers' Shipments, Inventories, and Orders Survey, </SJDOC>
                    <PGS>87401-87402</PGS>
                    <FRDOCBP>2023-27722</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Survey of Housing Starts, Sales, and Completions, </SJDOC>
                    <PGS>87402-87403</PGS>
                    <FRDOCBP>2023-27729</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Disease</EAR>
            <HD>Centers for Disease Control and Prevention</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings etc.:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Board on Radiation and Worker Health, </SJDOC>
                    <PGS>87428-87429</PGS>
                    <FRDOCBP>2023-27716</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Medicare</EAR>
            <HD>Centers for Medicare &amp; Medicaid Services</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87429-87430</PGS>
                    <FRDOCBP>2023-27684</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Children</EAR>
            <HD>Children and Families Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Temporary Assistance for Needy Families Expenditure Report, </SJDOC>
                    <PGS>87430</PGS>
                    <FRDOCBP>2023-27756</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Coast Guard</EAR>
            <HD>Coast Guard</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Safety Zones:</SJ>
                <SJDENT>
                    <SJDOC>Illinois River Mile Markers 165-166, Peoria, IL, </SJDOC>
                    <PGS>87341-87343</PGS>
                    <FRDOCBP>2023-27757</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Upper Galveston Bay, Kemah, TX, </SJDOC>
                    <PGS>87343-87344</PGS>
                    <FRDOCBP>2023-27738</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commerce</EAR>
            <HD>Commerce Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Census Bureau</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign-Trade Zones Board</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>International Trade Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Oceanic and Atmospheric Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Defense Department</EAR>
            <HD>Defense Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Army Department</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Engineers Corps</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Navy Department</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87410-87414</PGS>
                    <FRDOCBP>2023-27721</FRDOCBP>
                      
                    <FRDOCBP>2023-27727</FRDOCBP>
                      
                    <FRDOCBP>2023-27730</FRDOCBP>
                      
                    <FRDOCBP>2023-27733</FRDOCBP>
                      
                    <FRDOCBP>2023-27734</FRDOCBP>
                      
                    <FRDOCBP>2023-27740</FRDOCBP>
                </DOCENT>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, </SJDOC>
                    <PGS>87427-87428</PGS>
                    <FRDOCBP>2023-27768</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals; Correction, </DOC>
                    <PGS>87412-87413</PGS>
                    <FRDOCBP>2023-27720</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Drug</EAR>
            <HD>Drug Enforcement Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Importer, Manufacturer or Bulk Manufacturer of Controlled Substances; Application, Registration, etc.:</SJ>
                <SJDENT>
                    <SJDOC>AJNA BioSciences, </SJDOC>
                    <PGS>87459</PGS>
                    <FRDOCBP>2023-27707</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Groff Health, Inc., </SJDOC>
                    <PGS>87459-87460</PGS>
                    <FRDOCBP>2023-27706</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Kinetochem LLC, </SJDOC>
                    <PGS>87458-87459</PGS>
                    <FRDOCBP>2023-27708</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Siegfried USA, LLC, </SJDOC>
                    <PGS>87459</PGS>
                    <FRDOCBP>2023-27705</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Education Department</EAR>
            <HD>Education Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Application for Grants under the Historically Black Colleges and Universities Master's Degree Program, </SJDOC>
                    <PGS>87417</PGS>
                    <FRDOCBP>2023-27704</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Evaluation of Full-Service Community Schools, </SJDOC>
                    <PGS>87416-87417</PGS>
                    <FRDOCBP>2023-27726</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Energy Department</EAR>
            <HD>Energy Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Energy Regulatory Commission</P>
            </SEE>
            <CAT>
                <HD>RULES</HD>
                <SJ>Energy Conservation Program:</SJ>
                <SJDENT>
                    <SJDOC>Energy Conservation Standards for Consumer Furnaces, </SJDOC>
                    <PGS>87502-87649</PGS>
                    <FRDOCBP>2023-25514</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Social Security Number Fraud Prevention Act, </DOC>
                    <PGS>87371-87375</PGS>
                    <FRDOCBP>2023-27616</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Change in Control:</SJ>
                <SJDENT>
                    <SJDOC>Venture Global Calcasieu Pass, LLC, Venture Global Plaquemines LNG, LLC, Venture Global CP2 LNG, LLC, </SJDOC>
                    <PGS>87418-87419</PGS>
                    <FRDOCBP>2023-27717</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings etc.:</SJ>
                <SJDENT>
                    <SJDOC>Environmental Management Site-Specific Advisory Board, Paducah, </SJDOC>
                    <PGS>87418</PGS>
                    <FRDOCBP>2023-27747</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Engineers</EAR>
            <HD>Engineers Corps</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Sparrows Point Container Terminal, Patapsco River, Baltimore County, MD, </SJDOC>
                    <PGS>87414-87415</PGS>
                    <FRDOCBP>2023-27650</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Environmental Protection</EAR>
            <HD>Environmental Protection Agency</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Air Quality State Implementation Plans; Approvals and Promulgations:</SJ>
                <SJDENT>
                    <SJDOC>Indiana; Volatile Organic Compounds; Cold Cleaner Degreasing, </SJDOC>
                    <PGS>87359-87360</PGS>
                    <FRDOCBP>2023-27552</FRDOCBP>
                </SJDENT>
                <SJ>Pesticide Tolerance; Exemptions, Petitions, Revocations, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Kasugamycin, </SJDOC>
                    <PGS>87361-87363</PGS>
                    <FRDOCBP>2023-27654</FRDOCBP>
                </SJDENT>
                <SJ>Significant New Uses:</SJ>
                <SJDENT>
                    <SJDOC>Certain Chemical Substances (22-2.5e), </SJDOC>
                    <PGS>87346-87358</PGS>
                    <FRDOCBP>2023-27653</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Comment:</SJ>
                <SJDENT>
                    <SJDOC>Initiation of Prioritization under the Toxic Substances Control Act, </SJDOC>
                    <PGS>87423-87426</PGS>
                    <FRDOCBP>2023-27641</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Farm Service
                <PRTPAGE P="iv"/>
            </EAR>
            <HD>Farm Service Agency</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>Agricultural Foreign Investment Disclosure Act Form Modernization and Information Collection Request, </SJDOC>
                    <PGS>87385-87393</PGS>
                    <FRDOCBP>2023-27683</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Aviation</EAR>
            <HD>Federal Aviation Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Airspace Designations and Reporting Points:</SJ>
                <SJDENT>
                    <SJDOC>Eastern United States, </SJDOC>
                    <PGS>87338-87339</PGS>
                    <FRDOCBP>2023-27606</FRDOCBP>
                </SJDENT>
                <SJ>Airworthiness Directives:</SJ>
                <SJDENT>
                    <SJDOC>Airbus Canada Limited Partnership (Type Certificate Previously Held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.) Airplanes, </SJDOC>
                    <PGS>87329-87331</PGS>
                    <FRDOCBP>2023-27677</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Bombardier, Inc., Airplanes, </SJDOC>
                    <PGS>87334-87336</PGS>
                    <FRDOCBP>2023-27679</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Embraer S.A. (Type Certificate Previously Held by Yabora Industria Aeronautica S.A.; Embraer S.A.; Empresa Brasileira de Aeronautica S.A. (EMBRAER)) Airplanes, </SJDOC>
                    <PGS>87336-87338</PGS>
                    <FRDOCBP>2023-27678</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MHI RJ Aviation ULC (Type Certificate Previously Held by Bombardier, Inc.) Airplanes, </SJDOC>
                    <PGS>87331-87334</PGS>
                    <FRDOCBP>2023-27680</FRDOCBP>
                </SJDENT>
                <SJ>Renaming of Restricted Areas:</SJ>
                <SJDENT>
                    <SJDOC>Fort Bragg, NC; Correction, </SJDOC>
                    <PGS>87339-87340</PGS>
                    <FRDOCBP>2023-27660</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Fort Rucker, AL; Correction, </SJDOC>
                    <PGS>87339</PGS>
                    <FRDOCBP>2023-27659</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Airspace Designations and Reporting Points:</SJ>
                <SJDENT>
                    <SJDOC>Eastern United States, </SJDOC>
                    <PGS>87377-87382</PGS>
                    <FRDOCBP>2023-27658</FRDOCBP>
                      
                    <FRDOCBP>2023-27664</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Klawock Airport, Klawock, AK, </SJDOC>
                    <PGS>87375-87377</PGS>
                    <FRDOCBP>2023-27670</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Wallops Island, VA, </SJDOC>
                    <PGS>87382-87384</PGS>
                    <FRDOCBP>2023-27593</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Energy</EAR>
            <HD>Federal Energy Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>Brown Bear II Hydro, Inc., </SJDOC>
                    <PGS>87420-87421</PGS>
                    <FRDOCBP>2023-27750</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Combined Filings, </DOC>
                    <PGS>87421-87423</PGS>
                    <FRDOCBP>2023-27752</FRDOCBP>
                      
                    <FRDOCBP>2023-27753</FRDOCBP>
                </DOCENT>
                <SJ>Final Engineering Guidelines for the Evaluation of Hydropower Projects:</SJ>
                <SJDENT>
                    <SJDOC>Chapter 11—Arch Dams, </SJDOC>
                    <PGS>87420</PGS>
                    <FRDOCBP>2023-27751</FRDOCBP>
                </SJDENT>
                <SJ>Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations:</SJ>
                <SJDENT>
                    <SJDOC>MS Solar 5, LLC, </SJDOC>
                    <PGS>87420</PGS>
                    <FRDOCBP>2023-27749</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Reserve</EAR>
            <HD>Federal Reserve System</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Change in Bank Control:</SJ>
                <SJDENT>
                    <SJDOC>Acquisitions of Shares of a Bank or Bank Holding Company, </SJDOC>
                    <PGS>87427</PGS>
                    <FRDOCBP>2023-27666</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Risk-based Capital Surcharges for Global Systemically Important Bank Holding Companies, </DOC>
                    <PGS>87426-87427</PGS>
                    <FRDOCBP>2023-27671</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Food and Drug</EAR>
            <HD>Food and Drug Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>A Survey on Quantitative Claims in Direct-to-Consumer Prescription Drug Advertising, </SJDOC>
                    <PGS>87431-87433</PGS>
                    <FRDOCBP>2023-27652</FRDOCBP>
                </SJDENT>
                <SJ>Guidance:</SJ>
                <SJDENT>
                    <SJDOC>Priority Zoonotic Animal Drug Designation and Review Process, </SJDOC>
                    <PGS>87433-87435</PGS>
                    <FRDOCBP>2023-27655</FRDOCBP>
                </SJDENT>
                <SJ>Withdrawal of Approval of Drug Application:</SJ>
                <SJDENT>
                    <SJDOC>Hoffmann-La Roche, Inc., et al., </SJDOC>
                    <PGS>87433</PGS>
                    <FRDOCBP>2023-27661</FRDOCBP>
                </SJDENT>
                <SJ>Withdrawal of Approval of Indication:</SJ>
                <SJDENT>
                    <SJDOC>Pharmacyclics LLC; Mantle Cell Lymphoma and Marginal Zone Lymphoma for Imbruvica (ibrutinib) Capsules and Tablets, </SJDOC>
                    <PGS>87435</PGS>
                    <FRDOCBP>2023-27662</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Assets</EAR>
            <HD>Foreign Assets Control Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Sanctions Action, </DOC>
                    <PGS>87482-87493</PGS>
                    <FRDOCBP>2023-27725</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Trade</EAR>
            <HD>Foreign-Trade Zones Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Authorization of Production Activity:</SJ>
                <SJDENT>
                    <SJDOC>Millipore Corp., Foreign-Trade Zone 81, Jaffrey, NH, </SJDOC>
                    <PGS>87403</PGS>
                    <FRDOCBP>2023-27743</FRDOCBP>
                </SJDENT>
                <SJ>Proposed Production Activity:</SJ>
                <SJDENT>
                    <SJDOC>Panasonic Energy Corp. of North America, Foreign-Trade Zone 17, De Soto, KS, </SJDOC>
                    <PGS>87403</PGS>
                    <FRDOCBP>2023-27700</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Forest</EAR>
            <HD>Forest Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Charter Amendments, Establishments, Renewals and Terminations:</SJ>
                <SJDENT>
                    <SJDOC>Black Hills National Forest Advisory Board; Solicitation of Nominations for Membership, </SJDOC>
                    <PGS>87400-87401</PGS>
                    <FRDOCBP>2023-27669</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Establishment for Secure Rural Schools Resource Advisory Committee and Requests for Nominations, </SJDOC>
                    <PGS>87398-87400</PGS>
                    <FRDOCBP>2023-27745</FRDOCBP>
                </SJDENT>
                <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Region 5 and Region 6; California, Oregon, and Washington; Forest Plan Amendment for Planning and Management of Northwest Forests within the Range of the Northern Spotted Owl, </SJDOC>
                    <PGS>87393-87398</PGS>
                    <FRDOCBP>2023-27742</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>General Services</EAR>
            <HD>General Services Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Federal Travel Regulation:</SJ>
                <SJDENT>
                    <SJDOC>Sustainable Transportation for Official Temporary Duty Travel, </SJDOC>
                    <PGS>87363</PGS>
                    <FRDOCBP>2023-27775</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, </SJDOC>
                    <PGS>87427-87428</PGS>
                    <FRDOCBP>2023-27768</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Health and Human</EAR>
            <HD>Health and Human Services Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Centers for Disease Control and Prevention</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Centers for Medicare &amp; Medicaid Services</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Children and Families Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Food and Drug Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Indian Health Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Institutes of Health</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Substance Abuse and Mental Health Services Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Homeland</EAR>
            <HD>Homeland Security Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Coast Guard</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>Department of Homeland Security Activities and Advancing Environmental Justice, </SJDOC>
                    <PGS>87445-87448</PGS>
                    <FRDOCBP>2023-27628</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Housing</EAR>
            <HD>Housing and Urban Development Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Housing Counseling Program; Application for Approval as a Housing Counseling Agency, </SJDOC>
                    <PGS>87452-87453</PGS>
                    <FRDOCBP>2023-27702</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Loan Sale Bidder Qualification Statement, </SJDOC>
                    <PGS>87453-87454</PGS>
                    <FRDOCBP>2023-27703</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Secretary's Awards Including the Award for Public-Philanthropic Partnerships, Awards for Healthy Homes, Award for Excellence in Historic Preservation, etc., </SJDOC>
                    <PGS>87448-87450</PGS>
                    <FRDOCBP>2023-27701</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>87450-87452</PGS>
                    <FRDOCBP>2023-27709</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Indian Health
                <PRTPAGE P="v"/>
            </EAR>
            <HD>Indian Health Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Funding Opportunity:</SJ>
                <SJDENT>
                    <SJDOC>Community Opioid Intervention Prevention Program, </SJDOC>
                    <PGS>87435-87444</PGS>
                    <FRDOCBP>2023-27765</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Institute of Museum and Library Services</EAR>
            <HD>Institute of Museum and Library Services</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Generic Clearance to Conduct Pre-Testing of Surveys, </SJDOC>
                    <PGS>87462-87463</PGS>
                    <FRDOCBP>2023-27694</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Granicus Email Marketing, </SJDOC>
                    <PGS>87461-87462</PGS>
                    <FRDOCBP>2023-27695</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Interior</EAR>
            <HD>Interior Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Land Management Bureau</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Park Service</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>International Trade Adm</EAR>
            <HD>International Trade Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Antidumping or Countervailing Duty Investigations, Orders, or Reviews:</SJ>
                <SJDENT>
                    <SJDOC>Brass Rod from India, </SJDOC>
                    <PGS>87407-87408</PGS>
                    <FRDOCBP>2023-27698</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Certain Pea Protein from the People's Republic of China, </SJDOC>
                    <PGS>87403-87406</PGS>
                    <FRDOCBP>2023-27699</FRDOCBP>
                </SJDENT>
                <SJ>Limitation of Duty-Free Imports:</SJ>
                <SJDENT>
                    <SJDOC>Apparel Articles Assembled in Haiti under the Caribbean Basin Economic Recovery Act, as amended by the Haitian Hemispheric Opportunity through Partnership Encouragement Act, </SJDOC>
                    <PGS>87406-87407</PGS>
                    <FRDOCBP>2023-27723</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Com</EAR>
            <HD>International Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Complaint, </DOC>
                    <PGS>87457-87458</PGS>
                    <FRDOCBP>2023-27767</FRDOCBP>
                </DOCENT>
                <SJ>Investigations; Determinations, Modifications, and Rulings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Large Power Transformers from South Korea, </SJDOC>
                    <PGS>87457</PGS>
                    <FRDOCBP>2023-27657</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Judicial Conference</EAR>
            <HD>Judicial Conference of the United States</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings etc.:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Committee on Bankruptcy Rules, </SJDOC>
                    <PGS>87458</PGS>
                    <FRDOCBP>2023-27766</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Justice Department</EAR>
            <HD>Justice Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Drug Enforcement Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Labor Department</EAR>
            <HD>Labor Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Occupational Safety and Health Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Land</EAR>
            <HD>Land Management Bureau</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Roped and Aerial Activities in the Moab Canyons Special Wildlife Area (in and near Mineral and Hell Roaring Canyons) in Grand County, UT, </DOC>
                    <PGS>87363-87365</PGS>
                    <FRDOCBP>2023-27746</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Realty Action:</SJ>
                <SJDENT>
                    <SJDOC>Recreation and Public Purposes Act Classification of Public Lands for Lease or Conveyance as a Community Park and Fire Station Complex in Henderson, NV, </SJDOC>
                    <PGS>87454-87455</PGS>
                    <FRDOCBP>2023-27710</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>NASA</EAR>
            <HD>National Aeronautics and Space Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, </SJDOC>
                    <PGS>87427-87428</PGS>
                    <FRDOCBP>2023-27768</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Foundation</EAR>
            <HD>National Foundation on the Arts and the Humanities</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Institute of Museum and Library Services</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>National Institute</EAR>
            <HD>National Institutes of Health</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Institute of Dental and Craniofacial Research, </SJDOC>
                    <PGS>87444-87445</PGS>
                    <FRDOCBP>2023-27744</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute on Aging, </SJDOC>
                    <PGS>87444</PGS>
                    <FRDOCBP>2023-27685</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Oceanic</EAR>
            <HD>National Oceanic and Atmospheric Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic:</SJ>
                <SJDENT>
                    <SJDOC>Reef Fish Fishery of the Gulf of Mexico; Greater Amberjack Emergency Management Measures, </SJDOC>
                    <PGS>87365-87368</PGS>
                    <FRDOCBP>2023-27714</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries of the Northeastern United States:</SJ>
                <SJDENT>
                    <SJDOC>Northeast Multispecies Fishery; Gulf of Maine Cod Trimester Total Allowable Catch Area Closure and Possession Limit Adjustments for the Common Pool Fishery, </SJDOC>
                    <PGS>87368-87369</PGS>
                    <FRDOCBP>2023-27748</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries off West Coast States:</SJ>
                <SJDENT>
                    <SJDOC>West Coast Groundfish Electronic Monitoring Program; Service Provider Revisions; Correction, </SJDOC>
                    <PGS>87369-87370</PGS>
                    <FRDOCBP>2023-27715</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>U.S.-Canada Albacore Treaty Reporting System, </SJDOC>
                    <PGS>87408-87409</PGS>
                    <FRDOCBP>2023-27764</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Park</EAR>
            <HD>National Park Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>National Register of Historic Places:</SJ>
                <SJDENT>
                    <SJDOC>Pending Nominations and Related Actions, </SJDOC>
                    <PGS>87455-87456</PGS>
                    <FRDOCBP>2023-27762</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Navy</EAR>
            <HD>Navy Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87415-87416</PGS>
                    <FRDOCBP>2023-27731</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Nuclear Regulatory</EAR>
            <HD>Nuclear Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>87463</PGS>
                    <FRDOCBP>2023-27838</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Occupational Safety Health Adm</EAR>
            <HD>Occupational Safety and Health Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Nationally Recognized Testing Laboratories:</SJ>
                <SJDENT>
                    <SJDOC>Intertek Testing Services NA, Inc.; Application for Expansion of Recognition, </SJDOC>
                    <PGS>87460-87461</PGS>
                    <FRDOCBP>2023-27697</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Pension Benefit</EAR>
            <HD>Pension Benefit Guaranty Corporation</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Allocation of Assets in Single-Employer Plans:</SJ>
                <SJDENT>
                    <SJDOC>Interest Assumptions for Valuing Benefits, </SJDOC>
                    <PGS>87340-87341</PGS>
                    <FRDOCBP>2023-27690</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Pipeline</EAR>
            <HD>Pipeline and Hazardous Materials Safety Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Hazardous Materials, </SJDOC>
                    <PGS>87481-87482</PGS>
                    <FRDOCBP>2023-27719</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Postal Regulatory</EAR>
            <HD>Postal Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Inbound Competitive PRIME Registered Service Agreement, </DOC>
                    <PGS>87463-87465</PGS>
                    <FRDOCBP>2023-27651</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Postal Service
                <PRTPAGE P="vi"/>
            </EAR>
            <HD>Postal Service</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>International Mailing Services:</SJ>
                <SJDENT>
                    <SJDOC>Price Changes, </SJDOC>
                    <PGS>87344-87346</PGS>
                    <FRDOCBP>2023-27760</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Science Technology</EAR>
            <HD>Science and Technology Policy Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>Development of a Federal Environmental Justice Science, Data, and Research Plan, </SJDOC>
                    <PGS>87465</PGS>
                    <FRDOCBP>2023-27632</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Securities</EAR>
            <HD>Securities and Exchange Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>87466</PGS>
                    <FRDOCBP>2023-27848</FRDOCBP>
                </DOCENT>
                <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
                <SJDENT>
                    <SJDOC>Cboe BZX Exchange, Inc., </SJDOC>
                    <PGS>87476-87480</PGS>
                    <FRDOCBP>2023-27675</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq ISE, LLC, </SJDOC>
                    <PGS>87468-87476</PGS>
                    <FRDOCBP>2023-27674</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq PHLX LLC, </SJDOC>
                    <PGS>87466-87468</PGS>
                    <FRDOCBP>2023-27676</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Small Business</EAR>
            <HD>Small Business Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>87480-87481</PGS>
                    <FRDOCBP>2023-27663</FRDOCBP>
                      
                    <FRDOCBP>2023-27668</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>State Department</EAR>
            <HD>State Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Culturally Significant Objects Imported for Exhibition:</SJ>
                <SJDENT>
                    <SJDOC>Weaving Abstraction in Ancient and Modern Art, </SJDOC>
                    <PGS>87481</PGS>
                    <FRDOCBP>2023-27696</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Substance</EAR>
            <HD>Substance Abuse and Mental Health Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings etc.:</SJ>
                <SJDENT>
                    <SJDOC>Tribal Technical Advisory Committee, </SJDOC>
                    <PGS>87445</PGS>
                    <FRDOCBP>2023-27471</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Transportation Department</EAR>
            <HD>Transportation Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Aviation Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Pipeline and Hazardous Materials Safety Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Treasury</EAR>
            <HD>Treasury Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign Assets Control Office</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Veteran Affairs</EAR>
            <HD>Veterans Affairs Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Advance Directive: Durable Power of Attorney for Health Care and Living Will, </SJDOC>
                    <PGS>87500</PGS>
                    <FRDOCBP>2023-27656</FRDOCBP>
                </SJDENT>
                <SJ>Environmental Assessments; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Cemetery Administration, </SJDOC>
                    <PGS>87493-87494</PGS>
                    <FRDOCBP>2023-27713</FRDOCBP>
                </SJDENT>
                <SJ>Funding Opportunity:</SJ>
                <SJDENT>
                    <SJDOC>Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness Grant Program, </SJDOC>
                    <PGS>87494-87499</PGS>
                    <FRDOCBP>2023-27691</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <PTS>
            <HD SOURCE="HED">Separate Parts In This Issue</HD>
            <HD>Part II</HD>
            <DOCENT>
                <DOC>Energy Department, </DOC>
                <PGS>87502-87649</PGS>
                <FRDOCBP>2023-25514</FRDOCBP>
            </DOCENT>
        </PTS>
        <AIDS>
            <HD SOURCE="HED">Reader Aids</HD>
            <P>Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.</P>
            <P>To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription.</P>
        </AIDS>
    </CNTNTS>
    <VOL>88</VOL>
    <NO>241</NO>
    <DATE>Monday, December 18, 2023</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <RULES>
        <RULE>
            <PREAMB>
                <PRTPAGE P="87329"/>
                <AGENCY TYPE="F">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2023-2229; Project Identifier MCAI-2023-00736-T; Amendment 39-22617; AD 2023-24-01]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Airbus Canada Limited Partnership (Type Certificate Previously Held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.) Airplanes</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for certain Airbus Canada Limited Partnership Model BD-500-1A10 and BD-500-1A11 airplanes. This AD was prompted by a reported interference between the pilot valve fittings and their mating holes in the rear spar of the center wing box (CWB). This AD requires replacing the pilot valve fittings, as specified in a Transport Canada AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective January 2, 2024.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of January 2, 2024.</P>
                    <P>The FAA must receive comments on this AD by February 1, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         202-493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-2229; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The street address for Docket Operations is listed above.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For material incorporated by reference in this AD, contact Transport Canada, Transport Canada National Aircraft Certification, 159 Cleopatra Drive, Nepean, Ontario K1A 0N5, Canada; telephone 888-663-3639; email 
                        <E T="03">TC.AirworthinessDirectives-Consignesdenavigabilite.TC@tc.gc.ca.</E>
                         You may find this material on the Transport Canada website at 
                        <E T="03">tc.canada.ca/en/aviation.</E>
                    </P>
                    <P>
                        • You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-2229.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Gabriel Kim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: 516-228-7300; email: 
                        <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>
                    The FAA invites you to send any written data, views, or arguments about this final rule. Send your comments to an address listed under 
                    <E T="02">ADDRESSES</E>
                    . Include “Docket No. FAA-2023-2229; Project Identifier MCAI-2023-00736-T” at the beginning of your comments. The most helpful comments reference a specific portion of the final rule, explain the reason for any recommended change, and include supporting data. The FAA will consider all comments received by the closing date and may amend this final rule because of those comments.
                </P>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in 14 CFR 11.35, the FAA will post all comments received, without change, to 
                    <E T="03">regulations.gov,</E>
                     including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this final rule.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>
                    CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this AD contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this AD, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this AD. Submissions containing CBI should be sent to Gabriel Kim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: 516-228-7300; email: 
                    <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                     Any commentary that the FAA receives which is not specifically designated as CBI will be placed in the public docket for this rulemaking.
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    Transport Canada, which is the aviation authority for Canada, has issued Transport Canada AD CF-2023-39, dated June 6, 2023 (Transport Canada AD CF-2023-39) (also referred to as the MCAI), to correct an unsafe condition for certain Airbus Canada Limited Partnership Model BD-500-1A10 and BD-500-1A11 airplanes. The MCAI states that an interference condition was found during airplane manufacturing between the pilot valve fittings and their mating holes in the rear spar of the CWB. The interference condition could damage the fitting and result in the fitting's failure under induced fatigue. Fitting failure could lead to a failure of its shroud attachment and subsequent fuel leak into the area 
                    <PRTPAGE P="87330"/>
                    behind the rear spar and into the landing gear bay. Such significant fuel leak, combined with a potential ignition source such as a failure of a bleed duct or a failure of wires/connectors in these areas, could create a fire hazard on the airplane.
                </P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2023-2229.
                </P>
                <HD SOURCE="HD1">Related Service Information Under 1 CFR Part 51</HD>
                <P>
                    Transport Canada AD CF-2023-39 specifies procedures for replacing the pilot valve fittings with redesigned fittings. This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">FAA's Determination</HD>
                <P>This product has been approved by the aviation authority of another country and is approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA is issuing this AD after determining that the unsafe condition described previously is likely to exist or develop on other products of the same type design.</P>
                <HD SOURCE="HD1">Requirements of This AD</HD>
                <P>This AD requires accomplishing the actions specified in Transport Canada AD CF-2023-39 described previously, except for any differences identified as exceptions in the regulatory text of this AD.</P>
                <HD SOURCE="HD1">Explanation of Required Compliance Information</HD>
                <P>
                    In the FAA's ongoing efforts to improve the efficiency of the AD process, the FAA developed a process to use some civil aviation authority (CAA) ADs as the primary source of information for compliance with requirements for corresponding FAA ADs. The FAA has been coordinating this process with manufacturers and CAAs. As a result, Transport Canada AD CF-2023-39 is incorporated by reference in this AD. This AD requires compliance with Transport Canada AD CF-2023-39 in its entirety through that incorporation, except for any differences identified as exceptions in the regulatory text of this AD. Service information required by Transport Canada AD CF-2023-39 for compliance will be available at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2023-2229 after this AD is published.
                </P>
                <HD SOURCE="HD1">FAA's Justification and Determination of the Effective Date</HD>
                <P>
                    Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) authorizes agencies to dispense with notice and comment procedures for rules when the agency, for “good cause,” finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under this section, an agency, upon finding good cause, may issue a final rule without providing notice and seeking comment prior to issuance. Further, section 553(d) of the APA authorizes agencies to make rules effective in less than thirty days, upon a finding of good cause.
                </P>
                <P>There are currently no domestic operators of these products. Accordingly, notice and opportunity for prior public comment are unnecessary, pursuant to 5 U.S.C. 553(b)(3)(B). In addition, for the forgoing reason(s), the FAA finds that good cause exists pursuant to 5 U.S.C. 553(d) for making this amendment effective in less than 30 days.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act (RFA)</HD>
                <P>The requirements of the RFA do not apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and comment. Because the FAA has determined that it has good cause to adopt this rule without notice and comment, RFA analysis is not required.</P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>Currently, there are no affected U.S.-registered airplanes. If an affected airplane is imported and placed on the U.S. Register in the future, the FAA provides the following cost estimates to comply with this AD:</P>
                <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s150,12C,12C">
                    <TTITLE>Estimated Costs for Required Actions</TTITLE>
                    <BOXHD>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">Cost per product</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">30 work-hours × $85 per hour = $2,550</ENT>
                        <ENT>$7,549</ENT>
                        <ENT>$10,099</ENT>
                    </ROW>
                </GPOTABLE>
                <P>According to the manufacturer, some or all of the costs of this AD may be covered under warranty, thereby reducing the cost impact on affected individuals. The FAA does not control warranty coverage for affected individuals. As a result, the FAA has included all known costs in the cost estimate.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866, and</P>
                <P>(2) Will not affect intrastate aviation in Alaska.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>
                    Accordingly, under the authority delegated to me by the Administrator, 
                    <PRTPAGE P="87331"/>
                    the FAA amends 14 CFR part 39 as follows:
                </P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13 </SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2023-24-01 Airbus Canada Limited Partnership (Type Certificate Previously Held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.):</E>
                             Amendment 39-22617; Docket No. FAA-2023-2229; Project Identifier MCAI-2023-00736-T.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective January 2, 2024.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Airbus Canada Limited Partnership (Type Certificate previously held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.) Model BD-500-1A10 and BD-500-1A11 airplanes, certificated in any category, as identified in Transport Canada AD CF-2023-39, dated June 6, 2023 (Transport Canada AD CF-2023-39).</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 28, Fuel.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by a reported interference between the pilot valve fittings and their mating holes in the rear spar of the center wing box. The FAA is issuing this AD to address fitting failure, which could lead to a failure of its shroud attachment and subsequent fuel leak into the area behind the rear spar and into the landing gear bay. Such significant fuel leak, combined with a potential ignition source such as a failure of a bleed duct or a failure of wires/connectors in these areas, could create a fire hazard on the airplane.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Requirements</HD>
                        <P>Except as specified in paragraph (h) of this AD: Comply with all required actions and compliance times specified in, and in accordance with, Transport Canada AD CF-2023-39.</P>
                        <HD SOURCE="HD1">(h) Exception to Transport Canada AD CF-2023-39</HD>
                        <P>Where Transport Canada AD CF-2023-39 refers to its effective date, this AD requires using the effective date of this AD.</P>
                        <HD SOURCE="HD1">(i) Additional AD Provisions</HD>
                        <P>The following provisions also apply to this AD:</P>
                        <P>
                            (1) 
                            <E T="03">Alternative Methods of Compliance (AMOCs):</E>
                             The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or responsible Flight Standards Office, as appropriate. If sending information directly to the International Validation Branch, send it to the attention of the person identified in paragraph (j)(1) of this AD. Information may be emailed to: 
                            <E T="03">9-AVS-AIR-730-AMOC@faa.gov.</E>
                             Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the responsible Flight Standards Office.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Contacting the Manufacturer:</E>
                             For any requirement in this AD to obtain instructions from a manufacturer, the instructions must be accomplished using a method approved by the Manager, International Validation Branch, FAA; or Transport Canada; or Airbus Canada Limited Partnership's Transport Canada Design Approval Organization (DAO). If approved by the DAO, the approval must include the DAO-authorized signature.
                        </P>
                        <HD SOURCE="HD1">(j) Additional Information</HD>
                        <P>
                            (1) For more information about this AD, contact Gabriel Kim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: 516-228-7300; email: 
                            <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                        </P>
                        <P>
                            (2) For Airbus Canada Limited Partnership service information identified in this AD that is not incorporated by reference, contact Airbus Canada Limited Partnership, 13100 Henri-Fabre Boulevard, Mirabel, Québec J7N 3C6, Canada; telephone 450-476-7676; email a220_
                            <E T="03">crc@abc.airbus</E>
                            ; website 
                            <E T="03">a220world.airbus.com.</E>
                             You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195.
                        </P>
                        <HD SOURCE="HD1">(k) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise.</P>
                        <P>(i) Transport Canada AD CF-2023-39, dated June 6, 2023.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For Transport Canada AD CF-2023-39, contact Transport Canada, Transport Canada National Aircraft Certification, 159 Cleopatra Drive, Nepean, Ontario K1A 0N5, Canada; telephone 888-663-3639; email 
                            <E T="03">TC.AirworthinessDirectives-Consignesdenavigabilite.TC@tc.gc.ca;</E>
                             website 
                            <E T="03">tc.canada.ca/en/aviation.</E>
                        </P>
                        <P>(4) You may view this material at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195.</P>
                        <P>
                            (5) You may view this material that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email 
                            <E T="03">fr.inspection@nara.gov,</E>
                             or go to: 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations.html.</E>
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on November 29, 2023.</DATED>
                    <NAME>Ross Landes,</NAME>
                    <TITLE>Deputy Director for Regulatory Operations, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27677 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2023-1496; Project Identifier MCAI-2022-01059-T; Amendment 39-22619; AD 2023-24-03]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; MHI RJ Aviation ULC (Type Certificate Previously Held by Bombardier, Inc.) Airplanes</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for all MHI RJ Aviation ULC Model CL-600-2B19 (Regional Jet Series 100 &amp; 440); CL-600-2C10 (Regional Jet Series 700, 701, &amp; 702); CL-600-2C11 (Regional Jet Series 550); CL-600-2D15 (Regional Jet Series 705); CL-600-2D24 (Regional Jet Series 900); and CL-600-2E25 (Regional Jet Series 1000) airplanes. This AD was prompted by a determination that aircraft maintenance manual (AMM) tasks and certification maintenance requirement (CMR) tasks are necessary. This AD requires revising the existing maintenance or inspection program, as applicable, to incorporate new or more restrictive AMM and CMR tasks. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective January 22, 2024.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of January 22, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1496; or in person at Docket Operations between 9 a.m. and 
                        <PRTPAGE P="87332"/>
                        5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The address for Docket Operations is U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For service information identified in this final rule, contact MHI RJ Aviation Group, Customer Response Center, 3655 Ave. des Grandes-Tourelles, Suite 110, Boisbriand, Québec J7H 0E2 Canada; North America toll-free telephone 833-990-7272 or direct-dial telephone 450-990-7272; fax 514-855-8501; email 
                        <E T="03">thd.crj@mhirj.com;</E>
                         website 
                        <E T="03">mhirj.com.</E>
                    </P>
                    <P>
                        • You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1496.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Elizabeth Dowling, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7300; email 
                        <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to all MHI RJ Aviation ULC Model CL-600-2B19 (Regional Jet Series 100 &amp; 440); CL-600-2C10 (Regional Jet Series 700, 701, &amp; 702); CL-600-2C11 (Regional Jet Series 550); CL-600-2D15 (Regional Jet Series 705); CL-600-2D24 (Regional Jet Series 900); and CL-600-2E25 (Regional Jet Series 1000) airplanes. The NPRM published in the 
                    <E T="04">Federal Register</E>
                     on July 19, 2023 (88 FR 46118). The NPRM was prompted by AD CF-2022-42, dated August 8, 2022, issued by Transport Canada, which is the aviation authority for Canada (referred to after this as the MCAI). The MCAI states that operators have reported frequent flight interruptions and high lavatory smoke detector removal rates due to the frequent testing of the smoke detector self-test switch by the flight crew using unsuitable objects. The MCAI also states there is a potential dormant failure of the lavatory smoke detector if the self-test switch check is not performed in accordance with revised procedures.
                </P>
                <P>In the NPRM, the FAA proposed to require revising the existing maintenance or inspection program, as applicable, to incorporate new or more restrictive AMM and CMR tasks. The FAA is issuing this AD to address a potential dormant failure of the lavatory smoke detector if the self-test switch check is not performed in accordance with revised AMM or CMR tasks. If these maintenance task changes are not implemented, and in combination with a fire in the lavatory, this may lead to a delay in the reaction time to address smoke/fire in the lavatory.</P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2023-1496.
                </P>
                <HD SOURCE="HD1">Discussion of Final Airworthiness Directive</HD>
                <HD SOURCE="HD1">Comments</HD>
                <P>The FAA received a comment from Air Line Pilots Association, International, who supported the NPRM without change.</P>
                <P>The FAA received an additional comment from MHI RJ Aviation. The following presents the comment received on the NPRM and the FAA's response.</P>
                <HD SOURCE="HD1">Request To Identify Corrected Revisions</HD>
                <P>MHI RJ requested that the corrected revisions for Aircraft Maintenance Manual (AMM) Tasks 26-16-00-710-804-A01 and 26-16-00-710-803-A01 be identified as found in AMM CSP B-001, Revision 71. The commenter stated that the Maintenance Task Card Manual (MTCM) Task Card updates were also implemented in AMM Tasks 26-16-00-710-804-A01 and 26-16-00-710-803-A01, but references to the AMM tasks in the proposed AD do not indicate the corrected revision.</P>
                <P>The FAA agrees with the requested change since it provides a means for operators to ensure the revised maintenance tasks are included in the AMM revision they are using. Therefore, figure 1 to paragraph (h) of this AD has been changed to specify AMM Rev 68 or later approved revisions.</P>
                <HD SOURCE="HD1">Conclusion</HD>
                <P>This product has been approved by the aviation authority of another country and is approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA reviewed the relevant data, considered the comment received, and determined that air safety requires adopting this AD as proposed. Accordingly, the FAA is issuing this AD to address the unsafe condition on this product. Except for minor editorial changes, this AD is adopted as proposed in the NPRM. None of the changes will increase the economic burden on any operator.</P>
                <HD SOURCE="HD1">Related Service Information Under 1 CFR Part 51</HD>
                <P>
                    The FAA reviewed Bombardier Temporary Revision 2A-75, dated May 28, 2020. This service information specifies new or more restrictive CMR tasks. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>The FAA estimates that this AD affects 1,024 airplanes of U.S. registry. The FAA estimates the following costs to comply with this AD:</P>
                <P>The FAA has determined that revising the maintenance or inspection program takes an average of 90 work-hours per operator, although the agency recognizes that this number may vary from operator to operator. Since operators incorporate maintenance or inspection program changes for their affected fleet(s), the FAA has determined that a per-operator estimate is more accurate than a per-airplane estimate. Therefore, the agency estimates the average total cost per operator to be $7,650 (90 work-hours × $85 per work-hour).</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>
                    This AD will not have federalism implications under Executive Order 
                    <PRTPAGE P="87333"/>
                    13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.
                </P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
                <P>(2) Will not affect intrastate aviation in Alaska, and</P>
                <P>(3) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13</SECTNO>
                    <SUBJECT> [Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2023-24-03 MHI RJ Aviation ULC (Type Certificate Previously Held by Bombardier, Inc.):</E>
                             Amendment 39-22619; Docket No. FAA-2023-1496; Project Identifier MCAI-2022-01059-T.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective January 22, 2024.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to all MHI RJ Aviation ULC (Type Certificate previously held by Bombardier, Inc.) airplanes identified in paragraphs (c)(1) through (6) of this AD, certificated in any category.</P>
                        <P>(1) Model CL-600-2B19 (Regional Jet Series 100 &amp; 440) airplanes.</P>
                        <P>(2) Model CL-600-2C10 (Regional Jet Series 700, 701, &amp; 702) airplanes.</P>
                        <P>(3) Model CL-600-2C11 (Regional Jet Series 550) airplanes.</P>
                        <P>(4) Model CL-600-2D15 (Regional Jet Series 705) airplanes.</P>
                        <P>(5) Model CL-600-2D24 (Regional Jet Series 900) airplanes.</P>
                        <P>(6) Model CL-600-2E25 (Regional Jet Series 1000) airplanes.</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 26, Fire Protection.</P>
                        <HD SOURCE="HD1">(e) Reason</HD>
                        <P>This AD was prompted by a determination that new or more restrictive aircraft maintenance manual (AMM) tasks and certification maintenance requirement (CMR) tasks are necessary. The FAA is issuing this AD to address a potential dormant failure of the lavatory smoke detector if the self-test switch check is not performed in accordance with the revised AMM or CMR tasks. If these maintenance task changes are not implemented, and in combination with a fire in the lavatory, this may lead to a delay in the reaction time to address smoke/fire in the lavatory.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Maintenance or Inspection Program Revision for Model CL-600-2B19 (Regional Jet Series 100 &amp; 440) Airplanes</HD>
                        <P>For Model CL-600-2B19 (Regional Jet Series 100 &amp; 440) airplanes: Within 60 days after the effective date of this AD, revise the existing maintenance or inspection program, as applicable, to incorporate the information specified in Bombardier Temporary Revision 2A-75, dated May 28, 2020. The initial compliance time is within 12 months after the effective date of this AD.</P>
                        <HD SOURCE="HD1">(h) Maintenance or Inspection Program Revision for Other Airplanes</HD>
                        <P>For airplanes identified in paragraphs (c)(2) through (6) of this AD: Within 60 days after the effective date of this AD, revise the existing maintenance or inspection program, as applicable, to incorporate the information specified in Figure 1 to paragraph (h) of this AD. The initial compliance time for doing the tasks is within 12 months after the effective date of this AD.</P>
                        <HD SOURCE="HD1">
                            Figure 1 to Paragraph (h)—
                            <E T="03">AMM task for an operational check of the lavatory smoke detector (forward and aft)</E>
                        </HD>
                        <GPH SPAN="3" DEEP="71">
                            <GID>ER18DE23.016</GID>
                        </GPH>
                        <HD SOURCE="HD1">(i) No Alternative Actions or Intervals</HD>
                        <P>
                            After the existing maintenance or inspection program has been revised as required by paragraph (g) or (h) of this AD, no alternative actions (
                            <E T="03">e.g.,</E>
                             inspections) or intervals may be used unless the actions, and intervals are approved as an alternative method of compliance (AMOC) in accordance with the procedures specified in paragraph (j)(1) of this AD.
                        </P>
                        <HD SOURCE="HD1">(j) Other FAA AD Provisions</HD>
                        <P>The following provisions also apply to this AD:</P>
                        <P>
                            (1) 
                            <E T="03">Alternative Methods of Compliance (AMOCs):</E>
                             The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or responsible Flight Standards Office, as appropriate. If sending information directly to the manager of the certification office, send it to ATTN: Program Manager, Continuing Operational Safety, FAA, International Validation Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7300. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the responsible Flight Standards Office.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Contacting the Manufacturer:</E>
                             For any requirement in this AD to obtain instructions from a manufacturer, the instructions must be accomplished using a method approved by the Manager, International Validation Branch, FAA; or Transport Canada; or MHI RJ Aviation ULC's Transport Canada Design Approval Organization (DAO). If approved by the DAO, the approval must include the DAO-authorized signature.
                        </P>
                        <HD SOURCE="HD1">(k) Additional Information</HD>
                        <P>
                            (1) Refer to Transport Canada AD CF-2022-42, dated August 8, 2022, for related information. This Transport Canada AD may be found in the AD docket at 
                            <E T="03">regulations.gov</E>
                             under Docket No. FAA-2023-1496.
                        </P>
                        <P>
                            (2) For more information about this AD, contact Elizabeth Dowling, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7300; email 
                            <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(l) Material Incorporated by Reference</HD>
                        <P>
                            (1) The Director of the Federal Register approved the incorporation by reference 
                            <PRTPAGE P="87334"/>
                            (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
                        </P>
                        <P>(2) You must use this service information to do the actions required by this AD, unless this AD specifies otherwise.</P>
                        <P>(i) Bombardier Temporary Revision 2A-75, dated May 28, 2020.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For service information identified in this AD, contact MHI RJ Aviation Group, Customer Response Center, 3655 Ave. des Grandes-Tourelles, Suite 110, Boisbriand, Québec J7H 0E2 Canada; North America toll-free telephone 833-990-7272 or direct-dial telephone 450-990-7272; fax 514-855-8501; email 
                            <E T="03">thd.crj@mhirj.com;</E>
                             website 
                            <E T="03">mhirj.com.</E>
                        </P>
                        <P>(4) You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit: 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov.</E>
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on November 29, 2023.</DATED>
                    <NAME>Victor Wicklund,</NAME>
                    <TITLE>Deputy Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27680 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2023-1505; Project Identifier MCAI-2023-00246-T; Amendment 39-22622; AD 2023-24-05]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Bombardier, Inc., Airplanes</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for certain Bombardier, Inc., Model CL-600-2B16 (604 Variant) airplanes. This AD was prompted by sleeve loops on some passenger oxygen mask lanyards that had improper crimping and unsealed ends. This AD requires an inspection of the passenger oxygen mask lanyards and replacement of defective oxygen mask lanyards. This AD also prohibits the installation of affected parts. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective January 22, 2024.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of January 22, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1505; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The address for Docket Operations is U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For service information identified in this final rule, contact Bombardier Business Aircraft Customer Response Center, 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-2999; email 
                        <E T="03">ac.yul@aero.bombardier.com;</E>
                         website 
                        <E T="03">bombardier.com.</E>
                    </P>
                    <P>
                        • You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1505.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Gabriel Kim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7300; email 
                        <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Bombardier, Inc., Model CL-600-2B16 (604 Variant) airplanes. The NPRM published in the 
                    <E T="04">Federal Register</E>
                     on July 25, 2023 (88 FR 47827). The NPRM was prompted by AD CF-2023-06, dated February 9, 2023 (referred to after this as the MCAI), issued by Transport Canada, which is the aviation authority for Canada. The MCAI states the sleeve loops on certain passenger oxygen mask lanyards were found to have improper crimping and unsealed ends.
                </P>
                <P>In the NPRM, the FAA proposed to require an inspection of the passenger oxygen mask lanyards and replacement of defective oxygen mask lanyards. In the NPRM, the FAA also proposed to prohibit the installation of affected parts. The FAA is issuing this AD to address these defective oxygen mask lanyards, which could result in no oxygen flow to the mask during an emergency.</P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2023-1505.
                </P>
                <HD SOURCE="HD1">Discussion of Final Airworthiness Directive</HD>
                <HD SOURCE="HD1">Comments</HD>
                <P>The FAA received a comment from Bombardier. The following presents the comment received on the NPRM and the FAA's response to the comment.</P>
                <HD SOURCE="HD1">Request for Removal of Certain Variants</HD>
                <P>Bombardier requested that the proposed AD be revised to remove reference to 601-3A and 601-3R Variants. The commenter stated that the proposed AD only applies to Model CL-600-2B16 (604 Variant) airplanes (Challenger 605 designation). Bombardier noted that the airplane serial numbers given in Bombardier Service Bulletin 605-35-008, dated October 28, 2022, and referenced in Transport Canada AD CF-2023-06, are all Model CL-600-2B16 (604 Variant) airplanes.</P>
                <P>The FAA agrees for the reasons provided. The FAA revised the Summary, Background, and paragraph (c) of this AD accordingly.</P>
                <HD SOURCE="HD1">Conclusion</HD>
                <P>This product has been approved by the aviation authority of another country and is approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA reviewed the relevant data, considered the comments received, and determined that air safety requires adopting this AD as proposed. Accordingly, the FAA is issuing this AD to address the unsafe condition on this product. Except for minor editorial changes, and any other changes described previously, this AD is adopted as proposed in the NPRM. None of the changes will increase the economic burden on any operator.</P>
                <HD SOURCE="HD1">Related Service Information Under 1 CFR Part 51</HD>
                <P>
                    The FAA reviewed Bombardier Service Bulletin 605-35-008, dated October 28, 2022. This service information specifies procedures for a visual inspection of the existing passenger oxygen mask lanyards installed in the cabin or lavatory oxygen box assemblies, and replacement of the defective oxygen mask lanyards. The 
                    <PRTPAGE P="87335"/>
                    defective oxygen mask lanyards had improperly crimped sleeve loops and unsealed ends.
                </P>
                <P>
                    This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>The FAA estimates that this AD affects 120 airplanes of U.S. registry. The FAA estimates the following costs to comply with this AD:</P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s25,r50,12,12,12">
                    <TTITLE>Estimated Costs for Required Actions</TTITLE>
                    <BOXHD>
                        <CHED H="1">Action</CHED>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">
                            Cost per
                            <LI>product</LI>
                        </CHED>
                        <CHED H="1">
                            Cost on U.S.
                            <LI>operators</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Inspection</ENT>
                        <ENT>1 work-hour × $85 per hour = $85</ENT>
                        <ENT>$0</ENT>
                        <ENT>$85</ENT>
                        <ENT>$10,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The FAA estimates the following costs to do any necessary on-condition action that would be required based on the results of any required actions. The FAA has no way of determining the number of aircraft that might need this on-condition action:</P>
                <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s50,r100,12,12">
                    <TTITLE>Estimated Costs of On-Condition Actions</TTITLE>
                    <BOXHD>
                        <CHED H="1">Action</CHED>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">
                            Cost per
                            <LI>product</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Replacement</ENT>
                        <ENT>2 work-hours × $85 per hour = $170</ENT>
                        <ENT>$1,149</ENT>
                        <ENT>$1,319</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The FAA has included all known costs in its cost estimate. According to the manufacturer, however, some or all costs of this AD may be covered under warranty, thereby reducing the cost impact on affected operators.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
                <P>(2) Will not affect intrastate aviation in Alaska, and</P>
                <P>(3) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13 </SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2023-24-05 Bombardier, Inc.:</E>
                             Amendment 39-22622; Docket No. FAA-2023-1505; Project Identifier MCAI-2023-00246-T.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective January 22, 2024.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Bombardier, Inc., Model CL-600-2B16 (604 Variant) airplanes, certificated in any category, serial numbers identified in Bombardier Service Bulletin 605-35-008, dated October 28, 2022.</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 35, Oxygen System.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by sleeve loops on some passenger oxygen mask lanyards that had improper crimping and unsealed ends. The FAA is issuing this AD to address the defective oxygen mask lanyards. The unsafe condition, if not addressed, could result in no oxygen flow to the mask during an emergency.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Inspection of the Passenger Oxygen Mask Assemblies</HD>
                        <P>Within 48 months from the effective date of this AD, visually inspect the passenger oxygen mask lanyards in the cabin or lavatory oxygen box assemblies as applicable for crimped lanyards and sealed ends, in accordance with paragraph 2.C. of the Accomplishment Instructions of Bombardier Service Bulletin 605-35-008, dated October 28, 2022.</P>
                        <P>(1) If all passenger oxygen mask lanyards are crimped and the lanyard ends are sealed: No further action is required by this paragraph.</P>
                        <P>
                            (2) If any passenger oxygen mask lanyard is not crimped properly, or any lanyard end is not sealed properly: Before further flight, replace the passenger oxygen mask lanyard in accordance with Section 2.D. of the Accomplishment Instructions of Bombardier 
                            <PRTPAGE P="87336"/>
                            Service Bulletin 605-35-008, dated October 28, 2022.
                        </P>
                        <HD SOURCE="HD1">(h) Parts Installation Prohibition</HD>
                        <P>As of the effective date of this AD, no person may install, on any airplane, a passenger oxygen mask lanyard assembly provided with an oxygen box lanyard kit containing a lot number in paragraph (h)(1) or (2) of this AD.</P>
                        <P>(1) Oxygen box lanyard kit part number (P/N) CDKC29-006-501, lot number 2011007411, 2012010412, 2101018703, 2101035167, 2102030139, 2104003817, or 2105005522.</P>
                        <P>(2) Oxygen box lanyard kit P/N CDKC29-006-503, lot number 2011029525, 2012006900, 2103007412, or 2103029992.</P>
                        <HD SOURCE="HD1">(i) Additional AD Provisions</HD>
                        <P>The following provisions also apply to this AD:</P>
                        <P>
                            (1) 
                            <E T="03">Alternative Methods of Compliance (AMOCs):</E>
                             The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or responsible Flight Standards Office, as appropriate. If sending information directly to the manager, International Validation Branch, mail it to the address identified in paragraph (j)(2) of this AD or email to: 
                            <E T="03">9-AVS-AIR-730-AMOC@faa.gov.</E>
                             If mailing information, also submit information by email. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the responsible Flight Standards Office.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Contacting the Manufacturer:</E>
                             For any requirement in this AD to obtain instructions from a manufacturer, the instructions must be accomplished using a method approved by the Manager, International Validation Branch, FAA; or Transport Canada or Bombardier, Inc.'s Transport Canada Design Approval Organization (DAO). If approved by the DAO, the approval must include the DAO-authorized signature.
                        </P>
                        <HD SOURCE="HD1">(j) Additional Information</HD>
                        <P>
                            (1) Refer to Transport Canada AD CF-2023-06, dated February 9, 2023, for related information. This Transport Canada AD may be found in the AD docket at 
                            <E T="03">regulations.gov</E>
                             under Docket No. FAA-2023-1505.
                        </P>
                        <P>
                            (2) For more information about this AD, contact Gabriel Kim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7300; email 
                            <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(k) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise.</P>
                        <P>(i) Bombardier Service Bulletin 605-35-008, dated October 28, 2022.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For service information identified in this AD, contact Bombardier Business Aircraft Customer Response Center, 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-2999; email 
                            <E T="03">ac.yul@aero.bombardier.com;</E>
                             website 
                            <E T="03">bombardier.com.</E>
                        </P>
                        <P>(4) You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit: 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov.</E>
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on November 29, 2023.</DATED>
                    <NAME>Victor Wicklund,</NAME>
                    <TITLE>Deputy Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27679 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2023-1807; Project Identifier MCAI-2023-00394-T; Amendment 39-22618; AD 2023-24-02]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Embraer S.A. (Type Certificate Previously Held by Yaborã Indústria Aeronáutica S.A.; Embraer S.A.; Empresa Brasileira de Aeronáutica S.A. (EMBRAER)) Airplanes</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for certain Embraer S.A. Model EMB-135BJ airplanes. This AD was prompted by reports of missing sealant on the rivets installed in the interface between rib 3 and the wing skin. This AD requires applying sealant on the rivets installed in the interface between rib 3 and wing skin, as specified in an Agência Nacional de Aviação Civil (ANAC) AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective January 22, 2024.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of January 22, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1807; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The address for Docket Operations is U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For material incorporated by reference in this AD, contact ANAC, Aeronautical Products Certification Branch (GGCP), Rua Dr. Orlando Feirabend Filho, 230—Centro Empresarial Aquarius—Torre B—Andares 14 a 18, Parque Residencial Aquarius, CEP 12.246-190—São José dos Campos—SP, Brazil; telephone 55 (12) 3203-6600; email 
                        <E T="03">pac@anac.gov.br;</E>
                         website 
                        <E T="03">anac.gov.br/en/.</E>
                         You may find this material on the ANAC website at 
                        <E T="03">sistemas.anac.gov.br/certificacao/DA/DAE.asp.</E>
                    </P>
                    <P>
                        • You may view this material at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195. It is also available in the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2023-1807.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Hassan Ibrahim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 206-231-3653; email 
                        <E T="03">hassan.m.ibrahim@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Embraer S.A. Model EMB-135BJ airplanes. The NPRM published in the 
                    <E T="04">Federal Register</E>
                     on August 30, 2023 (88 FR 59813). The NPRM was prompted by AD 2023-03-01, effective March 6, 2023, issued by ANAC, which is the aviation authority for Brazil (ANAC AD 2023-03-01) (also referred to as the MCAI). The MCAI states that missing sealant was identified on the rivets installed in the interface between rib 3 and the wing skin in some Embraer Model EMB-135BJ airplanes. The lack of sealant when a failure on the rivet installation exists may result in a potential ignition source inside the fuel tank during a lightning strike, which, combined with flammable fuel vapors, could result in a 
                    <PRTPAGE P="87337"/>
                    fuel tank explosion and consequent loss of the airplane.
                </P>
                <P>In the NPRM, the FAA proposed to require applying sealant on the rivets installed in the interface between rib 3 and wing skin, as specified in ANAC AD 2023-03-01. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2023-1807.
                </P>
                <HD SOURCE="HD1">Discussion of Final Airworthiness Directive</HD>
                <HD SOURCE="HD1">Comments</HD>
                <P>The FAA received no comments on the NPRM or on the determination of the cost to the public.</P>
                <HD SOURCE="HD1">Conclusion</HD>
                <P>This product has been approved by the aviation authority of another country and is approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA reviewed the relevant data and determined that air safety requires adopting this AD as proposed. Accordingly, the FAA is issuing this AD to address the unsafe condition on this product. Except for minor editorial changes, this AD is adopted as proposed in the NPRM. None of the changes will increase the economic burden on any operator.</P>
                <HD SOURCE="HD1">Related Service Information Under 1 CFR Part 51</HD>
                <P>ANAC AD 2023-03-01 specifies procedures for applying sealant on the rivets installed in the interface between rib 3 and wing skin.</P>
                <P>
                    This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>The FAA estimates that this AD affects 10 airplanes of U.S. registry. The FAA estimates the following costs to comply with this AD:</P>
                <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s50,12,r25,xs90">
                    <TTITLE>Estimated Costs for Required Actions</TTITLE>
                    <BOXHD>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">
                            Cost per
                            <LI>product</LI>
                        </CHED>
                        <CHED H="1">
                            Cost on U.S.
                            <LI>operators</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Up to 7 work-hours × $85 per hour = $595</ENT>
                        <ENT>$0</ENT>
                        <ENT>Up to $595</ENT>
                        <ENT>Up to $5,950.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The FAA has included all known costs in its cost estimate. According to the manufacturer, however, some or all of the costs of this AD may be covered under warranty, thereby reducing the cost impact on affected operators.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
                <P>(2) Will not affect intrastate aviation in Alaska, and</P>
                <P>(3) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13 </SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2023-24-02 Embraer S.A. (Type Certificate Previously Held by Yaborã Indústria Aeronáutica S.A.; Embraer S.A.; Empresa Brasileira de Aeronáutica S.A. (EMBRAER)):</E>
                             Amendment 39-22618; Docket No. FAA-2023-1807; Project Identifier MCAI-2023-00394-T.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective January 22, 2024.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Embraer S.A. Model EMB-135BJ airplanes, certificated in any category, having serial numbers 14501119 through 14501165 inclusive, 14501167 through 14501215 inclusive, and 14501217 through 14501236 inclusive.</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 57, Wings.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by reports of missing sealant on the rivets installed in the interface between rib 3 and the wing skin. The FAA is issuing this AD to address the lack of sealant on the rivets, which may result in a potential ignition source inside the fuel tank during a lightning strike when a failure on the rivet installation exists, which, combined with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Requirements</HD>
                        <P>
                            Except as specified in paragraph (h) of this AD: Comply with all required actions and compliance times specified in, and in accordance with, Agência Nacional de Aviação Civil (ANAC) AD 2023-03-01, 
                            <PRTPAGE P="87338"/>
                            effective March 6, 2023 (ANAC AD 2023-03-01).
                        </P>
                        <HD SOURCE="HD1">(h) Exceptions to ANAC AD 2023-03-01</HD>
                        <P>(1) Where ANAC AD 2023-03-01 refers to its effective date, this AD requires using the effective date of this AD.</P>
                        <P>(2) This AD does not adopt paragraph (c)(1) of ANAC AD 2023-03-01.</P>
                        <HD SOURCE="HD1">(i) No Reporting Requirement</HD>
                        <P>Although the service information referenced in ANAC AD 2023-03-01 specifies to submit certain information to the manufacturer, this AD does not include that requirement.</P>
                        <HD SOURCE="HD1">(j) Additional AD Provisions</HD>
                        <P>The following provisions also apply to this AD:</P>
                        <P>
                            (1) 
                            <E T="03">Alternative Methods of Compliance (AMOCs):</E>
                             The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or responsible Flight Standards Office, as appropriate. If sending information directly to the International Validation Branch, send it to the attention of the person identified in paragraph (k) of this AD. Information may be emailed to: 
                            <E T="03">9-AVS-AIR-730-AMOC@faa.gov.</E>
                             Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the responsible Flight Standards Office.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Contacting the Manufacturer:</E>
                             For any requirement in this AD to obtain instructions from a manufacturer, the instructions must be accomplished using a method approved by the Manager, International Validation Branch, FAA; or ANAC; or ANAC's authorized Designee. If approved by the ANAC Designee, the approval must include the Designee's authorized signature.
                        </P>
                        <HD SOURCE="HD1">(k) Additional Information</HD>
                        <P>
                            For more information about this AD, contact Hassan Ibrahim, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 206-231-3653; email 
                            <E T="03">hassan.m.ibrahim@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(l) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise.</P>
                        <P>(i) Agência Nacional de Aviação Civil (ANAC) AD 2023-03-01, effective March 6, 2023.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For ANAC AD 2023-03-01, contact ANAC, Aeronautical Products Certification Branch (GGCP), Rua Dr. Orlando Feirabend Filho, 230—Centro Empresarial Aquarius—Torre B—Andares 14 a 18, Parque Residencial Aquarius, CEP 12.246-190—São José dos Campos—SP, Brazil; telephone 55 (12) 3203-6600; email 
                            <E T="03">pac@anac.gov.br;</E>
                             website 
                            <E T="03">anac.gov.br/en/.</E>
                             You may find this ANAC AD on the ANAC website at 
                            <E T="03">sistemas.anac.gov.br/certificacao/DA/DAE.asp.</E>
                        </P>
                        <P>(4) You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206-231-3195.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations.html</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov.</E>
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on November 29, 2023.</DATED>
                    <NAME>Victor Wicklund,</NAME>
                    <TITLE>Deputy Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27678 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2023-1329; Airspace Docket No. 23-AEA-2]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Establishment of United States Area Navigation (RNAV) Routes T-440, T-455, T-457, T-459, and T-476, and Amendment of RNAV Routes T-358, T-416, and T-445; Eastern United States</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This action corrects a final rule published by the FAA in the 
                        <E T="04">Federal Register</E>
                         on November 24, 2023, that establishes United States Area Navigation (RNAV) routes T-440, T-455, T-457, T-459, and T-476, and amends RNAV routes T-358, T-416, and T-445 in support of the FAA's Very High Frequency Omnidirectional Range (VOR) Minimum Operational Network (MON) Program.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective date 0901 UTC, January 25, 2024. The Director of the Federal Register approves this incorporation by reference action under 1 CFR part 51, subject to the annual revision of FAA Order 7400.11 and publication of conforming amendments.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        A copy of this final rule, and all background material may be viewed online at 
                        <E T="03">www.regulations.gov</E>
                         using the FAA Docket number. Electronic retrieval help and guidelines are available on the website. It is available 24 hours each day, 365 days each year.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Brian Vidis, Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">History</HD>
                <P>
                    The FAA published a final rule in the 
                    <E T="04">Federal Register</E>
                     (88 FR 82252; November 24, 2023), amending and establishing multiple RNAV T-routes in support of the FAA's VOR MON Program. Subsequent to publication, the FAA determined that for RNAV route T-358, the SWANN, MD; AVALO, NJ; MANTA, NJ; BURDY, MA; LBSTA, MA; and MESHL, ME, route points were inadvertently identified as WPs, in error. This rule corrects those errors by changing all references to these six points as Fixes. These are editorial changes only to match the FAA's aeronautical database information.
                </P>
                <P>Additionally, the FAA determined that it inadvertently omitted the BEADS, NY, Fix, and the JORDN, NY, Fix, from the part 71 description of RNAV route T-358. The BEADS Fix and the JORDN Fix were part of RNAV route T-358 but were incorrectly calculated to be a turn of less than one degree so they were not originally included in the part 71 description. Subsequent to publication, the FAA determined that the route segment between the MANTA, NJ, Fix and the BEADS Fix was a turn of two degrees; and the route segment between the ORCHA, NY, WP and the JORDN Fix was a turn of one degree, which require that the BEADS and the JORDN Fixes be added to the part 71 description. Adding the BEADS Fix and the JORDN Fix to RNAV route T-358 does not substantially alter the route.</P>
                <P>In describing the changes to RNAV route T-445, the location of the Westminster, VORTAC was identified in error as “ME” and is corrected from “Westminster, ME (EMI), VORTAC” to “Westminster, MD, (EMI), VORTAC”.</P>
                <HD SOURCE="HD1">Correction to Final Rule</HD>
                <P>
                    Accordingly, pursuant to the authority delegated to me, in Docket No. FAA-2023-1329. As published in the 
                    <E T="04">Federal Register</E>
                     of November 24, 2023 (88 FR 82252), FR Doc. 2023-25852, is corrected as follows:
                </P>
                <P>1. On page 82253, in the first column, under the heading “The Rule” in the paragraph starting with “T-358”, correct “AVALO, NJ, WP” to read “AVALO, NJ, Fix”.</P>
                <P>
                    2. On page 82253, in the first column, under the heading “The Rule” in the paragraph starting with “T-358”, correct “AVALO WP and the BURDY, MA, WP; and between the LBSTA, MA, WP” to read “AVALO Fix and the 
                    <PRTPAGE P="87339"/>
                    BURDY, MA, Fix; and between the LBSTA, MA, Fix”.
                </P>
                <P>3. On page 82253, in the first column, under the heading “The Rule” in the paragraph starting with “T-445,” correct “Westminster, ME (EMI), VORTAC” to read “Westminster, MD (EMI), VORTAC”.</P>
                <P>4. On page 82253 correct the table “T-358 Martinsburg, WV (MRB) to Augusta, ME (AUG) [Amended]” to read:</P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,7/8,g1,t1,i1" CDEF="xls100,xls50,xls180">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW EXPSTB="02">
                        <ENT I="22">
                            <E T="04">T-358 Martinsburg, WV (MRB) to Augusta, ME (AUG) [Amended]</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Martinsburg, WV (MRB)</ENT>
                        <ENT>VORTAC</ENT>
                        <ENT>(Lat. 39°23′08.06″ N, long. 077°50′54.08″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">CPTAL, MD</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 39°32′16.02″ N, long. 077°41′55.65″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">TWIRK, MD</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 39°34′36.70″ N, long. 077°12′44.75″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HAMRR, MD</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 39°30′03.42″ N, long. 076°56′10.84″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">DANII, MD</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 39°17′46.42″ N, long. 076°42′19.36″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">OBWON, MD</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 39°11′54.69″ N, long. 076°32′04.84″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SWANN, MD</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 39°09′05.28″ N, long. 076°13′43.94″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Smyrna, DE (ENO)</ENT>
                        <ENT>VORTAC</ENT>
                        <ENT>(Lat. 39°13′53.93″ N, long. 075°30′57.49″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">AVALO, NJ</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 39°16′54.52″ N, long. 074°30′50.75″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">MANTA, NJ</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 39°54′07.01″ N, long. 073°32′31.63″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">BEADS, NY</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 40°44′04.51″ N, long. 072°32′34.21″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ORCHA, NY</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 40°54′55.46″ N, long. 072°18′43.64″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">JORDN, NY</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 41°03′16.92″ N, long. 071°54′52.66″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Sandy Point, RI (SEY)</ENT>
                        <ENT>VOR/DME</ENT>
                        <ENT>(Lat. 41°10′02.77″ N, long. 071°34′33.91″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">BURDY, MA</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 41°57′19.14″ N, long. 070°57′07.45″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HAVNS, OA</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 42°17′55.00″ N, long. 070°27′42.00″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">GRGIO, MA</ENT>
                        <ENT>WP</ENT>
                        <ENT>(Lat. 42°35′09.36″ N, long. 070°33′54.40″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">LBSTA, MA</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 42°48′00.00″ N, long. 070°36′48.70″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">MESHL, ME</ENT>
                        <ENT>FIX</ENT>
                        <ENT>(Lat. 43°19′12.07″ N, long. 070°09′48.03″ W)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Augusta, ME (AUG)</ENT>
                        <ENT>VOR/DME</ENT>
                        <ENT>(Lat. 44°19′12.07″ N, long. 069°47′47.63″ W)</ENT>
                    </ROW>
                </GPOTABLE>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Frank Lias,</NAME>
                    <TITLE>Manager, Rules and Regulations Group.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27606 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 73</CFR>
                <DEPDOC>[Docket No. FAA-2023-2042; Airspace Docket No. 23-ASO-25]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Renaming of Restricted Areas R-2103A and R-2103B; Fort Rucker, AL</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This action corrects a typographic error in the final rule published in the 
                        <E T="04">Federal Register</E>
                         on November 24, 2023, making an administrative change to rename restricted areas R-2103A and R-2103B, Fort Rucker, AL, and updating the using agency description to reflect the change.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective date 0901 UTC, January 25, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        A copy of this final rule, and all background material may be viewed online at 
                        <E T="03">www.regulations.gov</E>
                         using the FAA Docket number. Electronic retrieval help and guidelines are available on the website. It is available 24 hours each day, 365 days each year.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Brian Vidis, Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">History</HD>
                <P>
                    The FAA published a final rule in the 
                    <E T="04">Federal Register</E>
                     (88 FR 82257; November 24, 2023), renaming restricted areas R-2103A and R-2103B, Fort Rucker, AL, and updating the using agency description to reflect the change. Subsequent to publication, the FAA identified that the final rule was published with the incorrect docket number. This action corrects this error by replacing the incorrect docket number, FAA-2023-0242, with the correct one, FAA-2023-2042.
                </P>
                <HD SOURCE="HD1">Correction to Final Rule</HD>
                <P>
                    Accordingly, pursuant to the authority delegated to me, Renaming of Restricted Areas R-2103A and R-2103B; Fort Rucker, AL, published in the 
                    <E T="04">Federal Register</E>
                     on November 24, 2023 (88 FR 82257), FR Doc. 2023-25850, on page 82257, in the third column, is corrected by removing, “Docket No. FAA-2023-0242” and adding in its place, “Docket No. FAA-2023-2042”.
                </P>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Frank Lias,</NAME>
                    <TITLE>Manager, Rules and Regulations Group.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27659 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 73</CFR>
                <DEPDOC>[Docket No. FAA-2023-2043; Airspace Docket No. 23-ASO-31]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Renaming of Restricted Areas R-5311A, R-5311B, and R-5311C; Fort Bragg, NC</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This action corrects a typographic error in the final rule published in the 
                        <E T="04">Federal Register</E>
                         on November 28, 2023, making an administrative change to rename restricted areas R-5311A, R-5311B, and R-5311C, Fort Bragg, NC, and updating the using agency description to reflect the change. Additionally, geographic coordinate technical amendments for two boundary points listed in the restricted areas were made to accurately align the existing boundary with the Little River referenced in the descriptions.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective date 0901 UTC, January 25, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        A copy of this final rule, and all background material may be viewed online at 
                        <E T="03">www.regulations.gov</E>
                         using the FAA Docket number. Electronic retrieval help and guidelines are available on the website. It is available 24 hours each day, 365 days each year.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Brian Vidis, Rules and Regulations 
                        <PRTPAGE P="87340"/>
                        Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">History</HD>
                <P>
                    The FAA published a final rule in the 
                    <E T="04">Federal Register</E>
                     (88 FR 83023; November 28, 2023), renaming restricted areas R-5311A, R-5311B, and R-5311C, Fort Bragg, NC, and updating the using agency description to reflect the change. Additionally, geographic coordinate technical amendments for two boundary points listed in the restricted areas were made to accurately align the existing boundary with the Little River referenced in the descriptions. Subsequent to publication, the FAA identified that the final rule was published with the incorrect docket number. This action corrects this error by replacing the incorrect docket number, FAA-2023-0243, with the correct one, FAA-2023-2043.
                </P>
                <HD SOURCE="HD1">Correction to Final rule</HD>
                <P>
                    Accordingly, pursuant to the authority delegated to me, Renaming of Restricted Areas R-5311A, R-5311B, and R-5311C; Fort Bragg, NC, published in the 
                    <E T="04">Federal Register</E>
                     on November 28, 2023 (88 FR 83023), FR Doc. 2023-26003, on page 83023, in the second column, is corrected by removing “Docket No. FAA-2023-0243” and adding in its place, “Docket No. FAA-2023-2043”.
                </P>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Frank Lias,</NAME>
                    <TITLE>Manager, Rules and Regulations Group.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27660 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">PENSION BENEFIT GUARANTY CORPORATION</AGENCY>
                <CFR>29 CFR Part 4044</CFR>
                <SUBJECT>Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pension Benefit Guaranty Corporation.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This final rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the asset allocation regulation for plans with valuation dates in the first quarter of 2024. These interest assumptions are used for valuing benefits under terminating single-employer plans and for other purposes.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective January 1, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Monica O'Donnell (
                        <E T="03">odonnell.monica@pbgc.gov</E>
                        ), Attorney, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101, 202-229-8706. If you are deaf or hard of hearing or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    PBGC's regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) prescribes actuarial assumptions—including interest assumptions—for valuing benefits under terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974 (ERISA). The interest assumptions in the regulation are also published on PBGC's website (
                    <E T="03">https://www.pbgc.gov</E>
                    ).
                </P>
                <P>PBGC uses the interest assumptions in appendix B to part 4044 (“Interest Rates Used to Value Benefits”) to determine the present value of annuities in an involuntary or distress termination of a single-employer plan under the asset allocation regulation. The assumptions are also used to determine the value of multiemployer plan benefits and certain assets when a plan terminates by mass withdrawal in accordance with PBGC's regulation on Duties of Plan Sponsor Following Mass Withdrawal (29 CFR part 4281).</P>
                <P>The first quarter 2024 interest assumptions will be 5.45 percent for the first 20 years following the valuation date and 5.22 percent thereafter. In comparison with the interest assumptions in effect for the fourth quarter of 2023, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.39 percent in the select rate, and an increase of 0.85 percent in the ultimate rate (the final rate).</P>
                <HD SOURCE="HD1">Need for Immediate Guidance</HD>
                <P>PBGC has determined that notice of, and public comment on, this rule are impracticable, unnecessary, and contrary to the public interest. PBGC routinely updates the interest assumptions in appendix B of the asset allocation regulation each quarter so that they are available to value benefits. Accordingly, PBGC finds that the public interest is best served by issuing this rule expeditiously, without an opportunity for notice and comment, and that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication to allow the use of the proper assumptions to estimate the value of plan benefits for plans with valuation dates early in the first quarter of 2024.</P>
                <P>PBGC has determined that this action is not a “significant regulatory action” under the criteria set forth in Executive Order 12866.</P>
                <P>Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2).</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 29 CFR Part 4044</HD>
                    <P>Employee benefit plans, Pension insurance, Pensions.</P>
                </LSTSUB>
                <P>In consideration of the foregoing, 29 CFR part 4044 is amended as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS </HD>
                </PART>
                <REGTEXT TITLE="29" PART="4044">
                    <AMDPAR>1. The authority citation for part 4044 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="29" PART="4044">
                    <AMDPAR>2. In appendix B to part 4044, an entry for “January-March 2024” is added at the end of the table to read as follows:</AMDPAR>
                    <APPENDIX>
                        <HD SOURCE="HED">Appendix B to Part 4044—Interest Rates Used to Value Benefits</HD>
                        <STARS/>
                        <GPOTABLE COLS="7" OPTS="L1,tp0,i1" CDEF="s25,10C,10C,10C,10C,10C,10C">
                            <TTITLE> </TTITLE>
                            <BOXHD>
                                <CHED H="1" O="L">For valuation dates occurring in the month—</CHED>
                                <CHED H="1" O="L">
                                    The values of 
                                    <E T="03">i</E>
                                    <E T="8145">t</E>
                                     are:
                                </CHED>
                                <CHED H="2">
                                    <E T="03">i</E>
                                    <E T="8145">t</E>
                                </CHED>
                                <CHED H="2">
                                    for 
                                    <E T="03">t</E>
                                     =
                                </CHED>
                                <CHED H="2">
                                    <E T="03">i</E>
                                    <E T="8145">t</E>
                                </CHED>
                                <CHED H="2">
                                    for 
                                    <E T="03">t</E>
                                     =
                                </CHED>
                                <CHED H="2">
                                    <E T="03">i</E>
                                    <E T="8145">t</E>
                                </CHED>
                                <CHED H="2">
                                    for 
                                    <E T="03">t</E>
                                     =
                                </CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">January-March 2024</ENT>
                                <ENT>0.0545</ENT>
                                <ENT>1-20</ENT>
                                <ENT>0.0522</ENT>
                                <ENT>&gt;20</ENT>
                                <ENT>N/A</ENT>
                                <ENT>N/A</ENT>
                            </ROW>
                        </GPOTABLE>
                    </APPENDIX>
                </REGTEXT>
                <SIG>
                    <PRTPAGE P="87341"/>
                    <P>Issued in Washington, DC.</P>
                    <NAME>Hilary Duke,</NAME>
                    <TITLE>Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27690 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7709-02-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[USCG-2023-0935]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone, Illinois River MM 165-166, Peoria, IL</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, Department of Homeland Security (DHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is establishing a temporary safety zone for all navigable waters in the Illinois River between Mile Marker (MM) 165.2 to 166.3. The safety zone is needed to protect personnel, vessels, and the marine environment from all potential hazards associated with the McClugage Bridge arch installation. Entry of vessels or persons into this zone is prohibited unless specifically authorized by the Captain of the Port (COTP) Sector Upper Mississippi River or a designated representative.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective from December 18, 2023, through December 25, 2023.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov,</E>
                         type USCG-2023-0935 in the search box and click “Search.” Next, in the Document Type column, select “Supporting &amp; Related Material.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions on this rule, call or email MSTC Nathaniel Dibley, Sector Upper Mississippi River Waterways Management Division, U.S. Coast Guard; telephone 314-269-2560, email 
                        <E T="03">Nathaniel.D.Dibley@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>The Coast Guard is issuing this temporary rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because a temporary safety zone must be established immediately to protect personnel, vessels, and the marine environment from potential hazards created by the bridge arch installation. It is impracticable to publish an NPRM because we must establish this safety zone by December 18, 2023.</P>
                <P>
                    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . Delaying the effective date of this rule would be impracticable because action is needed to respond to the potential safety hazards associated with the installation of the arch on the McClugage bridge beginning December 18, 2023.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under authority in 46 U.S.C. 70034. The COTP of Sector Upper Mississippi River has determined that potential hazards associated with the installation of the arch on the McClugage Bridge will be a safety concern for anyone operating or transiting within the Illinois River from MM 165.2 through 166.3. This rule is needed to protect personnel, vessels, and the marine environment in the navigable waters within the safety zone during the installation of the arch.</P>
                <HD SOURCE="HD1">IV. Discussion of the Rule</HD>
                <P>The installation of the arch will be occurring on the McClugage Bridge located on MM 165.7 and scheduled for 48 hours beginning December 19 through December 21, 2023. The installation has an operational window from December 18 through December 25, 2023 in the event of inclement weather delaying the installation. The safety zone is designed to protect waterway users until work is complete.</P>
                <P>No vessel or person will be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative. A designated representative is a commissioned, warrant, or petty officer of the U.S. Coast Guard (USCG) assigned to units under the operational control of USCG Sector Upper Mississippi River. To seek permission to enter, contact the COTP or a designated representative via VHF-FM channel 16, or through USCG Sector Upper Mississippi River at 314-269-2332. Persons and vessels permitted to enter the safety zone must comply with all lawful orders or directions issued by the COTP or designated representative. The COTP or a designated representative will inform the public of the effective period for the safety zone as well as any changes in the dates and times of enforcement, as well as reductions in the size of the safety zone through Local Notice to Mariners (LNMs), Broadcast Notices to Mariners (BNMs), or Safety Marine Information Broadcast (SMIB), as appropriate.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.</P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866, as amended by Executive Order 14094 (Modernizing Regulatory Review). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>This regulatory action determination is based on the size, location, and duration of the safety zone. The safety zone would impact a small designated area located on the Illinois River at MM 165.2 through 166.3, near Peoria, IL. The safety zone is expected to be active only during the installation of the arch for the McClugage Bridge, scheduled for a 48 hour period between December 19 and 21, 2023, or until December 25, 2023. Vessel traffic will be able to safely transit through this safety zone when the safety zone is not enforced.</P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>
                    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on 
                    <PRTPAGE P="87342"/>
                    small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.
                </P>
                <P>While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator because the zone will be enforced only when work is being conducted.  </P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Governments</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>
                    We have analyzed this rule under Department of Homeland Security Directive 023-01, Rev. 1, associated implementing instructions, and Environmental Planning COMDTINST 5090.1 (series), which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone encompassing the width of the Illinois River at MM 165.2 through 166.3. It is categorically excluded from further review under paragraph L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A Record of Environmental Consideration supporting this determination is available in the docket. For instructions on locating the docket, see the 
                    <E T="02">ADDRESSES</E>
                     section of this preamble.
                </P>
                <HD SOURCE="HD2">G. Protest Activities</HD>
                <P>
                    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places, or vessels.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
                    <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 46 U.S.C. 70034, 70051, 70124; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T08-0935 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T08-0935</SECTNO>
                        <SUBJECT> Safety Zone; Illinois River, Mile Markers 165.2-166.3, Peoria, IL.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: all navigable waters within Illinois River, Mile Marker 165.2 through 166.3, Peoria, IL.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Enforcement period.</E>
                             This section will be subject to enforcement from December 18, 2023, through December 25, 2023.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Regulations.</E>
                             (1) In accordance with the general safety zone regulations in § 165.23, entry of persons or vessels into this safety zone described in paragraph (a) of this section is prohibited unless authorized by the Captain of the Port (COTP) or a designated representative. A designated representative is a commissioned, warrant, or petty officer of the U.S. Coast Guard (USCG) assigned to units under the operational control of USCG Sector Upper Mississippi River.
                        </P>
                        <P>(2) To seek permission to enter, contact the COTP or a designated representative via VHF-FM channel 16, or through USCG Sector Upper Mississippi River at 314-269-2332. Persons and vessels permitted to enter the safety zone must comply with all lawful orders or directions issued by the COTP or designated representative.</P>
                        <P>
                            (d) 
                            <E T="03">Informational broadcasts.</E>
                             The COTP or a designated representative will inform the public of the enforcement period for the safety zone as well as any changes in the dates and times of enforcement, as well as reductions in size or scope of the safety zone through Local Notice to Mariners (LNMs), Broadcast Notices to Mariners (BNMs), or Safety Marine Information Broadcast (SMIB) as appropriate.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <PRTPAGE P="87343"/>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>A.R. Bender,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Sector Upper Mississippi River.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27757 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[Docket Number USCG-2023-0954]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone; Upper Galveston Bay, Kemah, TX</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is establishing a temporary safety zone for navigable waters within an 840-foot radius of the firework display barge in the Galveston Bay on the south side of the channel, near Kemah Boardwalk in Kemah, TX. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards created by the fireworks show. Entry of vessels or persons into this zone is prohibited unless specifically authorized by the Captain of the Port, Sector Houston-Galveston.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective from 8 through 11 p.m. on December 31, 2023.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov,</E>
                         type USCG-2023-0954 in the search box and click “Search.” Next, in the Document Type column, select “Supporting &amp; Related Material.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions on this rule, call or email Marine Science Technician First Class Christopher C. Morgan, Sector Houston-Galveston Waterways Management Division, Coast Guard; Telephone (713) 398-5823, Email 
                        <E T="03">houstonwwm@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">COTP Captain of the Port Houston-Galveston</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>The Coast Guard is issuing this temporary rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because it is impracticable. The Coast Guard received all amplifying information for this event regarding the need for a safety zone on December 4, 2023. The Coast Guard must establish this safety zone by December 31, 2023, and lacks the time for a reasonable comment period and to consider those comments before issuing the rule.</P>
                <P>
                    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . Delaying the effective date of this rule would be contrary to the public interest because action is needed on December 31, 2023, to ensure the safety of personnel, vessels, and the marine environment from potential hazards created by the fireworks show.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under authority in 46 U.S.C. 70034. The Captain of the Port Houston-Galveston (COTP) has determined that potential hazards associated with the fireworks show on December 31, 2023, in Kemah, TX, will be a safety concern for anyone within an 840-foot radius of a fireworks display barge, located in Galveston Bay, TX at 29°32′52.72″ N, 95°00′54.38″ W, on the south side of the channel. The purpose of this rulemaking is to protect personnel, vessels, and the marine environment in the navigable waters within the safety zone before, during, and after the scheduled fireworks display.</P>
                <HD SOURCE="HD1">IV. Discussion of the Rule</HD>
                <P>The fireworks will take place from approximately 9 p.m. to 9:30 p.m. on December 31, 2023. The safety zone will cover all navigable waters within an 840-foot radius of a fireworks display barge, located in Galveston Bay, TX, at 29°32′52.72″ N, 95°00′54.38″ W, on the south side of the channel. The duration of the zone is intended to protect personnel, vessels, and the marine environment in these navigable waters before, during, and after the fireworks display. No vessel or person is permitted to enter the safety zone without obtaining permission from the COTP or a designated representative. Persons or vessels seeking to enter the safety zone must request permission from the COTP on VHF-FM channel 16 or by telephone at 866-539-8114. If permission is granted, all persons and vessels shall comply with the instructions of the COTP or designated representative. The COTP or a designated representative will inform the public of the enforcement times and date for this safety zone through Broadcast Notices to Mariners, Local Notices to Mariners, and/or Safety Marine Information Broadcasts as appropriate.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>We developed this rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.  </P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866, as amended by Executive Order 14094 (Modernizing Regulatory Review). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>This regulatory action determination is based on the size, duration, and location of the safety zone. The safety zone will last for the limited duration of three hours. It covers an 840-foot radius of navigable waters of Galveston Bay, TX. The zone does not completely restrict vessel traffic and allows mariners to ask for permission to enter the zone.</P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>
                    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions 
                    <PRTPAGE P="87344"/>
                    with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.
                </P>
                <P>While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Governments</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>Also, this rule does not have Tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>
                    We have analyzed this rule under Department of Homeland Security Directive 023-01, Rev. 1, associated implementing instructions, and Environmental Planning COMDTINST 5090.1 (series), which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a temporary safety zone lasting only three hours that will prohibit entry within 840 feet of the fireworks display barge. It is categorically excluded from further review under paragraph L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A Record of Environmental Consideration supporting this determination is available in the docket. For instructions on locating the docket, see the 
                    <E T="02">ADDRESSES</E>
                     section of this preamble.
                </P>
                <HD SOURCE="HD2">G. Protest Activities</HD>
                <P>
                    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
                    <P>Harbors, Marine Safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P> 46 U.S.C. 70034, 70051, 70124; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T08-0954 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T08-0954 </SECTNO>
                        <SUBJECT>Safety Zone; Galveston Bay, Galveston, TX.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: All navigable waters within an 840-foot radius of a fireworks display barge, located in Galveston Bay, TX at 29°32′52.72″ N, 95°00′54.38″ W, on the south side of the channel.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Definition.</E>
                             The term “designated representative” means Coast Guard Patrol Commanders, including Coast Guard coxswains, petty officers, and other officers operating Coast Guard vessels, and Federal, state, and local officers designated by or assisting the Captain of the Port Houston-Galveston in the enforcement of the regulated areas.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Regulations.</E>
                             (1) According to the general regulations in § 165.23, entry into this temporary safety zone is prohibited unless authorized by the Captain of the Port Sector Houston-Galveston (COTP) or a designated representative.
                        </P>
                        <P>(2) Persons or vessels seeking to enter the safety zone must request permission from the COTP on VHF-FM channel 16 or by telephone at 866-539-8114.</P>
                        <P>
                            (d) 
                            <E T="03">Enforcement period.</E>
                             This section will be enforced from 8 until 11 p.m., on December 31, 2023.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <DATED>Dated: December 7, 2023,</DATED>
                    <NAME>Keith M. Donohue,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Houston-Galveston.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27738 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL SERVICE</AGENCY>
                <CFR>39 CFR Part 20</CFR>
                <SUBJECT>International Mailing Services: Price Changes</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final action.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        On October 6, 2023, the Postal Service published notice of mailing services price adjustments with the Postal Regulatory Commission (PRC). The PRC concluded that the price adjustments contained in the Postal Service's notification may go into effect 
                        <PRTPAGE P="87345"/>
                        on January 21, 2024. The Postal Service will revise Notice 123, 
                        <E T="03">Price List,</E>
                         to reflect the new mailing services prices.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The mailing services price adjustments are effective January 21, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dale Kennedy at 202-268-6592 or Kathy Frigo at 202-268-4178.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Proposed Rule and Response</HD>
                <P>
                    On October 6, 2023, the Postal Service filed a notice with the PRC In Docket No. R2024-1 of mailing services price adjustments to be effective on January 21, 2024. On October 24, 2023, the Postal Service published notification of proposed price changes in the 
                    <E T="04">Federal Register</E>
                     entitled “International Mailing Services: Proposed Price Changes” (88 FR 72972). The notification included price changes that the Postal Service would adopt for certain services covered by 
                    <E T="03">Mailing Standards of the United States Postal Service,</E>
                     International Mail Manual (IMM®) and publish in Notice 123, 
                    <E T="03">Price List,</E>
                     on Postal Explorer® at 
                    <E T="03">pe.usps.com.</E>
                     The Postal Service received no comments.
                </P>
                <HD SOURCE="HD1">II. Order of the Postal Regulatory Commission</HD>
                <P>
                    In PRC Order No. 6814, issued on November 22, 2023, in PRC Docket No. R2024-1, the PRC concluded that prices in the Postal Service's notice in Docket No. R2024-1 may go into effect on January 21, 2024. The new prices will accordingly be posted in Notice 123, 
                    <E T="03">Price List,</E>
                     on Postal Explorer at 
                    <E T="03">pe.usps.com.</E>
                </P>
                <HD SOURCE="HD1">III. Summary of Changes</HD>
                <HD SOURCE="HD2">First-Class Mail International®</HD>
                <P>The price for a single-piece postcard will be $1.55 worldwide. The First-Class Mail International (FCMI) letter nonmachinable will be $0.44. The FCMI single-piece letter and flat prices will be as follows:</P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                    <TTITLE>Letters</TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Weight not over
                            <LI>(oz.)</LI>
                        </CHED>
                        <CHED H="1">Price groups</CHED>
                        <CHED H="2">1</CHED>
                        <CHED H="2">2</CHED>
                        <CHED H="2">3-5</CHED>
                        <CHED H="2">6-9</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>$1.55</ENT>
                        <ENT>$1.55</ENT>
                        <ENT>$1.55</ENT>
                        <ENT>$1.55</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>1.55</ENT>
                        <ENT>2.35</ENT>
                        <ENT>2.80</ENT>
                        <ENT>2.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>2.22</ENT>
                        <ENT>3.10</ENT>
                        <ENT>4.10</ENT>
                        <ENT>4.10</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3.5</ENT>
                        <ENT>2.84</ENT>
                        <ENT>3.89</ENT>
                        <ENT>5.40</ENT>
                        <ENT>5.40</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                    <TTITLE>Flats</TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Weight not over
                            <LI>(oz.)</LI>
                        </CHED>
                        <CHED H="1">Price groups</CHED>
                        <CHED H="2">1</CHED>
                        <CHED H="2">2</CHED>
                        <CHED H="2">3-5</CHED>
                        <CHED H="2">6-9</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>$3.00</ENT>
                        <ENT>$3.00</ENT>
                        <ENT>$3.00</ENT>
                        <ENT>$3.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>3.35</ENT>
                        <ENT>3.98</ENT>
                        <ENT>4.23</ENT>
                        <ENT>4.23</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>3.64</ENT>
                        <ENT>4.87</ENT>
                        <ENT>5.45</ENT>
                        <ENT>5.45</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>3.89</ENT>
                        <ENT>5.78</ENT>
                        <ENT>6.71</ENT>
                        <ENT>6.71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5</ENT>
                        <ENT>4.18</ENT>
                        <ENT>6.69</ENT>
                        <ENT>7.93</ENT>
                        <ENT>7.93</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6</ENT>
                        <ENT>4.46</ENT>
                        <ENT>7.58</ENT>
                        <ENT>9.16</ENT>
                        <ENT>9.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7</ENT>
                        <ENT>4.74</ENT>
                        <ENT>8.50</ENT>
                        <ENT>10.39</ENT>
                        <ENT>10.39</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8</ENT>
                        <ENT>5.02</ENT>
                        <ENT>9.40</ENT>
                        <ENT>11.61</ENT>
                        <ENT>11.61</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12</ENT>
                        <ENT>6.41</ENT>
                        <ENT>11.35</ENT>
                        <ENT>14.08</ENT>
                        <ENT>14.08</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">15.994</ENT>
                        <ENT>7.80</ENT>
                        <ENT>13.30</ENT>
                        <ENT>16.54</ENT>
                        <ENT>16.54</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD2">International Extra Services and Fees</HD>
                <P>The Postal Service will increase prices for certain market dominant international extra services as noted:</P>
                <P>
                    • 
                    <E T="03">Certificate of Mailing service:</E>
                     Fees for certificate of mailing service for FCMI will increase as follows:
                </P>
                <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s150,15">
                    <TTITLE>Certificate of Mailing</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">Fee</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="22">
                            <E T="03">Individual pieces:</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Individual article (PS Form 3817) First-Class Mail International only</ENT>
                        <ENT>$2.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Duplicate copy of PS Form 3817 or PS Form 3665 (per page) First-Class Mail International only</ENT>
                        <ENT>2.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Firm mailing sheet (PS Form 3665), per piece (minimum 3) First-Class Mail International only</ENT>
                        <ENT>0.58</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">
                            <E T="03">Bulk quantities:</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">For first 1,000 pieces (or fraction thereof) First-Class Mail International only</ENT>
                        <ENT>11.10</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Each additional 1,000 pieces (or fraction thereof) First-Class Mail International only</ENT>
                        <ENT>1.45</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Duplicate copy of PS Form 3606 First-Class Mail International only</ENT>
                        <ENT>2.00</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    • 
                    <E T="03">Registered Mail® service:</E>
                     The fee for international Registered Mail service for FCMI will increase to $20.75.
                </P>
                <P>
                    • 
                    <E T="03">Return Receipt service:</E>
                     The fee for international return receipt service for FCMI will increase to $5.80.
                </P>
                <P>
                    • 
                    <E T="03">Customs Clearance and Delivery Fee:</E>
                     The Customs Clearance and Delivery Fee per dutiable item for 
                    <PRTPAGE P="87346"/>
                    Inbound Letter Post letters and flats will increase to $8.45.
                </P>
                <P>
                    • 
                    <E T="03">International Business Reply</E>
                    <E T="51">TM</E>
                    <E T="03"> Mail Service:</E>
                     The price for IBRS cards will increase to $2.15, and the price for IBRS envelopes (up to 2 ounces) will increase to $2.70.
                </P>
                <P>
                    New prices will be listed in the updated Notice 123, 
                    <E T="03">Price List.</E>
                </P>
                <SIG>
                    <NAME>Ruth Stevenson,</NAME>
                    <TITLE>Attorney, Ethics and Legal Compliance. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27760 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <CFR>40 CFR Parts 9 and 721</CFR>
                <DEPDOC>[EPA-HQ-OPPT-2022-0462; FRL-10183-03-OCSPP]</DEPDOC>
                <RIN>RIN 2070-AB27</RIN>
                <SUBJECT>Significant New Use Rules on Certain Chemical Substances (22-2.5e)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>EPA is issuing significant new use rules (SNURs) under the Toxic Substances Control Act (TSCA) for certain chemical substances that were the subject of premanufacture notices (PMNs) and are also subject to an Order issued by EPA pursuant to TSCA. The SNURs require persons who intend to manufacture (defined by statute to include import) or process any of these chemical substances for an activity that is designated as a significant new use by this rule to notify EPA at least 90 days before commencing that activity. The required notification initiates EPA's evaluation of the use, under the conditions of use for that chemical substance, within the applicable review period. Persons may not commence manufacture or processing for the significant new use until they have submitted a Significant New Use Notice (SNUN), and EPA has conducted a review of the notice, made an appropriate determination on the notice, and has taken such actions as are required by that determination.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective on February 16, 2024. For purposes of judicial review, this rule shall be promulgated at 1 p.m. (EST) on January 2, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The docket for this action, identified under docket identification (ID) number EPA-HQ-OPPT-2022-0462, is available online at 
                        <E T="03">https://www.regulations.gov</E>
                         or in person at the Office of Pollution Prevention and Toxics Docket (OPPT Docket) in the Environmental Protection Agency Docket Center (EPA/DC). Please review the visitor instructions and additional information about the docket available at 
                        <E T="03">https://www.epa.gov/dockets.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        <E T="03">For technical information contact:</E>
                         William Wysong, New Chemicals Division (7405M), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-0001; telephone number: (202) 564-4163; email address: 
                        <E T="03">wysong.william@epa.gov.</E>
                    </P>
                    <P>
                        <E T="03">For general information contact:</E>
                         The TSCA-Hotline, ABVI-Goodwill, 422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 554-1404; email address: 
                        <E T="03">TSCA-Hotline@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Executive Summary</HD>
                <HD SOURCE="HD2">A. What is the Agency's authority for taking this action?</HD>
                <P>TSCA section 5(a)(2) (15 U.S.C. 2604(a)(2)) authorizes EPA to determine that a use of a chemical substance is a “significant new use.” EPA must make this determination by rule after considering all relevant factors, including the four TSCA section 5(a)(2) factors listed in Unit II.A.1.</P>
                <HD SOURCE="HD2">B. What action is the Agency taking?</HD>
                <P>EPA is finalizing these SNURs under TSCA section 5(a)(2) for certain chemical substances that were the subject of PMNs. This document addresses final rules for PMN substances that are subject to orders issued under TSCA section 5(e)(1)(A), as required by the determinations made under TSCA section 5(a)(3)(B). Those TSCA Orders require protective measures to limit exposures or otherwise mitigate the potential unreasonable risk. The final SNURs identify as significant new uses any manufacturing, processing, use, distribution in commerce, or disposal that does not conform to the restrictions imposed by the underlying TSCA Orders, consistent with TSCA section 5(f)(4).</P>
                <P>
                    Previously, EPA proposed SNURs for these chemical substances in the 
                    <E T="04">Federal Register</E>
                     of October 31, 2022 (87 FR 65548) (FRL-10183-02-OCSPP). The docket includes information considered by the Agency in developing the proposed and final rules, including public comments and EPA's responses to the public comments received. The proposed SNURs for certain chemical substances not included in this 
                    <E T="04">Federal Register</E>
                     document will be addressed in a future 
                    <E T="04">Federal Register</E>
                     document.
                </P>
                <HD SOURCE="HD2">C. Why is the Agency taking this action?</HD>
                <P>The Agency is issuing these SNURs to ensure that EPA receives timely advanced notice of any future manufacturing (including importing) or processing of the chemical substances subject to these proposed SNURs for uses identified as significant new uses, and to ensure that an appropriate determination (relevant to the potential risks associated with such manufacturing (including importing), processing, distribution in commerce, use and disposal) has been issued prior to the commencement of such manufacturing (including importing) or processing. The SNURs are necessary to ensure that manufacturing (including import) or processing for significant new uses cannot proceed until EPA has responded to the planned new use circumstances by taking the required actions under TSCA sections 5(e) or 5(f) in the event that EPA determines that:</P>
                <P>(1) The significant new use presents an unreasonable risk under the conditions of use (without consideration of costs or other non-risk factors, and including an unreasonable risk to a potentially exposed or susceptible subpopulation (PESS) identified as relevant by EPA);</P>
                <P>(2) The information available to EPA is insufficient to permit a reasoned evaluation of the health and environmental effects of the significant new use;</P>
                <P>(3) In the absence of sufficient information, the manufacturing (including importing), processing, distribution in commerce, use, or disposal of the substance, or any combination of such activities, may present an unreasonable risk (without consideration of costs or other non-risk factors, and including an unreasonable risk to a PESS identified as relevant by EPA); or</P>
                <P>(4) There is substantial production and sufficient potential for environmental release or human exposure (as defined in TSCA section 5(a)(3)(B)(ii)(II)).</P>
                <P>
                    For manufacturing (including importing) or processing for the significant new use to proceed after EPA has made one of these four determinations, EPA must take actions under TSCA sections 5(e) or 5(f) to protect health and the environment. However, EPA may also determine that the significant new use is not likely to present an unreasonable risk under TSCA section 5(a)(3)(C), after which manufacturing (including importing) or 
                    <PRTPAGE P="87347"/>
                    processing for the significant new use may proceed.
                </P>
                <P>The rationale and objectives for this SNUR are further explained in Unit II.B.</P>
                <HD SOURCE="HD2">D. Does this action apply to me?</HD>
                <HD SOURCE="HD3">1. General Applicability</HD>
                <P>
                    This action may apply to you if you manufacture (defined by statute to include import), process, or use the chemical substances addressed in this 
                    <E T="04">Federal Register</E>
                     document. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include:
                </P>
                <P>
                    • Manufacturers or processors of one or more subject chemical substances (NAICS codes 325 and 324110), 
                    <E T="03">e.g.,</E>
                     chemical manufacturing and petroleum refineries.
                </P>
                <HD SOURCE="HD3">2. Applicability to Importers and Exporters</HD>
                <P>This action may also affect certain entities through pre-existing import certification and export notification rules under TSCA. Chemical importers are subject to the TSCA section 13 (15 U.S.C. 2612), import provisions promulgated at 19 CFR 12.118 through 12.127 (see also 19 CFR 127.28), and the EPA policy in support of import certification at 40 CFR part 707, subpart B. Chemical importers must certify that the shipment of the chemical substance complies with all applicable rules and Orders under TSCA, including regulations issued under TSCA sections 5, 6, 7 and Title IV.</P>
                <P>In addition, pursuant to 40 CFR 721.20, this action may also apply to any persons who export or intend to export a chemical substance identified in this document is subject to the export notification provisions of TSCA section 12(b) (15 U.S.C. 2611(b)) (see 40 CFR 721.20), and must comply with the export notification requirements in 40 CFR part 707, subpart D.</P>
                <HD SOURCE="HD2">E. What are the estimated incremental impacts of this action?</HD>
                <P>EPA has evaluated the potential costs of establishing SNUR reporting requirements for potential manufacturers (including importers) and processors of the chemical substances included in these SNURs. This analysis, which is available in the docket, is briefly summarized here.</P>
                <HD SOURCE="HD3">1. Estimated Costs for SNUN Submissions</HD>
                <P>If a SNUN is submitted, costs are an estimated $26,700 per SNUN submission for large business submitters and $11,000 for small business submitters. These estimates include the cost to prepare and submit the SNUN (including registration for EPA's Central Data Exchange (CDX)), and the payment of a user fee. Businesses that submit a SNUN would be subject to either a $19,020 user fee required by 40 CFR 700.45(c)(2)(ii) and (d), or, if they are a small business as defined at 13 CFR 121.201, a reduced user fee of $3,300 (40 CFR 700.45(c)(1)(ii) and (d)) per fiscal year 2022. The costs of submission for SNUNs will not be incurred by any company unless a company decides to pursue a significant new use as defined in these SNURs. Additionally, these estimates reflect the costs and fees as they are known at the time of this rulemaking.</P>
                <HD SOURCE="HD3">2. Estimated Costs for Export Notifications  </HD>
                <P>
                    EPA has also evaluated the potential costs associated with the export notification requirements under TSCA section 12(b) and the implementing regulations at 40 CFR part 707, subpart D. For persons exporting a substance that is the subject of a SNUR, a one-time notice to EPA must be provided for the first export or intended export to a particular country. The total costs of export notification will vary by chemical, depending on the number of required notifications (
                    <E T="03">i.e.,</E>
                     the number of countries to which the chemical is exported). While EPA is unable to make any estimate of the likely number of export notifications for the chemical substances covered by these SNURs, as stated in the accompanying economic analysis, the estimated cost of the export notification requirement on a per unit basis is approximately $106.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <HD SOURCE="HD2">A. Significant New Use Determination</HD>
                <HD SOURCE="HD3">1. Determination Factors</HD>
                <P>TSCA section 5(a)(2) states that EPA's determination that a use of a chemical substance is a significant new use must be made after consideration of all relevant factors, including:</P>
                <P>• The projected volume of manufacturing and processing of a chemical substance.</P>
                <P>• The extent to which a use changes the type or form of exposure of human beings or the environment to a chemical substance.</P>
                <P>• The extent to which a use increases the magnitude and duration of exposure of human beings or the environment to a chemical substance.</P>
                <P>• The reasonably anticipated manner and methods of manufacturing, processing, distribution in commerce, and disposal of a chemical substance.</P>
                <P>In addition to the factors enumerated in TSCA section 5(a)(2), the statute authorizes EPA to consider any other relevant factors.</P>
                <HD SOURCE="HD3">2. Scientific Standards, Evidence, and Available Information</HD>
                <P>EPA has used reasonably available information, as well as technical procedures, measures, methods, protocols, methodologies, and models consistent with the best available science, as applicable. These information sources supply information relevant to whether a particular use would be a significant new use, based on relevant factors including those listed under TSCA section 5(a)(2).</P>
                <P>The clarity and completeness of the data, assumptions, methods, quality assurance, and analyses employed in EPA's decision are documented, as applicable and to the extent necessary for purposes of the proposed SNURs, in the references cited throughout the preamble of this proposed rule. The extent to which the various information, procedures, measures, methods, protocols, methodologies or models used in EPA's decision have been subject to independent verification or peer review is adequate to justify their use, collectively, in the record for a significant new use rule.</P>
                <HD SOURCE="HD3">3. Determination for These Chemical Substances</HD>
                <P>In determining what would constitute a significant new use for the chemical substances that are the subject of these SNURs, EPA considered relevant information about the toxicity of the chemical substances and potential human exposures and environmental releases that may be associated with possible uses of these chemical substances, in the context of the four TSCA section 5(a)(2) factors listed in Unit II.A.1.</P>
                <P>
                    These SNURs include PMN substances that are subject to Orders issued under TSCA section 5(e)(1)(A), as required by the determinations made under TSCA section 5(a)(3)(B). The TSCA Orders require protective measures to limit exposures or otherwise mitigate the potential unreasonable risk. The SNURs identify significant new uses as any manufacturing, processing, use, distribution in commerce, or disposal that does not conform to the restrictions imposed by the underlying TSCA Orders, consistent with TSCA section 5(f)(4).
                    <PRTPAGE P="87348"/>
                </P>
                <HD SOURCE="HD2">B. Rationale and Objectives</HD>
                <HD SOURCE="HD3">1. Rationale</HD>
                <P>During review of the PMNs submitted for the chemical substances that are subject to these SNURs, EPA concluded that regulation was warranted under TSCA section 5(e), pending the development of information sufficient to make reasoned evaluations of the health or environmental effects of the chemical substances. The basis for such findings is outlined in Unit V. of the proposed rule for each chemical. Based on these findings, TSCA section 5(e) Orders requiring the use of appropriate exposure controls were negotiated with the PMN submitters. As a general matter, EPA believes it is necessary to follow the TSCA Orders with a SNUR that identifies the absence of those protective measures as significant new uses to ensure that all manufacturers and processors—not just the original submitter—are held to the same standard.</P>
                <HD SOURCE="HD3">2. Objectives</HD>
                <P>EPA is issuing these SNURs because the Agency wants to</P>
                <P>• Receive notice of any person's intent to manufacture or process a listed chemical substance for the described significant new use before that activity begins.</P>
                <P>• Have an opportunity to review and evaluate data submitted in a SNUN before the notice submitter begins manufacturing or processing a listed chemical substance for the described significant new use; and</P>
                <P>• To make a determination under TSCA section 5(a)(3) regarding the use described in the SNUN, under the conditions of use. The Agency will either determine under TSCA section 5(a)(3)(C) that significant new use is not likely to present an unreasonable risk, including an unreasonable risk to a potentially exposed or susceptible subpopulation identified as relevant by the Administrator under the conditions of use, or make a determination under TSCA section 5(a)(3)(A) or (B) and take the required regulatory action associated with the determination, before manufacture or processing for the significant new use of the chemical substance can occur.</P>
                <HD SOURCE="HD2">C. Applicability of General Provisions</HD>
                <P>General provisions for SNURs appear in 40 CFR part 721, subpart A. These provisions describe persons required to submit a Significant New Use Notice (SNUN), recordkeeping requirements, and exemptions to reporting requirements, among other things.</P>
                <P>Provisions relating to user fees appear at 40 CFR part 700. Pursuant to 40 CFR 721.1(c), persons submitting a SNUN are subject to the same requirements and regulatory procedures as submitters of PMNs under TSCA section 5(a)(1)(A). These include the information submission requirements of TSCA sections 5(b) and 5(d)(1), the exemptions authorized by TSCA sections 5(h)(1), (h)(2), (h)(3), and (h)(5), and the regulations at 40 CFR part 720, except where modified in part 721.</P>
                <P>
                    Once EPA receives a SNUN, and before the manufacture or processing for the significant new use can commence, EPA must either determine that the use addressed in the SNUN is not likely to present an unreasonable risk of injury under the conditions of use for the chemical substance or take such regulatory action as is associated with an alternative determination. If EPA determines that the use is not likely to present an unreasonable risk, EPA is required under TSCA section 5(g) to make public, and submit for publication in the 
                    <E T="04">Federal Register</E>
                    , a statement of EPA's findings.
                </P>
                <HD SOURCE="HD2">D. Applicability of the Significant New Use Designation</HD>
                <P>Any use that EPA determines in the final rule was ongoing as of the date of publication of the proposal and did not cease prior to issuance of the final rule, will not be designated as a significant new use in the final rule. EPA has no information to suggest that any of the significant new uses identified in this rule are ongoing.</P>
                <P>
                    Under the procedures in 40 CFR 721.11 a manufacturer or processor may request EPA to determine whether a specific use would be a significant new use under the rule. The manufacturer or processor must show that it has a 
                    <E T="03">bona fide</E>
                     intent to manufacture or process the chemical substance and must identify the specific use for which it intends to manufacture or process the chemical substance. If EPA concludes that the person has shown a 
                    <E T="03">bona fide</E>
                     intent to manufacture or process the chemical substance, EPA will identify any confidential significant new use designations under the rule. Since most of the chemical identities of the chemical substances subject to these SNURs are also CBI, manufacturers and processors can combine the 
                    <E T="03">bona fide</E>
                     submission under the procedure in 40 CFR 721.11 into a single step to identify if a chemical substance is subject to 40 CFR part 721 and if a specific use would be a significant new use under the rule.
                </P>
                <P>The chemical substances subject to this rule have undergone premanufacture review. In cases where EPA has not received a notice of commencement (NOC) and the chemical substance is not on the TSCA Inventory, no person may commence any activities without first submitting a PMN. Therefore, when EPA has received a PMN for a chemical substance but has not received a NOC for that same substance, the fact that a NOC has not been received is evidence that no manufacturing or processing of the chemical substance is occuring in the United States. When chemical substances identified in this rule are added to the TSCA Inventory, EPA recognizes that, before the rule is effective, other persons might engage in a use that has been identified as a significant new use. However, TSCA Orders have been issued for these chemical substances, and the PMN submitters are prohibited by the TSCA Orders from undertaking activities which would be designated as significant new uses. The identities of many of the chemical substances subject to these SNURs have been claimed as confidential per 40 CFR 720.85.</P>
                <P>
                    As discussed in the 
                    <E T="04">Federal Register</E>
                     of April 24, 1990 (55 FR 17376 (FRL-3658-5)), EPA has decided that the intent of TSCA section 5(a)(1)(B) is best served by designating a use as a significant new use as of the date of publication of the proposed rule rather than as of the effective date of the final rule. The objective of EPA's approach is to ensure that a person cannot impede finalization of a SNUR by initiating a significant new use after publication of the proposed rule but before the effective date of the final rule. Uses arising after the publication of the proposed rule are distinguished from uses that are identified in the final rule as having been ongoing on the date of publication of the proposed rule. The former would be new uses, the latter ongoing uses, except that uses that are identified as ongoing as of the publication of the proposed rule would not be considered ongoing uses if they have ceased by the date of issuance of a final rule.
                </P>
                <P>
                    In the unlikely event that before a final rule becomes effective a person begins commercial manufacturing (including importing) or processing of the chemical substances for a use that is designated as a significant new use in that final rule, such a person would have to cease any such activity upon the effective date of the final rule. To resume their activities, these persons would have to first comply with all applicable SNUR notification requirements and wait until all TSCA prerequisites for the commencement of 
                    <PRTPAGE P="87349"/>
                    manufacture or processing have been satisfied.
                </P>
                <P>
                    Issuance of a SNUR for a chemical substance does not signify that the chemical substance is listed on the TSCA Chemical Substance Inventory (TSCA Inventory). Guidance on how to determine if a chemical substance is on the TSCA Inventory is available on the internet at 
                    <E T="03">https://www.epa.gov/tsca-inventory.</E>
                </P>
                <HD SOURCE="HD2">E. Important Information About SNUN Submissions</HD>
                <HD SOURCE="HD3">1. SNUN Submissions</HD>
                <P>
                    According to 40 CFR 721.1(c), persons submitting a SNUN must comply with the same notification requirements and EPA regulatory procedures as persons submitting a PMN, including submission of test data on health and environmental effects as described in 40 CFR 720.50. SNUNs must be submitted on EPA Form No. 7710-25, generated using e-PMN software, and submitted to the Agency in accordance with the procedures set forth in 40 CFR 720.40. E-PMN software is available electronically at 
                    <E T="03">https://www.epa.gov/reviewing-new-chemicals-under-toxic-substances-control-act-tsca.</E>
                </P>
                <HD SOURCE="HD3">2. Development and Submission of Information With the SNUN</HD>
                <P>
                    EPA recognizes that TSCA section 5 does not require developing any particular new information (
                    <E T="03">e.g.,</E>
                     generating test data) before submission of a SNUN. There is an exception: If a person is otherwise required to submit information for a chemical substance subject to the SNUR pursuant to a rule, TSCA Order or consent agreement under TSCA section 4, then TSCA section 5(b)(1)(A) requires such information to be submitted to EPA at the time of submission of the SNUN.
                </P>
                <P>In the absence of a rule, Order, or consent agreement under TSCA section 4 covering the chemical substance, persons are required only to submit information in their possession or control and to describe any other information known or reasonably ascertainable (see 40 CFR 720.50). However, upon review of PMNs and SNUNs, the Agency may determine under TSCA section 5(e) that it is necessary to require appropriate testing. Unit IV. of the proposed rule lists potentially useful information for the SNURs listed in this document. Descriptions of this information is provided for informational purposes. The potentially useful information identified in Unit IV. of the proposed rule will be useful to EPA's evaluation in the event that someone submits a SNUN for the significant new use.</P>
                <P>
                    EPA strongly encourages persons to consult with the Agency before performing any testing. Furthermore, pursuant to TSCA section 4(h), which pertains to reduction of testing in vertebrate animals, EPA encourages dialog with the Agency on the use of alternative test methods and strategies (also called New Approach Methodologies, or NAMs), if available, to generate the recommended test data. EPA encourages dialog with Agency representatives to help determine how best the submitter can meet both the data needs and the objective of TSCA section 4(h). For more information on alternative test methods and strategies to reduce vertebrate animal testing, visit 
                    <E T="03">https://www.epa.gov/assessing-and-managing-chemicals-under-tsca/alternative-test-methods-and-strategies-reduce.</E>
                </P>
                <P>The potentially useful information listed in Unit IV. of the proposed rule may not be the only means of addressing the potential risks of the chemical substance. However, submitting a SNUN without any test data or other information may increase the likelihood that EPA will take action under TSCA sections 5(e) or 5(f). EPA recommends that potential SNUN submitters contact EPA early enough so that they will be able to conduct the appropriate tests.</P>
                <P>SNUN submitters should be aware that EPA will be better able to evaluate SNUNs which provide detailed information on the following:</P>
                <P>• Human exposure and environmental release that may result from the significant new use of the chemical substances.</P>
                <P>• Information on risks posed by the chemical substances compared to risks posed by potential substitutes.</P>
                <HD SOURCE="HD1">III. Public Comments on Proposed Rule and EPA Responses</HD>
                <P>EPA received public comments on the proposed rules from seven identifying entities. The Agency's responses are presented in the Response to Public Comments document that is available in the docket for this rulemaking. EPA is not finalizing the SNUR applicable to PMN P-20-0105, which was proposed as 40 CFR 721.11764. As described in the response to comments EPA will re-propose and finalize that SNUR in a future action.</P>
                <HD SOURCE="HD1">IV. Substances Subject to This Rule</HD>
                <P>EPA is establishing significant new use and recordkeeping requirements for certain chemical substances in 40 CFR part 721, subpart E. In Unit V. of the proposed SNURs, EPA provided the following information for each chemical substance:</P>
                <P>• PMN number.</P>
                <P>• Chemical name (generic name, if the specific name is claimed as confidential business information (CBI)).</P>
                <P>• Chemical Abstracts Service Registry Number (CAS RN) (if assigned for non-confidential chemical identities).</P>
                <P>• Effective date of and basis for the TSCA Order.</P>
                <P>• Potentially Useful Information. This is information identified by EPA that would help characterize the potential health and/or environmental effects of the chemical substances if a manufacturer or processor is considering submitting a SNUN for a significant new use designated by the SNUR.</P>
                <P>• CFR citation assigned in the regulatory text section of these rules. The regulatory text specifies the activities designated as significant new uses. Certain new uses, including production volume limits and other uses designated in the rules, may be claimed as CBI. In cases where the rules establish certain significant new uses which have been claimed as CBI subject to Agency confidentiality regulations at 40 CFR part 2 and 40 CFR part 720, subpart E, absent a final determination or other disposition of the confidentiality claim under 40 CFR part 2 procedures, EPA is required to keep this information confidential.</P>
                <HD SOURCE="HD1">V. Statutory and Executive Order Reviews</HD>
                <P>
                    Additional information about these statutes and Executive Orders can be found at 
                    <E T="03">https://www.epa.gov/laws-regulations-and-executive-orders.</E>
                </P>
                <HD SOURCE="HD2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 14094: Modernizing Regulatory Review</HD>
                <P>This action establishes SNURs for new chemical substances that were the subject of PMNs. The Office of Management and Budget (OMB) has exempted these types of actions from review under Executive Order 12866 (58 FR 51735, October 4, 1993), as amended by Executive Order 14094 (88 FR 21879, April 11, 2023).</P>
                <HD SOURCE="HD2">B. Paperwork Reduction Act (PRA)</HD>
                <P>
                    According to the PRA (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), an agency may not conduct or sponsor, and a person is not required to respond to a collection of information that requires OMB approval under PRA, unless it has been approved by OMB and displays a currently valid OMB 
                    <PRTPAGE P="87350"/>
                    control number. The OMB control numbers for EPA's regulations in title 40 of the CFR, after appearing in the 
                    <E T="04">Federal Register</E>
                    , are listed in 40 CFR part 9, and included on the related collection instrument or form, if applicable.
                </P>
                <P>The information collection requirements associated with SNURs have already been approved by OMB pursuant to the PRA under OMB control number 2070-0038 (EPA ICR No. 1188.13). This action does not impose any burden requiring additional OMB approval. If an entity were to submit a SNUN to the Agency, the annual burden is estimated to average between 30 and 170 hours per response. This burden estimate includes the time needed to review instructions, search existing data sources, gather and maintain the data needed, and complete, review, and submit the required SNUN.</P>
                <P>EPA is amending the table in 40 CFR part 9 to list the SNURs and OMB approval number for the information collection activities contained in this action. This listing of the OMB control numbers and their subsequent codification in the CFR satisfies the display requirements of PRA and OMB's implementing regulations at 5 CFR part 1320. The Information Collection Request (ICR) covering the SNUR activities was previously subject to public notice and comment prior to OMB approval, and given the technical nature of the table, EPA finds that further notice and comment to amend it is unnecessary. As a result, EPA finds that there is “good cause” under section 553(b)(3)(B) of the Administrative Procedure Act (5 U.S.C. 553(b)(3)(B)) to amend this table without further notice and comment.</P>
                <P>EPA always welcomes your feedback on the burden estimate. Send any comments about the accuracy of the burden estimate, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques, to the Director, Regulatory Support Division, Office of Mission Support (2822T), Environmental Protection Agency, 1200 Pennsylvania Ave., NW, Washington, DC 20460-0001. Please remember to include the OMB control number in any correspondence, but do not submit any completed forms to this address.</P>
                <HD SOURCE="HD2">C. Regulatory Flexibility Act (RFA)</HD>
                <P>
                    I certify that this action will not have a significant economic impact on a substantial number of small entities under the RFA (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ). The requirement to submit a SNUN applies to any person (including small or large entities) who intends to engage in any activity described in the final rule as a “significant new use.” Because these uses are “new,” based on all information currently available to EPA, EPA has concluded that no small or large entities presently engage in such activities. A SNUR requires that any person who intends to engage in such activity in the future must first notify EPA by submitting a SNUN. Although some small entities may decide to pursue a significant new use in the future, EPA cannot presently determine how many, if any, there may be. However, EPA's experience to date is that, in response to the promulgation of SNURs covering over 1,000 chemicals, the Agency receives only a small number of SNUNs per year. For example, the number of SNUNs received was 10 in Federal fiscal year (FY) FY2016, 14 in FY2017, 16 in FY2018, five in FY2019, seven in FY2020, and 13 in FY2021, and only a fraction of these were from small businesses.
                </P>
                <P>
                    In addition, the Agency currently offers relief to qualifying small businesses by reducing the SNUN submission fee from $19,020 to $3,330. This lower fee reduces the total reporting and recordkeeping cost of submitting a SNUN to about $11,164 per SNUN submission for qualifying small firms. Therefore, the potential economic impacts of complying with this SNUR are not expected to be significant or adversely impact a substantial number of small entities. In a SNUR that published in the 
                    <E T="04">Federal Register</E>
                     of June 2, 1997 (62 FR 29684) (FRL-5597-1), the Agency presented its general determination that SNURs are not expected to have a significant economic impact on a substantial number of small entities, which was provided to the Chief Counsel for Advocacy of the Small Business Administration.
                </P>
                <HD SOURCE="HD2">D. Unfunded Mandates Reform Act (UMRA)</HD>
                <P>
                    Based on EPA's experience with proposing and finalizing SNURs, State, local, and Tribal governments have not been impacted by these rulemakings, and EPA does not have any reasons to believe that any State, local, or Tribal government will be impacted by this action. As such, EPA has determined that this action does not impose any enforceable duty, contain any unfunded mandate, or otherwise have any effect on small governments subject to the requirements of UMRA sections 202, 203, 204, or 205 (2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <HD SOURCE="HD2">E. Executive Order 13132: Federalism</HD>
                <P>This action will not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999), because it is not expected to have a substantial direct effect on States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Accordingly, the requirements of Executive Order 13132 do not apply to this action.</P>
                <HD SOURCE="HD2">F. Executive Order 13175: Consultation and Coordination With Indian Tribe Governments</HD>
                <P>This action does not have Tribal implications as specified in Executive Order 13175 (65 FR 67249, November 9, 2000), because it is not expected to have substantial direct effects on Indian Tribes, significantly or uniquely affect the communities of Indian Tribal governments, and does not involve or impose any requirements that affect Indian Tribes. Accordingly, the requirements of Executive Order 13175 do not apply to this action.</P>
                <HD SOURCE="HD2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</HD>
                <P>This action is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997), because it does not concern an environmental health or safety risk. Since this action does not concern human health, EPA's 2021 Policy on Children's Health also does not apply. Although the establishment of these SNURs do not address an existing children's environmental health concern because the chemical uses involved are not ongoing uses, SNURs require that persons notify EPA at least 90 days before commencing manufacture (defined by statute to include import) or processing of any of these chemical substances for an activity that is designated as a significant new use by this rule. This notification allows EPA to assess the intended uses to identify potential risks and take appropriate actions before the activities commence.</P>
                <HD SOURCE="HD2">H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use</HD>
                <P>
                    This action is not a “significant energy action” as defined in Executive Order 13211 (66 FR 28355, May 22, 2001), because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy.
                    <PRTPAGE P="87351"/>
                </P>
                <HD SOURCE="HD2">I. National Technology Transfer and Advancement Act (NTTAA)</HD>
                <P>This action does not involve any technical standards subject to NTTAA section 12(d) (15 U.S.C. 272 note).</P>
                <HD SOURCE="HD2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations and Executive Order 14096: Revitalizing Our Nation's Commitment to Environmental Justice for All</HD>
                <P>This action does not concern human health or environmental conditions and therefore cannot be evaluated with respect to the potential for disproportionate impacts on non-white and low-income populations in accordance with Executive Order 12898 (59 FR 7629, February 16, 1994) and Executive Order 14096 (88 FR 25251, April 26, 2023). Although this action does not concern human health or environmental conditions, the premanufacture notifications required by these SNURs allows EPA to assess the intended uses to identify potential disproportionate risks and take appropriate actions before the activities commence.</P>
                <HD SOURCE="HD2">K. Congressional Review Act (CRA)</HD>
                <P>
                    This action is subject to the CRA (5 U.S.C. 801 
                    <E T="03">et seq.</E>
                    ), and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. This action is not a “major rule” as defined by 5 U.S.C. 804(2).
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects</HD>
                    <CFR>40 CFR Part 9</CFR>
                    <P>Environmental protection, Reporting and recordkeeping requirements.</P>
                    <CFR>40 CFR Part 721</CFR>
                    <P>Environmental protection, Chemicals, Hazardous substances, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Mary Elissa Reaves,</NAME>
                    <TITLE>Director, Office of Pollution Prevention and Toxics.</TITLE>
                </SIG>
                <P>Therefore, for the reasons stated in the preamble, 40 CFR chapter I is amended as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 9—OMB APPROVALS UNDER THE PAPERWORK REDUCTION ACT</HD>
                </PART>
                <REGTEXT TITLE="40" PART="9">
                    <AMDPAR>1. The authority citation for part 9 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>
                             7 U.S.C. 135 
                            <E T="03">et seq.,</E>
                             136-136y; 15 U.S.C. 2001, 2003, 2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a; 31 U.S.C. 9701; 33 U.S.C. 1251 
                            <E T="03">et seq.,</E>
                             1311, 1313d, 1314, 1318, 1321, 1326, 1330, 1342, 1344, 1345 (d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g, 300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2, 300j-3, 300j-4, 300j-9, 1857 
                            <E T="03">et seq.,</E>
                             6901-6992k, 7401-7671q, 7542, 9601-9657, 11023, 11048.
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="40" PART="9">
                    <AMDPAR>2. Amend the table in § 9.1 by adding entries for §§ 721.11752 through 721.11763 and 721.11765 through 721.11776 in numerical order under the undesignated center heading “Significant New Uses of Chemical Substances” to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 9.1 OMB</SECTNO>
                        <SUBJECT> approvals under the Paperwork Reduction Act.</SUBJECT>
                        <STARS/>
                        <GPOTABLE COLS="2" OPTS="L1,tp0,i1" CDEF="s25,10">
                            <TTITLE> </TTITLE>
                            <BOXHD>
                                <CHED H="1">40 CFR citation</CHED>
                                <CHED H="1">OMB control No.</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW RUL="s">
                                <ENT I="28">*    *    *    *    *</ENT>
                            </ROW>
                            <ROW EXPSTB="01" RUL="s">
                                <ENT I="21">
                                    <E T="02">Significant New Uses of Chemical Substances</E>
                                </ENT>
                            </ROW>
                            <ROW EXPSTB="00">
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*    *    *    *    *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11752</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11753</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11754</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11755</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11756</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11757</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11758</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11759</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11760</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11761</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11762</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11763</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11765</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11766</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11767</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11768</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11769</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11770</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11771</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11772</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11773</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11774</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11775</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">721.11776</ENT>
                                <ENT>2070-0038</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*    *    *    *    *</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 721—SIGNIFICANT NEW USES OF CHEMICAL SUBSTANCES</HD>
                </PART>
                <REGTEXT TITLE="40" PART="721">
                    <AMDPAR>3. The authority citation for part 721 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 15 U.S.C. 2604, 2607, and 2625(c).</P>
                    </AUTH>
                </REGTEXT>
                <SUBPART>
                    <HD SOURCE="HED">Subpart E—Significant New Uses for Specific Chemical Substances</HD>
                </SUBPART>
                <REGTEXT TITLE="40" PART="721">
                    <AMDPAR>4. Add §§ 721.11752 through 721.11763 and 721.11765 through 721.11776 in numerical order to subpart E to read as follows:</AMDPAR>
                    <CONTENTS>
                        <SECHD>Sec</SECHD>
                        <STARS/>
                        <SECTNO>721.11752 </SECTNO>
                        <SUBJECT>Quaternary ammonium salt of polyisobutene succinic acid (generic).</SUBJECT>
                        <SECTNO>721.11753 </SECTNO>
                        <SUBJECT>2-Propenoic acid, 2-alkyl-, 2-(dialkylamino)alkyl ester, polymer with .alpha.-(2-alkyl-1-oxo-2-alken-1-yl)-.omega.-methoxypoly(oxy-1,2-alkanediyl) (generic).</SUBJECT>
                        <SECTNO>721.11754 </SECTNO>
                        <SUBJECT>Alkanedioic acid, polymer with cycloalkyl dimethanol, alkyl and cycloalkyl diisocyanates, dimethyl-alkanediol, dihydroxyalkanoic acid methylenebis[isocyanatocyclohexane], hydroxyethyl acrylate- and polyalkyl glycol monoalkyl ether blocked (generic).</SUBJECT>
                        <SECTNO>721.11755 </SECTNO>
                        <SUBJECT>Poly(oxy-1,4-butanediyl), .alpha.-hydro-.omega.-hydroxy-, polymer with 1,1′-methylenebis[4-isocyanatobenzene], caprolactam-blocked.</SUBJECT>
                        <SECTNO>721.11756 </SECTNO>
                        <SUBJECT>Tall-oil pitch, fraction, sterol-low (generic).</SUBJECT>
                        <SECTNO>721.11757 </SECTNO>
                        <SUBJECT>Carboxylic acid, reaction products with metal hydroxide, inorganic dioxide and metal (generic).</SUBJECT>
                        <SECTNO>721.11758 </SECTNO>
                        <SUBJECT>Multi-walled carbon nanotubes; closed; 4.4-12.8 nm diameter; bundle length 10.6-211.1 µm; Grade: Jenotube 6.</SUBJECT>
                        <SECTNO>721.11759 </SECTNO>
                        <SUBJECT>Multi-walled carbon nanotubes; closed; 5.1-11.6 nm diameter; bundle length 1.9-552.0 µm; Grade: Jenotube 8.</SUBJECT>
                        <SECTNO>721.11760 </SECTNO>
                        <SUBJECT>Multi-walled carbon nanotubes; closed; 7.9-14.2 nm diameter; bundle length 9.4-106.4 µm; Grade: Jenotube 10.</SUBJECT>
                        <SECTNO>721.11761 </SECTNO>
                        <SUBJECT>Multi-walled carbon nanotubes; closed; 17.0-34.7 nm diameter; globular shape; Grade: Jenotube 20.</SUBJECT>
                        <SECTNO>721.11762 </SECTNO>
                        <SUBJECT>Nonanamide, N,N-dimethyl-.</SUBJECT>
                        <SECTNO>721.11763 </SECTNO>
                        <SUBJECT>2-Propenoic acid, 2-methyl, 2-(dimethylamino)ethyl ester, polymers with 2-(C16-18-acylamino)ethyl acrylate and hydroxyalkyl acrylate, acetates (generic).</SUBJECT>
                        <SECTNO>721.11765 </SECTNO>
                        <SUBJECT>2H-Pyran, tetrahydro-4-methyl.</SUBJECT>
                        <SECTNO>721.11766 </SECTNO>
                        <SUBJECT>Organic acid ester, polymer with aliphatic diols and 1,1′-methylenebis[4-isocyanatobenzene] (generic).</SUBJECT>
                        <SECTNO>721.11767 </SECTNO>
                        <SUBJECT>4,4-Methylenebis (2,6-dimethyl phenol) polymer with 2-(chloromethyl)oxirane, 1,4-benzenediol, 2-methyl-2-propenoic acid, mixed alkyl substituted 2-methyl 2-propenoate, and ethyl 2-propenoate, reaction products with 2-(dimethylamino) ethanol (generic).</SUBJECT>
                        <SECTNO>721.11768 </SECTNO>
                        <SUBJECT>Phenol, methylethylidene, polymer chloromethyl epoxide and methylethylidene bis-oxy, bis-amine (generic).</SUBJECT>
                        <SECTNO>721.11769 </SECTNO>
                        <SUBJECT>Amine, methylethylidenebis(oxy) (generic).</SUBJECT>
                        <SECTNO>721.11770 </SECTNO>
                        <SUBJECT>Carbamic acid, N-[3-(trialkoxysilyl)propyl]-, C,C′-[2,2,4(or 2,4,4)-trimethyl-1,6-hexanediyl] ester (generic).</SUBJECT>
                        <SECTNO>721.11771 </SECTNO>
                        <SUBJECT>Arylfurandione, [bis(trihaloalkyl)alkylidene]bis-, polymer with alkanediamine (generic).</SUBJECT>
                        <SECTNO>721.11772 </SECTNO>
                        <SUBJECT>Phosphonic acid, dimethyl ester, reaction products with alkyl-alkyl-alkanediol and alkanediol (generic).</SUBJECT>
                        <SECTNO>721.11773 </SECTNO>
                        <SUBJECT>Silane, halogenated (generic).</SUBJECT>
                        <SECTNO>721.11774 </SECTNO>
                        <SUBJECT>
                            Heteromonocycle, polymer, substituted aliphatic carbamate, [2-[(1-oxo-2-propen-1-yl)oxy]alkyl]ester (generic).
                            <PRTPAGE P="87352"/>
                        </SUBJECT>
                        <SECTNO>721.11775 </SECTNO>
                        <SUBJECT>Alkanes, C4-8-branched and linear.</SUBJECT>
                        <SECTNO>721.11776 </SECTNO>
                        <SUBJECT>5H-1,2-Oxathiole, 2,2-dioxide.</SUBJECT>
                    </CONTENTS>
                    <STARS/>
                    <SECTION>
                        <SECTNO>§ 721.11752</SECTNO>
                        <SUBJECT> Quaternary ammonium salt of polyisobutene succinic acid (generic).  </SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as quaternary ammonium salt of polyisobutene succinic acid (PMN P-16-349) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (6)(vii) and (7), (b) and (c). For purposes of § 721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1)(ix), (2)(i) and (v), and (5). For purposes of § 721.72(e), the concentration is set at 1.0%. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(k). It is a significant new use to manufacture, process, or use the substance in any manner that results in inhalation exposure. It is a significant new use to use the substance in any consumer product to be added to gasoline or diesel fuels by the consumer.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11753</SECTNO>
                        <SUBJECT> 2-Propenoic acid, 2-alkyl-, 2-(dialkylamino)alkyl ester, polymer with .alpha.-(2-alkyl-1-oxo-2-alken-1-yl)-.omega.-methoxypoly(oxy-1,2-alkanediyl) (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as 2-propenoic acid, 2-alkyl-, 2-(dialkylamino)alkyl ester, polymer with .alpha.-(2-alkyl-1-oxo-2-alken-1-yl)-.omega.-methoxypoly(oxy-1,2-alkanediyl) (PMN P-18-27) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured) or when present as an impurity at less than 1% by weight.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (5) through (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50 or of at least 1,000 during spray applications.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: specific target organ toxicity; skin irritation; eye irritation; skin sensitization. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to use the substance in formulations at greater than 0.1% for spray applications.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11754</SECTNO>
                        <SUBJECT> Alkanedioic acid, polymer with cycloalkyl dimethanol, alkyl and cycloalkyl diisocyanates, dimethyl-alkanediol, dihydroxyalkanoic acid methylenebis[isocyanatocyclohexane], hydroxyethyl acrylate- and polyalkyl glycol monoalkyl ether blocked (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as alkanedioic acid, polymer with cycloalkyl dimethanol, alkyl and cycloalkyl diisocyanates, dimethyl-alkanediol, dihydroxyalkanoic acid methylenebis[isocyanatocyclohexane], hydroxyethyl acrylate- and polyalkyl glycol monoalkyl ether blocked (PMN P-18-301) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), and (c).
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin irritation; skin sensitization; eye irritation; respiratory sensitization. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11755</SECTNO>
                        <SUBJECT> Poly(oxy-1,4-butanediyl), .alpha.-hydro-.omega.-hydroxy-, polymer with 1,1′-methylenebis[4-isocyanatobenzene], caprolactam-blocked.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as poly(oxy-1,4-butanediyl), .alpha.-hydro-.omega.-hydroxy-, polymer with 1,1′-methylenebis[4-isocyanatobenzene], caprolactam-blocked (P-18-340; CAS RN 2247074-17-3) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), and (c).
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: respiratory sensitization; skin sensitization; reproductive toxicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o). It is a significant new use to use the substance other than for one component thermoset elastomer manufacture. It is a significant 
                            <PRTPAGE P="87353"/>
                            new use to manufacture, process, or use the substance in any manner that results in inhalation exposure. It is a significant new use to manufacture the substance without the use of a packed tower scrubber that removes at least 95 percent of the substance prior to release.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11756</SECTNO>
                        <SUBJECT> Tall-oil pitch, fraction, sterol-low (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as tall-oil pitch, fraction, sterol-low (PMN P-19-165) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (c), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11757</SECTNO>
                        <SUBJECT> Carboxylic acid, reaction products with metal hydroxide, inorganic dioxide and metal (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as carboxylic acid, reaction products with metal hydroxide, inorganic dioxide and metal (PMN P-20-10) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 1,000, or an APF of 50 if dust controls are implemented that demonstrate an exposure reduction of at least 30%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin sensitization; genetic toxicity; reproductive toxicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=11.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (h), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11758</SECTNO>
                        <SUBJECT> Multi-walled carbon nanotubes; closed; 4.4-12.8 nm diameter; bundle length 10.6-211.1 µm; Grade: Jenotube 6.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as multi-walled carbon nanotubes; closed; 4.4-12.8 nm diameter; bundle length 10.6-211.1 µm; Grade: Jenotube 6 (PMN P-20-62) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted or cured or incorporated into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin sensitization; eye irritation; respiratory sensitization; carcinogenicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(f). It is a significant new use to manufacture the substance with a maximum weight percent of cobalt oxide impurity in excess of 2.1%. It is a significant new use to process or use the substance other than as an electrically conductive material, a heat dissipation material, a heat generation material, an additive for weight reduction, an additive to improve physical or mechanical properties, an additive in batteries, energy storage, and electrode applications, or an additive in field emission applications. It is a significant new use to process or use the substance in application methods that do not generate a vapor, mist, dust, or aerosol unless such an application method occurs in an enclosed process.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.  
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11759</SECTNO>
                        <SUBJECT> Multi-walled carbon nanotubes; closed; 5.1-11.6 nm diameter; bundle length 1.9-552.0 µm; Grade: Jenotube 8.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as multi-walled carbon nanotubes; closed; 5.1-11.6 nm diameter; bundle length 1.9-552.0 µm; Grade: Jenotube 8 (PMN P-20-63) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted or cured or incorporated into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in 
                            <PRTPAGE P="87354"/>
                            § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin sensitization; eye irritation; respiratory sensitization; carcinogenicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(f). It is a significant new use to manufacture the substance with a maximum weight percentage of cobalt oxide impurity in excess of 2.1%. It is a significant new use to process or use the substance other than as an electrically conductive material, a heat dissipation material, a heat generation material, an additive for weight reduction, an additive to improve physical or mechanical properties, an additive in batteries, energy storage, and electrode applications, or an additive in field emission applications. It is a significant new use to process or use the substance in application methods that do not generate a vapor, mist, dust, or aerosol unless such an application method occurs in an enclosed process.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11760</SECTNO>
                        <SUBJECT> Multi-walled carbon nanotubes; closed; 7.9-14.2 nm diameter; bundle length 9.4-106.4 µm; Grade: Jenotube 10.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as multi-walled carbon nanotubes; closed; 7.9-14.2 nm diameter; bundle length 9.4-106.4 µm; Grade: Jenotube 10 (PMN P-20-64) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted or cured or incorporated into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin sensitization; eye irritation; respiratory sensitization; carcinogenicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(f). It is a significant new use to manufacture the substance with a maximum weight percentage of cobalt oxide impurity in excess of 2.1%. It is a significant new use to process or use the substance other than as an electrically conductive material, a heat dissipation material, a heat generation material, an additive for weight reduction, an additive to improve physical or mechanical properties, an additive in batteries, energy storage, and electrode applications, or an additive in field emission applications. It is a significant new use to process or use the substance in application methods that do not generate a vapor, mist, dust, or aerosol unless such an application method occurs in an enclosed process.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11761</SECTNO>
                        <SUBJECT> Multi-walled carbon nanotubes; closed; 17.0-34.7 nm diameter; globular shape; Grade: Jenotube 20.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as multi-walled carbon nanotubes; closed; 17.0-34.7 nm diameter; globular shape; Grade: Jenotube 20 (PMN P-20-65) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted or cured or incorporated into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin sensitization; eye irritation; respiratory sensitization; carcinogenicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(f). It is a significant new use to manufacture the substance with a maximum weight percentage of cobalt oxide impurity in excess of 2.1%. It is a significant new use to process or use the substance other than as an electrically conductive material, a heat dissipation material, a heat generation material, an additive for weight reduction, an additive to improve physical or mechanical properties, an additive in batteries, energy storage, and electrode applications, or an additive in field emission applications. It is a significant new use to process or use the substance in application methods that do not generate a vapor, mist, dust, or aerosol unless such an application method occurs in an enclosed process.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.  
                        </P>
                    </SECTION>
                    <SECTION>
                        <PRTPAGE P="87355"/>
                        <SECTNO>§ 721.11762</SECTNO>
                        <SUBJECT> Nonanamide, N,N-dimethyl-.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as nonanamide, N,N-dimethyl- (PMN P-20-70; CAS RN 6225-08-7) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(v) and (vi), (7) and (8), (b), and (c). For purposes of §  721.63(b), the concentration is set at 1.0%. For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 10.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1), (3)(iii) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin irritation; eye irritation; specific target organ toxicity; reproductive toxicity; aspiration hazard. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to use the substance other than as a solvent for use in formulated pesticide products. It is a significant new use to manufacture the substance other than by import into the United States (
                            <E T="03">i.e.,</E>
                             no domestic manufacture) using 20,000 kg International Organization for Standardization tank containers (ISOtainers) or 1,000 kg intermediate bulk containers (IBCs).
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=96.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11763</SECTNO>
                        <SUBJECT> 2-Propenoic acid, 2-methyl, 2-(dimethylamino)ethyl ester, polymers with 2-(C16-18-acylamino)ethyl acrylate and hydroxyalkyl acrylate, acetates (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as 2-propenoic acid, 2-methyl, 2-(dimethylamino)ethyl ester, polymers with 2-(C16-18-acylamino)ethyl acrylate and hydroxyalkyl acrylate, acetates (PMN P-20-84) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), (b), and (c). For purposes of §  721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin irritation; eye irritation; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o). It is a significant new use to process or use the substance in any manner that results in inhalation exposure.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11765</SECTNO>
                        <SUBJECT> 2H-Pyran, tetrahydro-4-methyl.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as 2H-pyran, tetrahydro-4-methyl (PMN P-20-127; CAS RN 4717-96-8) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(v) and (vi), (7) and (8), (b), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50. For purposes of §  721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1), (3)(iii) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin corrosion; serious eye damage; specific target organ toxicity; aspiration hazard. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o).
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=540.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11766</SECTNO>
                        <SUBJECT> Organic acid ester, polymer with aliphatic diols and 1,1′-methylenebis[4-isocyanatobenzene] (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as organic acid ester, polymer with aliphatic diols and 1,1′-methylenebis[4-isocyanatobenzene] (PMN P-20-130) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(ix), (7) amd (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: acute toxicity; skin irritation; respiratory sensitization; skin sensitization; genetic toxicity; 
                            <PRTPAGE P="87356"/>
                            carcinogenicity; reproductive toxicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.  
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer use.</E>
                             Requirements as specified in § 721.80(o). It is a significant new use to use the substance in any manner or method that involves spray application.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(1), (b)(1), and (c)(1).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11767</SECTNO>
                        <SUBJECT> 4,4-Methylenebis (2,6-dimethyl phenol) polymer with 2-(chloromethyl)oxirane, 1,4-benzenediol, 2-methyl-2-propenoic acid, mixed alkyl substituted 2-methyl 2-propenoate, and ethyl 2-propenoate, reaction products with 2-(dimethylamino) ethanol (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as 4,4-methylenebis (2,6-dimethyl phenol) polymer with 2-(chloromethyl)oxirane, 1,4-benzenediol, 2-methyl-2-propenoic acid, mixed alkyl substituted 2-methyl 2-propenoate, and ethyl 2-propenoate, reaction products with 2-(dimethylamino) ethanol (PMN P-21-3) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), (b), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 10. For purposes of §  721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin irritation; eye irritation. For purposes of §  721.72(e), the concentration is set at 1.0%. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11768</SECTNO>
                        <SUBJECT> Phenol, methylethylidene, polymer chloromethyl epoxide and methylethylidene bis-oxy, bis-amine (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as phenol, methylethylidene, polymer chloromethyl epoxide and methylethylidene bis-oxy, bis-amine (PMN P-21-28) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50 in non-spray applications and 1,000 in spray applications.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f) and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: acute toxicity; skin corrosion; skin irritation; serious eye damage; eye irritation; respiratory sensitization; skin sensitization; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=100.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (h), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11769</SECTNO>
                        <SUBJECT> Amine, methylethylidenebis(oxy) (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as amine, methylethylidenebis(oxy) (generic) (PMN P-21-29) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50 in non-spray applications and 1,000 in spray applications.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: acute toxicity; skin corrosion; skin irritation; serious eye damage; eye irritation; respiratory sensitization; skin sensitization; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=840.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (h), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <PRTPAGE P="87357"/>
                        <SECTNO>§ 721.11770</SECTNO>
                        <SUBJECT> Carbamic acid, N-[3-(trialkoxysilyl)propyl]-, C,C′-[2,2,4(or 2,4,4)-trimethyl-1,6-hexanediyl] ester (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as carbamic acid, N-[3-(trialkoxysilyl)propyl]-, C,C′-[2,2,4(or 2,4,4)-trimethyl-1,6-hexanediyl] ester (PMN P-21-34) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:  </P>
                        <P>
                            (i) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1), (3)(iii) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=1.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (c), (f), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11771</SECTNO>
                        <SUBJECT> Arylfurandione, [bis(trihaloalkyl)alkylidene]bis-, polymer with alkanediamine (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as arylfurandione, [bis(trihaloalkyl)alkylidene]bis-, polymer with alkanediamine (PMN P-21-67) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted, cured, or formed into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), (b), and (c). For purposes of §  721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), (g)(1), and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin irritation; eye irritation; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to manufacture or process the substance unless at a particle size of 10 microns or greater.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Disposal.</E>
                             It is a significant new use to dispose of the substance or waste streams containing the substance by incineration unless such incineration occurs at a minimum temperature of 870 degrees Celsius.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (j) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11772</SECTNO>
                        <SUBJECT> Phosphonic acid, dimethyl ester, reaction products with alkyl-alkyl-alkanediol and alkanediol (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as phosphonic acid, dimethyl ester, reaction products with alkyl-alkyl-alkanediol and alkanediol (PMN P-21-93) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), (b), and (c). For purposes of §  721.63(b), the concentration is set at 1.0%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1), (3)(iii) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin corrosion; serious eye damage; eye irritation; reproductive toxicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to manufacture, process, or use the substance in any manner that generates a dust, mist, particulate, or aerosol that results in inhalation exposure. It is a significant new use to use the substance in consumer products where the concentration of the substance equals or exceeds 3%.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=180.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11773</SECTNO>
                        <SUBJECT> Silane, halogenated (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as silane, halogenated (PMN P-21-94) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been completely reacted (cured).
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), (b), and (c). For purposes of §  721.63(b), the concentration is set at 1.0%. For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 1,000.
                        </P>
                        <P>
                            (A) As an alternative to the respirator requirements in paragraph (a)(2)(i) of this section, a manufacture or processor may choose to follow the new chemical exposure limit (NCEL) provision listed in the TSCA Order for this substance. The NCEL is 0.05 mg/m
                            <SU>3</SU>
                             as an 8-hour time weighted average. Persons who wish to pursue NCELs as an alternative to § 721.63 respirator requirements may request to do so under § 721.30. Persons whose § 721.30 requests to use the NCELs approach are approved by EPA will be required to follow NCELs provisions comparable to those 
                            <PRTPAGE P="87358"/>
                            contained in the corresponding TSCA Order.
                        </P>
                        <P>(B) [Reserved]</P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (f), and (g)(1), (3)(iii) and (5). For purposes of §  721.72(e), the concentration is set at 1.0%. For purposes of § 721.72(g)(1), this substance may cause: skin corrosion; eye damage; specific target organ toxicity; pulmonary effects; developmental neurotoxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to use the substance other than as a deposition precursor for the manufacture of electronic components.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Release to water.</E>
                             Requirements as specified in § 721.90(a)(4), (b)(4), and (c)(4), where N=3.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).  
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i), and (k) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11774</SECTNO>
                        <SUBJECT> Heteromonocycle, polymer, substituted aliphatic carbamate, [2-[(1-oxo-2-propen-1-yl)oxy]alkyl]ester (generic).</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified generically as heteromonocycle, polymer, substituted aliphatic carbamate, [2-[(1-oxo-2-propen-1-yl)oxy]alkyl]ester (PMN P-21-115) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(vii), (7) and (8), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 50 or of at least 1,000 during spray applications.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1) and (5). For purposes of § 721.72(g)(1), this substance may cause: skin irritation; eye irritation; skin sensitization; respiratory sensitization. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(o).
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11775</SECTNO>
                        <SUBJECT> Alkanes, C4-8-branched and linear.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as alkanes, C4-8-branched and linear (PMN P-21-141; CAS RN 2529890-37-5) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3) and (7), (b), and (c). For purposes of §  721.63(b), the concentration is set at 0.1%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a).
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             It is a significant new use to manufacture, process, or use the substance other than for use as a transportation fuel, refinery feedstock, or fuel blending additive.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (i) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                    <SECTION>
                        <SECTNO>§ 721.11776</SECTNO>
                        <SUBJECT> 5H-1,2-Oxathiole, 2,2-dioxide.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Chemical substance and significant new uses subject to reporting.</E>
                             (1) The chemical substance identified as 5H-1,2-Oxathiole, 2,2-dioxide (PMN P-21-196; CAS RN 21806-61-1) is subject to reporting under this section for the significant new uses described in paragraph (a)(2) of this section. The requirements of this section do not apply to quantities of the substance after they have been incorporated into an article.
                        </P>
                        <P>(2) The significant new uses are:</P>
                        <P>
                            (i) 
                            <E T="03">Protection in the workplace.</E>
                             Requirements as specified in § 721.63(a)(3), (5), (6)(v) and (vi), (7) and (8), (b), and (c). For purposes of § 721.63(a)(5), respirators must provide a National Institute for Occupational Safety and Health (NIOSH) assigned protection factor (APF) of at least 1000. For purposes of § 721.63(b), the concentration is set at 0.1%.
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Hazard communication.</E>
                             Requirements as specified in § 721.72(a) through (d), (f), and (g)(1), (3)(iii) and (5). For purposes of § 721.72(g)(1), this substance may cause: carcinogenicity, reproductive toxicity, skin sensitization; respiratory sensitization; genetic toxicity; specific target organ toxicity. Alternative hazard and warning statements that meet the criteria of the Globally Harmonized System and OSHA Hazard Communication Standard may be used.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Industrial, commercial, and consumer activities.</E>
                             Requirements as specified in § 721.80(f). It is a significant new use to process or use the substance other than an enclosed system unless the worker personal protective equipment described in paragraph (a)(2)(i) is used.
                        </P>
                        <P>
                            (iv) 
                            <E T="03">Disposal.</E>
                             Requirements as specified in § 721.85(b)(1) and (2), and (c)(1) and (2). It is a significant new use to dispose of the substance by incineration unless the removal efficiency is at least 99.9%.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Specific requirements.</E>
                             The provisions of subpart A of this part apply to this section except as modified by this paragraph (b).
                        </P>
                        <P>
                            (1) 
                            <E T="03">Recordkeeping.</E>
                             Recordkeeping requirements as specified in § 721.125(a) through (j) are applicable to manufacturers, importers, and processors of this substance.
                        </P>
                        <P>
                            (2) 
                            <E T="03">Limitation or revocation of certain notification requirements.</E>
                             The provisions of § 721.185 apply to this section.
                        </P>
                    </SECTION>
                </REGTEXT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27653 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <PRTPAGE P="87359"/>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <CFR>40 CFR Part 52</CFR>
                <DEPDOC>[EPA-R05-OAR-2021-0477; FRL-9848-02-R5]</DEPDOC>
                <SUBJECT>Air Plan Approval; Indiana; Volatile Organic Compounds; Cold Cleaner Degreasing</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency (EPA) is approving revisions to the volatile organic compound (VOC) rules contained in the Indiana State Implementation Plan (SIP). The Indiana Department of Environmental Management (Indiana) modified its rules to allow the use of a VOC control device for cold cleaning degreasing operations as a compliance option to using low vapor pressure solvent for cleaning or degreasing machine parts. Rule language was also updated for clarity and consistency. EPA proposed to approve this action on August 30, 2023, and received no adverse comments.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This final rule is effective on January 17, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        EPA has established a docket for this action under Docket ID No. EPA-R05-OAR-2021-0477. All documents in the docket are listed on the 
                        <E T="03">www.regulations.gov</E>
                         website. Although listed in the index, some information is not publicly available, 
                        <E T="03">i.e.,</E>
                         Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the internet and will be publicly available only in hard copy form. Publicly available docket materials are available either through 
                        <E T="03">www.regulations.gov</E>
                         or at the Environmental Protection Agency, Region 5, Air and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays and facility closures due to COVID-19. We recommend that you telephone Matt Rau, at (312) 886-6524 before visiting the Region 5 office.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Matt Rau, Environmental Engineer, Control Strategies Section, Air Programs Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6524, 
                        <E T="03">rau.matthew@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA.</P>
                <HD SOURCE="HD1">I. Background Information</HD>
                <P>On August 30, 2023 (88 FR 59834), EPA proposed to approve into the Indiana SIP revisions to 326 Indiana Administrative Code (IAC) Article 8 Volatile Organic Compound Rules sections 326 IAC 8-3-1 “Applicability and exemptions”, effective January 4, 2023, and 326 IAC 8-3-2 “Cold cleaner degreaser control equipment and operating requirements”, 326 IAC 8-3-3 “Open top vapor degreaser operation”, 326 IAC 8-3-4 “Conveyorized degreaser control equipment and operating requirements”, and 326 IAC 8-3-8 “Material requirements for cold cleaner degreasers”, effective June 9, 2021. An explanation of the Clean Air Act (CAA) requirements, a detailed analysis of the revisions, and EPA's reasons for proposing approval were provided in the notice of proposed rulemaking (88 FR 59834) and will not be restated here. The public comment period for this proposed rule ended on September 29, 2023.</P>
                <P>During the comment period, EPA received two comments that expressed support for the proposed VOC rule revisions. Therefore, EPA is finalizing our action as proposed.</P>
                <HD SOURCE="HD1">II. Final Action</HD>
                <P>EPA is approving Indiana's VOC control rule sections 326 IAC 8-3-1, 326 IAC 8-3-2, 326 IAC 8-3-3, 326 IAC 8-3-4, and 326 IAC 8-3-8 as revisions to the Indiana SIP.</P>
                <HD SOURCE="HD1">III. Incorporation by Reference</HD>
                <P>
                    In this rule, EPA is finalizing regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is finalizing the incorporation by reference of the Indiana Regulations described in section I of this preamble and set forth in the amendments to 40 CFR part 52 below. EPA has made, and will continue to make, these documents generally available through 
                    <E T="03">www.regulations.gov,</E>
                     and at the EPA Region 5 Office (please contact the person identified in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this preamble for more information). Therefore, these materials have been approved by EPA for inclusion in the SIP, have been incorporated by reference by EPA into that plan, are fully federally enforceable under sections 110 and 113 of the CAA as of the effective date of the final rulemaking of EPA's approval, and will be incorporated by reference in the next update to the SIP compilation.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         62 FR 27968 (May 22, 1997).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Statutory and Executive Order Reviews</HD>
                <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action:</P>
                <P>• Is not a significant regulatory action subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993), and 14094 (88 FR 21879, April 11, 2023);</P>
                <P>
                    • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>
                    • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
                <P>• Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
                <P>• Is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it approves a state program;</P>
                <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); and</P>
                <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA.</P>
                <P>
                    In addition, the SIP is not approved to apply on any Indian reservation land or in any other area where EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rule does not have tribal implications and will not impose substantial direct costs on tribal governments or preempt tribal law as specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
                    <PRTPAGE P="87360"/>
                </P>
                <P>Executive Order 12898 (Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations, 59 FR 7629, February 16, 1994) directs Federal agencies to identify and address “disproportionately high and adverse human health or environmental effects” of their actions on minority populations and low-income populations to the greatest extent practicable and permitted by law. EPA defines environmental justice (EJ) as “the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.” EPA further defines the term fair treatment to mean that “no group of people should bear a disproportionate burden of environmental harms and risks, including those resulting from the negative environmental consequences of industrial, governmental, and commercial operations or programs and policies.”</P>
                <P>Indiana did not evaluate EJ considerations as part of its SIP submittal; the CAA and applicable implementing regulations neither prohibit nor require such an evaluation. EPA did not perform an EJ analysis and did not consider EJ in this action. Consideration of EJ is not required as part of this action, and there is no information in the record inconsistent with the stated goal of E.O. 12898 of achieving environmental justice for people of color, low-income populations, and Indigenous peoples.</P>
                <P>This action is subject to the Congressional Review Act, and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. This action is not a “major rule” as defined by 5 U.S.C. 804(2).</P>
                <P>Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by February 16, 2024. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).)</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
                    <P>Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
                </LSTSUB>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Debra Shore,</NAME>
                    <TITLE>Regional Administrator, Region 5.</TITLE>
                </SIG>
                <P>For the reasons stated in the preamble, title 40 CFR part 52 is amended as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS</HD>
                </PART>
                <REGTEXT TITLE="40" PART="52">
                    <AMDPAR>1. The authority citation for part 52 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>
                             42 U.S.C. 7401 
                            <E T="03">et seq.</E>
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="40" PART="52">
                    <AMDPAR>2. In § 52.770, the table in paragraph (c) is amended by revising the entries for “8-3-1”, “8-3-2”, “8-3-3”, “8-3-4”, and “8-3-8” under “Article 8. Volatile Organic Compound Rules”, “Rule 3. Organic Solvent Degreasing Operations” to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 52.770 </SECTNO>
                        <SUBJECT>Identification of plan.</SUBJECT>
                        <STARS/>
                        <P>(c) * * *</P>
                        <GPOTABLE COLS="5" OPTS="L1,nj,p7,7/8,i1" CDEF="xs66,r50,12,r50,xs40">
                            <TTITLE>EPA-Approved Indiana Regulations</TTITLE>
                            <BOXHD>
                                <CHED H="1">Indiana citation</CHED>
                                <CHED H="1">Subject</CHED>
                                <CHED H="1">
                                    Indiana
                                    <LI>effective</LI>
                                    <LI>date</LI>
                                </CHED>
                                <CHED H="1">EPA approval date</CHED>
                                <CHED H="1">Notes</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW RUL="s">
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW EXPSTB="04" RUL="s">
                                <ENT I="21">
                                    <E T="02">Article 8. Volatile Organic Compound Rules</E>
                                </ENT>
                            </ROW>
                            <ROW EXPSTB="00">
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW RUL="s">
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW EXPSTB="04" RUL="s">
                                <ENT I="21">
                                    <E T="02">Rule 3. Organic Solvent Degreasing Operations</E>
                                </ENT>
                            </ROW>
                            <ROW EXPSTB="00">
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW RUL="s">
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8-3-1</ENT>
                                <ENT>Applicability and Exemptions</ENT>
                                <ENT>1/4/2023</ENT>
                                <ENT>
                                    12/18/2023, [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     CITATION]
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8-3-2</ENT>
                                <ENT>Cold cleaner degreaser control equipment and operating requirements</ENT>
                                <ENT>6/9/2021</ENT>
                                <ENT>
                                    12/18/2023, [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     CITATION]
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8-3-3</ENT>
                                <ENT>Open top vapor degreaser operation</ENT>
                                <ENT>6/9/2021</ENT>
                                <ENT>
                                    12/18/2023, [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     CITATION]
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8-3-4</ENT>
                                <ENT>Conveyorized degreaser control equipment and operating requirements</ENT>
                                <ENT>6/9/2012</ENT>
                                <ENT>
                                    12/18/2023, [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     CITATION]
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8-3-8</ENT>
                                <ENT>Material requirements for cold cleaner degreasers</ENT>
                                <ENT>6/9/2021</ENT>
                                <ENT>
                                    12/18/2023, [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     CITATION]
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27552 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <PRTPAGE P="87361"/>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <CFR>40 CFR Part 180</CFR>
                <DEPDOC>[EPA-HQ-OPP-2023-0624; FRL-11517-02-OCSPP]</DEPDOC>
                <SUBJECT>Kasugamycin; Extension of Time-Limited Tolerance for Emergency Exemption</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This regulation extends time-limited tolerances for residues of kasugamycin in or on almond and almond, hulls as identified in this document. This action is in response to EPA's granting of an emergency exemption under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) authorizing use of this pesticide. In addition, the Federal Food, Drug, and Cosmetic Act (FFDCA) requires EPA to establish a time-limited tolerance or exemption from the requirement for a tolerance for pesticide chemical residues in food that will result from the use of a pesticide under an emergency exemption granted by EPA. Further, EPA issued a final rule in the 
                        <E T="04">Federal Register</E>
                         of November 3, 2023, that extended time-limited tolerances for multiple chemicals on various commodities in response to EPA's granting of emergency exemptions. EPA inadvertently omitted the detailed instructions for the revision of the tolerances for kasugamycin. Therefore, EPA is issuing this final rule to rectify this omission.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        This regulation is effective December 18, 2023. Objections and requests for hearings must be received on or before February 16, 2024 and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        ).
                    </P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The docket for this action, identified by docket identification (ID) number EPA-HQ-OPP-2023-0624, is available at 
                        <E T="03">https://www.regulations.gov</E>
                         or at the Office of Pesticide Programs Regulatory Public Docket (OPP Docket) in the Environmental Protection Agency Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW, Washington, DC 20460-0001. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room and the OPP Docket is (202) 566-1744. Please review the visitor instructions and additional information about the docket available at 
                        <E T="03">https://www.epa.gov/dockets.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Charles Smith, Director, Registration Division (7505T), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-0001; main telephone number: (202) 566-1030; email address: 
                        <E T="03">RDFRNotices@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. General Information</HD>
                <HD SOURCE="HD2">A. Does this action apply to me?</HD>
                <P>You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include:</P>
                <P>• Crop production (NAICS code 111).</P>
                <P>• Animal production (NAICS code 112).</P>
                <P>• Food manufacturing (NAICS code 311).</P>
                <P>• Pesticide manufacturing (NAICS code 32532).</P>
                <HD SOURCE="HD2">B. How can I get electronic access to other related information?</HD>
                <P>
                    You may access a frequently updated electronic version of 40 CFR part 180 through the Office of the Federal Register's e-CFR site at 
                    <E T="03">https://www.ecfr.gov/ccurrent/title-40.</E>
                </P>
                <HD SOURCE="HD2">C. How can I file an objection or hearing request?</HD>
                <P>Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA-HQ-OPP-2023-0624 in the subject line on the first page of your submission. All requests must be in writing and must be received by the Hearing Clerk on or before February 16, 2024. Addresses for mail and hand delivery of objections and hearing requests are provided in 40 CFR 178.25(b).</P>
                <P>In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing (excluding any Confidential Business Information (CBI)) for inclusion in the public docket. Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit the non-CBI copy of your objection or hearing request, identified by docket ID number EPA-HQ-OPP-2023-0624, by one of the following methods:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                     Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be CBI or other information whose disclosure is restricted by statute.
                </P>
                <P>
                    • 
                    <E T="03">Mail:</E>
                     OPP Docket, Environmental Protection Agency Docket Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC 20460-0001.  
                </P>
                <P>
                    • 
                    <E T="03">Hand Delivery:</E>
                     To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at 
                    <E T="03">https://www.epa.gov/dockets/where-send-comments-epa-dockets.</E>
                </P>
                <P>
                    Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at 
                    <E T="03">https://www.epa.gov/dockets.</E>
                </P>
                <HD SOURCE="HD1">II. Background and Statutory Findings</HD>
                <P>
                    EPA issued a final rule, published in the 
                    <E T="04">Federal Register</E>
                     of October 8, 2020, (85 FR 63450) (FRL-10013-94), on its own initiative, in accordance with FFDCA sections 408(e) and 408(l)(6), 21 U.S.C. 346a(e) and 346a(1)(6), establishing time-limited tolerances for residues of kasugamycin, (3-O-[2-amino-4-[(carboxyimino-methyl)amino]-2,3,4,6-tetradeoxy-α-D-arabino-hexopyranosyl]-D-chiro-inositol), in or on almond at 0.04 parts per million (ppm); and almond, hulls at 0.4 ppm. These time-limited tolerances expire on December 31, 2023.
                </P>
                <P>
                    EPA received a request to extend the use of kasugamycin for this year's growing season. After having reviewed this submission, EPA concurs that an emergency condition continues to exist. EPA assessed the potential risks presented by residues of kasugamycin in or on the pertinent commodity. In doing so, EPA considered the safety standard in FFDCA section 408(b)(2) and decided that the necessary tolerances under FFDCA section 408(l)(6) would be consistent with the safety standard and with FIRA section 18. Further, EPA issued a final rule in the 
                    <E T="04">Federal Register</E>
                     of November 3, 2023 (88 FR 75503) (FRL-11517-01-OCSPP) that extended time-limited tolerances for multiple chemicals on various commodities in response to EPA's granting of emergency exemptions. EPA inadvertently omitted the detailed instructions for the revision of 40 CFR 
                    <PRTPAGE P="87362"/>
                    180.614 Kasugamycin; tolerances for residues. Therefore, EPA is issuing this final rule to correct this omission.
                </P>
                <P>
                    The data and other relevant material have been evaluated and were discussed in the final rule that originally established the time-limited tolerances. Based on those data and information considered, the Agency reaffirms that extension of the time-limited tolerances will continue to meet the requirements of FFDCA section 408(l)(6). Therefore, the time-limited tolerances are extended until December 31, 2026. Although these tolerances will expire and are revoked on December 31, 2026, under FFDCA section 408(l)(5), residues of the pesticide not in excess of the amounts specified in the tolerances remaining in or on the commodities after that date will not be unlawful, provided the residues are present as a result of an application or use of a pesticide at a time and manner that was lawful under FIFRA, the tolerance was in place at the time of the application, and the residues do not exceed the level that was authorized by the tolerance. EPA will take action to revoke the tolerances earlier if any experience with, scientific data on, or other relevant information on this pesticide indicate that the residues are not safe. EPA will publish a document in the 
                    <E T="04">Federal Register</E>
                     to remove the revoked tolerances from the Code of Federal Regulations (CFR). Time-limited tolerances for the use of the following pesticide chemical on a specific commodity are being extended:
                </P>
                <P>
                    <E T="03">Kasugamycin.</E>
                     Pursuant to a request by the California Department of Pesticide Regulation, EPA authorized under FIFRA section 18 the use of kasugamycin on almonds for control of bacterial blast in California. This regulation extends time-limited tolerances for residues of the pesticide kasugamycin and its metabolites and degradates in or on almond at 0.04 (ppm); and almond hulls at 0.4 ppm for an additional 3-year period. The tolerances will expire and are revoked on December 31, 2026.
                </P>
                <HD SOURCE="HD1">III. International Residue Limits</HD>
                <P>In making its tolerance decisions, EPA seeks to harmonize U.S. tolerances with international standards whenever possible, consistent with U.S. food safety standards and agricultural practices. EPA considers the international maximum residue limits (MRLs) established by the Codex Alimentarius Commission (Codex), as required by FFDCA section 408(b)(4). The Codex Alimentarius is a joint United Nations Food and Agriculture Organization/World Health Organization food standards program, and it is recognized as an international food safety standards-setting organization in trade agreements to which the United States is a party. EPA may establish a tolerance that is different from a Codex MRL; however, FFDCA section 408(b)(4) requires that EPA explain the reasons for departing from the Codex level.</P>
                <P>The Codex has not established a MRL for kasugamycin in or on the commodity listed in this document.</P>
                <HD SOURCE="HD1">IV. Statutory and Executive Order Reviews</HD>
                <P>
                    This action establishes tolerances under FFDCA section 408(d). The Office of Management and Budget (OMB) has exempted these types of actions from review under Executive Order 12866, entitled “Regulatory Planning and Review” (58 FR 51735, October 4, 1993). Because this action has been exempted from review under Executive Order 12866, this action is not subject to Executive Order 13211, entitled “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997). This action does not contain any information collections subject to OMB approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), nor does it require any special considerations under Executive Order 12898, entitled “Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations” (59 FR 7629, February 16, 1994).
                </P>
                <P>
                    Since tolerances and exemptions that are established in accordance with FFDCA section 408(1)(6), such as the tolerances in this final rule, do not require the issuance of a proposed rule, the requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ), do not apply.
                </P>
                <P>
                    This action directly regulates growers, food processors, food handlers, and food retailers, not States or tribes, nor does this action alter the relationships or distribution of power and responsibilities established by Congress in the preemption provisions of FFDCA section 408(n)(4). As such, the Agency has determined that this action will not have a substantial direct effect on States or tribal governments, on the relationship between the national government and the States or Tribal governments, on the relationship between the National Government and the States or Tribal Governments, or on the distribution of power and responsibilities among the various levels of government or between the Federal Government and Indian tribes. Thus, the Agency has determined that Executive Order 13132, entitled “Federalism” (64 FR 43255, August 10, 1999) and Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 9, 2000) do not apply to this action. In addition, this action does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act (UMRA) (2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <P>This action does not involve any technical standards that would require Agency consideration of voluntary consensus standards pursuant to section 12(d) of the National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note).</P>
                <HD SOURCE="HD1">V. Congressional Review Act</HD>
                <P>
                    Pursuant to the Congressional Review Act (5 U.S.C. 801 
                    <E T="03">et seq.</E>
                    ), EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the 
                    <E T="04">Federal Register</E>
                    . This action is not a “major rule” as defined by 5 U.S.C. 804(2).
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 40 CFR Part 180</HD>
                    <P>Environmental protection, Administrative practice and procedure, Agricultural commodities, Pesticides and pests, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Charles Smith,</NAME>
                    <TITLE>Director, Registration Division, Office of Pesticide Programs.</TITLE>
                </SIG>
                <P>Therefore, for the reasons stated in the preamble, EPA is amending 40 CFR chapter I as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 180—TOLERANCES AND EXEMPTIONS FOR PESTICIDE CHEMICAL RESIDUES IN FOOD</HD>
                </PART>
                <REGTEXT TITLE="40" PART="180">
                    <AMDPAR>1. The authority citation for part 180 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 21 U.S.C. 321(q), 346a and 371.</P>
                    </AUTH>
                </REGTEXT>
                  
                <REGTEXT TITLE="40" PART="180">
                    <AMDPAR>2. Amend § 180.614 in paragraph (b) by designating and revising the table to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 180.614</SECTNO>
                        <SUBJECT> Kasugamycin; tolerances for residues.</SUBJECT>
                        <STARS/>
                        <P>
                            (b) * * *
                            <PRTPAGE P="87363"/>
                        </P>
                        <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s25,9,9">
                            <TTITLE>
                                Table 2 to Paragraph (
                                <E T="01">b</E>
                                )
                            </TTITLE>
                            <BOXHD>
                                <CHED H="1">Commodity</CHED>
                                <CHED H="1">
                                    Parts per 
                                    <LI>million</LI>
                                </CHED>
                                <CHED H="1">
                                    Expiration/
                                    <LI>revocation date</LI>
                                </CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="01">Almond</ENT>
                                <ENT>0.04</ENT>
                                <ENT>12/31/26</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Almond, hulls</ENT>
                                <ENT>0.4</ENT>
                                <ENT>12/31/26</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27654 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <CFR>41 CFR Parts 301-10 and 301-70</CFR>
                <DEPDOC>[Notice-MA-2023-07; Docket No. 2023-0002; Sequence No. 30]</DEPDOC>
                <SUBJECT>Federal Travel Regulation (FTR); Sustainable Transportation for Official Temporary Duty (TDY) Travel</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Government-wide Policy (OGP), General Services Administration (GSA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of FTR bulletin.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FTR Bulletin 24-02 clarifies existing regulations for determining the method of transportation that is most advantageous to the Government and encourages Federal travelers to make sustainable, cost-effective transportation choices when conducting official TDY travel.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable December 18, 2023.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For clarification of content, contact Jill Denning, Office of Government-wide Policy, Office of Asset and Transportation Management, at 
                        <E T="03">travelpolicy@gsa.gov,</E>
                         202-208-7642. Please cite Notice of GSA Bulletin FTR 24-02.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Office of Management and Budget (OMB) Memorandum M-24-05 “Catalyzing Sustainable Transportation Through Federal Travel” (issued December 14, 2023) provides guidance for implementing Executive Order (E.O.) 14057, 
                    <E T="03">Catalyzing Clean Energy Industries and Jobs through Federal Sustainability.</E>
                     OMB Memo M-24-05 directs Federal agencies to prioritize sustainable transportation options for official travel whenever possible and lead by example as an organization working toward net-zero emissions operations by 2050.
                </P>
                <P>The FTR already encourages measures that promote sustainability, but the transition to clean energy provides additional opportunities for Federal travelers to support sustainable initiatives through the use of clean technologies. Title 5 of the United States Code (U.S.C.), section 5733, states in part “[t]he travel of an employee shall be by the most expeditious means of transportation practicable,” which the FTR expands upon by directing agencies to select the method of transportation most advantageous to the Government when cost and other factors are considered. Energy conservation is an element of sustainability and is one of several non-cost elements required to be considered by agencies when selecting the most advantageous method of transportation (FTR §§ 301-10.4, 301-70.100, and 301-70.101 (41 CFR)).</P>
                <P>
                    GSA Bulletin FTR 24-02 can be viewed in its entirety at 
                    <E T="03">https://www.gsa.gov/ftrbulletins.</E>
                </P>
                <SIG>
                    <NAME>Krystal J. Brumfield,</NAME>
                    <TITLE>Associate Administrator, Office of Government-wide Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27775 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-14-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <CFR>43 CFR Part 8360</CFR>
                <DEPDOC>[BLM_UT_FRN_MO4500172882]</DEPDOC>
                <SUBJECT>Final Supplementary Rule for Roped and Aerial Activities in the Moab Canyons Special Wildlife Area (In and Near Mineral and Hell Roaring Canyons) in Grand County, Utah</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final supplementary rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Land Management (BLM) is finalizing a supplementary rule for the Moab Canyons Special Wildlife Area (in and near Mineral and Hell Roaring Canyons) in Grand County, Utah, which prohibits rock climbing except when and where permitted, prohibits other roped and aerial activities, and prohibits the construction or installation of temporary structures. This rule will protect vital wildlife habitat from the impacts of roped and aerial recreational activities.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This final supplementary rule is effective January 17, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may direct inquiries to the BLM Moab Field Office, 82 East Dogwood Avenue, Moab, UT 84532, or 
                        <E T="03">blm_ut_mb_mail@blm.gov.</E>
                         The final supplementary rule and accompanying environmental documents are available for inspection at the BLM Moab Field Office at the address listed above and on the ePlanning website: 
                        <E T="03">https://eplanning.blm.gov/eplanning-ui/project/1504945/510.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jennifer Jones, Moab Field Office Assistant Manager, 82 East Dogwood Avenue, Moab, Utah 84532, (435) 259-2100, or 
                        <E T="03">blm_ut_mb_mail@blm.gov.</E>
                         Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Background</FP>
                    <FP SOURCE="FP-2">II. Discussion of Public Comments</FP>
                    <FP SOURCE="FP-2">III. Discussion of Final Supplementary Rule</FP>
                    <FP SOURCE="FP-2">IV. Procedural Matters</FP>
                    <FP SOURCE="FP-2">V. Final Supplementary Rule for the BLM Moab Field Office </FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    The BLM is establishing this final supplementary rule under the authority of 43 CFR 8365.1-6, which allows state directors to establish supplementary rules for the protection of persons, property, public lands, and resources. This final supplementary rule applies to public lands managed by the Moab Field Office. A map of the management area and boundaries can be obtained by contacting the Moab Field Office (see 
                    <E T="02">ADDRESSES</E>
                     section above).
                </P>
                <P>The final supplementary rule will be available for inspection in the Moab Field Office or on the ePlanning website.</P>
                <P>The public lands managed by the BLM Moab Field Office in southeastern Utah are a domestic and international tourist destination hosting three million visitors per year. The Moab Canyons Special Wildlife Area, which consists of 10,044 acres in and along the walls and rims of Mineral and Hell Roaring Canyons as well as on the canyon walls and rims along the Green River corridor connecting these two canyons, provides important habitat for the Mexican spotted owl (a federally threatened species); golden eagles and other raptors; Utah's only endemic herd of desert bighorn sheep; and other wildlife. In recent years, roped and aerial recreational activities have increased in these canyons, putting wildlife and their vital habitats at risk. The goal of this supplementary rule is to protect vital wildlife habitat from the impacts of roped and aerial recreational activities.</P>
                <P>
                    In June 2021, the BLM issued a Decision Record and Finding of No Significant Impact that prohibited rock climbing except when and where 
                    <PRTPAGE P="87364"/>
                    permitted; prohibited other roped and aerial activities; and prohibited the construction or installation of temporary structures in the Moab Canyons Special Wildlife Area. The Decision Record created a permit system that allows a limited amount of rock climbing, seasonally, on specific climbs in designated areas. More specifically, the permit system prohibits rock climbing permits during critical wildlife seasons and otherwise limits the number of permits to 35 per year. In accordance with 43 CFR 2932.11(b)(1), the Decision Record required that all persons must obtain a permit to rock climb in the special area. The Decision Record also outlined the need to establish a corresponding supplementary rule for the special area.
                </P>
                <P>The Decision Record was supported by an environmental assessment (EA) that analyzed two action alternatives: a total year-round ban on aerial and roped activities, and the institution of a limited seasonal permit system allowing some rock-climbing activity at specified locations. During the 30-day public comment period for the EA, the BLM received 13 comments. Seven comments supported the total year-round ban on aerial and roped activities in Mineral and Hell Roaring Canyons. Six commenters opposed some or all of that proposal and expressed an interest in greater access for roped and aerial activities. The BLM considered these public comments in the decision-making process.</P>
                <HD SOURCE="HD1">II. Discussion of Public Comments</HD>
                <P>
                    The BLM published the proposed supplementary rule in the 
                    <E T="04">Federal Register</E>
                     on January 31, 2023 (88 FR 6217). During the 60-day public comment period on the proposed supplementary rule, the BLM received 19 comments; four were fully supportive of the rule and three were opposed. One commenter asked that the restrictions not apply to permitted events and another commenter asked for voluntary seasonal restrictions. The remaining 10 commentors asked that highline use (an aerial activity involving walking across rope or wire between two high points) be allowed on a seasonal basis to access the Colorado Bowl (also known as the Veggie Bowl).
                </P>
                <HD SOURCE="HD1">III. Discussion of Final Supplementary Rule</HD>
                <P>The final supplementary rule prohibits rock climbing except when and where permitted; prohibits other roped and aerial activities; and prohibits the construction or installation of temporary structures in the Moab Canyons Special Wildlife Area (in and near Mineral and Hell Roaring Canyons). This rule will protect vital wildlife habitat from the impacts of roped and aerial recreational activities.</P>
                <P>
                    Rock climbing and other roped and aerial activities allow human access into otherwise inaccessible habitats. Other forms of recreation (
                    <E T="03">e.g.,</E>
                     hiking, driving, camping, horseback riding) and other public land uses, such as livestock grazing, cannot reach those areas. Rock climbing and other aerial and roped activities adversely affect the threatened Mexican spotted owl, golden eagles, and other raptors, because rock climbers and aerialists access the cliffs used by these species for nesting, foraging, and resting. In addition, desert bighorn sheep use the talus slopes below the cliffs accessed by rock climbers and aerialists as escape terrain for the critical life functions that make herd viability possible. Restrictions have already been placed on motorized vehicle use, camping, livestock grazing, and mineral development in these canyons to protect these species through the 2008 Moab Resource Management Plan.
                </P>
                <HD SOURCE="HD1">IV. Procedural Matters</HD>
                <HD SOURCE="HD2">Executive Order 12866, Regulatory Planning and Review</HD>
                <P>This final supplementary rule is not a significant regulatory action and is not subject to review by the Office of Management and Budget under Executive Order 12866 as amended by Executive Order 14094. The final supplementary rule will not have an annual effect of $200 million or more on the economy. It will not adversely affect, in a material way, the economy; productivity; competition; jobs; the environment; public health or safety; or State, local, or Tribal governments or communities. The final supplementary rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. The final supplementary rule will not materially alter the budgetary effects of entitlements, grants, user fees, loan programs, or the rights or obligations of their recipients; nor does it raise novel legal or policy issues. The final rule merely establishes rules of conduct for public use on a limited area of public lands.  </P>
                <HD SOURCE="HD2">National Environmental Policy Act</HD>
                <P>
                    This final supplementary rule is consistent with and necessary to properly implement the decision, which was analyzed in EA DOI-BLM-UT-Y010-2020-0068-EA. The approved environmental analysis is available for review at the physical and online locations identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD2">Regulatory Flexibility Act</HD>
                <P>Congress enacted the Regulatory Flexibility Act (RFA) of 1980, as amended (5 U.S.C. 601-612), to ensure that government regulations do not unnecessarily or disproportionately burden small entities. The RFA requires a regulatory flexibility analysis if a rule has a significant economic impact, either detrimental or beneficial, on a substantial number of small entities. The final supplementary rule merely establishes a rule of conduct for public use on a limited area of public lands. Therefore, the BLM has determined the final supplementary rule will not have a significant economic impact on a substantial number of small entities.</P>
                <HD SOURCE="HD2">Small Business Regulatory Enforcement Fairness Act</HD>
                <P>The final supplementary rule is not “major” as defined under 5 U.S.C. 804(2). The final supplementary rule merely establishes rules of conduct for public use on a limited area of public lands and will not affect commercial or business activities of any kind.</P>
                <HD SOURCE="HD2">Unfunded Mandates Reform Act</HD>
                <P>
                    The final supplementary rule will not impose an unfunded mandate on State, local, or Tribal governments in the aggregate, or the private sector of more than $100 million per year; nor will it have a significant or unique effect on small governments. The final supplementary rule will have no effect on State, local, or Tribal governments and will impose no requirements on any of these entities. The final supplementary rule will merely establish a rule of conduct for public use on a limited selection of public lands and will not affect Tribal, commercial, or business activities of any kind. Therefore, the BLM is not required to prepare a statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <HD SOURCE="HD2">Executive Order 12630, Governmental Actions and Interference With Constitutionally Protected Property Rights (Takings)</HD>
                <P>
                    The final supplementary rule does not have significant takings implications, nor is it capable of interfering with constitutionally protected property rights. The final supplementary rule merely establishes a rule of conduct for public use on a limited area of public lands and will not affect protected property rights. Therefore, the 
                    <PRTPAGE P="87365"/>
                    Department of the Interior has determined the final supplementary rule will not cause a “taking” of private property or require preparation of a takings assessment under this Executive order.
                </P>
                <HD SOURCE="HD2">Executive Order 13132, Federalism</HD>
                <P>The final supplementary rule will not have a substantial direct effect on the States; the relationship between the Federal Government and the States; nor the distribution of power and responsibilities among the various levels of government. The final supplementary rule does not conflict with any State law or regulation. Therefore, in accordance with Executive Order 13132, the BLM has determined the supplementary rule does not have sufficient federalism implications to warrant preparation of a Federalism Assessment.</P>
                <HD SOURCE="HD2">Executive Order 12988, Civil Justice Reform</HD>
                <P>Under Executive Order 12988, the Department of the Interior Office of the Solicitor has determined the final supplementary rule will not unduly burden the judicial system and that it meets the requirements of sections 3(a) and 3(b)(2) of the order.</P>
                <HD SOURCE="HD2">Executive Order 13175, Consultation and Coordination With Tribal Governments</HD>
                <P>In accordance with Executive Order 13175, the BLM considered consultation and coordination with Tribal governments in the development of the EA, which forms the basis for the final supplementary rule. It was determined the EA's proposed action did not have Tribal implications and formal consultation was not conducted.</P>
                <HD SOURCE="HD2">Energy Supply, Distribution, or Use</HD>
                <P>Under Executive Order 13211, the BLM has determined the final supplementary rule will not comprise a significant energy action and that it will not have an adverse effect on energy supplies, production, or consumption.</P>
                <HD SOURCE="HD2">Paperwork Reduction Act</HD>
                <P>
                    The final supplementary rule does not contain information collection requirements that the Office of Management and Budget must approve under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                     Federal criminal investigations or prosecutions may result from this rule, and the collection of information for these purposes is exempt from the Paperwork Reduction Act, 44 U.S.C. 3518(c)(1).
                </P>
                <HD SOURCE="HD2">Authors</HD>
                <P>The principal author of this final supplementary rule is Kathleen Stevens, outdoor recreation planner, Moab Field Office, Bureau of Land Management</P>
                <HD SOURCE="HD1">V. Final Supplementary Rule for the BLM Moab Field Office</HD>
                <P>For the reasons stated in the preamble, and under the authority of 43 U.S.C. 1740 and 43 CFR 8365.1-6, the Utah State Director establishes the following supplementary rule:</P>
                <P>1. Roped and aerial activities are prohibited within the Moab Canyons Special Wildlife Area, except for permitted rock climbing.</P>
                <P>2. All persons must be in possession of a permit to engage in rock climbing within the Moab Canyons Special Wildlife Area.</P>
                <P>3. The construction or installation of temporary structures is prohibited within the Moab Canyons Special Wildlife Area.</P>
                <HD SOURCE="HD3">Definitions</HD>
                <P>
                    <E T="03">Roped Activities:</E>
                     Activities involving ropes, cable, vectran, rock climbing aids, webbing, anchors, or any other similar materials. Activities include: ziplining, high-lining, slacklining, rope-swinging, and other activities using the roped materials listed and other associated equipment.
                </P>
                <P>
                    <E T="03">Aerial Activities:</E>
                     Sporting pursuits which include “buildings, antennae, spans, and earth” (BASE) jumping, catapulting, paragliding, paramotoring, parachuting, skydiving, drone launching, aerial delivery, or other activities that involve aerial delivery, recovery, or shuttle.
                </P>
                <P>
                    <E T="03">Rock climbing:</E>
                     A sport or technique in which participants climb up, down, or across natural rock formations, usually with ropes and other equipment. This also includes free-soloing and bouldering.
                </P>
                <HD SOURCE="HD3">Penalties</HD>
                <P>On public lands under section 303(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1733(a)), and 43 CFR 8360.0-7, any person who violates this supplementary rule may be tried before a U.S. magistrate and fined no more than $1,000 or imprisoned for no more than 12 months or both. Such violations may also be subject to enhanced fines provided for by 18 U.S.C. 3571.</P>
                <HD SOURCE="HD3">Exemptions</HD>
                <P>Any Federal, State, local, or military persons acting within the scope of their duties, and members of an organized rescue or firefighting force in performance of an official duty, are exempted from this supplementary rule.</P>
                <SIG>
                    <NAME>Gregory Sheehan,</NAME>
                    <TITLE>State Director.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27746 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-25-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 622</CFR>
                <DEPDOC>[Docket No. 231212-0300]</DEPDOC>
                <RIN>RIN 0648-BM73</RIN>
                <SUBJECT>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef Fish Fishery of the Gulf of Mexico; Greater Amberjack Emergency Management Measures</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final temporary rule; emergency action.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS issues this final temporary rule to promulgate emergency measures, due to recently discovered circumstances that present serious conservation issues for the greater amberjack stock in the Gulf of Mexico (Gulf). As requested by the Gulf of Mexico Fishery Management Council (Council), NMFS issues this final temporary rule to reduce the Gulf greater amberjack commercial trip limit. The final temporary rule will be effective for 180 days unless superseded by subsequent rulemaking. The purpose of this emergency action is to decrease the likelihood of exceeding the commercial catch limits and extend the 2024 commercial fishing season.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This temporary rule is effective January 1, 2024, through June 15, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Electronic copies of the documents in support of this final temporary rule for emergency action, which includes the Council's letter to NMFS requesting the emergency action may be obtained from the Southeast Regional Office website at 
                        <E T="03">https://www.fisheries.noaa.gov/action/emergency-rule-implement-reduced-commercial-trip-limits-gulf-mexico-greater-amberjack.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Dan Luers, telephone: 727-824-5305, or email: 
                        <E T="03">Daniel.Luers@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The reef fish fishery of the Gulf is managed under the Fishery Management Plan for 
                    <PRTPAGE P="87366"/>
                    the Reef Fish Resources of the Gulf of Mexico (FMP). The FMP was prepared by the Council and approved and implemented by NMFS through regulations at 50 CFR part 622 under the authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Section 305(c) of the Magnuson-Stevens Act provides the legal authority for the promulgation of emergency regulations (16 U.S.C. 1855(c)).
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>The Magnuson-Stevens Act requires NMFS and regional fishery management councils to prevent overfishing and achieve, on a continuing basis, the optimum yield from federally managed fish stocks. These mandates are intended to ensure fishery resources are managed for the greatest overall benefit to the nation, particularly with respect to providing food production and recreational opportunities, and protecting marine ecosystems.</P>
                <P>Gulf greater amberjack has been under a rebuilding plan since 2003 (68 FR 39898, July 3, 2003). However, the stock has not rebuilt as expected and NMFS has implemented several revisions to the rebuilding plan. The most recent revision occurred in response to the Southeast Data, Assessment, and Review (SEDAR) 70 assessment for Gulf greater amberjack, which was completed in November 2020 and indicated that the Gulf greater amberjack stock continued to be overfished and undergoing overfishing, but could rebuild by end of the current rebuilding time (2027) with reduced yields. Therefore, the Council developed and NMFS approved and implemented Amendment 54 to the FMP, which substantially reduced the Gulf greater amberjack catch limits. NMFS published the final rule reducing the catch limits on June 15, 2023 (88 FR 39193). On June 18, 2023, NMFS prohibited further commercial harvest for the 2023 fishing year because commercial landings had exceeded the reduced commercial annual catch target (ACT) and annual catch limit (ACL), which are 93,930 lb (42,606 kg), round weight, and 101,000 lb (45,813 kg), round weight, respectively (88 FR 40121, June 21, 2023).</P>
                <P>The Gulf greater amberjack commercial accountability measures (AMs) require a closure of the sector when commercial landings reach or are projected to reach the commercial ACT (commercial quota) (50 CFR 622.41(a)(1)). In addition, if commercial landings exceed the commercial ACL, NMFS is required to reduce both the commercial ACL and the commercial ACT for Gulf greater amberjack in the year following an overage of the commercial ACL, by the amount of any commercial ACL overage (50 CFR 622.41(a)(1)(ii)). Because 2023 commercial landings exceeded the newly implemented commercial ACL, NMFS reduced the commercial ACL and ACT for the 2024 fishing year, by the amount of the 2023 commercial ACL overage (88 FR 80995, November 21, 2023), which was 35,280 lb (16,003 kg), round weight.</P>
                <P>At its October 2023 meeting, the Council approved a framework action to modify the Gulf greater amberjack recreational fixed closed season and the commercial trip limit (Framework Action). Within the Framework Action, the Council recommended reducing the current commercial trip limit to 7 fish as a result of the substantial catch limit reductions implemented with Amendment 54 in order to extend the commercial fishing season. As described in the Framework Action, a trip limit of 7 fish is approximately equal to 210 lb (95 kg), gutted weight; 218 lb (99 kg), round weight. The current commercial trip limit for Gulf greater amberjack is 1,000 lb (454 kg), gutted weight; 1,040 lb (474 kg), round weight, until 75 percent of the commercial quota (commercial ACT) is reached. After 75 percent of the commercial quota is reached or projected to be reached, the trip limit is reduced to 250 lb (113 kg), gutted weight; 260 lb (118 kg), round weight.</P>
                <P>The 2024 commercial fishing season opens on January 1 and with the current trip limit, NMFS projects that commercial landings would reach the reduced commercial ACT in early February, requiring a closure for the remainder of the year. If the 7-fish trip limit were in place by January 1, 2024, NMFS projects the commercial fishing season would be open through the end of February when a 3-month seasonal closure begins, and re-open for part of June when the season reopens June 1.</P>
                <HD SOURCE="HD1">Council Emergency Action Request</HD>
                <P>
                    At its October 2023 meeting, the Council discussed concerns raised by its Reef Fish Advisory Panel about the impact of the required reduction to the 2024 commercial catch limits as a result of landings exceeding the ACL in 2023. The Council expressed concern about NMFS' ability to constrain landings to the reduced catch limits when the commercial season opens in January and the potential for additional commercial overages in 2024 further reducing harvest for 2025. The reduced commercial trip limit in the Framework Action, if implemented, would not be effective until spring of 2024. Therefore, the Council requested that NMFS implement an emergency action to reduce the Gulf greater amberjack commercial trip limit to 7 fish effective January 1, 2024. The Council and NMFS expect this lower trip limit to benefit the greater amberjack stock by increasing the duration of the open season, which is expected to result in fewer regulatory discards (
                    <E T="03">i.e.,</E>
                     discards required after the quota has been reached). The reduced trip limit is also expected to shift the commercial greater amberjack harvest to an incidental catch only fishery for fishermen who currently target Gulf greater amberjack commercially under a higher trip limit, reducing the likelihood of race-to-fish (derby) fishing, which will allow NMFS to better determine when the commercial ACT will be reached and prohibit further harvest during the fishing year.
                </P>
                <HD SOURCE="HD1">Criteria and Justification for Emergency Action</HD>
                <P>
                    NMFS' 
                    <E T="03">Policy Guidelines for the Use of Emergency Rules</E>
                     (62 FR 44421, August 21, 1997) list three criteria for determining whether an emergency exists. Specifically, NMFS' policy guidelines require that an emergency: “(1) Result from recent, unforeseen events or recently discovered circumstances; and (2) Present serious conservation or management problems in the fishery; and (3) Can be addressed through emergency regulations for which the immediate benefits outweigh the value of advance notice, public comment, and deliberative consideration of the impacts on participants to the same extent as would be expected under the normal rulemaking process.” NMFS issues this emergency action in compliance with these guidelines to prevent serious conservation issues to the stock that would increase the probability of not meeting the rebuilding timeline of 2027.
                </P>
                <P>
                    With respect to the first criterion, the recently discovered circumstance is the extent of the overage of the commercial ACL in 2023 and the impact the required commercial ACT overage adjustment (payback) will have on the 2024 season. The Gulf greater amberjack stock has been under a rebuilding plan since 2003. The recent change to the rebuilding plan in Amendment 54 was implemented in June 2023 and resulted in a significant reduction in the catch limits. This reduction caused the commercial ACL to be exceeded earlier in the 2023 fishing year, thus requiring a commercial ACL and ACT payback and lower commercial catch levels in 2024. At the time of the Council's request for the emergency action, it 
                    <PRTPAGE P="87367"/>
                    appeared that the required reduction in the commercial catch limits would result in a 2024 commercial season as short as 2 weeks. After further review, NMFS determined that if no change were made to the trip limit, the commercial season would likely close at the end of January or beginning of February. However, there is substantial uncertainty in the projections because it is unclear whether the shorter season will induce fishermen to increase effort. NMFS expects the reduced trip limit implemented though the emergency action to slow harvest by lowering the financial incentive to target greater amberjack and engage in derby fishing, and increase the length of the 2024 commercial fishing season by 4-5 weeks. In combination with the fixed seasonal closure, which occurs March through May, commercial fishing could occur from January through February and then into June.
                </P>
                <P>The second criterion, which requires a serious conservation or management problem in the fishery, is satisfied because the uncertainty associated with projecting when to close fishing under the current trip limit increases the likelihood of exceeding the reduced ACT and ACL, which were required to account for the excess commercial harvest in 2023. The Gulf greater amberjack stock has been overfished since the first assessment in 2000 and various plans that have been implemented to rebuild the stock have not been successful. Amendment 54 significantly reduced catch levels to rebuild the stock by the end of the current rebuilding period in 2027. Harvest in excess of these catch limits increases the probability of not meeting the established rebuilding time. NMFS expects the reduced commercial trip limit to eliminate trips targeting greater amberjack because those trips would be economically infeasible. This will discourage derby fishing and increase the length of the fishing season, which would decrease regulatory discards and allow NMFS more time to determine when to prohibit further harvest in 2024 so as to not exceed the catch limits.</P>
                <P>To address the third criterion, NMFS has determined that because the next commercial fishing season opens January 1, 2024, the immediate benefits of reducing the trip limit through an emergency action outweigh the value of advance notice and public comment. By foregoing the notice and comment rulemaking, this emergency action will be able to fulfill its intent by slowing commercial harvest, eliminating the incentive to engage in derby fishing, which can result in unsafe fishing conditions, and reducing the likelihood of exceeding the reduced catch limits.</P>
                <HD SOURCE="HD1">Emergency Measures</HD>
                <P>
                    This final temporary rule revises the commercial trip limit for Gulf greater amberjack. It reduces the Gulf greater amberjack commercial trip limit to 7 fish from the current trip limit of 1,000 lb (454 kg), gutted weight, 1,040 lb (472 kg), round weight, with a step down in the trip limit to 250 lb (113 kg), gutted weight, 260 lb (118 kg), round weight, when 75 percent of the commercial ACT has been landed. The commercial trip limit will be effective for 180 days after publication in the 
                    <E T="04">Federal Register</E>
                    , as authorized by section 305(c) of the Magnuson-Stevens Act, or until superseded by another Federal action. This temporary final rule for emergency action will not be extended because NMFS expects the commercial ACT to be reached and the 2024 commercial season to be closed prior to the expiration of this rule. If this temporary rule were to expire prior to the commercial closure, fishing that could occur until the quota was reached would be under the reduced limit (stepdown) of 250 lb (113 kg), gutted weight, per trip (equivalent of approximately 8 fish). Therefore, an extension of this temporary final rule will be unnecessary.
                </P>
                <HD SOURCE="HD1">Classification</HD>
                <P>This action is issued pursuant to section 305(c) of the Magnuson-Stevens Act, 16 U.S.C. 1855(c). The Assistant Administrator (AA) for Fisheries, NOAA has determined that this emergency action is consistent with the Magnuson-Stevens Act, the FMP, and other applicable law. This action is being taken pursuant to the emergency provisions of the Magnuson-Stevens Act and is exempt from Office of Management and Budget review.</P>
                <P>The AA finds good cause to waive the requirements to provide prior notice and opportunity for public comment pursuant to the authority set forth in 5 U.S.C. 553(b)(B). Providing prior notice and opportunity for public comment on this action would be contrary to the public interest.</P>
                <P>In June 2023, NMFS implemented Amendment 54, which significantly reduced the Gulf greater amberjack catch levels in order to rebuild the stock. Commercial landings exceeded the 2023 commercial ACL, requiring a reduction of the commercial ACT and ACL for the 2024 fishing year. In October 2023, the Council voted to request that NMFS implement this emergency action to reduce the commercial trip limit as of January 1, 2024, consistent with its recommendation in the Framework Action approved at that same meeting. NMFS received the Council's request for emergency action on November 3, 2023, and therefore could not have acted sooner.</P>
                <P>This change in the commercial trip limit requires immediate implementation. If NMFS were to provide prior notice and comment, NMFS would be unable to implement the change by January 1, 2024, which would increase the likelihood of exceeding the reduced catch limits that are necessary to rebuild the Gulf greater amberjack stock.</P>
                <P>Maintaining the current 1,000 lb (454 kg), gutted weight, trip limit for the 2024 fishing year may induce fishermen who still target Gulf greater amberjack to increase their rate of harvest when the commercial season opens on January 1, 2024. This would increase the uncertainty for NMFS in projecting when to prohibit further commercial harvest and result in commercial landings in excess of the 2024 catch limits, which increases the probability of not meeting the established rebuilding time. The shorter open season that would occur under the 1,000 lb (454 kg), gutted weight, trip limit, would also increase the number of days fishermen who incidentally catch Gulf greater amberjack must discard the fish. Therefore, the reduced commercial trip limit must be implemented immediately and prior notice and opportunity for public comment would be contrary to the public interest.</P>
                <P>The need to implement these measures immediately for the reasons stated above also constitutes good cause under authority contained in 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness of the rule.</P>
                <P>This final temporary rule for emergency action is exempt from the procedures of the Regulatory Flexibility Act because the rule is issued without opportunity for prior notice and opportunity for public comment pursuant to 5 U.S.C. 553 or other law. Accordingly, no regulatory flexibility analysis is required and none has been prepared.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 50 CFR Part 622</HD>
                    <P>Commercial, Fisheries, Fishing season, Greater amberjack, Gulf of Mexico, Reef fish.</P>
                </LSTSUB>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <PRTPAGE P="87368"/>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Samuel D. Rauch, III</NAME>
                    <TITLE>Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
                </SIG>
                <P>For the reasons set out in the preamble, NMFS amends 50 CFR part 622 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 622—FISHERIES OF THE CARIBBEAN, GULF OF MEXICO, AND SOUTH ATLANTIC</HD>
                </PART>
                <REGTEXT TITLE="50" PART="622">
                    <AMDPAR>1. The authority citation for part 622 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>
                             16 U.S.C. 1801 
                            <E T="03">et seq.</E>
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="50" PART="622">
                    <AMDPAR>2. In § 622.43:</AMDPAR>
                    <AMDPAR>a. Suspend paragraphs (a)(1) and (2); and</AMDPAR>
                    <AMDPAR>b. Add paragraph (a)(3).</AMDPAR>
                    <P>The addition reads as follows:</P>
                    <SECTION>
                        <SECTNO>§ 622.43</SECTNO>
                        <SUBJECT> Commercial trip limits.</SUBJECT>
                        <STARS/>
                        <P>(a) * * *</P>
                        <P>(3) Until the commercial quota specified in § 622.39(a)(1)(v) is reached—7 fish. See § 622.39(b) for the limitations regarding greater amberjack after the quota is reached.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27714 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 648</CFR>
                <DEPDOC>[Docket No. 230810-0190; RTID 0648-XD575]</DEPDOC>
                <SUBJECT>Fisheries of the Northeastern United States; Northeast Multispecies Fishery; Gulf of Maine Cod Trimester Total Allowable Catch Area Closure and Possession Limit Adjustments for the Common Pool Fishery</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; in-season possession limit adjustment and area closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action prohibits possession of Gulf of Maine cod by common pool vessels through the end of fishing year. This action also closes the Gulf of Maine Cod Trimester Total Allowable Catch Area to Northeast multispecies common pool vessels fishing with trawl gear, sink gillnet gear, and longline/hook gear for Trimester 3 of fishing year 2023. These actions are necessary because the common pool fishery is projected to have achieved the annual sub-annual catch limit and caught more than 90 percent of its Trimester 3 quota for Gulf of Maine cod. This action is intended to prevent overages of the common pool's quota for this stock.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The prohibition of cod possession by common pool vessels is effective December 15, 2023, through April 30, 2024. The closure of the Gulf of Maine Cod Trimester Total Allowable Catch Area is effective January 1, 2024, through April 30, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Spencer Talmage, Fishery Policy Analyst, (978) 281-9232.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This temporary rule immediately prohibits common pool vessel possession of Gulf of Maine (GOM) cod through the end of the fishing year on April 30, 2024, and closes the GOM Cod Trimester Total Allowable Catch (TAC) Area from January 1, 2024, through April 30, 2024. These actions are intended to prevent the common pool fishery from exceeding the common pool GOM cod Third Trimester TAC and common pool GOM cod annual sub-Annual Catch Limit (sub-ACL).</P>
                <HD SOURCE="HD1">Possession Prohibition for GOM Cod</HD>
                <P>Recently available fishing year 2023 catch information shows that as of November 28, 2023, the Northeast Multispecies Common Pool fishery has caught 100 percent of its 10.6-metric ton (mt) sub-ACL for GOM cod. Regulations at 50 CFR 648.86(o)(1) provide that the Regional Administrator may implement or adjust the Days-at-Sea (DAS) possession limit to prevent an exceedance of the sub-ACL. In addition, regulations at § 648.82(n)(2)(iii) require a deduction of an amount equal to an overage from the common pool's sub-ACL in the next fishing year. To prevent a common pool overage of its 2023 sub-ACL for GOM cod, effective December 15, 2023, the GOM cod possession and trip limits are decreased to 0 pounds (lb) (0 kilograms (kg)), and possession is prohibited for all common pool vessels (table 1).</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s40,r100,r70">
                    <TTITLE>Table 1—New Possession and Trip Limits for GOM Cod</TTITLE>
                    <BOXHD>
                        <CHED H="1">Permit type</CHED>
                        <CHED H="1">Current possession/trip limits</CHED>
                        <CHED H="1">New possession/trip limits</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Days-At-Sea (A DAS)</ENT>
                        <ENT>50 lb (22.7 kg) per DAS, up to 100 lb (45.4 kg) per trip</ENT>
                        <ENT>0 lb (0 kg) per trip; Possession Prohibited.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Handgear A</ENT>
                        <ENT>50 lb (22.7 kg) per trip</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Handgear B</ENT>
                        <ENT>25 lb (11.3 kg) per trip</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Small Vessel Category</ENT>
                        <ENT>150 lb (11.3 kg) per trip, within combined 300 lb (136.1 kg) trip limit for cod, haddock, and yellowtail flounder</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Common pool groundfish vessels that have declared their trip through the Vessel Monitoring System (VMS) or the interactive voice response system, and crossed the VMS demarcation line prior to December 15, 2023, are not subject to the new possession and trip limits for that trip.</P>
                <P>
                    Weekly quota monitoring reports for the common pool fishery are on our website at: 
                    <E T="03">https://www.greateratlantic.fisheries.noaa.gov/ro/fso/reports/h/nemultispecies.html.</E>
                     We will continue to monitor common pool catch through vessel trip reports, dealer-reported landings, VMS catch reports, and other available information and, if necessary, will make additional adjustments to common pool management measures.
                </P>
                <HD SOURCE="HD1">Closure of the Gulf of Maine Cod Trimester Total Allowable Catch Area</HD>
                <P>
                    Federal regulations at § 648.82(n)(2)(ii) require the Regional Administrator to close a common pool Trimester TAC Area for a stock when 90 percent of the Trimester TAC is projected to be caught. Based on recently available catch information, common pool vessel catch is projected to exceed the GOM cod Trimester 3 TAC 
                    <PRTPAGE P="87369"/>
                    as of November 28, 2023. Consequently, beginning January 1, 2024, through April 30, 2024, the GOM Cod Trimester TAC Area is closed. The closure applies to all common pool vessels fishing with gear capable of catching that stock, and remains in effect for the remainder of the trimester. During the closure, affected common pool vessels may not fish for, harvest, possess, or land regulated multispecies or ocean pout in or from the Trimester TAC Area for the stock.
                </P>
                <P>The common pool fishery is currently in Trimester 2, which runs from September 1, 2023, through December 31, 2023. Current Trimester 1 and 2 catch amounts leave no Trimester 3 TAC available to catch. Regulations at § 648.82(n)(2)(iii) state that any overage or underage of common pool Trimester TACs in Trimesters 1 and 2 must be accounted for in the Trimester 3 TAC by deducting overages and adding underages to the Trimester 3 TAC. Common pool catch of GOM cod in Trimester 1 resulted in an overage of 3.3 mt, leaving only 1.9 mt available catch for the remainder of the year and Trimester 2. Deducting the Trimester 1 overage from the current Trimester 2 underage results in an overall overage of 1.9 mt that must be deducted from the Trimester 3 TAC. The Trimester 3 TAC is 1.9 mt, so this deduction results in a Trimester 3 TAC of 0 mt.</P>
                <P>With a Trimester 3 TAC of 0 mt, any amount of catch in Trimester 3 would result in the common pool exceeding the Trimester 3 TAC and the common pool sub-ACL for GOM cod. Additionally, 90 percent of 0 is 0. As a result, we conclude that on January 1, 2024, the common pool fishery will have caught 90 percent of the Trimester 3 TAC.</P>
                <P>Based on the above, effective on January 1, 2024, the Gulf of Maine Cod Trimester TAC Area is closed for Trimester 3, through April 30, 2024. The Gulf of Maine Cod Trimester TAC Area consists of statistical areas 513 and 514. During the closure, common pool vessels fishing with trawl gear, sink gillnet gear, and longline/hook gear, may not fish for, harvest, possess, or land regulated multispecies or ocean pout in or from this area. This closure of the GOM Cod TAC Area ends at the beginning of Trimester 1 of fishing year 2024 on May 1, 2024.</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>This action is required by 50 CFR part 648 and is exempt from review under Executive Order 12866.</P>
                <P>The Assistant Administrator for Fisheries, NOAA, finds good cause pursuant to 5 U.S.C. 553(b)(B) and 5 U.S.C. 553(d)(3) to waive prior notice and the opportunity for public comment and the 30-day delayed effectiveness period because it would be impracticable, unnecessary, and contrary to the public interest.</P>
                <P>The regulations require the Regional Administrator to close a trimester TAC area to the common pool fishery when 90 percent of the Trimester TAC for a stock has been caught. Updated catch information through November 28, 2023, only recently became available indicating that the common pool fishery is projected to have caught 90 percent of its Trimester 3 TAC for GOM cod, and 100 percent of its GOM cod sub-ACL. The time necessary to provide for prior notice and comment, and a 30-day delay in effectiveness, would prevent the timely closure of the GOM Cod Trimester TAC Area on January 1, 2024, and immediate prohibition of possession of the stock. Delay in closure would be contrary to the regulatory requirements and, with a delay in implementation of the possession prohibition would increase the likelihood that the common pool fishery would exceed its annual quota of GOM cod.</P>
                <P>Any overage of the annual quota would be deducted from common pool's quota for the next fishing year, to the detriment of this stock. This could undermine conservation and management objectives of the Northeast Multispecies Fishery Management Plan. Prior notice and comment and a 30-day delay in effectiveness are unnecessary because fishermen were provided ample notice and opportunity to comment on the regulations that require this immediate closure. Fishermen expect these closures to occur in a timely way to prevent overages and their payback requirements. Overages of the trimester or annual common pool quota could cause negative economic impacts to the common pool fishery as a result of overage paybacks deducted from a future trimester or fishing year.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Everett Wayne Baxter,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27748 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 660</CFR>
                <RIN>RIN 0648-BM29</RIN>
                <SUBJECT>Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Groundfish Electronic Monitoring Program; Service Provider Revisions; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS published a final rule on November 22, 2023, announcing changes to Federal requirements for service providers in the Pacific Coast Groundfish electronic monitoring program and other minor corrections to the groundfish regulations. This correction is necessary to modify regulatory instructions so that the implementing regulations are accurate.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective December 22, 2023.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                </ADD>
                <HD SOURCE="HD1">Electronic Access</HD>
                <P>
                    This rule is accessible via the internet at the Office of the Federal Register website at 
                    <E T="03">https://www.federalregister.gov.</E>
                     Background information and documents are available at the Pacific Fishery Management Council's website at 
                    <E T="03">https://www.pcouncil.org/.</E>
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Melissa Hooper, (206) 526-4357, 
                        <E T="03">melissa.hooper@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS published a final rule on November 22, 2023, announcing changes to Federal requirements for service providers in the Pacific Coast Groundfish electronic monitoring program. This final rule also made minor administrative changes to other groundfish regulations to correct typos and update web addresses and other outdated references (88 FR 81354). This rule is effective December 22, 2023.</P>
                <P>
                    This action corrects the amendatory instructions to 50 CFR part 660 to correct additional typos that were left out of the original final rule; specifically changing the word “coop” to “co-op” when referring to harvest cooperatives. This correction is necessary to modify the incorrect regulatory instruction so that the implementing regulations are accurate.
                    <PRTPAGE P="87370"/>
                </P>
                <HD SOURCE="HD1">Correction</HD>
                <PART>
                    <HD SOURCE="HED">PART 660 [Corrected]</HD>
                    <P>Effective December 22, 2023, in FR. Doc. 2023-25703 at 88 FR 81354 in the issue of November 22, 2023, on page 81358, in the first column, in amendatory instruction 2, the following correction is made: </P>
                </PART>
                <REGTEXT TITLE="50" PART="660">
                    <AMDPAR>2. Amend part 660 by:</AMDPAR>
                    <AMDPAR>a. Removing the word “coop” and adding in its place the word “co-op” wherever it appears;</AMDPAR>
                    <AMDPAR>b. Removing the word “Coop” and adding in its place the word “Co-op” wherever it appears;</AMDPAR>
                    <AMDPAR>c. Removing the word “coops” and adding in its place the word “co-ops” wherever it appears;</AMDPAR>
                    <AMDPAR>d. Removing the word “inter-coop” and adding in its place the word “inter-co-op” wherever it appears; and</AMDPAR>
                    <AMDPAR>e. Removing the word “Inter-coop” and adding in its place the word “Inter-co-op.”</AMDPAR>
                </REGTEXT>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Samuel D. Rauch, III,</NAME>
                    <TITLE>Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27715 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
    </RULES>
    <VOL>88</VOL>
    <NO>241</NO>
    <DATE>Monday, December 18, 2023</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <PRORULES>
        <PRORULE>
            <PREAMB>
                <PRTPAGE P="87371"/>
                <AGENCY TYPE="F">DEPARTMENT OF ENERGY</AGENCY>
                <CFR>10 CFR Part 1008</CFR>
                <DEPDOC>[DOE-HQ-2022-0024]</DEPDOC>
                <RIN>RIN 1903-AA13</RIN>
                <SUBJECT>Social Security Number Fraud Prevention Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking and request for public comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Energy (DOE or Department) proposes to revise its regulations regarding records maintained on individuals under the Privacy Act. The revisions would clarify and update procedural requirements pertaining to the inclusion of a Social Security Number (SSN) on documents that the Department sends by mail. These revisions are necessary to implement the SSN Fraud Prevention Act of 2017's restriction on the inclusion of SSNs on documents sent by mail by the Federal Government. Additionally, the Department proposes to maintain a publicly available list authorizing certain designated documents to include SSNs if: inclusion is necessary; and the documents are requested by individuals outside DOE or other Federal agencies. This Notice of Proposed Rulemaking (NOPR) seeks comment on this proposal.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        To be assured of consideration, written comments on this proposed rulemaking must be received at one of the addresses provided in the 
                        <E T="02">ADDRESSES</E>
                         section, on or before January 17, 2024. Comments received following the aforementioned date will be considered if it is practical to do so. Please refer to section IV (Public Participation—Submission of Comments) for additional information on the comment period.
                    </P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by docket number DOE-HQ-2022-0024, as follows:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: www.regulations.gov.</E>
                         Enter the docket ID number in the “Enter Keyword or ID” field and click on “Search.” On the next web page, click on “Submit a Comment” action and follow the instructions in the portal.
                    </P>
                    <P>
                        <E T="03">Mail/Hand Delivery/Courier [For paper, disk, or CD-ROM submissions] to:</E>
                         Ken Hunt, U.S. Department of Energy, 1000 Independence Avenue SW, Office 8H-085, Washington, DC 20585.
                    </P>
                    <P>
                        Comments received, including any personal information, will be posted without change to 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         The docket, which includes 
                        <E T="04">Federal Register</E>
                         notices, comments, and other supporting documents/materials, is available for review at 
                        <E T="03">www.regulations.gov.</E>
                         All documents in the docket are listed in the 
                        <E T="03">www.regulations.gov</E>
                         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 
                        <E T="03">www.regulations.gov</E>
                         web page contains instructions on how to access all documents, including public comments, in the docket. See section IV of this document for further information on how to submit comments through 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Kyle David, U.S. Department of Energy, 1000 Independence Avenue SW, Office 8H-085, Washington, DC 20585; facsimile: (202) 586-8151; email: 
                        <E T="03">kyle.david@hq.doe.gov, telephone</E>
                        : (240) 686-9485.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Authority and Background</FP>
                    <FP SOURCE="FP1-2">A. Authority</FP>
                    <FP SOURCE="FP1-2">B. Background</FP>
                    <FP SOURCE="FP-2">II. Discussion</FP>
                    <FP SOURCE="FP-2">III. Procedural Issues and Regulatory Review</FP>
                    <FP SOURCE="FP1-2">A. Review Under Executive Orders 12866, 13563, and 14094</FP>
                    <FP SOURCE="FP1-2">B. Review Under the Regulatory Flexibility Act</FP>
                    <FP SOURCE="FP1-2">C. Review Under the Paperwork Reduction Act of 1995</FP>
                    <FP SOURCE="FP1-2">D. Review Under the National Environmental Policy Act of 1969</FP>
                    <FP SOURCE="FP1-2">E. Review Under Executive Order 12988</FP>
                    <FP SOURCE="FP1-2">F. Review Under Executive Order 13132</FP>
                    <FP SOURCE="FP1-2">G. Review Under Executive Order 13175</FP>
                    <FP SOURCE="FP1-2">H. Review Under the Unfunded Mandates Reform Act of 1995</FP>
                    <FP SOURCE="FP1-2">I. Review Under Executive Order 12360</FP>
                    <FP SOURCE="FP1-2">J. Review Under Executive Order 13211</FP>
                    <FP SOURCE="FP1-2">K. Review Under the Treasury and General Government Appropriations Act, 1999</FP>
                    <FP SOURCE="FP1-2">L. Review Under the Treasury and General Government Appropriations Act, 2001</FP>
                    <FP SOURCE="FP-2">IV. Public Participation—Submission of Comments</FP>
                    <FP SOURCE="FP-2">V. Approval by the Office of the Secretary of Energy</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Authority and Background</HD>
                <HD SOURCE="HD2">A. Authority</HD>
                <P>
                    DOE has broad authority to regulate the agency's collection, use, processing, maintenance, storage, and disclosure of SSNs pursuant to the following authorities: 42 U.S.C. 7101 
                    <E T="03">et seq.,</E>
                     50 U.S.C. 2401 
                    <E T="03">et seq.,</E>
                     5 U.S.C. 1104, 5 U.S.C. 293, 5 U.S.C. 552, 5 U.S.C. 552a, 42 U.S.C. 7254, 5 U.S.C. 301, and 42 U.S.C. 405 note.
                </P>
                <HD SOURCE="HD2">B. Background</HD>
                <P>The SSN Fraud Prevention Act of 2017 (the Act) (Pub L. 115-59; 42 U.S.C. 405 note), enacted on September 15, 2017, prohibits Federal agencies from including individuals' full SSN on documents transmitted by physical mail unless the head of the agency determines that the inclusion of the full SSN on the document is necessary (section 2(a), Pub. L. 115-59). The Act requires agency heads to issue regulations specifying the circumstances under which inclusion of a full SSN on a document sent by mail is necessary. The Act specifies that these regulations be issued no later than five years after the date of enactment, include instructions for the partial redaction of SSNs where feasible, and require that SSNs not be visible on the outside of any package sent by mail (section 2(b), Pub. L. 115-59). This proposed rule would revise 10 CFR 1008.22 (Use and Collection of Social Security Numbers) consistent with these requirements in the Act. The proposed revisions would clarify the procedural requirements pertaining to the inclusion of full SSNs on documents that DOE sends by mail.</P>
                <HD SOURCE="HD1">II. Discussion</HD>
                <P>
                    Pursuant to the Act, an agency may not include a SSN on a document sent by mail unless the Secretary determines that inclusion of the SSN on the document is necessary. DOE usage of SSNs is necessary in instances when it is required by law, or fulfills a compelling business need. The proposed regulatory text would revise 10 CFR 1008.22 to establish the process by which Departmental Elements may request a Secretarial waiver of the prohibition on inclusion of SSNs. The proposed text provides for a Secretarial 
                    <PRTPAGE P="87372"/>
                    waiver for pre-approved items listed on DOE's “Un-redacted SSN Mailed Documents Listing” (USMDL). This is a list of categories of documents which the Secretary of Energy, or the Secretary's authorized designee, has determined to be pre-approved for the inclusion of a full SSN in a mailed document. The justification for this determination is that the identified forms are necessary to fulfill a compelling DOE business need or mission function. DOE developed this list of pre-approved forms and documents based on responses to annual DOE data calls to assess which documents (1) contain a full SSN, (2) contain a full SSN that cannot be redacted, and (3) must be transmitted through physical mail and include a full SSN. Documents listed on the USMDL include those related to payroll, human resources, taxes, security, badging, and Privacy Act and Freedom of Information Act requests. DOE proposes that forms and documents included on the USMDL will not require a separate Secretarial waiver to be transmitted by physical mail.
                </P>
                <P>The proposed rule provides that forms and documents not listed on the USMDL that contain a full SSN and must be transmitted through physical mail to fulfill a compelling DOE business need will require a Secretarial waiver in accordance with these regulations. Pursuant to “Department of Energy Designation Order No. 00-17.00A to the Chief Information Officer,” section 1.3, the Chief Information Officer (CIO), as Senior Agency Official for Privacy (SAOP), has the authority to implement “information privacy protection, including compliance with Federal laws, regulations, and policies that relate to information privacy and the Privacy Act.” Pursuant to this authority, for circumstances where a transmitting DOE Element anticipates the sending of a particular form or document will be a one-time occurrence, and under conditions where such transmission is an urgent matter, the Element may request a conditional, one-time Secretarial waiver from the DOE SAOP. Similarly, pursuant Designation Order No. 00-17.00A section 1.3, for circumstances where the transmitting element anticipates a regular and frequent transmission of a particular form or document, the proposed rule provides that the Element may request that the relevant form or document be added to the USMDL from the DOE SAOP.</P>
                <P>A request by a current or former DOE employee or contractor, through an internal system, to have a document or form containing that individual's SSN mailed to the individual will not require a waiver under the proposed rule.</P>
                <HD SOURCE="HD1">III. Procedural Issues and Regulatory Review</HD>
                <HD SOURCE="HD2">A. Review Under Executive Orders 12866, 13563, and 14094</HD>
                <P>Executive Order (“E.O.”) 12866, “Regulatory Planning and Review,” 58 FR 51735 (Oct. 4, 1993), as supplemented and reaffirmed by E.O. 13563, “Improving Regulation and Regulatory Review,” 76 FR 3821 (Jan. 21, 2011) and amended by E.O. 14094, “Modernizing Regulatory Review,” 88 FR 21879 (April 11, 2023), requires agencies, to the extent permitted by law, to (1) propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs (recognizing that some benefits and costs are difficult to quantify); (2) tailor regulations to impose the least burden on society, consistent with obtaining regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity); (4) to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt; and (5) identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public. DOE emphasizes as well that E.O. 13563 requires agencies to use the best available techniques to quantify anticipated present and future benefits and costs as accurately as possible. In its guidance, the Office of Information and Regulatory Affairs (OIRA) has emphasized that such techniques may include identifying changing future compliance costs that might result from technological innovation or anticipated behavioral changes. For the reasons stated in the preamble, this proposed regulatory action is consistent with these principles.</P>
                <P>Section 6(a) of E.O. 12866 requires agencies to submit “significant regulatory actions” to OIRA for review. OIRA has determined that this proposed regulatory action is not a “significant regulatory action” within the scope of E.O. 12866. Accordingly, this action is not subject to review under E.O. 12866 by OIRA of the Office of Management and Budget (OMB).</P>
                <HD SOURCE="HD2">B. Review Under the Regulatory Flexibility Act</HD>
                <P>
                    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ) requires that an agency prepare an initial regulatory flexibility analysis for any regulation for which a general notice of proposed rulemaking is required, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities (5 U.S.C. 605(b)). As required by Executive Order 13272, 
                    <E T="03">Proper Consideration of Small Entities in Agency Rulemaking,</E>
                     67 FR 53461 (Aug. 16, 2002), DOE published procedures and policies on February 19, 2003, to ensure that the potential impacts of its rules on small entities are properly considered during the rulemaking process. 68 FR 7990. DOE has made its procedures and policies available on the Office of the General Counsel's website (
                    <E T="03">https://energy.gov/gc/office-general-counsel</E>
                    ).
                </P>
                <P>DOE reviewed this proposed rule under the provisions of the Regulatory Flexibility Act and the procedures and policies published on February 19, 2003. DOE certifies that the proposed rule, if adopted, would not have significant economic impact on a substantial number of small entities. The factual basis for this certification is set forth below.</P>
                <P>This proposed rule would update DOE's polices and procedures concerning the transmission by physical mail of documents containing full SSNs for necessary business purposes. This proposed rule would apply only to activities conducted by DOE's federal employees and contractors, who would be responsible for implementing the rule requirements. DOE does not expect there to be any potential economic impact of this proposed rule on small businesses. Small businesses, therefore, should not be adversely impacted by the requirements in this proposed rule. For these reasons, DOE certifies that this proposed rule, if promulgated, would not have a significant economic impact on a substantial number of small entities, and therefore, no regulatory flexibility analysis has been prepared.</P>
                <HD SOURCE="HD2">C. Review Under the Paperwork Reduction Act of 1995</HD>
                <P>
                    This proposed rule does not impose a collection of information requirement subject to review and approval by OMB under the Paperwork Reduction Act (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ).
                    <PRTPAGE P="87373"/>
                </P>
                <HD SOURCE="HD2">D. Review Under the National Environmental Policy Act of 1969</HD>
                <P>
                    Pursuant to the National Environmental Policy Act of 1969 (NEPA), DOE has analyzed this proposed action in accordance with NEPA and DOE's NEPA implementing regulations (10 CFR part 1021). DOE's regulations include a categorical exclusion (CX) for rulemakings interpreting or amending an existing rule or regulation that does not change the environmental effect of the rule or regulation being amended. 10 CFR part 1021, subpart D, appendix A5. DOE has determined that this proposed rule is covered under the CX found in DOE's NEPA regulations at paragraph A.5 of appendix A to subpart D, 10 CFR part 1021, because it is an amendment to an existing regulation that does not change the environmental effect of the amended regulation and, therefore, meets the requirements for the application of this CX. 
                    <E T="03">See</E>
                     10 CFR 1021.410. Therefore, DOE has determined that this proposed rule is not a major Federal action significantly affecting the quality of the human environment within the meaning of NEPA and does not require an Environmental Assessment or an Environmental Impact Statement.
                </P>
                <HD SOURCE="HD2">E. Review Under Executive Order 12988</HD>
                <P>With respect to the review of existing regulations and the promulgation of new regulations, Section 3(a) of Executive Order 12988, “Civil Justice Reform,” 61 FR 4729 (February 7, 1996), imposes on Federal agencies the general duty to adhere to the following requirements: (1) eliminate drafting errors and ambiguity; (2) write regulations to minimize litigation; (3) provide a clear legal standard for affected conduct rather than a general standard; and (4) promote simplification and burden reduction. Section 3(b) of Executive Order 12988 specifically requires that executive agencies make every reasonable effort to ensure that the regulation: (1) clearly specifies the preemptive effect, if any; (2) clearly specifies any effect on existing Federal law or regulation; (3) provides a clear legal standard for the affected conduct while promoting simplification and burden reduction; (4) specifies the retroactive effect, if any; (5) adequately defines key terms; (6) specifies whether administrative proceedings are to be required before parties may file suit in court and, if so, describes those proceedings and requires the exhaustion of administrative remedies; and (7) addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of Executive Order 12988 requires Executive agencies to review regulations in light of applicable standards in section 3(a) and section 3(b) to determine whether they are met or it is unreasonable to meet one or more of the standards. DOE has completed the required review and determined that, to the extent permitted by law, this proposed rule meets the relevant standards of Executive Order 12988.</P>
                <HD SOURCE="HD2">F. Review Under Executive Order 13132</HD>
                <P>Executive Order 13132, “Federalism,” 64 FR 43255 (August 10, 1999) imposes certain requirements on agencies formulating and implementing policies or regulations that preempt State law or that have federalism implications. Agencies are required to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the States and carefully assess the necessity for such actions. The Executive order also requires agencies to have an accountable process to ensure meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications. On March 14, 2000, DOE published a statement of policy describing the intergovernmental consultation process it will follow in the development of such regulations. 65 FR 13735. DOE has examined this proposed rule and has tentatively determined that it would not preempt State law and would not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. No further action is required by Executive Order 13132.</P>
                <HD SOURCE="HD2">G. Review Under Executive Order 13175</HD>
                <P>Under Executive Order 13175 (65 FR 67249, November 6, 2000) on “Consultation and Coordination with Indian Tribal Governments,” DOE may not issue a discretionary rule that has “Tribal” implications and imposes substantial direct compliance costs on Indian Tribal governments. DOE has determined that the proposed rule would not have such effects and concluded that Executive Order 13175 does not apply to this proposed rule.</P>
                <HD SOURCE="HD2">H. Review Under the Unfunded Mandates Reform Act of 1995</HD>
                <P>
                    Title II of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. 104-4) requires each Federal agency to assess the effects of a Federal regulatory action on State, local, and Tribal governments, and the private sector. (Pub. L. 104-4, sec. 201 
                    <E T="03">et seq.</E>
                     (codified at 2 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    )). For a proposed regulatory action likely to result in a rule that may cause the expenditure by State, local, and Tribal governments, in the aggregate, or by the private sector of $100 million or more in any one year (adjusted annually for inflation), section 202 of UMRA requires a Federal agency to publish a written statement that estimates the resulting costs, benefits, and other effects on the national economy. (2 U.S.C. 1532(a), (b)) UMRA also requires a Federal agency to develop an effective process to permit timely input by elected officers of State, local, and Tribal governments on a proposed “significant Federal intergovernmental mandate,” and requires an agency plan for giving notice and opportunity for timely input to potentially affected small governments before establishing any requirements that might significantly or uniquely affect them. On March 18, 1997, DOE published a statement of policy on its process for intergovernmental consultation under UMRA. (62 FR 12820) (This policy is also available at: 
                    <E T="03">www.energy.gov/gc/guidance-opinions</E>
                     under “Guidance &amp; Opinions” (Rulemaking)). DOE examined the proposed rule according to UMRA and its statement of policy and has determined that the rule contains neither an intergovernmental mandate, nor a mandate that may result in the expenditure by State, local, and Tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year. Accordingly, no further assessment or analysis is required under UMRA.
                </P>
                <HD SOURCE="HD2">I. Review Under Executive Order 12630</HD>
                <P>DOE has determined, under Executive Order 12630, “Governmental Actions and Interference with Constitutionally Protected Property Rights” 53 FR 8859 (March 18, 1988), that this proposed regulation would not result in any takings that might require compensation under the Fifth Amendment to the U.S. Constitution.</P>
                <HD SOURCE="HD2">J. Review Under Executive Order 13211</HD>
                <P>
                    Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” 66 FR 28355 (May 22, 2001) requires Federal agencies to prepare and submit to the OIRA, which is part of OMB, a Statement of Energy Effects for any proposed significant energy action. A “significant energy action” is defined as any action by an agency that promulgates or is expected to lead to promulgation of a final rule, 
                    <PRTPAGE P="87374"/>
                    and that: (1)(i) is a significant regulatory action under Executive Order 12866, or any successor order; and (ii) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (2) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. This proposed regulatory action is not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects.
                </P>
                <HD SOURCE="HD2">K. Review Under the Treasury and General Government Appropriations Act, 1999</HD>
                <P>Section 654 of the Treasury and General Government Appropriations Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family Policymaking Assessment for any proposed rule that may affect family well-being. This proposed rule would not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment.</P>
                <HD SOURCE="HD2">L. Review Under the Treasury and General Government Appropriations Act, 2001</HD>
                <P>
                    Section 515 of the Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516) provides for Federal agencies to review most disseminations of information to the public under guidelines established by each agency pursuant to general guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). Pursuant to OMB Memorandum M-19-15, 
                    <E T="03">Improving Implementation of the Information Quality Act</E>
                     (April 24, 2019), DOE published updated guidelines which are available at: 
                    <E T="03">www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf.</E>
                </P>
                <P>DOE has reviewed this proposed rule and will ensure that information produced under this regulation remains consistent with the applicable OMB and DOE guidelines.</P>
                <HD SOURCE="HD1">IV. Public Participation—Submission of Comments  </HD>
                <P>
                    DOE will accept comments, data, and information regarding this proposed rule before or no later than the date provided in the 
                    <E T="02">DATES</E>
                     section at the beginning of this proposed rule. Interested individuals are invited to participate in this proceeding by submitting data, views, or arguments with respect to this proposed rule using the method described in the 
                    <E T="02">ADDRESSES</E>
                     section at the beginning of this proposed rule. To help the Department review the submitted comments, commenters are requested to reference the paragraph(s), (
                    <E T="03">e.g.,</E>
                     § 1008.22(d)), to which they refer, where possible.
                </P>
                <P>
                    1. 
                    <E T="03">Submitting comments on www.regulations.gov.</E>
                     The 
                    <E T="03">www.regulations.gov</E>
                     web page will require you to provide your name and contact information. Your contact information will be viewable by DOE's Office of Privacy Management and Compliance 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. Persons viewing comments will see only first and last names, organization names, correspondence containing comments, and any documents submitted with the comments.
                </P>
                <P>
                    Do not submit to 
                    <E T="03">www.regulations.gov</E>
                     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 
                    <E T="03">www.regulations.gov</E>
                     cannot be claimed as CBI. Comments received through 
                    <E T="03">www.regulations.gov</E>
                     will waive any CBI claims for the information submitted. For information on submitting CBI, see the Confidential Business Information section.
                </P>
                <P>
                    DOE processes submissions made through 
                    <E T="03">www.regulations.gov</E>
                     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 
                    <E T="03">www.regulations.gov</E>
                     provides after you have successfully uploaded your comment.
                </P>
                <P>Comments, data, and other information submitted to DOE electronically should be provided in PDF (preferred), Microsoft Word or Excel, WordPerfect, or text (ASCII) file format. Provide documents that are not secured, that are written in English, and that are free of any defects or viruses. Documents should not contain special characters or any form of encryption and, if possible, they should carry the electronic signature of the author.</P>
                <P>
                    2. 
                    <E T="03">Confidential Business Information.</E>
                     Pursuant to the provisions of 10 CFR 1004.11, anyone submitting information or data he or she believes to be confidential and exempt by law from public disclosure should submit 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. Submit these documents via email. DOE will make its own determination as to the confidentiality of the information and treat it according to its determination.
                </P>
                <P>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).</P>
                <P>
                    3. 
                    <E T="03">Campaign form letters.</E>
                     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.
                </P>
                <HD SOURCE="HD1">V. Approval by the Office of the Secretary of Energy</HD>
                <P>The Secretary of Energy has approved publication of this notice of proposed rulemaking and request for public comment.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 10 CFR Part 1008</HD>
                    <P>Administration practice and procedure, Freedom of information, Privacy, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <PRTPAGE P="87375"/>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Department of Energy was signed on November 24, 2023, by Ann Dunkin, Senior Agency Official for Privacy, 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 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Treena V. Garrett,</NAME>
                    <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
                <P>For the reasons set forth in the preamble, the Department of Energy proposes to amend part 1008 of chapter X of title 10 of the Code of Federal Regulations as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 1008—RECORDS MAINTAINED ON INDIVIDUALS (PRIVACY ACT)</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 1008 is revised to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>
                        42 U.S.C. 7101 
                        <E T="03">et seq.;</E>
                         50 U.S.C. 2401 
                        <E T="03">et seq.;</E>
                         5 U.S.C. 552; 5 U.S.C. 552a; 42 U.S.C. 7254; and 5 U.S.C. 301. Section 1008.22(c) also issued under 42 U.S.C. 405 note.
                    </P>
                </AUTH>
                <AMDPAR>2. Amend § 1008.22 by adding paragraphs (c) through (e) to read as follows:</AMDPAR>
                <SECTION>
                    <SECTNO>§ 1008.22 </SECTNO>
                    <SUBJECT>Use and collection of social security numbers.</SUBJECT>
                    <STARS/>
                    <P>(c) Pursuant to the Social Security Number Fraud and Prevention Act (Pub. L. 115-59; 42 U.S.C. 405 note), Heads of Headquarters Divisions and Offices and heads of other DOE locations may not include a full Social Security number on a form or document transmitted by physical mail unless:</P>
                    <P>(1) The form or document belongs to a category of forms and documents listed on the Department's “Unredacted SSN Mailed Documents Listing” (USMDL) as published on the Department's website; or</P>
                    <P>(2) The Senior Agency Official for Privacy (SAOP) provides a one-time waiver for the form or document as provided by paragraph (d) of this section.</P>
                    <P>(d) The Heads of Headquarters Divisions and Offices and heads of other DOE locations who have a compelling business need to include a full social security number on a form or document that is transmitted by physical mail and which do not belong to a category of form or document listed on the USMDL may request a conditional, one-time Secretarial waiver as follows:</P>
                    <P>(1) The requesting Head of Departmental Element must prepare a memorandum for submission to the SAOP that:</P>
                    <P>(i) Identifies the document that requires transmission via physical mail;</P>
                    <P>(ii) Explains with specificity the reasons why a full social security number is required to be transmitted via physical mail on the document;</P>
                    <P>(iii) Provides with specificity details on why the social security number cannot be a partial social security number; and</P>
                    <P>(iv) Includes any other justification to support the Element's request, including any legal requirement that necessitates the Department sending a full social security number through physical mail for business or mission purposes.</P>
                    <P>(2) The Departmental Element must send the completed memorandum to the Chief Privacy Officer (CPO) for review.</P>
                    <P>(3) The CPO will review the request and forward its recommendation to the SAOP.</P>
                    <P>(4) The SAOP will review and approve or reject the Departmental Element's request.</P>
                    <P>(5) If the request is approved, the SAOP will issue a memorandum in response to the Head of the Departmental Element authorizing the conditional, one-time transmission of the document.</P>
                    <P>(e) Under circumstances where the transmitting Departmental Element anticipates a regular and frequent transmission through physical mail of a particular form or document containing social security numbers not already listed on the USDML, the Head of the Departmental Element may request that a new category relevant to the form or document be added to the USMDL in accordance with the procedures in paragraphs (e)(1) through (5) of this section:</P>
                    <P>(1) The requesting Departmental Element must prepare a memorandum for submission to the SAOP that:</P>
                    <P>(i) Identifies the document that requires transmission via physical mail;</P>
                    <P>(ii) Explains with specificity the reasons why a full social security number is required to be transmitted via physical mail on the form or document;</P>
                    <P>(iii) Provides with specificity details on why the social security number cannot be a partial social security number; and</P>
                    <P>(iv) Includes any other justification to support the Element's request, including any legal requirement that necessitates the Department sending a full social security number through physical mail for business or mission purposes.</P>
                    <P>(2) The Head of the Departmental Element must send the completed memorandum to the CPO for review.</P>
                    <P>(3) The CPO will review the request and forward its recommendation to the SAOP.</P>
                    <P>(4) The SAOP will review and approve or reject the Element's request.</P>
                    <P>(5) If the request is approved, the SAOP will issue a memorandum in response to the requestor stating the SAOP's determination and DOE will update the USDML and publish the updated USDML on the Department's website.</P>
                </SECTION>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27616 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2023-1801; Airspace Docket No. 23-AAL-33]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Modification of Class E Airspace; Klawock Airport, Klawock, AK</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Supplemental Notice of Proposed Rulemaking (SNPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action proposes to modify the Class E airspace extending upward from 700 feet above the surface and remove the Class E airspace extending upward from 1,200 feet above the surface at Klawock Airport, Klawock, AK. Additionally, this action proposes administrative amendments to update the airport's existing Class E airspace legal description. These actions would support the safety and management of instrument flight rules (IFR) operations at the airport.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before February 1, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by FAA Docket No. FAA-2023-1801 and Airspace Docket No. 23-AAL-33 using any of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Send comments to Docket Operations, M-30; U.S. Department of 
                        <PRTPAGE P="87376"/>
                        Transportation, 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        * 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        * 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at (202) 493-2251.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         at any time. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        FAA Order JO 7400.11H, Airspace Designations and Reporting Points, and subsequent amendments can be viewed online at 
                        <E T="03">www.faa.gov/air_traffic/publications/.</E>
                         You may also contact the Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Keith T Adams, Federal Aviation Administration, Western Service Center, Operations Support Group, 2200 S 216th Street, Des Moines, WA 98198; telephone (206) 231-2428.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it would modify Class E airspace to support IFR operations at Klawock Airport, Klawock, AK.</P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.</P>
                <P>The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The FAA may change this proposal in light of the comments it receives.</P>
                <P>
                    <E T="03">Privacy:</E>
                     In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">Availability of Rulemaking Documents</HD>
                <P>
                    An electronic copy of this document may be downloaded through the internet at 
                    <E T="03">www.regulations.gov.</E>
                     Recently published rulemaking documents can also be accessed through the FAA's web page at 
                    <E T="03">www.faa.gov/air_traffic/publications/airspace_amendments/.</E>
                </P>
                <P>
                    You may review the public docket containing the proposal, any comments received and any final disposition in person in the Dockets Operations office (see 
                    <E T="02">ADDRESSES</E>
                     section for address, phone number, and hours of operations). An informal docket may also be examined during normal business hours at the office at the Northwest Mountain Regional Office of the Federal Aviation Administration, Air Traffic Organization, Western Service Center, Operations Support Group, 2200 S. 216th Street, Des Moines, WA 98198.
                </P>
                <HD SOURCE="HD1">Incorporation by Reference</HD>
                <P>
                    Class E5 airspace designations are published in paragraph 6005 of FAA Order JO 7400.11, Airspace Designations and Reporting Points, which is incorporated by reference in 14 CFR 71.1 on an annual basis. This document proposes to amend the current version of that order, FAA Order JO 7400.11H, dated August 11, 2023, and effective September 15, 2023. These updates would be published in the next update to FAA Order JO 7400.11. That order is publicly available as listed in the 
                    <E T="02">ADDRESSES</E>
                     section of this document.
                </P>
                <P>FAA Order JO 7400.11H lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The FAA published an NPRM in the 
                    <E T="04">Federal Register</E>
                     for FAA 2023-1801 (88 FR 67124; September 29, 2023) to modify Class E airspace at the Klawock Airport. An extension was proposed to the northeast to be within 3 miles northwest and 3.3 miles southwest of the airport's 043° bearing, extending to 9 miles northeast of the airport to more appropriately contain departing IFR operations until reaching 1,200 feet above the surface and arriving IFR operations below 1,500 feet above the surface, when executing the CAALM 2 Area Navigation (RNAV) Departure Procedure or the RNAV Global Positioning System (GPS) RWY 20 and RNAV (GPS) M RWY 20 approaches. Subsequent to the publication of the NPRM, the FAA discovered that the extension should be within 3 miles northwest and 3.3 miles southeast of the 043° bearing, extending to 9 miles northeast of the airport. This SNPRM updates the FAA's proposal to correct that error.
                </P>
                <HD SOURCE="HD1">The Proposal  </HD>
                <P>The FAA is proposing an amendment to 14 CFR part 71 to modify the Class E airspace extending upward from 700 feet above the surface and remove the Class E airspace extending upward from 1,200 feet above the surface at Klawock Airport, Klawock, AK.</P>
                <P>The Class E airspace extending upward from 700 feet above the surface within a 6.7-mile radius should be reduced to a semicircle within the airport's 249° bearing clockwise to the 025° bearing, as operations are not authorized to the southeast of the airport and containment is not needed in that area.</P>
                <P>
                    In addition, an extension to the Class E airspace extending upward from 700 feet above the surface should be added to the northeast to be within 3 miles northwest and 3.3 miles southeast of the airport's 043° bearing extending to 9 miles northeast of the airport to more appropriately contain departing IFR operations until reaching 1,200 feet 
                    <PRTPAGE P="87377"/>
                    above the surface and arriving IFR operations below 1,500 feet above the surface, when executing the CAALM 2 RNAV Departure Procedure or the RNAV (GPS) RWY 20 and RNAV (GPS) M RWY 20 approaches.
                </P>
                <P>Moreover, the southwest procedure turn area should be removed, as it is no longer needed. In its place, a southwest extension to the Class E airspace extending upward from 700 feet above the surface should be added to be within 3.3 miles southeast and 3 miles northwest of the airport's 223° bearing, extending to 14.6 miles southwest of the airport. This extension would better contain departing IFR operations between the surface and 1,200 feet while executing the TURTY RNAV departure and arriving IFR operations below 1,500 feet above the surface while executing the RNAV (GPS) A, RNAV (GPS) M RWY 2, RNAV (GPS) Y RWY 2, or RNAV (GPS) Z RWY 2 approaches.</P>
                <P>Furthermore, the Klawock Class E airspace beginning at 1,200 feet above the surface should be removed as it is redundant.</P>
                <P>Finally, the FAA proposes administrative modifications to the airport's associated legal description. The Klawock Nondirectional Beacon/Distance Measuring Equipment navigational aid was decommissioned in 2017, and reference to it should be removed.</P>
                <HD SOURCE="HD1">Regulatory Notices and Analyses</HD>
                <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore: (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <HD SOURCE="HD1">Environmental Review</HD>
                <P>
                    This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1F, 
                    <E T="03">Environmental Impacts: Policies and Procedures,</E>
                     prior to any FAA final regulatory action.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 71</HD>
                    <P>Airspace, Incorporation by reference, Navigation (air).</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>In consideration of the foregoing, the Federal Aviation Administration proposes to  amend 14 CFR part 71 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for 14 CFR part 71 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 71.1</SECTNO>
                    <SUBJECT> [Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO 7400.11H, Airspace Designations and Reporting Points, dated August 11, 2023, and effective September 15, 2023, is amended as follows:</AMDPAR>
                <EXTRACT>
                    <HD SOURCE="HD2">Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More Above the Surface of the Earth.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">AAL AK E5 Klawock, AK [Amended]</HD>
                    <FP SOURCE="FP-2">Klawock Airport, AK</FP>
                    <FP SOURCE="FP1-2">(Lat. 55°34′45″ N, long. 133°04′34″ W)</FP>
                    <P>That airspace extending upward from 700 feet above the surface within a 6.7-mile radius of the airport from the 249° bearing clockwise to the 025° bearing, within 3 miles northwest and 3.3 miles southeast of the 043° bearing extending from the airport to 9 miles northeast, and within 3.3 miles southeast and 3 miles northwest of the 223° bearing extending from the airport to 14.6 miles southwest.</P>
                    <STARS/>
                </EXTRACT>
                <SIG>
                    <DATED>Issued in Des Moines, Washington, on December 8, 2023.</DATED>
                    <NAME>B.G. Chew,</NAME>
                    <TITLE>Group Manager, Operations Support Group, Western Service Center.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27670 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2023-2198; Airspace Docket No. 23-AEA-12]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Amendment of United States Area Navigation (RNAV) Routes; Eastern United States</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking (NPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action proposes to establish three and amend three United States Area Navigation (RNAV) T-routes in the eastern United States. This action supports Next Generation Air Transportation System (NextGen) which provides a modern RNAV route structure to improve the efficiency of the National Airspace System (NAS).</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before February 1, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by FAA Docket No. FAA-2023-2198 and Airspace Docket No. 23-AEA-12 using any of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Send comments to Docket Operations, M-30; U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        * 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        * 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at (202) 493-2251.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         at any time. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        FAA Order JO 7400.11H, Airspace Designations and Reporting Points, and subsequent amendments can be viewed online at 
                        <E T="03">www.faa.gov/air_traffic/publications/.</E>
                         You may also contact the Rules and Regulations Group, Office of 
                        <PRTPAGE P="87378"/>
                        Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Brian Vidis, Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it amends the route structure to maintain the efficient flow of air traffic within the NAS.</P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.</P>
                <P>The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The FAA may change this proposal in light of the comments it receives.</P>
                <P>
                    <E T="03">Privacy:</E>
                     In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">Availability of Rulemaking Documents</HD>
                <P>
                    An electronic copy of this document may be downloaded through the internet at 
                    <E T="03">www.regulations.gov.</E>
                     Recently published rulemaking documents can also be accessed through the FAA's web page at 
                    <E T="03">www.faa.gov/air_traffic/publications/airspace_amendments/.</E>
                </P>
                <P>
                    You may review the public docket containing the proposal, any comments received and any final disposition in person in the Dockets Operations office (see 
                    <E T="02">ADDRESSES</E>
                     section for address, phone number, and hours of operations). An informal docket may also be examined during normal business hours at the office of the Eastern Service Center, Federal Aviation Administration, Room 210, 1701 Columbia Avenue, College Park, GA 30337.
                </P>
                <HD SOURCE="HD1">Incorporation by Reference</HD>
                <P>
                    United States Area Navigation routes are published in paragraph 6011 of FAA Order JO 7400.11, Airspace Designations and Reporting Points, which is incorporated by reference in 14 CFR 71.1 on an annual basis. This document proposes to amend the current version of that order, FAA Order JO 7400.11H, dated August 11, 2023, and effective September 15, 2023. These updates would be published in the next update to FAA Order JO 7400.11. That order is publicly available as listed in the 
                    <E T="02">ADDRESSES</E>
                     section of this document.
                </P>
                <P>FAA Order JO 7400.11H lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.</P>
                <HD SOURCE="HD1">The Proposal</HD>
                <P>The FAA is proposing an amendment to 14 CFR part 71 to establish RNAV routes T-434, T-454, and T-458, and amend RNAV routes T-291, T-314, and T-634 in the eastern United States. This action supports NextGen which provides a modern RNAV route structure to improve the efficiency of the NAS. The proposed changes are described below.</P>
                <P>
                    <E T="03">T-291:</E>
                     T-291 currently extends between the Harcum, VA (HCM), Very High Frequency Omnidirectional Range/Tactical Air Navigation (VORTAC) and the Albany, NY (ALB), VORTAC. The FAA proposes to extend T-291 to the south between the Harcum VORTAC and the Tar River, NC (TYI), VORTAC. The route overlays a portion of VOR Federal airway V-189 between the Tar River VORTAC and the Franklin, PA (FKN), VORTAC. Additionally, the FAA proposes to replace the Milton, PA (MIP), VORTAC with the HYATT, PA, Waypoint (WP), and the Delancey, NY (DNY), VOR/Distance Measuring Equipment (VOR/DME) with the DANZI, NY, WP.
                </P>
                <P>
                    <E T="03">T-314:</E>
                     T-314 currently extends between the Barnes, MA (BAF), VORTAC and the Kennebunk, ME (ENE), VOR/DME. The FAA proposes to extend T-314 to the southwest between the Kingston, NY (IGN), VOR/DME and the Barnes VORTAC. The route would overlay a portion of VOR Federal airway V-93 between the Kingston VOR/DME and the SASHA, MA, Fix, and a portion of VOR Federal airway V-292 between the SASHA, Fix and the Barnes VORTAC. Additionally, the FAA proposes to remove route points from the route's part 71 description for segments that contain turns of less than one degree. The following are the route points that the FAA proposes to remove: FAIDS, MA, Fix; PUDGY, MA, Fix; LAPEL, MA, Fix; JOHNZ, NH, Fix; MANCH, NH, WP; KHRIS, NH, Fix; RAYMY, NH, Fix; and YUKES, ME, Fix.
                </P>
                <P>
                    <E T="03">T-434:</E>
                     T-434 is a proposed new route that would extend between the SCAAM, PA, Fix and the NECCK, NJ, Fix. The route would overlay a portion of VOR Federal airway V-232 between the Keating, PA (ETG), VORTAC and the Colts Neck, NJ (COL), VOR/DME.
                </P>
                <P>
                    <E T="03">T-454:</E>
                     T-454 is a proposed new route that would extend between the SCAAM, PA, Fix and the NWTON, NJ, Fix. The route would overlay a portion of VOR Federal airway V-226 between the Keating, PA (ETG), VORTAC and the Stillwater, PA (STW), VOR/DME.
                </P>
                <P>
                    <E T="03">T-458:</E>
                     T-458 is a proposed new route that would extend between the STUBN, NY, WP and the Boston, MA (BOS), VOR/DME. The route would overlay a portion of VOR Federal airway V-270 between the Elmira, NY (ULW), VOR/DME and the Boston, MA (BOS), VOR/DME.
                </P>
                <P>
                    <E T="03">T-634:</E>
                     T-634 currently extends between the Syracuse, NY (SYR), VORTAC and the VIBRU, NY, WP. The FAA proposes to extend T-634 to the southeast between the Syracuse VORTAC and the Sandy Point, RI (SEY), VOR/DME. The route would overlay a portion of VOR Federal airway V-483 between the Syracuse VORTAC and the Carmel, NY (CMK), VOR/DME; VOR Federal airway V-374 between the Carmel VOR/DME and the CREAM, NY, Fix; and VOR Federal airway V-34 between the CREAM Fix and the Sandy 
                    <PRTPAGE P="87379"/>
                    Point VOR/DME. Additionally, the FAA proposes to remove the BRUIN, NY, WP from the route's part 71 description as it is a turn of less than one degree.
                </P>
                <HD SOURCE="HD1">Regulatory Notices and Analyses</HD>
                <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore: (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <HD SOURCE="HD1">Environmental Review</HD>
                <P>This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures” prior to any FAA final regulatory action.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 71</HD>
                    <P>Airspace, Incorporation by reference, Navigation (air).</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for 14 CFR part 71 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 71.1 </SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO 7400.11H, Airspace Designations and Reporting Points, dated August 11, 2023, and effective September 15, 2023, is amended as follows:</AMDPAR>
                <EXTRACT>
                    <HD SOURCE="HD2">Paragraph 6011 United States Area Navigation Routes.</HD>
                    <STARS/>
                    <GPOTABLE COLS="3" OPTS="L0,tp0,p0,7/8,g1,t1,i1" CDEF="xls100,xls50,xls180">
                        <TTITLE> </TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1"> </CHED>
                        </BOXHD>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-291 Tar River, NC (TYI) to Albany, NY (ALB) [Amended]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Tar River, NC (TYI)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 35°58′36.21″ N, long. 077°42′13.43″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">COUPN, VA</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 36°42′50.83″ N, long. 077°00′44.04″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Harcum, VA (HCM)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 37°26′55.18″ N, long. 076°42′40.87″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">COLIN, VA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 38°05′59.23″ N, long. 076°39′50.85″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SHLBK, MD</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 38°20′16.21″ N, long. 076°26′10.51″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LOUIE, MD</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 38°36′44.33″ N, long. 076°18′04.37″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">GRACO, MD</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 38°56′29.81″ N, long. 076°11′59.22″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">BAABS, MD</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 39°22′01.36″ N, long. 076°27′31.21″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">VINNY, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 39°45′16.64″ N, long. 076°36′30.16″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Harrisburg, PA (HAR)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 40°18′08.06″ N, long. 077°04′10.41″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Selinsgrove, PA (SEG)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 40°47′27.09″ N, long. 076°53′02.55″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">HYATT, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°01′24.47″ N, long. 076°39′54.34″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">MEGSS, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°11′13.28″ N, long. 076°12′41.02″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LAAYK, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°28′32.64″ N, long. 075°28′57.31″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">DANZI, NY</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 42°10′41.86″ N, long. 074°57′24.19″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Albany, NY (ALB)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 42°44′50.21″ N, long. 073°48′11.46″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="28">*    *    *    *    *    *    *    </ENT>
                        </ROW>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-314 Kingston, NY (IGN) to Kennebunk, ME (ENE) [Amended]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Kingston, NY (IGN)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 41°39′55.63″ N, long. 073°49′20.06″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PAWLN, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°46′11.51″ N, long. 073°36′02.64″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SASHA, MA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 42°07′58.70″ N, long. 073°08′55.39″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Barnes, MA (BAF)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 42°09′43.05″ N, long. 072°42′58.32″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Gardner, MA (GDM)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 42°32′45.32″ N, long. 072°03′29.48″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Kennebunk, ME (ENE)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 43°25′32.42″ N, long. 070°36′48.69″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="28">*    *    *    *    *    *    *    </ENT>
                        </ROW>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-434 SCAAM, PA to NECCK, NJ [New]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">SCAAM, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°11′37.46″ N, long. 077°58′15.20″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">HYATT, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°01′24.47″ N, long. 076°39′54.34″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">BEERS, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 40°52′47.50″ N, long. 075°27′37.36″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Solberg, NJ (SBJ)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 40°34′58.96″ N, long. 074°44′30.45″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">TYKES, NJ</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 40°17′22.38″ N, long. 074°23′06.13″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">NECCK, NJ</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 40°18′41.79″ N, long. 074°09′35.79″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="28">*    *    *    *    *    *    *    </ENT>
                        </ROW>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-454 SCAAM, PA to NWTON, NJ [New]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">SCAAM, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°11′37.46″ N, long. 077°58′15.20″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">FAVUM, PA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°15′59.17″ N, long. 077°35′42.32″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Williamsport, PA (FQM)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 41°20′18.81″ N, long. 076°46′29.52″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Wilkes-Barre, PA (LVZ)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 41°16′22.08″ N, long. 075°41′22.08″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">NWTON, NJ</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 40°59′45.19″ N, long. 074°52′09.21″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="28">*    *    *    *    *    *    *    </ENT>
                        </ROW>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-458 STUBN, NY to Boston, MA (BOS) [New]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">STUBN, NY</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 42°05′38.58″ N, long. 077°01′28.68″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Binghamton, NY (CFB)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 42°09′26.97″ N, long. 076°08′11.30″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">DANZI, NY</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 42°10′41.86″ N, long. 074°57′24.19″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Chester, MA (CTR)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 42°17′28.75″ N, long. 072°56′57.82″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SPENO, MA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 42°16′48.55″ N, long. 072°09′14.70″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">GLYDE, MA</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 42°16′03.84″ N, long. 071°48′42.76″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Boston, MA (BOS)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 42°21′26.82″ N, long. 070°59′22.37″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87380"/>
                            <ENT I="28">*    *    *    *    *    *    *    </ENT>
                        </ROW>
                        <ROW EXPSTB="02">
                            <ENT I="22">
                                <E T="04">T-634 VIBRU, NY to Sandy Point, RI (SEY) [Amended]</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">VIBRU, NY</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 44°20′21.30″ N, long. 076°01′19.96″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Watertown, NY (ART)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 43°57′07.67″ N, long. 076°03′52.66″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Syracuse, NY (SYR)</ENT>
                            <ENT>VORTAC</ENT>
                            <ENT>(Lat. 43°09′37.87″ N, long. 076°12′16.41″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">STODA, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 43°07′00.20″ N, long. 075°51′21.23″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">RAHKS, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 42°27′59.28″ N, long. 075°14′21.68″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">DANZI, NY</ENT>
                            <ENT>WP</ENT>
                            <ENT>(Lat. 42°10′41.86″ N, long. 074°57′24.19″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">WEETS, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°51′26.98″ N, long. 074°11′51.51″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Kingston, NY (IGN)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 41°39′55.63″ N, long. 073°49′20.06″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CASSH, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°35′38.16″ N, long. 073°42′17.07″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Carmel, NY (CMK)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 41°16′48.32″ N, long. 073°34′52.78″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CREAM, NY</ENT>
                            <ENT>FIX</ENT>
                            <ENT>(Lat. 41°08′55.85″ N, long. 072°31′18.32″ W)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Sandy Point, RI (SEY)</ENT>
                            <ENT>VOR/DME</ENT>
                            <ENT>(Lat. 41°10′02.77″ N, long. 071°34′33.91″ W)</ENT>
                        </ROW>
                    </GPOTABLE>
                    <STARS/>
                </EXTRACT>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Frank Lias,</NAME>
                    <TITLE>Manager, Rules and Regulations Group.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27658 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2023-2314; Airspace Docket No. 22-ASO-23]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Amendment and Revocation of Multiple Air Traffic Service (ATS) Routes; Eastern United States</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking (NPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action proposes to amend multiple Very High Frequency Omnidirectional Range (VOR) Federal airways; and revoke one VOR Federal airway and one Colored Federal airway in the eastern United States. This action is in support of the FAA's VOR Minimum Operational Network (MON) Program. The purpose is to enhance the efficiency of the National Airspace System (NAS) by transitioning from ground-based navigation aids to a satellite-based navigation system.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before February 1, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by FAA Docket No. FAA-2023-2314 and Airspace Docket No. 22-ASO-23 using any of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Send comments to Docket Operations, M-30; U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        * 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        * 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at (202) 493-2251.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         at any time. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        FAA Order JO 7400.11H, Airspace Designations and Reporting Points, and subsequent amendments can be viewed online at 
                        <E T="03">www.faa.gov/air_traffic/publications/.</E>
                         You may also contact the Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Brian Vidis, Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it would modify the route structure as necessary to preserve the safe and efficient flow of air traffic within the NAS while lessening the dependency on ground-based navigation.</P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.</P>
                <P>The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The FAA may change this proposal in light of the comments it receives.</P>
                <P>
                    <E T="03">Privacy:</E>
                     In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">Availability of Rulemaking Documents</HD>
                <P>
                    An electronic copy of this document may be downloaded through the 
                    <PRTPAGE P="87381"/>
                    internet at 
                    <E T="03">www.regulations.gov.</E>
                     Recently published rulemaking documents can also be accessed through the FAA's web page at 
                    <E T="03">www.faa.gov/air_traffic/publications/airspace_amendments/.</E>
                </P>
                <P>
                    You may review the public docket containing the proposal, any comments received and any final disposition in person in the Dockets Operations office (see 
                    <E T="02">ADDRESSES</E>
                     section for address, phone number, and hours of operations). An informal docket may also be examined during normal business hours at the office of the Eastern Service Center, Federal Aviation Administration, Room 210, 1701 Columbia Avenue, College Park, GA, 30337.
                </P>
                <HD SOURCE="HD1">Incorporation by Reference</HD>
                <P>
                    Domestic VOR Federal Airways are published in paragraph 6010(a) and Colored Federal airways are published in paragraph 6009 of FAA Order JO 7400.11, Airspace Designations and Reporting Points, which is incorporated by reference in 14 CFR 71.1 on an annual basis. This document proposes to amend the current version of that order, FAA Order JO 7400.11H, dated August 11, 2023, and effective September 15, 2023. These updates would be published in the next update to FAA Order JO 7400.11. That order is publicly available as listed in the 
                    <E T="02">ADDRESSES</E>
                     section of this document.
                </P>
                <P>FAA Order JO 7400.11H lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>The FAA is planning to decommission the Danville, VA (DAN), VOR; the Franklin, VA (FKN), VOR/Tactical Air Navigation (VORTAC); and the Lawrenceville, VA (LVL), VORTAC in September 2024.</P>
                <P>
                    The Danville VOR, the Franklin VORTAC, and the Lawrenceville VORTAC were candidate Navigation Aids (NAVAID) identified for discontinuance by the FAA's VOR MON program and listed in the Final policy statement notice, “Provision of Navigation Services for the Next Generation Air Transportation System (NextGen) Transition to Performance-Based Navigation (PBN) (Plan for Establishing a VOR Minimum Operational Network),” published in the 
                    <E T="04">Federal Register</E>
                     of July 26, 2016 (81 FR 48694), Docket No. FAA-2011-1082.
                </P>
                <P>Additionally, the North Carolina Department of Transportation is no longer supporting the Wright Brothers, NC (RBX), VOR/Distance measuring Equipment (VOR/DME); and Manteo, NC (MQI), Nondirectional Radio Beacon (NDB), both of which are currently out of service and will not be repaired.</P>
                <P>With the planned decommissioning of the Danville, VA, the Franklin, VA, and the Lawrenceville, VA, NAVAIDs, the remaining ground-based NAVAID coverage in the area is insufficient to enable the continuity of the affected VOR Federal Airways. To overcome the proposed modifications, instrument flight rules (IFR) or visual flight rules (VFR) aircraft can use Area Navigation (RNAV) routes T-287, T-398, T-479, T-480, T-482, and T-488, which are new or amended RNAV routes proposed in other dockets, to circumnavigate the affected area. Additionally, aircraft may navigate via point-to-point navigation using the fixes that will remain in place, or request and receive air traffic control (ATC) radar vector through and around the area.</P>
                <HD SOURCE="HD1">The Proposal</HD>
                <P>The FAA is proposing an amendment to 14 CFR part 71 to amend VOR Federal airways V-66, V-155, V-157, V-258, V-266, V-454, and V-469; and to revoke VOR Federal airway V-189 and Colored Federal airway Green 13 (G-13). The proposed changes facilitate the scheduled decommissioning of the following navigation aids: Danville, VA (DAN), VOR; Franklin, VA (FKN), VORTAC; Lawrenceville, VA (LVL), VORTAC; Wright Brothers, NC (RBX), VOR/DME; and Manteo, NC (MQI), NDB. The proposed route changes are described below.</P>
                <P>
                    <E T="03">G-13:</E>
                     G-13 is a Colored Federal airway that currently extends between the Manteo, NC (MQI), NDB and the ZOLMN, NC, Fix. The Manteo NDB is a non-federal facility that is no longer serviceable. Without this navigation facility, G-13 is no longer viable, so the FAA proposes to remove the route in its entirety.
                </P>
                <P>
                    <E T="03">V-66:</E>
                     V-66 consists of two parts: between the Mission Bay, CA (MZB), VORTAC and the LaGrange, GA (LGC), VORTAC; and between the Sandhills, NC (SDZ), VORTAC, and the Franklin, VA (FKN), VORTAC. The FAA proposes to remove the route segment between the Raleigh/Durham, NC (RDU), VORTAC and the Franklin VORTAC. The first part of the route would remain unchanged as currently charted. As amended, the second part of the route would extend between the Sandhills VORTAC and the Raleigh/Durham VORTAC.
                </P>
                <P>
                    <E T="03">V-155:</E>
                     V-155 currently extends between the intersection of the Dublin, GA (DBN), VORTAC 309° True (T) and the Colliers, SC (IRQ), VORTAC 243°(T) radials, and the Brooke, VA (BRV), VORTAC. The FAA proposes to remove the route segments between the Raleigh/Durham, NC (RDU), VORTAC and the Flat Rock, VA (FAK), VORTAC. As amended, the route would extend between the intersection of the Dublin, VORTAC 309°(T) and the Colliers VORTAC 243°(T) radials and the Raleigh/Durham VORTAC; and between the Flat Rock VORTAC and the Brooke VORTAC.
                </P>
                <P>
                    <E T="03">V-157:</E>
                     V-157 consists of three parts: between the Key West, FL (EYW), VORTAC and the Waycross, GA (AYS), VORTAC; between the Florence, SC (FLO), VORTAC and the Richmond, VA (RIC), VORTAC; and between the Robbinsville, NJ (RBV), VORTAC and the Albany, NY (ALB), VORTAC. The FAA proposes to remove the route segments between the Tar River, NC (TYI), VORTAC and the Richmond VORTAC. The first and third part of the route would remain unchanged as currently charted. As amended, the second part of the route would extend between Florence VORTAC and the Tar River VORTAC.
                </P>
                <P>
                    <E T="03">V-189:</E>
                     V-189 currently extends between the Wright Brothers, NC (RBX), VOR/DME and the Hopewell, VA (HPW), VORTAC. The FAA proposes to remove the route in its entirety.
                </P>
                <P>
                    <E T="03">V-258:</E>
                     V-258 currently extends between the Charleston, WV (HVQ), VOR/DME and the Danville VOR. The FAA proposes to remove the route segments between the Roanoke, VA (ROA), VOR/DME and the Danville, VA (DAN), VOR. As amended, the route would extend between the Charleston VOR/DME and the Roanoke VOR/DME.
                </P>
                <P>
                    <E T="03">V-266:</E>
                     V-266 consists of two parts: between the Electric City, SC (ELW), VORTAC and the Spartanburg, SC (SPA), VORTAC; and between the Greensboro, NC (GSO), VORTAC and the Wright Brothers, NC (RBX), VOR/DME. The FAA proposes to remove the route segments between the South Boston, VA (SBV), VORTAC and the SUNNS, NC, Fix; and between the Elizabeth City, NC (ECG), VOR/DME, and the Wright Brothers VOR/DME. The SUNNS intersection is defined by the intersection of the Elizabeth City, VOR/DME 304°(T)/311° Magnetic (M) and the Norfolk, VA (OFK), VOR/DME 209°(T)/216°(M) radials. The first part of the route would remain unchanged as currently charted. As amended, the second part of the route would extend between the Greensboro VORTAC and the South Boston VORTAC; and between the intersection of the Elizabeth City VOR/DME 304°(T)/311°(M) and Norfolk, VA 209°(T)/216°(M) radials and the Elizabeth City VOR/DME.
                    <PRTPAGE P="87382"/>
                </P>
                <P>
                    <E T="03">V-454:</E>
                     V-454 consists of two parts: between the Brookley, AL (BFM), VORTAC and the Monroeville, AL (MVC), VORTAC; and between the intersection of the Charlotte, VA (CLT), VOR/DME 034°(T) and Liberty, NC (LIB), VORTAC 253°(T) radials and the Hopewell, VA (HPW), VORTAC. The FAA proposes to remove the route segments between the Liberty VORTAC and the Hopewell VORTAC. The first part of the route would remain unchanged as currently charted. As amended, the second part of the route would extend between the intersection of the Charlotte VOR/DME 034°(T) and Liberty VORTAC 253°(T) radials and the Liberty VORTAC.
                </P>
                <P>
                    <E T="03">V-469:</E>
                     V-469 consists of two parts: between the Danville, VA (DAN), VOR and the Johnstown, PA (JST), VOR/DME; and between the Harrisburg, PA (HAR), VORTAC and the Woodstown, NJ (OOD), VORTAC. The FAA proposes to remove the route segment between the Danville VOR and the Lynchburg, VA (LYH), VOR/DME. The second part of the route would remain unchanged as currently charted. As amended, the first part of the route would extend between the Lynchburg VOR/DME and the Johnstown VOR/DME.
                </P>
                <HD SOURCE="HD1">Regulatory Notices and Analyses</HD>
                <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore: (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <HD SOURCE="HD1">Environmental Review</HD>
                <P>This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures” prior to any FAA final regulatory action.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 71</HD>
                    <P>Airspace, Incorporation by reference, Navigation (air).</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 71 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 71.1 </SECTNO>
                    <SUBJECT> [Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO 7400.11H, Airspace Designations and Reporting Points, dated August 11, 2023, and effective September 15, 2023, is amended as follows:</AMDPAR>
                <EXTRACT>
                    <HD SOURCE="HD2">Paragraph 6009 Colored Federal Airways.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">G-13 [Removed]</HD>
                    <STARS/>
                    <HD SOURCE="HD2">Paragraph 6010(a) Domestic VOR Federal Airways.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">V-66 [Amended]</HD>
                    <P>From Mission Bay, CA; Imperial, CA; 13 miles, 24 miles, 25 MSL; Bard, AZ; 12 miles, 35 MSL; INT Bard 089° and Gila Bend, AZ, 261° radials; 46 miles, 35 MSL; Gila Bend; Tucson, AZ, 7 miles wide (3 miles south and 4 miles north of centerline); Douglas, AZ; INT Douglas 064° and Columbus, NM, 277° radials; Columbus; El Paso, TX; 6 miles wide; INT El Paso 109° and Hudspeth, TX, 287° radials; 6 miles wide; Hudspeth; Pecos, TX; Midland, TX; INT Midland 083° and Abilene, TX, 252° radials; Abilene; to Millsap, TX. From Brookwood, AL; to LaGrange, GA. From Sandhills, NC; to Raleigh-Durham, NC.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-155 [Amended]</HD>
                    <P>From INT Dublin, GA 309° and Colliers, SC, 243° radials; Colliers; Chesterfield, SC; Sandhills, NC; to Raleigh-Durham, NC. From: Flat Rock; to Brooke, VA. The airspace within R-6602A is excluded.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-157 [Amended]</HD>
                    <P>From Key West, FL; INT Key West 038° and Dolphin, FL, 244° radials; Dolphin; INT Dolphin 331° and La Belle, FL, 113° radials; La Belle; Lakeland, FL; Ocala, FL; INT Ocala 346° and Taylor, FL,170° radials; Taylor; to Waycross, GA. From Florence, SC; Fayetteville, NC; Kinston, NC; to Tar River, NC. From Robbinsville, NJ; INT Robbinsville 044° and LaGuardia, NY, 213° radials; LaGuardia; INT LaGuardia 032° and Deer Park, NY, 326° radials; INT Deer Park 326° and Kingston, NY, 191° radials; Kingston; to Albany, NY. The airspace within R-6602A, B, and C is excluded when active.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-189 [Removed]</HD>
                    <STARS/>
                    <HD SOURCE="HD1">V-258 [Amended]</HD>
                    <P>From Charleston, WV, Beckley, WV; INT Beckley 125° and Roanoke, VA, 288° radials; to Roanoke.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-266 [Amended]</HD>
                    <P>From Electric City, SC, to Spartanburg, SC. From Greensboro, NC; to South Boston, VA. From INT Elizabeth City, NC 304° and Norfolk, VA 209° radials to Elizabeth City.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-454 [Amended]</HD>
                    <P>From Brookley, AL; to Monroeville, AL. From INT Charlotte 034° and Liberty, NC, 253° radials; to Liberty, NC.</P>
                    <STARS/>
                    <HD SOURCE="HD1">V-469 [Amended]</HD>
                    <P>From Lynchburg, VA; INT Lynchburg 347° and Elkins, WV, 142° radials; Elkins; Morgantown, WV; INT Morgantown 010° and Johnstown, PA, 260°; to Johnstown. From Harrisburg, PA; Dupont, DE; to Woodstown, NJ.</P>
                    <STARS/>
                </EXTRACT>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Frank Lias,</NAME>
                    <TITLE>Manager, Rules and Regulations Group.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27664 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2023-2204; Airspace Docket No. 23-AEA-20]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Amendment of Class D and Class E Airspace; Wallops Island, VA</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking (NPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action proposes to amend Class D airspace, Class E surface airspace, and Class E airspace extending upward from 700 feet above the surface for the Wallops Flight Facility, Wallops Island, VA. This action would eliminate the Snow Hill VORTAC from this airport's airspace descriptions and update the geographic coordinates and description headers.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before February 1, 2024.</P>
                </EFFDATE>
                <ADD>
                    <PRTPAGE P="87383"/>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by FAA Docket No. FAA-2023-2204 and Airspace Docket No. 23-AEA-20 using any of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Send comments to Docket Operations, M-30; U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        * 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except for Federal holidays.
                    </P>
                    <P>
                        * 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at (202) 493-2251.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         anytime. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except for Federal holidays.
                    </P>
                    <P>
                        FAA Order JO 7400.11H Airspace Designations and Reporting Points and subsequent amendments can be viewed online at 
                        <E T="03">www.faa.gov/air_traffic/publications/.</E>
                         You may also contact the Rules and Regulations Group, Office of Policy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-8783.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>John Fornito, Operations Support Group, Eastern Service Center, Federal Aviation Administration, 1701 Columbia Avenue, College Park, GA 30337; Telephone: (404) 305-6364.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority, as it would amend Class D and Class E airspace for Wallops Island, VA. An airspace evaluation determined that this update is necessary to support IFR operations in the area.</P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. Comments are specifically invited on the proposal's overall regulatory, aeronautical, economic, environmental, and energy-related aspects. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only once if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.</P>
                <P>The FAA will file in the docket all comments it receives and a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible without incurring expense or delay. The FAA may change this proposal in light of the comments it receives.</P>
                <P>
                    <E T="03">Privacy:</E>
                     Per 5 U.S.C. 553(c), the DOT solicits comments from the public to inform its rulemaking process better. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">Availability of Rulemaking Documents</HD>
                <P>
                    An electronic copy of this document may be downloaded through the internet at 
                    <E T="03">www.regulations.gov.</E>
                     Recently published rulemaking documents can be accessed through the FAA's web page at 
                    <E T="03">www.faa.gov/air_traffic/publications/airspace_amendments/.</E>
                      
                </P>
                <P>
                    You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Operations office (see 
                    <E T="02">ADDRESSES</E>
                     section for address, phone number, and hours of operations). An informal docket may also be examined during normal business hours at the office of the Eastern Service Center, Federal Aviation Administration, Room 210, 1701 Columbia Ave., College Park, GA 30337.
                </P>
                <HD SOURCE="HD1">Incorporation by Reference</HD>
                <P>
                    Class D and Class E airspace designations are published in Paragraphs 5000, 6002, and 6005 of FAA Order JO 7400.11, Airspace Designations and Reporting Points, which is incorporated by reference in 14 CFR 71.1 annually. This document proposes to amend the current version of that order, FAA Order JO 7400.11H, Airspace Designations and Reporting Points, dated August 11, 2023, and effective September 15, 2023. These updates would be published subsequently in the next update to FAA Order JO 7400.11. FAA Order JO 7400.11H is publicly available as listed in the 
                    <E T="02">ADDRESSES</E>
                     section of this document. FAA Order JO 7400.11H lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.
                </P>
                <HD SOURCE="HD1">The Proposal</HD>
                <P>The FAA proposes an amendment to 14 CFR part 71 to amend Class D airspace and Class E surface airspace by removing Snow Hill VORTAC from the description as it is unnecessary in describing the airspace, as well as updating the airport's geographic coordinates to coincide with the FAA's database. This action would also replace Notice to Airmen with Notice to Air Missions and Airport/Facility Directory with Chart Supplement in the airspace descriptions. In addition, the Class E airspace extending upward from 700 feet above the surface would be updated by replacing the city name under the header with Wallops Island (formerly Chincoteague) and removing the city name from the next line of the description, identifying the airport. Also, the geographic coordinates of this airspace would be updated to coincide with the FAA's database.</P>
                <HD SOURCE="HD1">Regulatory Notices and Analyses</HD>
                <P>
                    The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore, (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under Department of Transportation (DOT) Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine 
                    <PRTPAGE P="87384"/>
                    matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
                </P>
                <HD SOURCE="HD1">Environmental Review</HD>
                <P>This proposal will be subject to an environmental analysis per FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures,” before any FAA final regulatory action.</P>
                <LSTSUB>
                    <HD SOURCE="HED">Lists of Subjects in 14 CFR Part 71</HD>
                    <P>Airspace, Incorporation by reference, Navigation (air).</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 71 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 71.1 </SECTNO>
                    <SUBJECT> [Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO 7400.11H, Airspace Designations and Reporting Points, dated August 11, 2023, and effective September 15, 2023, is amended as follows:</AMDPAR>
                <EXTRACT>
                    <HD SOURCE="HD2">Paragraph 5000 Class D Airspace.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">AEA VA D Wallops Island, VA [Amended]</HD>
                    <FP SOURCE="FP-2">Wallops Flight Facility, VA</FP>
                    <FP SOURCE="FP1-2">(Lat. 37°56′25″ N, long. 75°27′59″ W)</FP>
                    <P>That airspace extending upward from the surface to and including 2,500 feet MSL within a 4.4-mile radius of Wallops Flight Facility and 1.8 miles on each side of the 001° bearing of the airport, extending from the 4.4-mile radius to 4.7 miles north of the airport. This Class D airspace area is effective during the specific dates and times established in advance by a Notice to Air Missions. The effective date and time will thereafter be published continuously in the Chart Supplement.</P>
                    <STARS/>
                    <HD SOURCE="HD2">Paragraph 6002 Class E Surface Airspace.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">AEA VA E2 Wallops Island, VA [Amended]</HD>
                    <FP SOURCE="FP-2">Wallops Flight Facility, VA</FP>
                    <FP SOURCE="FP1-2">(Lat. 37°56′25″ N, long. 75°27′59″ W)</FP>
                    <P>That airspace extending upward from the surface within a 4.4-mile radius of Wallops Flight Facility and 1.8 miles on each side of the 001° bearing of the airport, extending from the 4.4-mile radius to 4.7 miles north of the airport. This Class E airspace area is effective during the specific dates and times established in advance by a Notice to Air Missions. The effective date and time will thereafter be published continuously in the Chart Supplement.</P>
                    <STARS/>
                    <HD SOURCE="HD2">Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More Above the Surface of the Earth.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">AEA VA E5 Wallops Island, VA [Amended]</HD>
                    <FP SOURCE="FP-2">Wallops Flight Facility, VA</FP>
                    <FP SOURCE="FP1-2">(Lat. 37°56′25″ N, long. 75°27′59″ W)</FP>
                    <P>That airspace extending upward from 700 feet above the surface within a 7.1-mile radius of the Wallops Flight Facility.</P>
                    <STARS/>
                </EXTRACT>
                <SIG>
                    <DATED>Issued in College Park, Georgia, on December 12, 2023.</DATED>
                    <NAME>Lisa E. Burrows,</NAME>
                    <TITLE>Manager, Airspace &amp; Procedures Team North, Eastern Service Center, Air Traffic Organization.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27593 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
    </PRORULES>
    <VOL>88</VOL>
    <NO>241</NO>
    <DATE>Monday, December 18, 2023</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NOTICES>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87385"/>
                <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <P>The Department of Agriculture has submitted the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104-13. Comments are required regarding; whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; the accuracy of the agency's estimate of burden including the validity of the methodology and assumptions used; ways to enhance the quality, utility and clarity of the information to be collected; and ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.</P>
                <P>
                    Comments regarding this information collection received by January 17, 2024 will be considered. Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function
                </P>
                <P>An agency may not conduct or sponsor a collection of information unless the collection of information displays a currently valid OMB control number and the agency informs potential persons who are to respond to the collection of information that such persons are not required to respond to the collection of information unless it displays a currently valid OMB control number.</P>
                <HD SOURCE="HD1">Farm Service Agency</HD>
                <P>
                    <E T="03">Title:</E>
                     Certified Mediation Program (7 CFR part 785).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0560-0165.
                </P>
                <P>
                    <E T="03">Summary of Collection:</E>
                     The Farm Service (FSA) is administering the Certified Mediation Program as mandated by Subtitle A and B of Title V of the Agricultural Credit Act of 1987 (Pub. L. 100-233), as amended, under the USDA Agricultural Mediation Program. USDA authorized FSA to administer the program. FSA makes grants to state-designated entitles that provide mediation to agricultural producers, their lenders and others that are directly affected by the action of certain USDA agencies. In mediation, a trained impartial mediator helps participants review and discuss their conflicts, identify options to resolve disputes and agree on solutions.
                </P>
                <P>
                    <E T="03">Need and Use of the Information:</E>
                     FSA will collect information to determine whether the participants meet the eligibility requirements to be recipients of grant funds, and secondly, to determine if the grant is being administered as provided by the Agricultural Credit Act. Lack of adequate information to make these determinations could result in the improper administration and appropriation of Federal grant funds.
                </P>
                <P>
                    <E T="03">Description of Respondents:</E>
                     State, Local or Tribal Government.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     42.
                </P>
                <P>
                    <E T="03">Frequency of Responses:</E>
                     Reporting: Annually.
                </P>
                <P>
                    <E T="03">Total Burden Hours:</E>
                     2,772.
                </P>
                <SIG>
                    <NAME>Ruth Brown,</NAME>
                    <TITLE>Departmental Information Collection Clearance Officer.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27672 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3410-05-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Farm Service Agency</SUBAGY>
                <DEPDOC>[Docket ID: FSA-2023-0017]</DEPDOC>
                <SUBJECT>Request for Information on Agricultural Foreign Investment Disclosure Act (AFIDA) FSA-153 Form Modernization and Information Collection Request</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; and request for comment.</P>
                </ACT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Farm Service Agency and Farm Production and Conservation Business Center, Department of Agriculture (USDA).</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Farm Service Agency (FSA) is requesting information on proposed revisions to the Agricultural Foreign Investment Disclosure Act Report (FSA-153 form). The FSA-153 requires updating. Specifically, the FSA-153 form needs clarification and updating to ensure that foreign owners (or long-term lessees) who are required to file the FSA-153 form have clear instructions and that USDA is collecting the most precise and meaningful data, so that the report to Congress is as accurate and insightful as possible. Foreign owners are investors who buy, sell, or hold a direct or indirect interest in U.S. agricultural land (or who hold long-term leases on agricultural land) and must report their holdings and transactions to USDA on the FSA-153 form. USDA uses the information on the submitted forms to generate the report that it submits to Congress. FSA is moving towards modernizing the collection of information process, clarifying and modernizing the FSA-153 form, and if funding becomes available, creating an electronic submission system that will allow foreign owners to report by filing electronically. In addition, this document requests public input for our plan to revise not only the information request, but ultimately, the regulation (which will likely result in further modifications at a later date to the FSA-153 form).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>We will consider comments or information that we receive by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        We invite you to send comments in response to this notice. You may submit comments, identified by Docket ID: FSA-2023-0017 in the 
                        <PRTPAGE P="87386"/>
                        Federal eRulemaking Portal: Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for FSA-2023-0017. Follow the instructions for submitting comments.
                    </P>
                    <P>
                        All comments will be posted without change and will be publicly available on 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mary Estep; telephone (202) 720-3217; or email 
                        <E T="03">mary.estep@usda.gov.</E>
                         Individuals who require alternative means for communication should contact the USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY)) or dial 711 for Telecommunications Relay Service (both voice and text telephone users can initiate this call from any telephone).
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>The Agricultural Foreign Investment Disclosure Act of 1978 (Pub. L. 95-460) requires “foreign persons” who hold, acquire, or dispose of an interest in U.S. agricultural land to report transactions and holdings to USDA through the Agricultural Foreign Investment Disclosure Act Report (FSA-153 form) within 90 days of the transaction. In this document, we are using the term “foreign owners” to refer to the people, companies, governments, and others who are required to report their transactions and holdings to USDA. “Foreign owners” is an umbrella term that also includes long-term leaseholders (typically in the wind and solar industries).</P>
                <P>In recent years, there has been great interest in the annual AFIDA report to Congress. Further, section 773 of title VII of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023 (7 U.S.C. 3501 note; Division A of the Consolidated Appropriations Act, 2023; Pub. L. 117-328) requires the Secretary to establish a streamlined process for electronic submission and retention of disclosures made under AFIDA, as well as to create an internet database that contains disaggregated data from each disclosure submitted to USDA. In order to fulfill this mandate, FSA must collect the data that best captures all of the requirements of AFIDA with minimal burden on foreign owners. Until additional funding is available, or re-prioritization of funding occurs, FSA will continue to collect information through the paper-based FSA-153 form.</P>
                <P>Given that the FSA-153 form has not been updated for years, an internal working group—composed of AFIDA headquarters specialists, information technology specialists, FSA field staff, and other USDA employees—met in the spring and summer of 2023 to discuss revisions to the form to gather more precise data to prepare for meeting the Section 773 mandate and to clarify and modernize the form. This document requests public input for our plan to revise the information collection request as part of our information collection request, which will be submitted to OMB to renew and revise their approval for OMB control number 0560-0097.</P>
                <P>AFIDA data collection has operated in much the same way for the past 40 years. FSA administers AFIDA for the Secretary. Foreign owners can work through the FSA county office to fill out the form or, for more complex cases, directly with the AFIDA headquarters staff in the FPAC Business Center's Economic and Policy Analysis Division. Forms are typically filled out manually and mailed in hard copy to headquarters staff (whether originating in the FSA county office or received directly, in the case of complex situations, from foreign owners or their representatives). The AFIDA headquarters staff check all incoming reports for accuracy and completeness and work with the foreign owner (or FSA county office) if additional information is needed. The data from each FSA-153 form is then manually hand-entered in an in-house data system designed to produce the annual report to Congress.</P>
                <HD SOURCE="HD1">Definitions</HD>
                <P>A foreign person is, generally, an individual who is not a U.S. citizen or permanent resident, or an entity that is:</P>
                <P>• a foreign government,</P>
                <P>• an entity formed under the laws of a foreign government, or</P>
                <P>• an entity formed under a U.S. law in which a foreign person has a reportable direct or indirect interest.</P>
                <P>A reportable interest is an interest held by a foreign person in agricultural land as:</P>
                <P>• a direct landowner (the title holder),</P>
                <P>• a direct leaseholder if the lease is for 10 years or more,</P>
                <P>• an indirect landowner or leaseholder.</P>
                <P>A reportable indirect interest is any interest held by a foreign person in any entity that has an interest in agricultural land as an owner or leaseholder if the lease is for 10 years or more (excluding contingent future interests). To be reportable, the interest held in the entity by the foreign person must be:</P>
                <P>(1) 10 percent or more by a foreign person or group of foreign persons acting in concert, or</P>
                <P>(2) 50 percent by a group of foreign persons not acting in concert.</P>
                <P>Form FSA-153, tracks ownership to the third ownership tier.</P>
                <P>For AFIDA purposes, agricultural land is land used for “agricultural purposes” that is:</P>
                <P>• more than 10 acres in size in the aggregate; or</P>
                <P>• 10 acres or less in the aggregate producing gross annual receipts of more than $1,000 from the sale of farm, ranch, or timber products in total.</P>
                <P>“Agricultural purposes” is defined as land that during the current year or any 1 of the preceding 5 years was used for:</P>
                <P>• farming, ranching, pasture, orchards, vineyards, timber production, and so on; or</P>
                <P>• forestry production exceeding 10 acres in size in which 10 percent is stocked by trees of any size, including land that formerly had such tree cover and will be naturally or artificially regenerated. It does not matter whether the foreign person ever intends to cut and sell the trees.</P>
                <P>These definitions apply even if the land has been planned and plotted or re-zoned for nonagricultural purposes.</P>
                <P>Agricultural land is categorized as cropland, forestland, pastureland, other agriculture, and non-agricultural land (homesteads, farm roads).</P>
                <HD SOURCE="HD1">Reporting</HD>
                <P>
                    Foreign owners (or often, their U.S. attorney representatives) meeting the requirements above report their information on the existing FSA-153 form found at: 
                    <E T="03">https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/FSA153.PDF.</E>
                     In addition, the foreign filer must file a separate FSA-153 form when:
                </P>
                <P>• the agricultural land is acquired or disposed of on different dates;</P>
                <P>• the agricultural land is in multiple counties; or</P>
                <P>• partial vs. whole ownership interests are different for the different parcels acquired at the same time and in the same county.</P>
                <P>In addition to the FSA-153 form itself, foreign owners must provide the legal description of the parcels that they acquired (or disposed of) and, if applicable, the tiers of ownership (to the third tier).</P>
                <P>In addition to acquisitions and dispositions, reporting of an amended FSA-153 is triggered when the land use changes, the tiers of ownership change, or the name of the foreign person changes.</P>
                <P>
                    The annual report to Congress is available on: 
                    <E T="03">https://www.fsa.usda.gov/programs-and-services/economic-and-policy-analysis/afida/annual-reports/index.</E>
                     The annual report contains information on the top-five countries 
                    <PRTPAGE P="87387"/>
                    holding different forms of agricultural land, the concentration of holdings geographically, and other information.
                </P>
                <HD SOURCE="HD1">Geographic Context for the Location of the Land</HD>
                <P>AFIDA information has no direct linkages to FSA's Farm Records or other FSA systems. Parcel and foreign owner numbers are assigned by AFIDA headquarters staff; these numbers have no relevance for other FSA programs. The current FSA-153 form requires that the foreign owners provide the legal description or FSA tract number. Very few foreign owners provide an FSA tract or farm number and only provide a hard copy of the legal description.</P>
                <P>Also, USDA is increasingly questioned by agencies within the federal government, and others, about purchases by certain entities and the geographic location of their holdings. We can provide the legal description—typically a “Platt type” map—that has no context allowing immediate geo-spatial interpretation. Accordingly, we are asking foreign owners to provide their legal description for each parcel and to also identify one or more of the following:</P>
                <P>• The longitude and latitude for each parcel;</P>
                <P>• The property tax ID number assigned by the county; and</P>
                <P>• The FSA tract number and the FSA farm number.</P>
                <P>We do not have the authority to require that foreign owners provide this information or that they obtain an FSA tract and farm number. However, we are requesting that they voluntarily provide at least one of these additional data points.</P>
                <HD SOURCE="HD1">Request for Information</HD>
                <P>We are requesting public input for the following questions:</P>
                <P>(1) Is the request for additional information an undue burden on foreign owners or their representatives? If so, why?</P>
                <P>(2) Are there additional options that should be added to the list above? If so, what are those options?</P>
                <HD SOURCE="HD1">Long-Term Leaseholds</HD>
                <P>Currently, there are no specific questions about leases on the form. As a result, foreign owners are writing in “lease” in box 5.f on the FSA-153 form. Long-term leases are a significant category of reports, and Congress and others have a strong interest in capturing leasing data. There are several changes proposed on the FSA-153 form to capture data on the types of leases and the value of the lease.</P>
                <HD SOURCE="HD1">Request for Information</HD>
                <P>We are requesting public input for the following questions:</P>
                <P>(1) Are long-term leasehold filings—particularly those in the wind turbine and solar panel industries—“different enough” from land ownership purchase or sale filings that a separate version of the FSA-153 form should be created? Should a different “logic path” of questions be developed for long-term leasehold filings?</P>
                <P>(2) Many foreign wind energy companies have long-term leaseholds on U.S. agricultural land farmed by U.S. producers that trigger the AFIDA reporting requirement. Currently, the entire acreage of the parcel is captured; this is because the number of wind turbines that will be established on the land (if any) is often an unknown at the time of AFIDA reporting. In addition, the existence of the leasehold generally precludes other energy company involvement on the acreage. Does this approach overstate foreign energy company activity on U.S. agricultural land? If so, how should the acreage associated with these leaseholds be captured?</P>
                <P>(3) How should solar panels or photovoltaics—which are situated above the agricultural land—be treated for AFIDA reporting given that AFIDA uses an acreage basis for reporting?</P>
                <P>(4) Some foreign owners are providing a very low estimate of the value of the lease (as the flat payment is low) on the FSA-153 form while others are providing the estimated value of the entire parcel. How should “interest in the value of the agricultural land” be defined for leases?</P>
                <HD SOURCE="HD1">Impacts on Farms and Rural Communities</HD>
                <P>AFIDA requires USDA to determine the impacts of foreign ownership, which the Economic Research Service provided in the report to Congress posted in December 2022 (containing data as of December 31, 2021). In order to assess impacts, and answer questions from Congress and the media (for example, are farmers being kicked off their land?), questions 9 through 12 on the existing FSA-153 form are being considered to be replaced by a new set of proposed questions 11 through 13.</P>
                <HD SOURCE="HD1">Request for Information</HD>
                <P>We are requesting public input for the following questions:</P>
                <P>(1) Do the revised questions capture the scenarios needed to ascertain the impacts of foreign investment in U.S. agricultural land? If not, what questions should be added, or should the proposed questions be modified?</P>
                <P>(2) Do these questions put an undue burden on the foreign owner or their representative?</P>
                <P>(3) Are there situations where responding to the questions as written may result in unclear inferences—for example, if there are foreigners who are both farming land they have purchased within a county, and renting? How common are such situations?</P>
                <P>FSA has several general questions associated with the FSA-153 form, which are listed below:</P>
                <P>(1) By regulation, reporting by foreign owners is required to the third tier of ownership. The form does not capture information on the ultimate owning country or countries. Should this information be captured?</P>
                <P>(2) Should foreign owners be required to report beyond the third tier of ownership? If so, why?</P>
                <P>(3) What ownership level should bear the reporting obligation?</P>
                <P>(4) Should the FSA Farm Records and AFIDA definitions of “tract” be aligned? If so, why?</P>
                <P>(5) Should parcels that are part of the same purchase or lease but are to be used differently—say, for agricultural vs. non-agricultural purposes—be treated differently by AFIDA? If so, how should the FSA-153 form be modified? Please provide examples and explain why.</P>
                <P>(6) The AFIDA regulation currently provides a list of exemptions to reporting. Should filing be required in situations of contingent future interests? If so, what kind and what types should be exempted, if any? Should reporting be required under any circumstances for easements? Please explain.</P>
                <P>(7) Should foreign owners be required to submit an amended FSA-153 form when land use changes within the agricultural category (say, if acres move from pastureland to cropland relative to the original reporting)?</P>
                <HD SOURCE="HD1">Information Collection Request</HD>
                <P>
                    FSA is requesting comments from all interested individuals and organizations on a revision to the currently approved information collection request associated with the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. FSA is proposing a modified FSA-153 form and an appendix A showing the tiers of ownership. The modified FSA-153 and Appendix A are available at the end of this notice; you may provide comment in 
                    <E T="03">www.regulations.gov.</E>
                     You can also provide comments on all aspects of the AFIDA information collection request and the collected information as described in this notice. We have increased the burden estimate because 
                    <PRTPAGE P="87388"/>
                    we expanded the form and we estimated the number of times changes have been submitted over several years.
                </P>
                <HD SOURCE="HD2">Description of Information Collection</HD>
                <P>
                    <E T="03">Title:</E>
                     Agricultural Foreign Investment Disclosure Act Report.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0560-0097.
                </P>
                <P>
                    <E T="03">Expiration Date of Approval:</E>
                     August 31, 2025.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision.
                </P>
                <P>For the following estimated total annual burden on respondents, the formula used to calculate the total burden hour is the estimated average time per response hours multiplied by the estimated total annual responses.</P>
                <P>
                    <E T="03">Estimate of Respondent Burden:</E>
                     Public reporting burden for the information collection is estimated to average 2 hours per response.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Individuals or households, businesses or other for profit farms.
                </P>
                <P>
                    <E T="03">Estimated Annual Number of Respondents:</E>
                     7,775.
                </P>
                <P>
                    <E T="03">Estimated Number of Reponses per Respondent:</E>
                     5.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Responses:</E>
                     38,875.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden on Respondents:</E>
                     77,750 hours.
                </P>
                <P>We are requesting comments on all aspects of this information collection to help us to:</P>
                <P>(1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the FSA, including whether the information will have practical utility;</P>
                <P>(2) Evaluate the accuracy of the FSA's estimate of burden including the validity of the methodology and assumptions used;</P>
                <P>(3) Enhance the quality, utility and clarity of the information to be collected;</P>
                <P>(4) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.</P>
                <P>All comments received in response to this notice, including names and addresses when provided, will be a matter of public record. Comments will be summarized and included in the submission for Office of Management and Budget approval.</P>
                <HD SOURCE="HD1">Request for Meeting</HD>
                <P>In addition to providing input in your written comment, if you would like to meet to discuss the proposed changes, please include that request in your comment, also. If there is interest, we will schedule a meeting.</P>
                <HD SOURCE="HD1">USDA Non-Discrimination Policy</HD>
                <P>In accordance with Federal civil rights law and USDA civil rights regulations and policies, USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family or parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.</P>
                <P>Individuals who require alternative means of communication for program information (for example, braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or the USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY)) or dial 711 for Telecommunications Relay Service (both voice and text telephone users can initiate this call from any telephone). Additionally, program information may be made available in languages other than English.</P>
                <P>
                    To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at 
                    <E T="03">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</E>
                     and at any USDA office or write a letter addressed to USDA and provide in the letter all the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail to: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250--9410; (2) fax: (202) 690-7442; or (3) email: 
                    <E T="03">program.intake@usda.gov.</E>
                </P>
                <P>USDA is an equal opportunity provider, employer, and lender.</P>
                <BILCOD>BILLING CODE 3410-E2-P</BILCOD>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87389"/>
                    <GID>EN18DE23.000</GID>
                </GPH>
                <GPH SPAN="3" DEEP="543">
                    <PRTPAGE P="87390"/>
                    <GID>EN18DE23.001</GID>
                </GPH>
                <GPH SPAN="3" DEEP="183">
                    <PRTPAGE P="87391"/>
                    <GID>EN18DE23.002</GID>
                </GPH>
                <GPH SPAN="3" DEEP="569">
                    <PRTPAGE P="87392"/>
                    <GID>EN18DE23.003</GID>
                </GPH>
                <GPH SPAN="3" DEEP="353">
                    <PRTPAGE P="87393"/>
                    <GID>EN18DE23.004</GID>
                </GPH>
                <SIG>
                    <NAME>Steven Peterson,</NAME>
                    <TITLE>Acting Administrator, Farm Service Agency.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27683 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3410-E2-C</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Region 5 and Region 6; California, Oregon, and Washington; Forest Plan Amendment for Planning and Management of Northwest Forests Within the Range of the Northern Spotted Owl</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, Agriculture (USDA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent to prepare an environmental impact statement.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Pacific Northwest and Pacific Southwest Regions of the Forest Service, USDA, are proposing to amend the 1994 Northwest Forest Plan (NWFP). The amendment would apply to those Forest Service units, or parts thereof, with land management plans amended in 1994 by the NWFP or with land management plans developed later to include provisions of the NWFP. Units in the Pacific Northwest Region (Region 6) include: Deschutes National Forest, Fremont-Winema National Forest, Gifford Pinchot National Forest, Mt. Baker-Snoqualmie National Forest, Mt. Hood National Forest, Okanogan-Wenatchee National Forest, Olympic National Forest, Rogue River-Siskiyou National Forest, Siuslaw National Forest, Umpqua National Forest, and Willamette National Forest. Units in the Pacific Southwest Region (Region 5) include: Klamath National Forest and Butte Valley National Grassland, Lassen National Forest, Mendocino National Forest, Modoc National Forest, Six Rivers National Forest, and Shasta-Trinity National Forest. This notice initiates a scoping period on a preliminary proposed action and advises the public that the Forest Service is preparing an Environmental Impact Statement (EIS) to evaluate the effects of amending the Northwest Forest Plan.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments concerning the scope of the analysis are most valuable to the Forest Service if received by January 29, 2024. The draft EIS is expected in June 2024 and will be accompanied by a 90-day comment period. The final EIS is expected to be available for review in October 2024. These dates are subject to changes in the project schedule. The dates and times of webinars that will be scheduled to share more information on the Northwest Forest Plan and potential proposed actions can be found at 
                        <E T="03">https://www.fs.usda.gov/detail/r6/landmanagement/planning/?cid=fsbdev2_026990.</E>
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Individuals and entities are encouraged to submit comments via webform at 
                        <E T="03">https://cara.fs2c.usda.gov/Public//CommentInput?Project=64745.</E>
                         Hardcopy letters must be submitted to the following address: Regional Forester, U.S. Forest Service, 1220 SW 3rd Avenue, Portland, OR 97204. For those submitting hand-delivered comments, please call 971-260-7808 to make arrangements.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Dennis Dougherty, Planning Portfolio Supervisor, via email at 
                        <E T="03">sm.fs.nwfp_faca@usda.gov</E>
                         or at 541-519-0154. Individuals who use telecommunication devices for the deaf and hard of hearing (TDD) may call the Federal Relay Service at 800-877-8339, 24 hours a day, every day of the year, including holidays.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <PRTPAGE P="87394"/>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Background:</E>
                     On April 3, 1994, the Secretaries of Agriculture and Interior approved what is commonly referred to as the NWFP, an amendment to land management plans for National Forests, and resource management plans for lands managed by the Bureau of Land Management (BLM) within the range of the northern spotted owl (
                    <E T="03">Strix occidentalis caurina</E>
                    ) (NSO) in Oregon, Washington, and Northern California (NWFP area). The NWFP provided management direction that was intended to conserve late successional and old growth forest ecosystems and associated species, including the NSO, marbled murrelet, and threatened and endangered at-risk anadromous fish, while providing a sustainable supply of timber and non-timber products to support and stabilize local and regional economies. The NWFP includes objectives to protect late successional and old growth forest habitats; an Aquatic Conservation Strategy to protect and restore aquatic habitat and watersheds; land allocations with associated management standards and guidelines; and “Survey and Manage” standards and guidelines intended to provide a reasonable assurance of the persistence of rare and little-known species thought to be associated with mature and old growth forests.
                </P>
                <P>For nearly 30 years, Federal agencies have worked together and with partners to implement the NWFP to protect the long-term health of Federal forests in Oregon, Washington, and California in the range of the NSO. In many cases, the land management plans within the NWFP area are delivering effective, landscape-scale management, achieving positive community benefits and moving toward long-term desired ecological conditions by maintaining vegetation conditions that support NSO and marbled murrelets, protecting mature and old-growth forests, and retaining and improving habitat for aquatic and riparian-associated organisms.</P>
                <P>
                    While important progress has been made, changed ecological and social conditions are challenging the effectiveness of the NWFP. In recent years, large, uncharacteristic wildfires have resulted in losses of mature and old growth forests eliminating gains achieved in the first 25 years of implementation of the NWFP, and research indicates that large wildfires, with impacts to mature and old growth forests and associated NSO habitat, will increase in frequency and extent in both the wetter (
                    <E T="03">e.g.,</E>
                     western Cascades) and drier (
                    <E T="03">e.g.,</E>
                     eastern Cascades, Klamath province) portions of forests within the NWFP area. Further, there is broad recognition, documented in numerous monitoring and research reports (see Changed Conditions below), that tribal involvement in the development of the 1994 NWFP was overlooked and that engaging tribes in addressing the challenges faced in the NWFP area is critical to success.
                </P>
                <P>There is also substantial new information relevant to the NWFP including the 2011 recovery plan for the NSO, the 2012 critical habitat designation for the NSO and the 2021 revision of that critical habitat designation, the 2021 Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” and the 2022 Executive Order 14072 “Strengthening the Nation's Forests, Communities, and Local Economies.”</P>
                <P>The NWFP affected Federal lands managed by the Forest Service and BLM. In 1995, the BLM updated resource management plans in western Oregon for the management of BLM-administered lands in the Coos Bay District, Eugene District, Salem District, and the Swiftwater Field Office of the Roseburg District, consistent with the NWFP, which guide management of approximately 2.5 million acres of BLM-administered lands. On August 5, 2016, the BLM revised these 1995 resource management plans to maintain strong protections for the NSO, listed fish species, and water resources while offering predictable and sustainable outcomes for local communities from tourism, recreation, and timber harvest.</P>
                <P>The Forest Service is proposing to amend NWFP direction, addressing changed conditions and new information, to improve resistance and resilience to fire where needed across the NWFP landscape, support adaptation to and mitigation of climate change in the NWFP landscape, address management needs of mature and old growth forests with related ecosystem habitat improvement, and contribute predictable supplies of timber and non-timber products to support economic sustainability in communities affected by forest management in the NWFP landscape, including addressing environmental justice concerns and ensuring tribal inclusion in developing and implementing plan direction in the NWFP. By strengthening habitat supported by mature and old growth ecosystems, an amendment is likely to enhance habitat protections for listed and unlisted wildlife to the wildlife-focused framework of the NWFP. The Forest Service is coordinating with the U. S. Fish and Wildlife Service as well as NOAA Fisheries regarding consultation pursuant to Section 7 of the Endangered Species Act (ESA). An agreement will be developed to guide the consultation process.</P>
                <P>
                    <E T="03">Changed Conditions:</E>
                     The Forest Service and its partners have assessed and monitored the overall outcomes resulting from implementing the NWFP strategy. Decades of research findings and monitoring results—including monitoring reports prepared by the Northwest Forest Plan Interagency Monitoring Program—have advanced our understanding of NWFP ecosystems and highlighted changed conditions. Reports that summarize the best available science and contribute to both our current understanding of ecosystem dynamics and identifying the preliminary needs for change include:
                </P>
                <P>• Synthesis of Science to Inform Land Management Within the Northwest Forest Plan Area (Spies et al. 2018.), and supplement, published by the Pacific Northwest Research Station.</P>
                <P>• Bioregional Assessment of Northwest Forests (BioA) (2020).</P>
                <P>• Supplemental Report to the Bioregional Assessment of Northwest Forests (2021).</P>
                <P>
                    <E T="03">New Information:</E>
                     Actions related to NSO conservation have generated additional information since establishment of the NWFP in 1994. In 2011, the U.S. Fish and Wildlife Service (USFWS) approved the “Revised Recovery Plan for the Northern Spotted Owl” (recovery plan), after the 1990 listing of the species as threatened under the Endangered Species Act (ESA). The ESA requires agencies to ensure that their actions are not likely to jeopardize the continued existence of listed species or result in the adverse modification or destruction of critical habitat. The NSO inhabits structurally complex forests from southwest British Columbia through the Cascade Mountains and coastal ranges in Washington, Oregon, and California, and as far south as Marin County, California. Managing sufficient habitat for the NSO now and into the future is important for its recovery, though this challenge is exacerbated by competition from the barred owl (
                    <E T="03">Strix varia</E>
                    ) which poses a significant and complex threat to the NSO. An important goal of the NWFP is to conserve mature and old growth forests which provide habitat for NSO.
                </P>
                <P>
                    After publication of the recovery plan, the USFWS designated critical habitat for the NSO in 2012 and revised that designation in 2021. The designated areas are all located within the geographical area occupied by the NSO and contain specific characteristics, resources, and conditions necessary to support one or more life processes of the 
                    <PRTPAGE P="87395"/>
                    species. The identified critical habitat contains features that are key to the conservation of the NSO and include lands within the NWFP reserves and matrix. Designation of critical habitat is a tool that supports the continued conservation of imperiled species by guiding cooperation within the Federal Government.
                </P>
                <P>More recently, in November 2023, the USFWS published a draft “Barred Owl Management Strategy” and draft environmental impact statement that addresses the threat of the non-native and invasive barred owls to NSO and California spotted owls. Based on a recent analysis, NSO populations in study areas throughout their range declined by 35% to more than 80% over the past two decades. California spotted owls, which the USFWS proposed for ESA listing earlier this year, face a similar risk from barred owl competition as barred owl populations continue to expand southward.</P>
                <P>New information has also been generated by the NWFP Interagency Regional Monitoring Program which evaluates the effectiveness of the NWFP in achieving its management objectives on Federal lands in the planning area. Monitoring efforts, conducted at 5-year intervals, emphasize important regional scale questions for multiple resource areas including populations and habitat of NSO. Based on the most recent monitoring findings, barred owls are a primary factor that negatively affects NSO demographic traits and population trends. Other factors such as habitat loss resulting from wildfire, logging, and insects and disease have also contributed. Concern about the impacts of climate change is also increasing. Ecologically appropriate timber management, such as thinning, can contribute to development of new habitat.</P>
                <P>As part of the monitoring program, in 2021, the Forest Service published “Strengthening the Federal-Tribal Relationship: A Report on Monitoring Consultation Under the Northwest Forest Plan.” The report identifies opportunities to make Federal-Tribal relationships more effective and meaningful. It includes recommendations to improve consultation, protect Tribal rights and access, and to improve Federal-Tribal forest management compatibility.</P>
                <P>Much more is known about the impact of climate change now than when the NWFP was approved in 1994, as described in the “Supplemental Report to the Bioregional Assessment of Northwest Forests” and in Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad.” Further, in 2012, the Forest Service updated its land management planning regulation (36 CFR 219, “2012 Planning Rule,”) and included as a priority the need to plan for climate change and adaptation.</P>
                <P>In 2022, Executive Order 14072, “Strengthening the Nation's Forests, Communities, and Local Economies” was published. This executive order set in motion a multi-agency analysis of threats to mature, or late successional, as defined in the NWFP Record of Decision, and old-growth forests on Federal lands, including from wildfire and climate change, along with efforts to identify conservation strategies that will help address these threats. These analyses, along with advancements in best available science, including Indigenous Knowledge, offer ideas and strategies for better meeting the objectives of the NWFP.</P>
                <P>
                    <E T="03">Purpose.</E>
                     The purpose of the proposed action is to amend the NWFP to establish new or modify existing plan components for 17 affected national forests to better enable the agency to meet the original intent of the NWFP to conserve mature and old-growth ecosystems and habitat for the NSO and other species, protect riparian areas and waters, and provide a sustainable supply of timber and non-timber forest products. Amending the NWFP will provide an opportunity for the Forest Service to incorporate findings from the Bioregional Assessment, the Science Synthesis and supplements, which identify changed conditions across the NWFP area since it was approved in 1994, and to incorporate new information relevant to the NWFP including monitoring reports.
                </P>
                <P>
                    <E T="03">Need to Change.</E>
                     In preparing an amendment to the NWFP, the responsible official shall base an amendment on a preliminary identification of the need to change the plan (36 CFR 219.13(a)(1)). The preliminary need to change documents the issues identified by the agency through public and Tribal engagement, the Science Synthesis, Bioregional Assessment and new information described above, as well as issues identified by its partners and consideration by the NWFP Federal Advisory Committee (NWFP FAC).
                </P>
                <P>The preliminary need to change focuses on five interrelated topic areas, including:</P>
                <P>• Improving fire resistance and resilience across the NWFP planning area,</P>
                <P>• Strengthening the capacity of NWFP ecosystems to adapt to the ongoing effects of climate change,</P>
                <P>• Improving conservation and recruitment of mature and old-growth forest conditions, ensuring adequate habitat for species dependent upon mature and old growth ecosystems and supporting regional biodiversity,</P>
                <P>• Incorporating Indigenous Knowledge into planning, project design, and implementation to achieve forest management goals and meet the agency's general trust responsibilities, and</P>
                <P>• Providing a predictable supply of timber and non-timber products, and other economic opportunities to support the long-term sustainability of communities located proximate to National Forest System lands and economically connected to forest resources.</P>
                <P>
                    <E T="03">Fire Resistance and Resilience:</E>
                     Recent wildfires, particularly in dry forests, have burned extremely large areas at high severities and at levels that differ from historic reference conditions in dry forests, where large patches of fire-killed trees were historically rare. Such fires have resulted in considerable harm to communities, including tribes, compounding existing social and economic sustainability challenges. The recent trend of increasing high-severity wildfire also threatens the ecological integrity of these forests, including mature and old growth forest conditions and the species, including the NSO, that depend on them—the precise resources that the NWFP was meant to maintain and restore. The Forest Service seeks additional plan direction that improves managers' ability to mitigate the risks of wildfire to communities, including tribes, and natural resources by supporting the functional role that fire plays in the ecological integrity of forests within the NWFP area, particularly in dry forests. In addition, while the NWFP recognizes the differences in management needs along the gradient of wet to dry forests, more clarity is needed to ensure that managers can implement the beneficial use of fire and other strategies appropriately across the varying ecosystems, including within riparian areas in the NWFP area.
                </P>
                <P>In the drier portions of the NWFP area, more than a century of fire exclusion and other management practices have resulted in overly dense and homogenous forest conditions that heightens the risk of large, high-severity fires. Such management practices have resulted in forest composition and structure that is more vulnerable to fire, because forests often have higher densities of smaller trees and shrubs and a lower proportion of fire-resilient species than were historically present.</P>
                <P>
                    In moist forests, remaining mature and old growth ecosystems are being 
                    <PRTPAGE P="87396"/>
                    lost and further fragmented by wildfire. Plan direction is sought to prioritize mature and old growth forest conditions including habitat for the NSO and other ecosystem services during wildfire suppression activities. New post-wildfire silvicultural direction would guide reforestation and restoration of burned landscapes and for other post-disaster recovery efforts. New direction would also effectively steward existing plantations to contribute to a robust and resilient ecosystem that support the region's communities.
                </P>
                <P>Indigenous fire stewardship and cultural burning regimes can contribute to the ecological health of NWFP forests. The NWFP did not adequately address the severe ecological impacts of a century of fire suppression and removal of Indigenous fire practices and cultural fire regimes on the landscape. Equitable and meaningful Tribal co-management and co-stewardship related to fire is needed, including recognition of the importance of Indigenous fire stewardship and cultural burning regimes to the ecological health of NWFP ecosystems. Developing and maintaining mature and old growth forest conditions, heterogeneous and complex forest structures, biodiversity, habitat, and cultural ecosystem services is strengthened through inclusion of Indigenous fire practitioners and practice.</P>
                <P>
                    <E T="03">Climate Change:</E>
                     Hot and dry conditions are projected to become increasingly frequent, intense, and prolonged in the NWFP area as temperatures warm and summer rains become less frequent. The Pacific Northwest is rapidly warming, and while changes in total annual precipitation are not projected to be substantial, changes in snowpack and streamflow are anticipated, contributing to the potential for uncharacteristic fire. As a result, climate change is significantly altering the ecological processes and disturbance regimes which shape NWFP area forests. Acute disturbance events in turn leave forests more susceptible to long-term shifts in tree species composition that is less fire resilient. There is also a recognition of the critical role forests within the NWFP area can play in carbon sequestration and storage as a mitigation to climate change.
                </P>
                <P>
                    Climate change is also affecting other ecological and hydrologic processes, increasing the vulnerability of NWFP forests and overall ecological integrity. With climate change, the timing and significance of rain events is increasingly atypical with respect to impacts on plants, people, and infrastructure. In the wet systems, atmospheric rivers cause floods, affecting road systems and culverts with impacts to fish, aquatic biodiversity, and access for recreation. Within dry forest systems, climate change is increasing the likelihood of drought and is contributing to wildland fires occurring at uncharacteristic scales and severities. Furthermore, climate change is shifting the distribution of forest types, plant and animal communities and fire regimes (
                    <E T="03">e.g.,</E>
                     wet versus dry forests) throughout the NWFP area.
                </P>
                <P>Climate-related vulnerabilities include increased drought-related stress, increasing insect, exotic species and pathogen damage, and loss of appropriate historical forest type cover in some areas. Drought conditions and longer fire seasons are climate impacts with wide-ranging effects, and improved fire resilience is an important adaptation strategy.</P>
                <P>Since 1994, Tribes and State and Federal agencies have produced a range of climate vulnerability assessments and adaptation plans applicable to the NWFP area. Amendment of the NWFP should reflect consideration of pre-existing and ongoing forest-level, Tribal and State climate vulnerability assessments, adaptation plans and resilience-building initiatives. Tribal communities are on the front lines of climate change, both in experiencing significant impacts of climate stressors and as leaders in climate change monitoring, planning, mitigation, and adaptation. The NWFP should reflect Tribal knowledge and a significant role for Tribes in monitoring the effects of climate change, conducting research on these effects and developing strategies to address climate change adaptations and responses across the NWFP area.</P>
                <P>
                    <E T="03">Mature and Old Growth Ecosystems:</E>
                     Protecting and enhancing biodiversity of mature and old growth ecosystems is a central tenet of the NWFP, and the 2012 Planning Rule's focus on ecosystem integrity emphasizes this priority. Mature and old growth ecosystems are critical components of biodiversity and provide carbon storage. The NWFP protects mature and old growth ecosystems primarily through a system of reserves and leave tree requirements, though mature and old growth stands outside of reserves do not have the same level of protection.
                </P>
                <P>As noted, the NWFP did not adequately address important differences in successional and disturbance dynamics in different types of forests, and so did not adequately account for threats from uncharacteristic disturbance and climate change. New plan direction would improve conservation and recruitment of mature and old growth forest conditions and associated habitat for NSO and other vulnerable species in moist forest settings. At the same time, active management is necessary to restore and conserve mature and old growth forest conditions and associated biodiversity in seasonally dry, fire prone forests. More nuanced direction would support mature and old growth ecosystems with management strategies that recognize biophysical and cultural variability in forests and the importance of future forest adaptation and resiliency.</P>
                <P>
                    <E T="03">Tribal Inclusion:</E>
                     The NWFP area encompasses tribal lands or ancestral territories associated with over 80 federally recognized American Indian Tribes, and additional tribes that are not currently recognized. The development and implementation of the NWFP in 1994 could have involved more consultation, engagement, and partnership with tribes and the inclusion of ecological and traditional ecological knowledge. It is imperative that Tribal governments, representatives, and communities across the NWFP area have the opportunity to engage in amendment of the NWFP to ensure that Tribal sovereignty and treaty rights are accurately addressed and to integrate co-stewardship and co-management frameworks for accomplishing plan objectives. In some cases, cultural resources and other forest products that are important to tribes, or are recognized as treaty rights, should be prioritized over non-native or commercial uses. For example, there may be First Food locations or resources, such as huckleberries, where Indigenous Knowledge and practices are primary/dominant and should be considered for prioritization of management separately from other public interests.
                </P>
                <P>An amendment to the NWFP would incorporate best available scientific evidence from both western and Indigenous science perspectives to meet the threats to, and drivers of fire resilience in forests and communities. Where Tribal, forest-level, or regional plans have not been developed, the Forest Service should collaborate with Tribal Natural Resources and Wildlife departments, Forests and communities to support efforts to design strategies for climate refugia and habitat connectivity for threatened and endangered and culturally relevant species, vulnerability assessments, and adaptation plans, and to build social and ecological resilience to climate change related stressors.</P>
                <P>
                    <E T="03">Communities:</E>
                     The development and implementation of the NWFP has had significant socio-economic, cultural, workforce, and financial impacts on 
                    <PRTPAGE P="87397"/>
                    communities and publics. The NWFP has largely not achieved its timber production goals, which were the NWFP's primary criteria for supporting economies and community wellbeing (
                    <E T="03">e.g.</E>
                     livelihoods and subsistence practices). Impacts include not only timber-related employment, but also community and industry infrastructure, and community connection to management and conservation practices and activities. In addition, some social, economic, and ecological challenges currently facing communities were not anticipated by the NWFP. For example, communities are facing increasing risks from natural hazards (
                    <E T="03">e.g.,</E>
                     wildfire, flooding, debris flows) related to conditions on National Forest System lands. The intent of the NWFP amendment is to be forward-looking and promote adaptability of communities, the forest workforce, and the Forest Service to future changes with a focus on timber and non-timber products and other economic opportunities.
                </P>
                <P>
                    <E T="03">Proposed Action.</E>
                     The following is a preliminary description of the agency's proposed amendment to address the interrelated concerns identified in the preliminary need to change. The agency will refine the proposed action considering comments received from the public and recommendations from the Northwest Forest Plan Area Federal Advisory Committee. To strengthen the NWFP to meet its objectives, the Forest Service seeks to amend the 1994 action to:
                </P>
                <P>• Improve fire resistance and resilience by clarifying direction for employing prescribed fire, managed fire use associated with natural ignitions, cultural burning, and active management. Direction should reflect differences in dry and moist forested ecosystems, non-forested ecosystems, and in riparian areas. Direction would ensure that forests are managed to adapt to changing fire regimes, restore fire in a functional role in the health and integrity of forest ecosystems, and contribute to traditional cultural resources. Improved fire resilience will meet the needs of the Endangered Species Act, support the Forest Service's Wildfire Crisis Strategy, and strengthen relationships between the agency and Tribal Nations and Indigenous peoples.</P>
                <P>• Strengthen the capacity of NWFP ecosystems to adapt to the ongoing effects of climate change and to mitigate impacts of climate change. Deliberate focus on climate impacts is needed to help managers address key vulnerabilities of drought-related stress, increasing impacts of disease, insects and exotic species, negative impacts to forest cover, and watershed management strategies that improve conservation of fish habitat and stream flows.</P>
                <P>• Improve sustainability of mature and old growth ecosystems by providing plan direction to maintain and expand mature and old growth forest conditions and reduce loss risk across all land use allocations. Amended plan content would differentiate and clarify varying conservation goals for moist and dry forest ecosystems. In addition, it would clarify management intent within land use allocations, including matrix and adaptive management areas.</P>
                <P>• Add plan direction incorporating Indigenous Knowledge into planning and plan implementation, including future project design, to identify and support tribal goals, achieve forest management goals and meet the agency's trust responsibilities.</P>
                <P>• Support the long-term sustainability of communities located near National Forest System lands and those that are culturally and economically connected to forest resources. Clarity is needed regarding opportunities for timber and non-timber products, including from restoration activities. The NWFP should sustain the values, benefits, and other ecosystem services that national forests provide to communities, including tribes, that directly depend on them. Above all, changes in plan direction would ensure effective wildfire risk reduction to reduce risks to communities, life, and property.</P>
                <P>Expected impacts are strong tribal inclusion, improved fire resilience, especially in mature and old growth forests, with associated improvements to habitat and biodiversity and supply of timber and non-timber products and economic opportunity from National Forest System Lands.</P>
                <P>
                    <E T="03">Preliminary Alternatives.</E>
                     This notice of intent initiates the official scoping process, which guides the development of the environmental impact statement. Written comments received in response to this notice will be analyzed to further develop the proposed action and to identify potential significant issues for developing alternatives to the proposed action. A no-action alternative, which represents no change to existing management direction, will be analyzed in addition to the proposed action and will serve as the baseline for the comparison among action alternatives. Comments we receive in response to this notice of intent may identify additional alternatives.
                </P>
                <P>
                    <E T="03">Lead and Cooperating Agencies.</E>
                     Public agencies and Tribes are invited to indicate interest in participating as a cooperating agency.
                </P>
                <P>
                    <E T="03">Responsible Official.</E>
                     The Responsible Officials for this amendment are the Regional Foresters of the Pacific Northwest Region and the Pacific Southwest Region.
                </P>
                <P>
                    <E T="03">Nature of the Decision to Be Made.</E>
                     The Responsible Officials will decide whether to approve one or more proposals to amend the NWFP to establish new or to modify existing plan components. Given the purpose and need of the amendment, the Responsible Officials will review alternatives and public comments, consider the environmental consequences, and document the finding in an environmental impact statement. The Responsible Officials will decide whether to select the proposed action, another alternative, or a combination of alternatives and base their decision on the preliminary need to change the plan.
                </P>
                <P>
                    <E T="03">Substantive Provisions.</E>
                     When proposing a Forest Plan amendment, the 2012 Planning Rule at 36 CFR 219.13(b)(2) requires the responsible official to provide notice of which substantive requirements of 36 CFR 219.8-219.11 are likely to be directly related to the amendment. Whether a Planning Rule provision is directly related to an amendment is determined by any one of the following: The purpose for the amendment, a beneficial effect of the amendment, a substantive adverse effect of the amendment, or a lessening of plan protections by the amendment (36 CFR 219.13(b)(5). Based on those criteria, the substantive provisions that are likely to be directly related to the proposed amendments are: (1) 36 CFR 219.8(a)(1), ecosystem integrity; (2) 36 CFR 219.8(b), Social and economic sustainability; (3) 36 CFR 219.9(a), ecosystem plan components; (4) 36 CRF 219.10 (a)(5), Habitat conditions, subject to the requirements of § 219.9, for wildlife, fish, and plants commonly enjoyed and used by the public; for hunting, fishing, trapping, gathering, observing, subsistence, and other activities (in collaboration with federally recognized Tribes, Alaska Native Corporations, other Federal agencies, and State and local governments); (5) 36 CFR 219.10 (a)(8), System drivers, including dominant ecological processes, disturbance regimes, and stressors, such as natural succession, wildland fire, invasive species, and climate change; and the ability of the terrestrial and aquatic ecosystems on the plan area to adapt to change (§ 219.8); (6) 36 CFR 219.10 (b)(1)(iii), Management of areas of tribal importance; and (7) 36 CFR 219.11(c), Timber harvest for purposes other than timber production.
                    <PRTPAGE P="87398"/>
                </P>
                <P>
                    <E T="03">Scoping Comments and the Objection Process.</E>
                     This notice of intent initiates the scoping process. Comments submitted in response to this notice will be considered and will guide the development of the proposed amendment and draft environmental impact statement which will be accompanied by a 90-day comment period. In this scoping period, the Agency is requesting comments on potential alternatives and impacts, and identification of any relevant information, studies, or analyses concerning impacts that may affect the quality of the environment. It is important that reviewers provide their comments at such times and in such manner that they are useful to the agency's preparation of the environmental impact statement. Therefore, comments should be provided prior to the close of the comment period and should clearly articulate the reviewer's concerns and contentions. The agency is planning several webinars to share information about the Northwest Forest Plan and potential proposed actions. See 
                    <E T="02">DATES</E>
                     section above for a link to dates, times and links will be 
                    <E T="03">https://www.fs.usda.gov/detail/r6/landmanagement/planning/?cid=fsbdev2_026990.</E>
                </P>
                <P>The proposed action is subject to the objection process identified in 36 CFR 219, subpart B (219.50-219.62). Commenting during the opportunity to comment provided by the Responsible Official as prescribed by the applicable regulations will establish eligibility to object once the final environmental impact statement and draft record of decision have been published. Only individuals or entities who submit substantive written comments during the designated comment periods will be eligible to participate in the objection process (36 CFR 219.53(a)). Substantive written comments should be within the scope of the proposed action, have a direct relationship to the proposed action, and include supporting reasons for the Responsible Official to consider. Comments submitted anonymously will be accepted and considered; however, they cannot be used to establish eligibility for the objection process. Comments received in response to this solicitation, including names (and addresses, if included) of those who comment, will be part of the public record for this proposed action.</P>
                <P>
                    This preliminary proposed action and other related documents are available for comment on the project website listed in the 
                    <E T="02">ADDRESSES</E>
                     section above, and additional information regarding this proposal can be found at 
                    <E T="03">https://www.fs.usda.gov/detail/r6/landmanagement/planning/?cid=fsbdev2_026990.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Troy Heithecker,</NAME>
                    <TITLE>Associate Deputy Chief, National Forest System.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27742 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Intent To Establish Secure Rural Schools Resource Advisory Committee and Solicitation of Nominations for Membership for Secure Rural Schools Resource Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, Agriculture (USDA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of Establishment for Secure Rural Schools Resource Advisory Committee and Solicitation of Nominations for Membership.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Secure Rural Schools (SRS) and Community Self-Determination Act of 2000 as amended, codified in Agricultural Improvement Act of 2018, and the Federal Advisory Committee Act (FACA), as amended, the United States Department of Agriculture announces its intent to renew the charter for 80 Secure Rural Schools Resource Advisory Committees (RACs) and establish six new RACs through merger/consolidation. The Secure Rural Schools Advisory Committees will advise the Secretary of Agriculture on proposed recommendations and other such matters as the Secretary determines. The Secure Rural Schools Resource Advisory Committees will be governed by the provisions of FACA. Duration of Secure Rural Schools Resource Advisory Committees are for two years unless renewed by the Secretary, USDA. This notice also solicits nominations for membership on the Secure Rural Schools Resource Advisory Committees.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Written nominations must be submitted via email or postmarked within 90 days following the publication date of this notice. A completed application packet includes the nominee's name, resume, and completed Form AD-755 (Advisory Committee or Research and Promotion Background Information, 
                        <E T="03">https://www.usda.gov/sites/default/files/documents/ad-755.pdf</E>
                        ). All completed application packets must be sent to the addresses below.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                </ADD>
                <HD SOURCE="HD1">Northern Regional Office—Region I</HD>
                <HD SOURCE="HD2">Central Montana RAC, Flathead RAC, Gallatin RAC, Idaho Panhandle RAC, Lincoln RAC, Mineral County RAC, Missoula RAC, Missouri River RAC, North Central Idaho RAC, Ravalli RAC, Sanders RAC, Southern Montana RAC, Southwest Montana RAC, Tri-County RAC</HD>
                <P>
                    Jeffery Miller, Northern Regional Coordinator, Forest Service, 26 Fort Missoula Road, Missoula, Montana 59804, (406) 329-3576, 
                    <E T="03">jeffrey.m.miller@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Rocky Mountain Regional Office—Region II</HD>
                <HD SOURCE="HD2">Black Hills RAC and Greater Rocky Mountain RAC</HD>
                <P>
                    David Boyd, Rocky Mountain Regional Coordinator, Forest Service, 1617 Cole Boulevard, Building 17, Lakewood, Colorado 80401, 
                    <E T="03">david.boyd@usda.gov,</E>
                     (970) 319-4895.
                </P>
                <HD SOURCE="HD1">Southwestern Regional Office—Region III</HD>
                <HD SOURCE="HD2">Coconino County RAC, Eastern Arizona RAC, Northern New Mexico RAC, Southern Arizona RAC, Southern New Mexico RAC, Yavapai RAC</HD>
                <P>
                    Erick Stemmerman, Southwestern Regional Coordinator, Forest Service, 333 Broadway SE, Albuquerque, New Mexico 87102, (575) 654-3278, 
                    <E T="03">erick.stemmerman@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Intermountain Regional Office—Region IV</HD>
                <HD SOURCE="HD2">Alpine RAC, Bridger-Teton RAC, Central Idaho RAC, Dixie RAC, Eastern Idaho RAC, Fishlake RAC, Lyon-Mineral RAC, Manti-La Sal RAC, Northern Utah RAC, South Central Idaho RAC, Southwest Idaho RAC, Rural Nevada RAC</HD>
                <P>
                    Hannah Lenkowski, Intermountain Regional Coordinator, Forest Service, 355 North Vernal Avenue, Vernal, UT 84078, 
                    <E T="03">hannah.lenkowski@usda.gov,</E>
                     385-517-0972.
                    <PRTPAGE P="87399"/>
                </P>
                <HD SOURCE="HD1">Pacific Southwest Regional Office—Region V</HD>
                <HD SOURCE="HD2">Butte County RAC, Del Norte County RAC, El Dorado County RAC, Fresno County RAC, Glenn and Colusa Counties RAC, Humboldt County RAC, Kern and Tulare Counties RAC, Lassen County RAC, Mendo-Lake County RAC, Modoc County RAC, Nevada and Placer Counties RAC, Plumas County RAC, Shasta County RAC, Sierra County RAC, Siskiyou County RAC, Tehama RAC, Trinity County RAC, Tuolumne and Mariposa Counties RAC</HD>
                <P>
                    Paul Wade, Pacific Southwest Regional Coordinator, Forest Service, 1323 Club Drive, Vallejo, California 94592, (707) 562-9010, 
                    <E T="03">paul.r.wade@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Pacific Northwest Regional Office—VI</HD>
                <HD SOURCE="HD2">Columbia County RAC, Colville RAC, Deschutes and Ochoco RAC, Fremont and Winema RAC, Hood and Willamette RAC, Gifford Pinchot RAC, North Mt. Baker-Snoqualmie RAC, Northeast Oregon Forests RAC, Olympic Peninsula RAC, Rogue and Umpqua RAC, Siskiyou (OR) RAC, Siuslaw RAC, Snohomish-South Mt. Baker-Snoqualmie RAC, Southeast Washington Forest RAC, Wenatchee-Okanogan RAC</HD>
                <P>
                    Yewah Lau, Pacific Northwest Regional Office, Forest Service, 295142 Highway 101 South, Quilcene, Washington 98379, (360) 981-9101, 
                    <E T="03">yewah.lau@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Southern Regional Office—Region VIII</HD>
                <HD SOURCE="HD2">Alabama RAC, Cherokee RAC, Daniel Boone RAC, Davy Crockett RAC, Florida National Forests RAC, Francis Marion-Sumter RAC, Kisatchie RAC, Ozark-Ouachita RAC, Sabine-Angelina RAC, National Forests in Mississippi RAC, Virginia RAC</HD>
                <P>
                    Sheila Holifield, Southern Regional Coordinator, Forest Service, 1720 Peachtree Road, Northwest, Atlanta, Georgia 30309, (205) 517-9033, 
                    <E T="03">sheila.holifield@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Eastern Regional Office—Region IX</HD>
                <HD SOURCE="HD2">Allegheny RAC, Chippewa National Forest RAC, Eleven Point RAC, Hiawatha RAC, Huron-Manistee RAC, North Wisconsin RAC, Ottawa RAC, Superior RAC, West Virginia RAC</HD>
                <P>
                    Tiffany Benna, Eastern Regional Coordinator, Forest Service, 71 White Mountain Drive, Campton, New Hampshire 03223, (603) 348-0078, 
                    <E T="03">tiffany.benna@usda.gov.</E>
                </P>
                <HD SOURCE="HD1">Alaska Regional Office—Region X</HD>
                <HD SOURCE="HD2">Kenai Peninsula-Anchorage Borough RAC, North Tongass RAC, Prince William Sound RAC, South Tongass RAC</HD>
                <P>
                    Carlos De La Torre, Alaska Regional Coordinator, Forest Service, 709 West 9th Street, Room 561C, Juneau, Alaska 99801-1807, 
                    <E T="03">carlos.DeLatorre@usda.gov,</E>
                     907-738-2758.
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Brianna Gallegos, National Partnership Coordinator, National Partnership Office, USDA Forest Service, Yates Building, 1400 Independence Avenue, Mailstop #1158, Washington, DC 20250, by email to 
                        <E T="03">SM.FS.SRSInbox@usda.gov,</E>
                         or call 505-218-1535. Individuals who use telecommunication devices for the deaf and hard-of-hearing (TDD) may call the Federal Relay Service at 1-800-877-8339, 24 hours per day, every day of the week, including holidays.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Secure Rural Schools and Community Self-Determination Act of 2000, as amended, 16 U.S.C. 7125, directs the Secretary of Agriculture to create Secure Rural Schools Advisory Committees to provide advice and recommendations to the Forest Service concerning projects and funding consistent with SRS Title II of the Act. The duties of SRS RACs include monitoring projects, advising the Secretary on the progress and results of monitoring efforts, and making recommendations to the Forest Service for any appropriate changes or adjustments to the projects being monitored by the SRS RACs.</P>
                <P>This charter renewal will establish six new committees as follows: Helena-Lewis and Clark RAC in Region 1 by consolidating the Central Montana and Missouri River RACs; the Southern Utah RAC in Region 4 by consolidating Dixie, Fishlake, and Manti-La Sal RACs; Nevada RAC in Region 4 by consolidating Rural Nevada and Lyon-Mineral RACs; the Mt. Baker-Snoqualmie National Forest RAC in Region 6 by consolidating Snohomish-South Mt. Baker-Snoqualmie and North Mt. Baker-Snoqualmie RACs; Umatilla Washington RAC in Region 6 by consolidating Columbia County and Southeast Washington RACs; El Yunque RAC in Region 8.</P>
                <P>
                    Meetings for the Secure Rural Schools Advisory Committees will be published on the 
                    <E T="04">Federal Register</E>
                     website at least 15 days prior to the meeting date at: 
                    <E T="03">www.federalregister.gov.</E>
                     The SRS RACs will be comprised of 15 members. Members must be approved by the Secretary of Agriculture. The SRS RACs shall include representation from the following interest areas:
                </P>
                <P>1. Five persons who represent:</P>
                <P>a. Organized Labor or Non-Timber Forest Product Harvester Groups,</P>
                <P>b. Developed Outdoor Recreation, Off Highway Vehicle Users, or Commercial Recreation Activities,</P>
                <P>c. Energy and Mineral Development, or Commercial or Recreational Fishing Interests,</P>
                <P>d. Commercial Timber Industry, or</P>
                <P>e. Federal Grazing or Other Land Use Permits, or Represent NonIndustrial Private Forest Land Owners, within the area for which the committee is organized.</P>
                <P>2. Five persons who represent:</P>
                <P>a. Nationally Recognized Environmental Organizations,</P>
                <P>b. Regionally or Locally Recognized Environmental Organizations,</P>
                <P>c. Dispersed Recreational Activities,</P>
                <P>d. Archaeological and Historical Interests, or</P>
                <P>e. Nationally or Regionally Recognized Wild Horse and Burro Interest Groups, Wildlife or Hunting Organizations, or Watershed Associations.</P>
                <P>3. Five persons who represent:</P>
                <P>a. State Elected Office (or a designee),</P>
                <P>b. County or Local Elected Office,</P>
                <P>c. American Indian Tribes within or adjacent to the area for which the committee is organized,</P>
                <P>d. Area School Officials or Teachers, or</P>
                <P>e. Affected Public at Large.</P>
                <P>Each member will serve a 4-year term.</P>
                <P>Balanced representation: In appointing committee members from the 3 categories above, the Secretary shall provide for balanced and broad representation from within each category. In addition, SRS RACs membership will be balanced in terms of the points of view represented and functions to be performed.</P>
                <P>Of these members, one will become the Chairperson who is recognized for their ability to lead a group in a fair and focused manner and who has been briefed on the mission of the RAC. A chairperson is selected by a majority of RAC members. The Committee will meet on an annual basis or as needed and determined by the Agency.</P>
                <P>
                    In the event that a vacancy arises, the Designated Federal Officer (DFO) may fill the vacancy in the manner in which the original appointments were made. In accordance with the SRS Act, members of the SRS RAC shall serve without compensation. SRS RAC members may be allowed travel and per diem expenses for attendance at committee meetings, subject to approval of the DFO responsible for administrative support to the SRS RAC.
                    <PRTPAGE P="87400"/>
                </P>
                <P>Any interested person or organization may nominate qualified individuals for membership. Interested candidates may nominate themselves. Individuals who wish to be considered for membership on the Secure Rural Schools Advisory Committee must submit a nomination with information, including a background disclosure form (Form AD-755). Nominations should be typed and include the following:</P>
                <P>(1) If nominating an individual, a brief summary, no more than two pages, explaining the nominee's qualifications to serve on the Secure Rural Schools Advisory Committee and addressing the membership composition and criteria described above.</P>
                <P>(2) A resume providing the nominee's background, experience, and educational qualifications.</P>
                <P>(3) A completed background disclosure form (Form AD-755) signed by the nominee. https://www.usda.gov/sites/default/files/documents/ad-755.pdf.</P>
                <P>(4) Letters of endorsement are optional.</P>
                <P>Equal opportunity practices in accordance with USDA policies shall be followed in all appointments to the SRS RACs. To ensure that the recommendations of the SRS RACs have taken into account the needs of the diverse groups served by USDA, membership will, to the extent practicable, include individuals with demonstrated ability to represent all racial and ethnic groups, women and men, and persons with disabilities.</P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Cikena Reid, </NAME>
                    <TITLE>USDA Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27745 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Intent To Reestablish the Black Hills National Forest Advisory Board and Solicitation of Nominations for Membership for the Black Hills National Forest Advisory Board AGENCY: Forest Service, Agriculture (USDA).</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice to reestablish the Black Hills National Forest Advisory Board and solicit nominations for membership.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Forest and Rangeland Renewable Resources Planning Act of 1974 (RPA), the National Forest Management Act of 1976 (NFMA), the Federal Lands Recreation Enhancement Act (REA), and the Federal Advisory Committee Act (FACA), the United States Department of Agriculture announces its intent through its Secretary to reestablish the Black Hills National Forest Advisory Board. The Black Hills National Forest Advisory Board will advise the Secretary of Agriculture on programmatic forest issues and project level issues that have forest-wide implications. The Black Hills National Forest Advisory Board will be governed by the provisions of FACA. Duration of the Black Hills National Forest Advisory Board is for two years unless renewed by the Secretary, USDA. This notice also solicits nominations for membership on the Black Hills National Forest Advisory Board. </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                         Nominations must be submitted via email or postmarked 30 days from the date of publishing this notice in the 
                        <E T="04">Federal Register</E>
                        . Once approved by the Secretary, the charter will be valid on the date of filing by the USDA Committee Management Officer and once the filing requirements are met.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Please submit nominations and resumes to Scott Jacobson, Committee Coordinator, 8221 Mount Rushmore Road, Rapid City, South Dakota 57702.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Toni Strauss, Designated Federal Officer (DFO), by phone at 605-673-9201 or email at 
                        <E T="03">toni.strauss@usda.gov,</E>
                         or Scott Jacobson, Committee Coordinator, by phone at 605-440-1409 or email at 
                        <E T="03">scott.j.jacobson@usda.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Pursuant to the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et.seq.), the National Forest Management Act of 1976 (16 U.S.C. 1612), the Federal Lands Recreation Enhancement Act (Pub. L. 108-447), and the Federal Advisory Committee Act (5 U.S.C. 10), notice is hereby given that the Secretary of Agriculture intends to establish the charter.</P>
                <HD SOURCE="HD1">Scope and Structure</HD>
                <P>The purpose of the Board is to provide advice and recommendations on a broad range of forest issues such as forest plan revisions or amendments, forest health including fire and mountain pine beetle epidemics, travel management, forest monitoring and evaluation, recreation fees, and site-specific projects having forest-wide implications. The Board will meet approximately nine times per year and will attend one summer field tour. </P>
                <P>The Black Hills National Forest Advisory Board consists of 16 members. The members represent the following areas of interest:</P>
                <FP SOURCE="FP-1">• Developed outdoor recreation, Off-Highway Vehicle (OHV) use, or commercial recreation</FP>
                <FP SOURCE="FP-1">• Economic development</FP>
                <FP SOURCE="FP-1">• Energy and mineral development</FP>
                <FP SOURCE="FP-1">• Forest products industry</FP>
                <FP SOURCE="FP-1">• Nationally recognized sportsmen's group such as anglers or hunters</FP>
                <FP SOURCE="FP-1">• Archaeological, cultural, and historical interests</FP>
                <FP SOURCE="FP-1">• Nationally recognized environmental organization</FP>
                <FP SOURCE="FP-1">• Regionally recognized environmental organization</FP>
                <FP SOURCE="FP-1">• Dispersed recreation</FP>
                <FP SOURCE="FP-1">• Hold federal grazing permits or other land use permits</FP>
                <FP SOURCE="FP-1">• Tribal government elected or appointed official</FP>
                <FP SOURCE="FP-1">• Hold state, county, local-elected or appointed office in South Dakota or Wyoming</FP>
                <FP SOURCE="FP-1">• State Natural Resource Agency official from South Dakota</FP>
                <FP SOURCE="FP-1">• State Natural Resource Agency official from Wyoming</FP>
                <P>Any interested person or organization may nominate qualified individuals for membership. Interested candidates may nominate themselves. Individuals who wish to be considered for membership on the Black Hills National Forest Advisory Board must submit a nomination with information, including a background disclosure form (Form AD-755). Nominations should be typed and include the following:</P>
                <P>1. If nominating an individual, a brief summary, no more than two pages, explaining the nominee's qualifications to serve on the Black Hills National Forest Advisory Board and addressing the membership composition and criteria described above.</P>
                <P>2. A resume providing the nominee's background, experience, and educational qualifications.</P>
                <P>
                    3. A completed background disclosure form (Form AD-755) signed by the nominee. 
                    <E T="03">https://www.usda.gov/sites/default/files/documents/ad-755.pdf</E>
                </P>
                <P>4. Letters of endorsement are optional.</P>
                <P>
                    USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.
                    <PRTPAGE P="87401"/>
                </P>
                <P>
                    Persons with disabilities who require alternative means of communication for program information (
                    <E T="03">e.g.,</E>
                     Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.
                </P>
                <P>Equal opportunity practices in accordance with USDA's policies will be followed in all appointments to the Board. To ensure that the recommendations of the Board have taken in account the needs of the diverse groups served by USDA, membership shall include to the extent possible, individuals with demonstrated ability to represent minorities, women and persons with disabilities. USDA is an equal opportunity provider, employer, and lender.</P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Cikena Reid, </NAME>
                    <TITLE>USDA Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27669 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Census Bureau</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Manufacturers' Shipments, Inventories, and Orders Survey</SUBJECT>
                <P>
                    The Department of Commerce will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. We invite the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. Public comments were previously requested via the 
                    <E T="04">Federal Register</E>
                     on July 18, 2023, during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     U.S. Census Bureau, Department of Commerce.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Manufacturers' Shipments, Inventories, and Orders Survey.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0607-0008.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     M-3(SD).
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Regular submission, Request for an Extension, without Change, of a Currently Approved Collection.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     5,000.
                </P>
                <P>
                    <E T="03">Average Hours per Response:</E>
                     20 minutes.
                </P>
                <P>
                    <E T="03">Burden Hours:</E>
                     20,000.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The U.S. Census Bureau is requesting an extension of the currently approved collection for the Manufacturers' Shipments, Inventories, and Orders (M3) survey. This survey collects monthly data from domestic manufacturers on Form M-3 (SD), which is mailed at the end of each month. Data requested are shipments, new orders, unfilled orders, and inventories by stage of fabrication. It is currently the only survey that provides broad-based monthly statistical data on the economic conditions in the domestic manufacturing sector. The survey is designed to measure current industrial activity and to provide an indication of future production commitments. The value of shipments measures the value of goods delivered during the month by domestic manufacturers. Estimates of new orders serve as an indicator of future production commitments and represent the current sales value of new orders received during the month, net of cancellations. Substantial accumulation or depletion of backlogs of unfilled orders measures excess (or deficient) demand for manufactured products. The level of inventories, especially in relation to shipments, is frequently used to monitor the business cycle.
                </P>
                <P>The M3 survey has been conducted monthly by the U.S. Census Bureau since 1957. The Advance Report on Durable Goods, Manufacturers' Shipments, Inventories and Orders is an advance snapshot of the current value of manufacturing in the U.S. It is available about 18 working days after each month. The M3 survey also produces the Full Report on Manufacturers' Shipments, Inventories and Orders. This report details information on the durable goods industries and includes the non-durable goods industries. In addition, the Full Report captures late receipts, and is available about 23 working days after each month.</P>
                <P>In October 2021, we accelerated total manufacturing and the nondurable manufacturing aggregate estimates to the same time as the Advance Report on Durable Goods Manufacturers' Shipments, Inventories and Orders by creating an advance high-level report of total manufacturing. This exception to the normal procedure was initially approved by the Office of Management and Budget (OMB) in September 2021 and has been subsequently extended annually through means of a separately submitted memo. This exception has permitted the public release of preliminary monthly data on shipments and inventories of total manufacturing under the provisions of the OMB's Statistical Policy Directive No. 3 on the Compilation, Release and Evaluation of Principal Federal Economic Indicators. The Census Bureau requests that provisions for the early release of total manufacturing shipments and inventories be included in this clearance, thereby eliminating the need for a separate memo requesting annual re-approval from OMB for the early release. Accelerating the nondurable release provides data users with early access to total manufacturing estimates ahead of the Full Report, giving them an early snapshot of the direction of this critical indicator.</P>
                <P>Additionally, in September 2024, we plan to include additional nondurable goods industry level data, to provide more detailed estimates at the advance time.</P>
                <P>
                    The M3 survey provides an essential component of the current economic indicators needed for assessing the evolving status of the economy and formulating economic policy. The Office of Information and Regulatory Affairs (OIRA), Office of Management and Budget (OMB) has designated this survey as a principal federal economic indicator. The shipments and inventories data are essential inputs to the gross domestic product (GDP). The orders data are direct inputs to The Conference Board Leading Economic Index (LEI), which is a composite index of ten key elements designed to monitor the business cycle (
                    <E T="03">https://www.conference-board.org/data/bcicountry.cfm?cid=1</E>
                    ). The GDP and the LEI would be incomplete without these data. Businesses and consumers generally place orders for durable goods when they are confident the economy is improving. A durable goods report showing an increase in orders is a sign that the economy is trending upwards. Durable goods orders tell investors what to expect from the manufacturing sector, a major component of the economy. The M3 survey also provides valuable and timely domestic manufacturing data for economic planning and analysis to business firms, trade associations, research and consulting agencies, and academia.
                </P>
                <P>
                    The data are used for analyzing short- and long-term trends, both in the manufacturing sector and as related to other sectors of the economy. The data on the value of shipments, especially when adjusted for change in 
                    <PRTPAGE P="87402"/>
                    inventories, measure current levels of production. New orders figures serve as an indicator of future production commitments. Changes in the level of unfilled orders, because of excess or shortfall of new orders compared with shipments, are used to measure the excess (or deficiency) in the demand for manufactured products. Changes in the level of inventories and the relation of these to shipments are used to project future movements in manufacturing activity. These statistics are valuable for analysts of business cycle conditions, including members of the Council of Economic Advisers (CEA), the Bureau of Economic Analysis (BEA), the Federal Reserve Board (FRB), the Department of the Treasury, The Conference Board, business firms, trade associations, private research and consulting agencies, and the academic community.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Monthly.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     Title 13, United States Code, Sections 131, 182, and 193.
                </P>
                <P>
                    This information collection request may be viewed at 
                    <E T="03">www.reginfo.gov.</E>
                     Follow the instructions to view the Department of Commerce collections currently under review by OMB.
                </P>
                <P>
                    Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function and entering either the title of the collection or the OMB Control Number 0607-0008.
                </P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27722 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-07-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Census Bureau</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Survey of Housing Starts, Sales, and Completions</SUBJECT>
                <P>
                    The Department of Commerce will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. We invite the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. Public comments were previously requested via the 
                    <E T="04">Federal Register</E>
                     on August 3, 2023, during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     U.S. Census Bureau, Department of Commerce.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Survey of Housing Starts, Sales, and Completions.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0607-0110
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     SOC-QI/SF.1 and SOC-QI/MF.1.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Regular submission, request for an extension, without change, of a currently approved collection.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     We collect data for approximately 21,363 new buildings a year. A builder or owner may be contacted several times based on how long the construction project takes. We estimate the average number of times we need to contact the builder or owner is between 7 and 8 times. The total number of responses annually is 161,412.
                </P>
                <P>
                    <E T="03">Average Hours per Response:</E>
                     5 minutes.
                </P>
                <P>
                    <E T="03">Burden Hours:</E>
                     13,451.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The U. S. Census Bureau is requesting an extension of the currently approved collection for the Survey of Housing Starts, Sales, and Completions, otherwise known as the Survey of Construction (SOC). The SOC is co-sponsored by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).
                </P>
                <P>Government agencies and private companies use statistics from SOC to monitor and evaluate the large and dynamic housing construction industry. Data for two principal economic indicators are produced from the SOC: New Residential Construction (housing starts and housing completions) and New Residential Sales. In addition, a number of other statistical series are produced, including extensive information on the physical characteristics of new residential buildings, and indexes measuring rates of inflation in the price of new buildings. These statistics are based on a sample of residential buildings in permit-issuing places and a road canvass in a sample of land areas not covered by building permit systems.</P>
                <P>Census Bureau field representatives (FRs) mail forms to new respondents to complete. A few days later, the FRs either call or visit the respondents to enter their survey responses into a laptop computer using Computer Assisted Personal Interviewing (CAPI) software. The respondents are home builders, real estate agents, rental agents, or new homeowners of sampled residential buildings. FRs contact respondents multiple times based on the number of projects in the sample and the number of months required to complete the project.</P>
                <P>The Census Bureau uses the information collected in the SOC to publish estimates of the number of new residential housing units started, under construction, completed, and the number of new houses sold and for sale. The Census Bureau also publishes many financial and physical characteristics of new housing units. Government agencies use these statistics to evaluate economic policy, measure progress towards the national housing goal, make policy decisions, and formulate legislation. For example, the Board of Governors of the Federal Reserve System uses data from this survey to evaluate the effect of interest rates. The Bureau of Economic Analysis uses the data in developing the Gross Domestic Product (GDP). The private sector uses the information for estimating the demand for building materials and the many products used in new housing and to schedule production, distribution, and sales efforts. The financial community uses the data to estimate the demand for short-term (construction loans) and long-term (mortgages) borrowing.</P>
                <P>
                    <E T="03">Frequency:</E>
                     Monthly.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     The Census Bureau is authorized under title 13, United States Code, sections 131 and 182 to collect information, and under title 13 section 8(b) to perform survey work for other agencies, including HUD. HUD is authorized under title 12 U.S.C., sections 1701z-1 and 1701z-2g to collect or obtain information on new residential buildings.
                </P>
                <P>
                    This information collection request may be viewed at 
                    <E T="03">www.reginfo.gov.</E>
                     Follow the instructions to view the Department of Commerce collections currently under review by OMB.
                </P>
                <P>
                    Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or 
                    <PRTPAGE P="87403"/>
                    by using the search function and entering either the title of the collection or the OMB Control Number 0607-0110.
                </P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27729 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-07-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[B-49-2023]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone (FTZ) 81; Authorization of Production Activity; Millipore Corporation; (Beverage Filtration and Purification Devices); Jaffrey, New Hampshire</SUBJECT>
                <P>On August 15, 2023, Millipore Corporation submitted a notification of proposed production activity to the FTZ Board for its facility within Subzone 81D, in Jaffrey, New Hampshire.</P>
                <P>
                    The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the 
                    <E T="04">Federal Register</E>
                     inviting public comment (88 FR 56794, August 21, 2023). On December 13, 2023, the applicant was notified of the FTZ Board's decision that no further review of the activity is warranted at this time. The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board's regulations, including section 400.14.
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27743 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[B-63-2023]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone (FTZ) 17, Notification of Proposed Production Activity; Panasonic Energy Corporation of North America; (Lithium-Ion Battery Cells); De Soto, Kansas</SUBJECT>
                <P>Panasonic Energy Corporation of North America submitted a notification of proposed production activity to the FTZ Board (the Board) for its facilities in De Soto, Kansas within FTZ 17. The notification conforming to the requirements of the Board's regulations (15 CFR 400.22) was received on December 11, 2023.</P>
                <P>
                    Pursuant to 15 CFR 400.14(b), FTZ production activity would be limited to the specific foreign-status material(s)/components and specific finished product described in the submitted notification (summarized below) and subsequently authorized by the Board. The benefits that may stem from conducting production activity under FTZ procedures are explained in the background section of the Board's website—accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>The proposed finished product is finished lithium-ion battery cells (duty rate is 3.4%).</P>
                <P>The proposed foreign-status materials and components include: graphite components (natural; synthetic; natural and synthetic blend); sealants; N-methyl-2-pyrrolidone (NMP); N-methylpyrrolidone with carbon black conductive agent; lithiated nickel oxide; silicon monoxide; lithiated silicate; silicon composite material; poly(vinylidene fluoride) binder (PVDF); polyacrylamide; sodium carboxymethyl cellulose thickener; polypropylene components (film with acrylic adhesive tape; gaskets; insulator); polyimide adhesive tape; polyethylene separators; styrene butadiene rubber latex; copper foil; nickel clad copper negative tabs; and, aluminum components (rolls; foil; rupture discs; cathode tabs) (duty rate ranges from duty-free to 6.5%).The request indicates that some components are subject to an antidumping/countervailing duty (AD/CVD) order/investigation if imported from certain countries. The Board's regulations (15 CFR 400.14(e)) require that merchandise subject to AD/CVD orders, or items which would be otherwise subject to suspension of liquidation under AD/CVD procedures if they entered U.S. customs territory, be admitted to the zone in privileged foreign (PF) status (19 CFR 146.41). The request also indicates that certain materials/components are subject to duties under section 232 of the Trade Expansion Act of 1962 (section 232) or section 301 of the Trade Act of 1974 (section 301), depending on the country of origin. The applicable section 232 and section 301 decisions require subject merchandise to be admitted to FTZs in PF status.</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is January 29, 2024.
                </P>
                <P>A copy of the notification will be available for public inspection in the “Online FTZ Information System” section of the Board's website.</P>
                <P>
                    For further information, contact Juanita Chen at 
                    <E T="03">juanita.chen@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Juanita Chen,</NAME>
                    <TITLE>Acting Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27700 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-570-155]</DEPDOC>
                <SUBJECT>Certain Pea Protein From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain pea protein (pea protein) from the People's Republic of China (China) during the period of investigation, January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable December 18, 2023.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Kristen Johnson and Laura Griffth, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4793 and (202) 482-6430, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on August 7, 2023.
                    <SU>1</SU>
                    <FTREF/>
                     On September 8, 2023, Commerce postponed the preliminary determination of this investigation until December 11, 2023.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Certain Pea Protein from the People's Republic of China: Initiation of Countervailing Duty Investigation,</E>
                         88 FR 52116 (August 7, 2023) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Certain Pea Protein from the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation,</E>
                         88 FR 62055 (September 8, 2023).
                    </P>
                </FTNT>
                <PRTPAGE P="87404"/>
                <P>
                    For a complete description of the events that followed the initiation of this investigation, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>3</SU>
                    <FTREF/>
                     A list of topics discussed in the Preliminary Decision Memorandum is included in Appendix II of this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">https://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Certain Pea Protein from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is pea protein from China. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     Appendix I.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    In accordance with the preamble to Commerce's regulations,
                    <SU>4</SU>
                    <FTREF/>
                     the 
                    <E T="03">Initiation Notice</E>
                     set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope).
                    <SU>5</SU>
                    <FTREF/>
                     Commerce received timely filed comments from interested parties on the scope of the investigation as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                     Commerce intends to issue its preliminary decision regarding comments concerning the scope of the antidumping duty (AD) and countervailing duty (CVD) investigations in the preliminary determination of the companion AD investigation, the deadline for which is February 7, 2024.
                    <SU>6</SU>
                    <FTREF/>
                     We will incorporate the scope decision from the AD investigation into the scope of the final CVD determination for this investigation after considering any relevant comments submitted in case and rebuttal briefs.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Antidumping Duties; Countervailing Duties, Final Rule,</E>
                         62 FR 27296, 27323 (May 19, 1997).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         88 FR at 52117.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See Certain Pea Protein from the People's Republic of China: Postponement of the Preliminary Determination in the Less-Than-Fair-Value Investigation,</E>
                         88 FR 82831 (November 27, 2023) (
                        <E T="03">AD Postponement Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, 
                    <E T="03">i.e.,</E>
                     a financial contribution by an “authority” that confers a benefit to the recipient, and that the subsidy is specific.
                    <SU>7</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our preliminary conclusions, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <P>
                    Commerce notes that, in making the preliminary findings, it relied, in part, on facts available, and, because it finds that one or more respondents did not act to the best of their ability to respond to Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.
                    <SU>8</SU>
                    <FTREF/>
                     For further information, 
                    <E T="03">see</E>
                     “Use of Facts Otherwise Available and Adverse Inferences” in the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         sections 776(a) and (b) of the Act.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Preliminary Affirmative Determination of Critical Circumstances</HD>
                <P>
                    In accordance with section 703(e)(1) of the Act, we preliminarily find that critical circumstances exist with respect to imports of subject merchandise for Yantai Oriental Protein Tech Co., Ltd. (Yantai Oriental), Zhaoyuan Junbang Trading Co., Ltd. (Junbang), the non-responsive companies,
                    <SU>9</SU>
                    <FTREF/>
                     and all other producers and/or exporters. For a full discussion of our preliminary critical circumstances determination, 
                    <E T="03">see</E>
                     the “Critical Circumstances” section of the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The non-responsive companies are: Focusherb LLC, Golden Protein Limited, Shandong Jianyuan Bioengineering Co., and Yantai Wanpy International Trade.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Alignment</HD>
                <P>
                    As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4)(i), Commerce is aligning the final CVD determination in this investigation with the final determination in the companion AD investigation of pea protein from China based on a request made by PURIS Proteins, LLC (the petitioner).
                    <SU>10</SU>
                    <FTREF/>
                     Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled no later than April 22, 2024, unless postponed.
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Petitioner's Letter, “Petitioner's Request to Align Countervailing Duty Investigation Final Determination with Antidumping Duty Investigation Final Determination,” dated November 14, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See AD Postponement Notice.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and 
                    <E T="03">de minimis</E>
                     rates and any rates based entirely under section 776 of the Act.
                </P>
                <P>
                    In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Junbang and Yantai Oriental that are not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on the facts otherwise available. Commerce calculated the all-others rate using a simple average of the individual estimated subsidy rates calculated for the examined respondents.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         When two respondents are under examination, Commerce normally calculates (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's proprietary U.S. sale quantities for the merchandise under consideration; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. 
                        <E T="03">See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part,</E>
                         75 FR 53661, 53663 (September 1, 2010).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Rate for Non-Responsive Companies</HD>
                <P>
                    Four potential exporters and/or producers of pea protein from China did not respond to Commerce's quantity and value (Q&amp;V) questionnaire.
                    <SU>13</SU>
                    <FTREF/>
                     We find that, by not responding to the Q&amp;V questionnaire, these companies withheld requested information and significantly impeded this proceeding. Thus, in reaching our preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy rate for these four companies on facts otherwise available.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The four companies are Focusherb LLC, Golden Protein Limited, Shandong Jianyuan Bioengineering Co., and Yantai Wanpy International Trade.
                    </P>
                </FTNT>
                <P>
                    We further preliminarily determine that an adverse inference is warranted, pursuant to section 776(b) of the Act. By failing to submit responses to Commerce's Q&amp;V Questionnaire, the four companies did not cooperate to the best of their ability in this investigation. Accordingly, we preliminarily find that an adverse inference is warranted to ensure that the four companies will not 
                    <PRTPAGE P="87405"/>
                    obtain a more favorable result than had they fully complied with our request for information. For more information on the application of adverse facts available to the non-responsive companies, 
                    <E T="03">see</E>
                     “Use of Facts Otherwise Available and Adverse Inferences” in the Preliminary Determination Memorandum.
                </P>
                <HD SOURCE="HD1">Preliminary Determination</HD>
                <P>
                    Commerce preliminarily determines that the following estimated countervailable subsidy rates
                    <FTREF/>
                     exist:
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Commerce preliminary finds the following companies to be cross-owned with Yantai Oriental: Jiujiang Tiantai Food Co., Ltd.; Shandong Sanjia Investment Holding Group Co., Ltd.; Yantai Yiyuan Bioengineering Co., Ltd.; and Yantai Zhongzhen Trading Co., Ltd.
                    </P>
                    <P>
                        <SU>15</SU>
                         Commerce preliminary finds Yantai Shuangta Food Co. Ltd. to be cross-owned with Junbang.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s150,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>
                                (percent 
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            Yantai Oriental Protein Tech Co., Ltd.
                            <SU>14</SU>
                        </ENT>
                        <ENT>16.46</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Zhaoyuan Junbang Trading Co., Ltd.
                            <SU>15</SU>
                        </ENT>
                        <ENT>15.09</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Focusherb LLC</ENT>
                        <ENT>342.53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Golden Protein Limited</ENT>
                        <ENT>342.53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shandong Jianyuan Bioengineering Co</ENT>
                        <ENT>342.53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yantai Wanpy International Trade</ENT>
                        <ENT>342.53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>15.78</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    In accordance with section 703(e)(2)(A) of the Act, because we find that critical circumstances exist for Junbang, Yantai Oriental, the non-response companies, and all other producers and/or exporters, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date 90 days prior to the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above.
                </P>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Verification</HD>
                <P>As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination.</P>
                <HD SOURCE="HD1">Public Comment</HD>
                <P>All interested parties will have the opportunity to submit scope case and rebuttal briefs on the preliminary decision regarding the scope of the AD and CVD pea protein investigations. The deadlines to submit scope case and rebuttal briefs will be provided in the preliminary scope decision memorandum. For all scope case and rebuttal briefs, parties must file identical documents simultaneously on the records of the AD and CVD pea protein investigations. No new factual information or business proprietary information may be included in either scope case or rebuttal briefs.</P>
                <P>
                    All interested parties will also have the opportunity to submit case briefs or other written comments on non-scope issues within this CVD pea protein investigation. Interested parties will be notified of the timeline for the submission of case briefs and written comments at a later date. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.
                    <SU>16</SU>
                    <FTREF/>
                     Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.
                    <SU>17</SU>
                    <FTREF/>
                     As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.
                    <SU>18</SU>
                    <FTREF/>
                     Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(d); 
                        <E T="03">see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,</E>
                         88 FR 67069, 67077 (September 29, 2023) (
                        <E T="03">APO, Service, and Other Procedures</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)(2) and (d)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See APO, Service, and Other Procedures,</E>
                         88 FR at 67069.
                    </P>
                </FTNT>
                <P>
                    Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain (1) the party's name, address, and telephone number; (2) the number of participants and whether any participant is a foreign national; and (3) a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a date, time, and location to be determined.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.310(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">U.S. International Trade Commission (ITC) Notification</HD>
                <P>In accordance with section 703(f) of the Act, Commerce will notify the ITC of its determination. If Commerce's final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of pea protein from China are materially injuring, or threaten material injury to, the U.S. industry.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>
                    This determination is issued and published pursuant to sections 703(f) 
                    <PRTPAGE P="87406"/>
                    and 777(i) of the Act and 19 CFR 351.205(c).
                </P>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Abdelali Elouaradia,</NAME>
                    <TITLE>Deputy Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Scope of the Investigation</HD>
                    <P>The product within the scope of this investigation is high protein content (HPC) pea protein, which is a protein derived from peas (including, but not limited to, yellow field peas and green field peas) and which contains at least 65 percent protein on a dry weight basis. HPC pea protein may also be identified as, for example, pea protein concentrate, pea protein isolate, hydrolyzed pea protein, pea peptides, and fermented pea protein. Pea protein, including HPC pea protein, has the Chemical Abstracts Service (CAS) registry number 222400-29-5.</P>
                    <P>
                        The scope covers HPC pea protein in all physical forms, including all liquid (
                        <E T="03">e.g.,</E>
                         solution) and solid (
                        <E T="03">e.g.,</E>
                         powder) forms, regardless of packaging or the inclusion of additives (
                        <E T="03">e.g.,</E>
                         flavoring, suspension agents, preservatives).
                    </P>
                    <P>
                        The scope also includes HPC pea protein described above that is blended, combined, or mixed with non-subject pea protein or with other ingredients (
                        <E T="03">e.g.,</E>
                         proteins derived from other sources, fibers, carbohydrates, sweeteners, and fats) to make products such as protein powders, dry beverage blends, and protein fortified beverages. For any such blended, combined, or mixed products, only the HPC pea protein component is covered by the scope of this investigation. HPC pea protein that has been blended, combined, or mixed with other products is included within the scope, regardless of whether the blending, combining, or mixing occurs in third countries.
                    </P>
                    <P>
                        HPC pea protein that is otherwise within the scope is covered when commingled (
                        <E T="03">i.e.,</E>
                         blended, combined, or mixed) with HPC pea protein from sources not subject to this investigation. Only the subject component of the commingled product is covered by the scope.
                    </P>
                    <P>A blend, combination, or mixture is excluded from the scope if the total HPC pea protein content of the blend, combination, or mixture (regardless of the source or sources) comprises less than five percent of the blend, combination, or mixture on a dry weight basis.</P>
                    <P>All products that meet the written physical description are within the scope of the investigation unless specifically excluded. The following products, by way of example, are outside and/or specifically excluded from the scope of the investigation:</P>
                    <P>• burgers, snack bars, bakery products, sugar and gum confectionary products, milk, cheese, baby food, sauces and seasonings, and pet food, even when such products are made with HPC pea protein.</P>
                    <P>• HPC pea protein that has gone through an extrusion process to alter the HPC pea protein at the structural and functional level, resulting in a product with a fibrous structure which resembles muscle meat upon hydration. These products are commonly described as textured pea protein or texturized pea protein.</P>
                    <P>• HPC pea protein that has been further processed to create a small crunchy nugget commonly described as a pea protein crisp.</P>
                    <P>• protein derived from chickpeas.</P>
                    <P>The merchandise covered by the scope is currently classified under Harmonized Tariff Schedule of the United States (HTSUS) categories 3504.00.1000, 3504.00.5000, and 2106.10.0000. Such merchandise may also enter the U.S. market under HTSUS category 2308.00.9890. Although HTSUS categories and the CAS registry number are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Preliminary Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Scope Comments</FP>
                    <FP SOURCE="FP-2">IV. Scope of the Investigation</FP>
                    <FP SOURCE="FP-2">V. Critical Circumstances</FP>
                    <FP SOURCE="FP-2">VI. Analysis of China's Financial System</FP>
                    <FP SOURCE="FP-2">VII. Diversification of China's Economy</FP>
                    <FP SOURCE="FP-2">VIII. Use of Facts Otherwise Available and Adverse Inferences</FP>
                    <FP SOURCE="FP-2">IX. Subsidies Valuation</FP>
                    <FP SOURCE="FP-2">X. Benchmarks and Interest Rates</FP>
                    <FP SOURCE="FP-2">XI. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">XII. Calculation of the All-Others Rate</FP>
                    <FP SOURCE="FP-2">XIII. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27699 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration </SUBAGY>
                <SUBJECT>Limitation of Duty-Free Imports of Apparel Articles Assembled in Haiti Under the Caribbean Basin Economic Recovery Act (CBERA), as Amended by the Haitian Hemispheric Opportunity Through Partnership Encouragement Act (HOPE)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P> International Trade Administration, Department of Commerce.  ACTION: Notification of annual quantitative limit on imports of certain apparel from Haiti.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P> CBERA, as amended, provides duty-free treatment for certain apparel articles imported directly from Haiti. One of the preferences is known as the “value-added” provision, which requires that apparel meet a minimum threshold percentage of value added in Haiti, the United States, and/or certain beneficiary countries. The provision is subject to a quantitative limitation, which is calculated as a percentage of total apparel imports into the United States for each 12-month period. For the period from December 20, 2023 through December 19, 2024, the quantity of imports eligible for preferential treatment under the value-added provision is 313,655,640 square meters equivalent. </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The new limitations become applicable December 20, 2023. </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P> Kayla Johnson, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, (202) 482-2532. </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Authority:</E>
                     Section 213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a) (“CBERA”), as amended; and as implemented by Presidential Proc. No. 8114, 72 FR 13655 (March 22, 2007), and No. 8596, 75 FR 68153 (November 4, 2010).
                </P>
                <P>
                    <E T="03">Background:</E>
                     Section 213A(b)(1)(B) of CBERA, as amended (19 U.S.C. 2703a(b)(1)(B)), outlines the requirements for certain apparel articles imported directly from Haiti to qualify for duty-free treatment under a “value-added” provision. In order to qualify for duty-free treatment, apparel articles must be wholly assembled, or knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape, and yarns, as long as the sum of the cost or value of materials produced in Haiti or one or more beneficiary countries, as described in CBERA, as amended, or any combination thereof, plus the direct costs of processing operations performed in Haiti or one or more beneficiary countries, as described in CBERA, as amended, or any combination thereof, is not less than an applicable percentage of the declared customs value of such apparel articles. Pursuant to CBERA, as amended, the applicable percentage for the period December 20, 2023 through December 19, 2024, is 60 percent.
                </P>
                <P>
                    For every twelve-month period following the effective date of CBERA, as amended, duty-free treatment under the value-added provision is subject to a quantitative limitation. CBERA, as amended, provides that the quantitative limitation will be recalculated for each subsequent 12-month period. Section 213A(b)(1)(C) of CBERA, as amended (19 U.S.C. 2703a(b)(1)(C)), requires that, for the twelve-month period beginning on December 20, 2023, the quantitative limitation for qualifying apparel imported from Haiti under the value-added provision will be an amount equivalent to 1.25 percent of the aggregate square meter equivalent of all apparel articles imported into the United States in the most recent 12-month period for which data are available. The aggregate square meters equivalent of all apparel articles 
                    <PRTPAGE P="87407"/>
                    imported into the United States is derived from the set of Harmonized System lines listed in the Annex to the World Trade Organization Agreement on Textiles and Clothing (“ATC”), and the conversion factors for units of measure into square meter equivalents used by the United States in implementing the ATC. For purposes of this notice, the most recent 12-month period for which data are available as of December 20, 2023 is the 12-month period ending on October 31, 2023.
                </P>
                <P>Therefore, for the one-year period beginning on December 20, 2023 and extending through December 19, 2024, the quantity of imports eligible for preferential treatment under the value-added provision is 313,655,640 square meters equivalent. Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs.</P>
                <SIG>
                    <NAME>Jennifer Knight,</NAME>
                    <TITLE>Deputy Assistant Secretary for Textiles, Consumer Goods, Materials Industries, Critical Minerals and Metals.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27723 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-533-916]</DEPDOC>
                <SUBJECT>Brass Rod From India: Final Affirmative Countervailing Duty Determination</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of brass rod from India. The period of investigation is April 1, 2022, through March 31, 2023.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable December 18, 2023.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dusten Hom, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5075.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On September 29, 2023, Commerce published the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>1</SU>
                    <FTREF/>
                     For a complete description of the events that followed the 
                    <E T="03">Preliminary Determination, see</E>
                     the Issues and Decision Memorandum.
                    <SU>2</SU>
                    <FTREF/>
                     The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">http://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Brass Rod from India: Preliminary Affirmative Countervailing Duty Determination,</E>
                         88 FR 67240 (September 29, 2023) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum (PDM).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Brass Rod from India,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is brass rod from India. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     Appendix I.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    During the course of this investigation, Commerce received scope comments from interested parties. Commerce issued a Preliminary Scope Memorandum to address these comments and set aside a period of time for parties to address scope issues in scope-specific case and rebuttal briefs.
                    <SU>3</SU>
                    <FTREF/>
                     We did not receive timely comments from any interested parties on the Preliminary Scope Memorandum. Thus, we did not make any changes to the scope of the investigation from the scope published in the 
                    <E T="03">Preliminary Determination,</E>
                     as noted in Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Preliminary Scope Decision Memorandum,” dated September 25, 2023 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Analysis of Subsidy Programs and Comments Received</HD>
                <P>
                    The subsidy programs under investigation and the issue raised in the case and rebuttal briefs by parties are discussed in the Issues and Decision Memorandum. For a list of the topics discussed, and the issue raised by parties to which we responded in the Issues and Decision Memorandum, 
                    <E T="03">see</E>
                     Appendix II.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce conducted this investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found to be countervailable, Commerce preliminarily determines that there is a subsidy, 
                    <E T="03">i.e.,</E>
                     a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific.
                    <SU>4</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our final determination, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; 
                        <E T="03">see also</E>
                         section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination</HD>
                <P>
                    Based on our review and analysis of the information received during verification and comments received from parties, for this final determination, we made certain changes to the countervailable subsidy rate calculations for Rajhans Metals Private Limited (RMPL) and for all other producers/exporters. For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will determine an all-others rate equal to the weighted average countervailable subsidy rates established for those exporters and/or producers individually investigated, excluding any zero and 
                    <E T="03">de minimis</E>
                     countervailable subsidy rates and any rates based entirely under section 776 of the Act.
                </P>
                <P>
                    Commerce calculated an individual estimated countervailable subsidy rate for RMPL, the only individually examined exporter/producer in this investigation. Because the only individually calculated rate is not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely under section 776 of the Act, the estimated weighted-average rate calculated for RMPL is the rate assigned to all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.
                </P>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Commerce determines that the following estimated countervailable subsidy rates exist for the period of April 1, 2022, through March 31, 2023:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>(percent</LI>
                            <LI>
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            Rajhans Metals Private Limited 
                            <SU>5</SU>
                        </ENT>
                        <ENT>2.24</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>2.24</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="87408"/>
                <HD SOURCE="HD1">
                    Continuation of Suspension of Liquidation
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         As discussed in the 
                        <E T="03">Preliminary Determination</E>
                         PDM, Commerce found the following company to be cross-owned with RMPL: Rajhans Alloys Private Limited (RAPL). However, effective March 11, 2016, RAPL was amalgamated with RMPL, and since then, ceased to be a separate entity.
                    </P>
                </FTNT>
                <P>
                    As a result of our 
                    <E T="03">Preliminary Determination,</E>
                     and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after September 29, 2023, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    . The suspension of liquidation ordered in the 
                    <E T="03">Preliminary Determination</E>
                     will remain in effect until further notice.
                </P>
                <P>Additionally, pursuant to section 705(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), where appropriate, Commerce will instruct CBP to require a cash deposit equal to the estimated individual countervailable subsidy rate or the estimated all-others rate, as indicated in the chart above, effective on the date of publication of this final determination.</P>
                <P>If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a countervailing duty order and require a cash deposit of estimated countervailing duties for such entries of subject merchandise in the amounts indicated above, in accordance with section 706(a) of the Act. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.</P>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>Commerce intends to disclose its calculations and analysis performed to interested parties in this final determination within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice in accordance with 19 CFR 351.224(b).</P>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of brass rod from India. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of brass rod from India. In addition, we are making available to the ITC all non-privileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to the APO of their responsibility concerning the destruction of proprietary information disclosed under APO, in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Abdelali Elouaradia,</NAME>
                    <TITLE>Deputy Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Scope of the Investigation</HD>
                    <P>The products covered by this investigation are brass rod and bar (brass rod), which is defined as leaded, low-lead, and no-lead solid brass made from alloys such as, but not limited to the following alloys classified under the Unified Numbering System (UNS) as C27450, C27451, C27460, C34500, C35000, C35300, C35330, C36000, C36300, C37000, C37700, C48500, C67300, C67600, and C69300, and their international equivalents.</P>
                    <P>
                        The brass rod subject to this investigation has an actual cross-section or outside diameter greater than 0.25 inches but less than or equal to 12 inches. Brass rod cross-sections may be round, hexagonal, square, or octagonal shapes as well as special profiles (
                        <E T="03">e.g.,</E>
                         angles, shapes), including hollow profiles.
                    </P>
                    <P>
                        Standard leaded brass rod covered by the scope contains, by weight, 57.0-65.0 percent copper; 0.5-3.0 percent lead; no more than 1.3 percent iron; and at least 15 percent zinc. No-lead or low-lead brass rod covered by the scope contains by weight 59.0-76.0 percent copper; 0-1.5 percent lead; no more than 0.35 percent iron; and at least 15 percent zinc. Brass rod may also include other chemical elements (
                        <E T="03">e.g.,</E>
                         nickel, phosphorous, silicon, tin, 
                        <E T="03">etc.</E>
                        ).
                    </P>
                    <P>Brass rod may be in straight lengths or coils. Brass rod covered by this investigation may be finished or unfinished, and may or may not be heated, extruded, pickled, or cold-drawn. Brass rod may be produced in accordance with ASTM B16, ASTM B124, ASTM B981, ASTM B371, ASTM B453, ASTM B21, ASTM B138, and ASTM B927, but such conformity to an ASTM standard is not required for the merchandise to be included within the scope.</P>
                    <P>Excluded from the scope of this investigation is brass ingot, which is a casting of unwrought metal unsuitable for conversion into brass rod without remelting, that contains, by weight, at least 57.0 percent copper and 15.0 percent zinc.</P>
                    <P>The merchandise covered by this investigation is currently classifiable under subheadings 7407.21.9000, 7407.21.7000, and 7407.21.1500 of the Harmonized Tariff Schedule of the United States (HTSUS). Products subject to the scope may also enter under HTSUS subheadings 7403.21.0000, 7407.21.3000, and 7407.21.5000. The HTSUS subheadings and UNS alloy designations are provided for convenience and customs purposes. The written description of the scope of the investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Issues and Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Scope of the Investigation</FP>
                    <FP SOURCE="FP-2">IV. Subsidies Valuation Information</FP>
                    <FP SOURCE="FP-2">V. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">VI. Discussion of the Issue</FP>
                    <FP SOURCE="FP1-2">Comment: Whether Commerce Correctly Calculated Advance Authorization Program Benefits</FP>
                    <FP SOURCE="FP-2">VII. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27698 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; U.S.-Canada Albacore Treaty Reporting System</SUBJECT>
                <P>
                    The Department of Commerce will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 
                    <PRTPAGE P="87409"/>
                    1995, on or after the date of publication of this notice. We invite the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. Public comments were previously requested via the 
                    <E T="04">Federal Register</E>
                     on October 4, 2023 during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     National Oceanic &amp; Atmospheric Administration (NOAA), Commerce.
                </P>
                <P>
                    <E T="03">Title:</E>
                     U.S.-Canada Albacore Treaty Reporting System.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0648-0492.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     None.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Regular submission (extension of current information collection).
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     50.
                </P>
                <P>
                    <E T="03">Average Time per Response:</E>
                     Five minutes for the request to be placed on the eligible list per year; 3 hours for required vessel markings; 10 minutes for logbook entries; 5 minutes for each set of two hail reports for border crossings per year.
                </P>
                <P>
                    <E T="03">Total Annual Burden Hours:</E>
                     20 hours.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     This request is for an extension of a current information collection. The National Marine Fisheries Service (NMFS), West Coast Region (WCR), manages the United States (U.S.)—Canada Albacore Tuna Treaty of 1981 (Treaty). Owners of vessels that fish from U.S. West Coast ports for albacore tuna (Thunnus alalunga) are required to notify the NMFS WCR of their desire to be on the list of vessels provided to Canada each year indicating vessels eligible to fish for albacore tuna in waters under the jurisdiction of Canada. Additionally, vessel operators are required to report in advance their intention to fish in Canadian waters prior to crossing the maritime border as well as to mark their fishing vessels to facilitate enforcement of the effort limits under the Treaty. Vessel operators are also required to maintain and submit a logbook of all catch and fishing effort. The regulations implementing the reporting and vessel marking requirements under the Treaty are at 50 CFR part 300.172-300.176. If a vessel enters into Canadian waters without adhering to these regulations, they will be in violation of the treaty and Canadian enforcement may issue a fine or a warning.
                </P>
                <P>The estimated burden below includes hours to complete the logbook requirement, although it is assumed that most if not all of the respondents already complete the required logbook under the mandatory West Coast Highly Migratory Species Fishery Management Plan (HMS FMP), OMB Control No. 0648-0223. Duplicate reporting under the Treaty and HMS FMP is not required. Most years, there will be much less fishing (and thus less reporting) under the Treaty than the level on which the estimate is based.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Businesses and other for-profit institutions.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     Magnuson-Stevens Fishery Conservation and Management Act.
                </P>
                <P>
                    This information collection request may be viewed at 
                    <E T="03">www.reginfo.gov.</E>
                     Follow the instructions to view the Department of Commerce collections currently under review by OMB.
                </P>
                <P>
                    Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function and entering either the title of the collection or the OMB Control Number 0648-0492.
                </P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27764 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army</SUBAGY>
                <DEPDOC>[Docket ID: USA-2023-HQ-0017]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Army Corps of Engineers (USACE), Department of the Army, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the USACE announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal:</E>
                          
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Headquarters U.S. Army Corps of Engineers, 441 G St. NW, Washington, DC 20314-0001, ATTN: Ms. Mindy Simmons, or call 202-761-4127.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Estuary Habitat Restoration Program Inventory; OMB Control Number: 0710-ESTU.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Estuary Restoration Act of 2000 (ERA) established an Estuary Habitat Restoration Program (EHRP) that provides funding to restoration projects. Funded projects are required to complete the collection tool so project information (
                    <E T="03">e.g.,</E>
                     location, habitat type, goals, status, monitoring information) can be included in the EHRP database mandated by the ERA. The benefit of data collection is to document the restoration actions implemented, as well as the monitoring results to understand the success of each project. EHRP project information will be submitted by 
                    <PRTPAGE P="87410"/>
                    habitat restoration project managers and will be accessible to the public via internet. The collection method includes paper or electronic forms, not web-based data entry.
                </P>
                <P>This is not a new information collection, but a reinstatement of the same information collection that was owned by the National Oceanic and Atmospheric Administration and approved under OMB Control Number 0648-0479. It has been determined that responsibility for Paperwork Reduction Act (PRA) compliance should be transferred to USACE because it oversees all projects currently funded through the ERA. All anticipated future projects will be managed by USACE as well. No information will be collected until this information collection request is approved by OMB, bringing the Estuary Habitat Restoration Program Inventory back into compliance with the PRA.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Non-profit institutions; State, local, or tribal government.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     15.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     10.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     10.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     1.5 hours.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27728 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-OS-0087]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Defense University, Chairman of the Joint Chiefs of Staff (CJCS), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Angela Duncan, (571) 344-1358, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     College of International Security Affairs Out-Processing Information Form; OMB Control Number: 0704-0598.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     125.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     125.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     10 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     20.8.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The information is needed for end-of-year event efforts (student-led symposium and graduation) as well as for the organization's alumni database. The collection is to ensure accurate student data is in our records upon departure from the organization. The collection instrument verifies information such as correct title/rank, name spelling, country of origin, organization/branch of service, title of individual research paper, if the student wishes to be involved in the organization's alumni network (yes/no response), personal contact information (phone number and email address), and career information (prior to joining organization and future career path after graduating). It is also utilized for alumni outreach and engagement. The data is shared with the appropriate persons—Thesis Director for symposium, Registrar for graduation, and Director of Outreach for alumni data.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households, Foreign Nationals.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Ms. Angela Duncan.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Ms. Duncan, (571) 344-1358, at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27734 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-OS-0074]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>United States Special Operations Command (USSOCOM), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The USSOCOM has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Angela Duncan, (571) 344-1358, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Optimizing Brain Health by Mitigating Post Traumatic Stress Disorder (PTSD), OMB Control Number: 0704-0654.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Extension.
                </P>
                <P>Survey:</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     1,536.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     1,536.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     30 minutes.
                    <PRTPAGE P="87411"/>
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     768.
                </P>
                <P>Qualitative Interview:</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     24.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     24.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     1 hour.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     24.
                </P>
                <P>Total:</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     1,560.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     1,560.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     30 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     792.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The objective is to identify barriers and facilitators of accessing PTSD treatment that are most important to the Special Operations Forces (SOF) community via an online confidential survey of all relevant stakeholders in the healthcare delivery process (N=1,536). Stakeholders will include operators/enablers, healthcare providers, leadership, and policy makers from all SOF commands (Army, Air Force, Naval Special Warfare, Marine). We will then conduct qualitative interviews with SOF operators/enablers (N=24) to generate solutions to the barriers identified in the survey.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Ms. Angela Duncan.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Ms. Duncan, (571) 344-1358, at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27740 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2021-OS-0065]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Chief Information Officer (CIO), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Angela Duncan, (571) 344-1358, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     DoD Cyber Scholarship Program; OMB Control Number 0704-0486.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Reinstatement.
                </P>
                <HD SOURCE="HD1">DoD Cyber Scholarship Program Student Applications</HD>
                <P>
                    <E T="03">Number of Respondents:</E>
                     584.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     584.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     4.47 hours.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     2,626.
                </P>
                <HD SOURCE="HD1">DoD Cyber Scholarship Program Grant Proposals</HD>
                <P>
                    <E T="03">Number of Respondents:</E>
                     89.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.47
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     131.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     18.69 hours.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     2,448.
                </P>
                <HD SOURCE="HD1">DoD Cyber Scholarship Annual Reports</HD>
                <P>
                    <E T="03">Number of Respondents:</E>
                     89.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     89.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     8 hours.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     712.
                </P>
                <HD SOURCE="HD1">Total</HD>
                <P>
                    <E T="03">Number of Respondents:</E>
                     673 (584 student applications and 89 respondents to Proposals and Annual Reports).
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     804.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     5,786.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     DoD Cyber Scholarship Program (DoD CySP), authorized by section 2200 of title 10 of the United States Code, is designed to: increase the number of new entrants to DoD who possess key Cyber and Information Technology (IT) skill sets; and serve as a tool to develop and retain well-educated military and civilian personnel who support the Department's critical IT management and infrastructure protection functions. The DoD CySP recruitment track is for college students who, upon completion of the program, will work for the DoD. The retention track is for current DoD employees attending college courses through the DoD CySP while still performing their mission duties. Pending availability of funds, the DoD CySP may also award capacity-building grants to colleges and universities designated as National Centers of Academic Excellence in Cybersecurity, (referred to herein as NCAE-Cs) who respond to one of the two scholarship tracks: for such purposes as developing cyber curricula and faculty, building cyber laboratories, and outreach to minority institutions. The National Security Agency (NSA) is the Executive Administrator of the program, serving on behalf of the DoD CIO. NCAE-Cs interested in applying for grants (scholarship and/or capacity-building) must complete and submit a written technical and financial proposal, as well as forms required by federal grant policy (forms are identified in the grant solicitation and can be downloaded at 
                    <E T="03">www.grants.gov</E>
                    ). DoD requires this information collection (proposals and grant execution accomplishments) to measure the performance of the capacity building components of the DoD CySP. DoD uses the information collected in the scholarship application process to assess the quality of applicants selected for inclusion in the DoD CySP. Without this documentation detailing scholarship applicants' credentials, grant proposals, and grant execution accomplishments, the DoD has no means of judging the quality of applicants to the program or collecting information regarding program performance.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households (Student Applicants); Not-for-profit Institutions; State, Local or Tribal Government; Businesses or other for-profit (Academic Institutions).
                    <PRTPAGE P="87412"/>
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Ms. Angela Duncan.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Ms. Duncan, (571) 344-1358, 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27733 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-OS-0122]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness (OUSD (P&amp;R)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the Defense Advisory Committee on Women in the Services (DACOWITS) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to DACOWITS, 4800 Mark Center Dr., Suite 06E22, Alexandria, Virginia 22350. POC: Robert Bowling, 703-380-0116.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Defense Advisory Committee on Women in the Services (DACOWITS) Focus Groups; OMB Control Number: 0704-DACW.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     DACOWITS provides independent advice and recommendations to the Secretary of Defense on matters and policies relating to the recruitment, retention, employment, integration, well-being, and treatment of women in the Armed Forces of the United States, via a comprehensive annual report. DACOWITS collects qualitative data from focus groups and interactions with Service members during installation visits. The focus groups will be conducted with Service members (both male and female; officer and enlisted) from each of the Military Services. The research and data gathered through focus group responses will be analyzed in order to provide the Committee with vital information and input needed to create, support, and provide justification and reasoning for their recommendations.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     864.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     576.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     576.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     90 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Once.
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27727 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-OS-0106]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Intelligence and Security, (OUSD(I&amp;S)), Department of Defense, (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        On November 1, 2023, the DoD published a notice in the 
                        <E T="04">Federal Register</E>
                        . Subsequent to publication of the notice, the information in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section changed. This correction provides the updated information.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This correction is effective December 18, 2023.</P>
                </DATES>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Correction</HD>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of November 1, 2023, in FR Doc. 2023-24103, on page 74986, in the second and third columns, correct the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     caption to read:
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Mr. Timothy Phillips, 
                        <E T="03">osd.pentagon.ousd-intel-sec.mesg.contact-aaro-mbx@mail.mil</E>
                         or call 703-545-8567.
                    </P>
                    <SIG>
                        <PRTPAGE P="87413"/>
                        <DATED>Dated: December 13, 2023.</DATED>
                        <NAME>Aaron T. Siegel,</NAME>
                        <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense. </TITLE>
                    </SIG>
                </FURINF>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27720 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-HA-0120]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the Defense Health Agency (DHA) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal:</E>
                          
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Defense Health Agency, 7700 Arlington Blvd., Falls Church, VA 22042, Amanda Grifka, 703-681-1771.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Digital Front Door Focus Groups; OMB Control Number: 0720-DFDS.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The DHA is working to rapidly pilot a single “digital” front door intended to modernize the model of care delivery within the Military Health System (MHS). The purpose of these focus groups are to help the MHS better address patient needs. We will conduct 25 focus groups intended to solicit feedback about patient perceptions of the MHS, unmet patient needs, and whole-health goals (including wellness-based needs) of beneficiaries that are engaging in digital health offerings offered at the pilot sites. The focus group will solicit insight from Active Duty Beneficiaries, Dependents, Retirees, and other eligible MHS beneficiaries. Information will be used to inform DHA leadership about the patient needs with regard to the digital front door application.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     300.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     150.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     2.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     300.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     60 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27730 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-OS-0121]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness (OUSD (P&amp;R)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the Under Secretary of Defense for Personnel and Readiness announces a proposed data collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal:</E>
                          
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the Office for Diversity, Equity, and Inclusion (ODEI), Department of Defense, 4000 Defense Pentagon, Suite 5D641, Washington, DC 20301-4000, ATTN: Dr. Samantha Daniel, or call 703-409-8612.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Recruiting, Retaining, and Promoting Servicemembers who 
                    <PRTPAGE P="87414"/>
                    Identify as Hispanic or Latino/Latina; OMB Control Number: 0704-RPSS.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     Over the last several years, the Department of Defense (DoD) has been concerned about the force's ethnic composition due to underrepresentation of Hispanic servicemembers in the senior grades across the Services. The National Defense Authorization Act for Fiscal Year 2022 (NDAA FY22), Section 572, also requires a study focused on the recruitment, retention, and promotion of servicemembers identifying as Hispanic. To address these items covered by the NDAA FY22, OUSD (P&amp;R) Office for Diversity, Equity, and Inclusion (ODEI) has contracted with CNA to conduct a study to identify and address gaps in DoD's understanding of the recruitment, retention, and career progression of Hispanic servicemembers; evaluate past efforts and initiatives by DoD and the Services aimed at increasing Hispanic representation; and identify key lessons learned or best practices that should inform future initiatives. As part of this study, CNA will conduct Service-specific in-person and virtual focus groups with Active Duty Servicemembers in the Marine Corps, Army, Navy, Air Force, and Space Force. The voluntary focus groups will inquire about focus group participants' opinions and experiences based on their military careers. The purpose of the focus groups is to better understand the challenges that Servicemembers face in recruiting, retention, and promotion, especially for those who identify as Hispanic or Latino/Latina.
                </P>
                <P>Additionally, Florida International University (FIU), a subcontractor to CNA on this study, will conduct a survey among eligible members of the general Hispanic population who are registered to vote in the United States, analyze the survey data, and produce a report detailing findings and recommendations for ODEI. The intent of the survey is to examine factors that influence the U.S. Hispanic population's perceptions of military service in the U.S. Armed Services and to identify the root causes for the notable disparity in the recruitment, retention, and promotion of Servicemembers who identify as Hispanic. Participation in the survey will be voluntary.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>Recruiting, Retaining, and Promoting Servicemembers who Identify as Hispanic or Latino/Latina:</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     650.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     650.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     90 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     975.
                </P>
                <P>Recruiting, Retaining, and Promoting Servicemembers who Identify as Hispanic or Latino/Latina (general population):</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     1,500.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     1,500.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     375.
                </P>
                <P>Total:</P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     2,150.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     2,150.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     38 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     1,350.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     As required.
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27721 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army, Corps of Engineers</SUBAGY>
                <SUBJECT>Notice of Intent To Prepare an Environmental Impact Statement for the Sparrows Point Container Terminal, Patapsco River, Baltimore County, Maryland</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of the Army, U.S. Army Corps of Engineers, DoD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Army Corps of Engineers, Baltimore District (Corps), has received an application for a Department of the Army (DA) permit (Corps number NAB-2023-61200) for the Sparrows Point Container Terminal project from Tradepoint TiL Terminal, LLC, a joint venture between Tradepoint Atlantic and Terminal Investments Limited to construct a new container terminal in the Port of Baltimore. The Corps, as the lead agency under the National Environmental Policy Act (NEPA), has determined the proposed project may significantly affect the quality of the human environment and intends to prepare an environmental impact statement (EIS). The Corps action will be to issue, issue with modifications, or deny a DA permit for the proposed project. The EIS will assess the potential social, economic, and environmental impacts of the proposed project. The Corps is requesting public/agency comments regarding the scope of the EIS and issues that should be evaluated in the document.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        A public scoping meeting is scheduled for Tuesday, January 23, 2024, beginning at 5:30 p.m. to 7:30 p.m. A virtual public scoping meeting is scheduled for Thursday, January 25, 2024, beginning at 11:30 a.m. to 1 p.m. See paragraph 6 in the 
                        <E T="02">Supplementary Information</E>
                         section for additional details.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments regarding the proposed EIS scope should be submitted to: U.S. Army Corps of Engineers, Baltimore District, Attn: Ms. Maria Teresi, 2 Hopkins Plaza, Baltimore, MD 21201. Individuals who would like to provide comments electronically should submit comments by email to: 
                        <E T="03">NAB-SPCT@usace.army.mil</E>
                         The meeting address is the Sollers Point Multi-Purpose Center, 323 Sollers Point Road, Dundalk, MD 21222.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For information about this project or to be included on the mailing list for future updates and meeting announcements, contact Ms. Maria Teresi, USACE, by telephone at (410) 962-4252, email at 
                        <E T="03">NAB-SPCT@usace.army.mil</E>
                         or mail at the mailing address provided above.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Corps intends to prepare an EIS for the proposed Sparrows Point Container Terminal (SPCT) project. The non-Federal sponsor for the study is Tradepoint TiL Terminal, LLC (TTT). The proposed project requires authorization from the Corps under section 404 of the Clean Water Act (33 U.S.C. 1344) for the discharge of dredged or fill material into waters of the United States, section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403) for the construction of any structure in or over navigable waters of the United States, section 408 of the Rivers and Harbors Act of 1899 (33 U.S.C. 408) for taking possession of, use of, or injury to harbor or river improvements, and section 103 of the Marine Protection, Research and Sanctuaries Act (33 U.S.C. 1413) for ocean disposal of dredged material. All comments received during the public scoping period will be considered by the Corps during preparation of the EIS.</P>
                <P>
                    1. 
                    <E T="03">Proposed Action.</E>
                     The project subject to review in an EIS involves construction of the proposed Sparrows Point Container Terminal which would consist of a +/−3,000 foot-long wharf with cranes, a container yard, gate complex, Intermodal/Rail Yard and various support structures. To provide vessel access to the wharf, the project 
                    <PRTPAGE P="87415"/>
                    includes dredging and placement of an anticipated 3.5-4.5 million cubic yards of dredged material for the required widening and deepening of the existing access channel and turning basin. The project dredging includes widening and deepening an existing access channel/turning basin, and connection into the Brewerton Federal Navigation channel. The proposed project plan also includes the construction of an offshore Dredged Material Containment Facility (DMCF) in the Patapsco River on the west side of Coke Point to provide placement capacity for dredged material. An offshore DMCF to provide capacity for the total anticipated dredged material volume would permanently fill approximately 100 acres of tidal waters of the United States. As part of the EIS process, the Corps will consider minimization measures for dredging and a combination of alternatives for dredged material placement.
                </P>
                <P>The project includes a proposed compensatory mitigation plan. The compensatory mitigation plan is under development and will be completed as part of the development of the EIS.</P>
                <P>
                    2. 
                    <E T="03">Location.</E>
                     The project site is located within the Tradepoint Atlantic development on the Coke Point peninsula in the Patapsco River, Sparrows Point, Baltimore County, Maryland. [Latitude: 39.211222° and Longitude: −76.490349°]
                </P>
                <P>
                    3. 
                    <E T="03">Project Purpose.</E>
                     To develop Sparrows Point Container Terminal (SPCT), a new container terminal and associated facilities that would be located on the Coke Point Peninsula within the Patapsco River in Baltimore, Maryland.
                </P>
                <P>
                    4. 
                    <E T="03">Alternatives.</E>
                     The EIS will evaluate an array of alternatives for dredging, dredged material disposal, and construction. Alternatives may include, but are not limited to, no action alternative, dredged material placement options including upland disposal onsite, upland disposal offsite, beneficial and innovative reuse of dredge material, and offshore ocean placement. In order to accommodate the anticipated volume of dredged material, these options may be evaluated alone or on combination.
                </P>
                <P>Specifically, alternatives may be combined to reduce the footprint of the offshore DMCF. These options include (1) a DMCF in the existing on-site High Head Reservoir; (2) use of existing offsite upland DMCFs; (3) ocean disposal of dredged material; (4) a nearshore DMCF; and/or (5) beneficial reuse.</P>
                <P>Mitigation measures could include, but are not limited to, avoidance and minimization, enhancement, restoration, or establishment of wetlands.</P>
                <P>
                    5. 
                    <E T="03">Scoping Process.</E>
                     The scoping period will continue for 60 days from the date of this Notice of Intent. During the scoping period, the Corps invites federal, state, and local agencies, Native American Tribes, other interested parties, and the general public to participate in the scoping process. The purpose of the scoping process is to provide information to the public, serve as a mechanism to solicit agency and public input on alternatives, identify significant issues to be analyzed in the EIS, and ensure full and open participation in scoping for the draft EIS. Scoping comments may be submitted by conventional mail or email. All comments must include the Corps number NAB-2023-61200. To be accepted, email comments must originate from the author's email account. All comments received will become part of the administrative record and are subject to public release under the Freedom of Information Act including any personally identifiable information such as names, phone numbers, and addresses. Additional information on the project and scoping process are available on the Corps' website at this link: 
                    <E T="03">https://www.nab.usace.army.mil/SPCT/</E>
                </P>
                <P>
                    6. 
                    <E T="03">Scoping Meetings.</E>
                     The Corps will conduct public scoping meetings during the scoping period in which agencies, organizations, and members of the general public are invited to present comments or suggestions with regard to the range of actions, alternatives, and potential impacts to be considered in the EIS. The Corps has scheduled two public scoping meetings, one in-person and one virtual as described below: (a) In-person: Tuesday, January 23, 2024, at 5:30 p.m. Display material and staff will be available beginning at 5:30 p.m. with a presentation following at 6 p.m. at the Sollers Point Multi-Purpose Center; 323 Sollers Point Rd, Dundalk, MD 21222; and (b) Virtual: Thursday, January 25, 2024, beginning at 11:30 a.m. to 1 p.m. Access the virtual scoping meeting at this link: 
                    <E T="03">https://bit.ly/SparrowsPoint2024</E>
                </P>
                <P>
                    7. 
                    <E T="03">Availability of the Draft EIS.</E>
                     The draft EIS is estimated to be available for public review and comment in January 2025. At that time, a public review period will be provided for public review and comment on the draft EIS.
                </P>
                <P>
                    8. 
                    <E T="03">Analyses and Consultation.</E>
                     The EIS will be integrated with analyses and consultation required by the National Environmental Policy Act (NEPA), section 10 of the Rivers and Harbors Act, section 401 and section 404 of the Clean Water Act, section 7 of the Endangered Species Act, section 103 of the of the Marine Protection, Research and Sanctuaries Act (MPRSA), the Clean Air Act, the U.S. Fish and Wildlife Coordination Act, section 106 of the National Historic Preservation Act, Prime and Unique Farmlands, and the Magnuson-Stevens Fishery Conservation and Management Act. All appropriate documentation (
                    <E T="03">i.e.,</E>
                     section 7, section 106 coordination letters, and public and agency comments) will be obtained and included as part of the EIS. As part of the EIS process, recommendations will be based on an evaluation of the probable impact of the proposed activity on the public interest. The decision will reflect the national concern for the protection and utilization of important resources. The benefit, which may reasonably be expected to accrue from the proposal, will be balanced against its reasonably foreseeable detriments. All factors that may be relevant to the proposal will be considered, among these are wetlands; fish and wildlife resources; cultural resources; land use; water and air quality; hazardous, toxic, and radioactive substances; threatened and endangered species; regional geology; aesthetics; environmental justice; navigation; cumulative impacts; and the general needs and welfare of the public.
                </P>
                <SIG>
                    <NAME>Reinhard W. Koenig,</NAME>
                    <TITLE>Programs Director, North Atlantic Division, US Army Corps of Engineers.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27650 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3720-58-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Navy</SUBAGY>
                <DEPDOC>[Docket ID: USN-2023-HQ-0016]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of the Navy, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular 
                        <PRTPAGE P="87416"/>
                        information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Angela Duncan, (571) 344-1358, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Navy Health of the Force Survey Program; OMB Control Number 0703-HOFG.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     New Generic Information Collection Request.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     150,000.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     150,000.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     20 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     50,000.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Navy Health of the Force Survey program is a strategic level engagement survey initiative designed to assess climate and culture across the entire Department of the Navy (DoN) enterprise. When deployed, the Health of the Force (HoF) Survey is tailored to the unique population (Active Duty Navy, Reserve Navy, Active Duty Marine Corps, and Navy civilians) being surveyed, but also includes a core set of questions and metrics that support comparisons across the Navy and provide a means for evaluating changes in culture and climate over time.
                </P>
                <P>The DoN has already received OMB approval to conduct the mainline Navy HoF Survey under OMB Control Number 0703-0079. The Department has also submitted an information collection request for a Reserves-specific HoF survey. With this Generic Information Collection Request, the Department seeks to bring all current and future HoF surveys under one OMB Control Number. The streamlined Generic approval process will grant the Navy Survey Office additional flexibility to (1) quickly implement changes that may be made to the HoF surveys from year to year and (2) add new HoF surveys that ask similar questions and utilize similar methods but target unique personnel populations.</P>
                <P>Every HoF survey will include validated metrics for inclusion, connectedness, trust, organizational commitment, and cohesion. Other metrics that will be collected annually or biennially include job/career satisfaction, burnout, workplace incivility, and work/life balance. The survey results provide answers to important questions for Navy leadership about a range of topics including:</P>
                <P>• Retention plans and influences to stay or leave</P>
                <P>• Readiness and ability to perform core missions</P>
                <P>• Importance/utilization of mentoring and professional development opportunities</P>
                <P>• Access to key resources like childcare, healthcare, financial and personal support services</P>
                <P>
                    • Views on unique navy programs (
                    <E T="03">i.e.,</E>
                     Get Real, Get Better; Quality of Service, etc.)
                </P>
                <P>• Personal well-being (mental, physical, and emotional)</P>
                <P>• Interpersonal relationships in the workplace</P>
                <P>• Levels of stress and key stressors</P>
                <P>Finally, the survey provides Navy personnel with an opportunity to tell Navy leaders, in their own words, what they are concerned about and what they need to make the Navy a stronger, more effective organization.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households (DoN civilians, active and reserve service members).
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DoD Clearance Officer:</E>
                     Ms. Angela Duncan.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Ms. Duncan at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27731 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF EDUCATION</AGENCY>
                <DEPDOC>[Docket No.: ED-2023-SCC-0213]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Comment Request; Evaluation of Full-Service Community Schools</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Institute of Education Sciences (IES), Department of Education (ED).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act (PRA) of 1995, the Department is proposing a new information collection request (ICR).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To access and review all the documents related to the information collection listed in this notice, please use 
                        <E T="03">http://www.regulations.gov</E>
                         by searching the Docket ID number ED-2023-SCC-0214. Comments submitted in response to this notice should be submitted electronically through the Federal eRulemaking Portal at 
                        <E T="03">http://www.regulations.gov</E>
                         by selecting the Docket ID number or via postal mail, commercial delivery, or hand delivery. If the regulations.gov site is not available to the public for any reason, the Department will temporarily accept comments at 
                        <E T="03">ICDocketMgr@ed.gov.</E>
                         Please include the docket ID number and the title of the information collection request when requesting documents or submitting comments. Please note that comments submitted after the comment period will not be accepted. Written requests for information or comments submitted by postal mail or delivery should be addressed to the Manager of the Strategic Collections and Clearance Governance and Strategy Division, U.S. Department of Education, 400 Maryland Ave. SW, LBJ, Room 6W203, Washington, DC 20202-8240.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For specific questions related to collection activities, please contact Erica Johnson, 202-453-7381.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Department, in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public's reporting burden. It also helps the public understand the Department's information collection 
                    <PRTPAGE P="87417"/>
                    requirements and provide the requested data in the desired format. The Department is soliciting comments on the proposed information collection request (ICR) that is described below. The Department is especially interested in public comment addressing the following issues: (1) is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Evaluation of Full-Service Community Schools.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1850-NEW.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     A new ICR.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     Private sector; State, local, and Tribal governments.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     566.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     511.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The Full-Service Community Schools program, funded through title IV of the Elementary and Secondary Education Act, seeks to improve student outcomes by leveraging partnerships to help schools provide coordinated and integrated wraparound services to students and families, particularly in high-poverty schools. This study will be the first implementation evaluation of the Full-Service Community Schools program.
                </P>
                <P>This Information Collection Request (ICR) follows the related June 2023 ICR that OMB approved (1850-0981) to conduct an initial survey of FY 2022 Full-Service Community Schools grantees. This ICR seeks approval to conduct additional rounds of data collection focused on helping policymakers and the community schools field better understand how program implementation is playing out. Included in these data collection are a follow-up survey of the FY 2022 grantees, a baseline and interim survey of the newly-awarded FY 2023 grantees and their partner schools, and one round of administrative data from states and districts that oversee FY 2023 partner schools.</P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Juliana Pearson,</NAME>
                    <TITLE>PRA Coordinator, Strategic Collections and Clearance, Governance and Strategy Division, Office of Chief Data Officer, Office of Planning, Evaluation and Policy Development.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27726 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4000-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF EDUCATION</AGENCY>
                <DEPDOC>[Docket No.: ED-2023-SCC-0213]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Application for Grants Under the Historically Black Colleges and Universities Master's Degree Program (1894-0001)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Postsecondary Education, Department of Education (ED).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act (PRA) of 1995, the Department is proposing an extension without change of a currently approved information collection request (ICR).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for proposed information collection requests should be submitted within 30 days of publication of this notice. Click on this link 
                        <E T="03">www.reginfo.gov/public/do/PRAMain</E>
                         to access the site. Find this information collection request (ICR) by selecting “Department of Education” under “Currently Under Review,” then check the “Only Show ICR for Public Comment” checkbox. Reginfo.gov provides two links to view documents related to this information collection request. Information collection forms and instructions may be found by clicking on the “View Information Collection (IC) List” link. Supporting statements and other supporting documentation may be found by clicking on the “View Supporting Statement and Other Documents” link.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For specific questions related to collection activities, please contact Darryl Davis, (202) 453-7582.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Department is especially interested in public comment addressing the following issues: (1) is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.</P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Application for Grants Under the Historically Black Colleges and Universities Master's Degree Program (1894-0001).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1840-0806.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension without change of a currently approved ICR.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     State, Local, and Tribal Governments 
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     18.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     306.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The Higher Education Opportunity Act (HEOA) of 2008 amended Title VII, Subpart 4 of the Higher Education Act of 1965 to add a new master's degree program to advance educational opportunities for African Americans. The Historically Black Colleges and Universities Master's Degree Program authorizes the Department of Education (Department) to award grants to specified institutions that the Department determines are making a substantial contribution to graduate education opportunities for African Americans at the master's level in mathematics, engineering, the physical or natural sciences, computer science, information technology, nursing, allied health, or other scientific disciplines. This program provides grants for up to six years to establish or strengthen qualified master's degree programs in these fields at eligible institutions.
                </P>
                <P>This collection is being submitted under the Streamlined Clearance Process for Discretionary Grant Information Collections (1894-0001). Therefore, the 30-day public comment period notice will be the only public comment notice published for this information collection.</P>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Kun Mullan,</NAME>
                    <TITLE>PRA Coordinator, Strategic Collections and Clearance Governance and Strategy Division, Office of Chief Data Officer, Office of Planning, Evaluation and Policy Development.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27704 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4000-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87418"/>
                <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
                <SUBJECT>Environmental Management Site-Specific Advisory Board, Paducah</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Environmental Management, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice announces a meeting of the Environmental Management Site-Specific Advisory Board (EM SSAB), Paducah. The Federal Advisory Committee Act requires that public notice of this meeting be announced in the 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Thursday, January 18, 2024; 5:30 p.m.-7 p.m. CST</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>West Kentucky Community and Technical College, Emerging Technology Center, Room 215, 5100 Alben Barkley Drive, Paducah, Kentucky 42001.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Robert “Buz” Smith, Federal Coordinator, by Phone: (270) 441-6821 or Email: 
                        <E T="03">Robert.Smith@pppo.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Purpose of the Board:</E>
                     The purpose of the Board is to provide advice and recommendations concerning the following EM site-specific issues: clean-up activities and environmental restoration; waste and nuclear materials management and disposition; excess facilities; future land use and long-term stewardship. The Board may also be asked to provide advice and recommendations on any EM program components.
                </P>
                <P>
                    <E T="03">Tentative Agenda:</E>
                </P>
                <FP SOURCE="FP-1">• Review of Agenda</FP>
                <FP SOURCE="FP-1">• Administrative Activities</FP>
                <FP SOURCE="FP-1">• Public Comment Period</FP>
                <P>
                    <E T="03">Public Participation:</E>
                     The meeting is open to the public. The EM SSAB, Paducah, welcomes the attendance of the public at its advisory committee meetings and will make every effort to accommodate persons with physical disabilities or special needs. If you require special accommodations due to a disability, please contact Robert “Buz” Smith as soon as possible in advance of the meeting at the telephone number listed above. Written statements may be filed with the Board either before or after the meeting. Comments received by no later than 5 p.m. CST on Tuesday, January 16, 2024, will be read aloud during the meeting. Comments will also be accepted after the meeting, by no later than 5 p.m. CST on Friday, January 26, 2024. Please submit comments to Robert “Buz” Smith at the aforementioned email address. Please put “Public Comment” in the subject line. Individuals who wish to make oral statements pertaining to agenda items should contact Robert “Buz” Smith at the telephone number listed above. Requests must be received as soon as possible prior to the meeting and reasonable provision will be made to include the presentation in the agenda. The Deputy Designated Federal Officer is empowered to conduct the meeting in a fashion that will facilitate the orderly conduct of business. Individuals wishing to make public comments will be provided a maximum of five minutes to present their comments. The EM SSAB, Paducah, will hear public comments pertaining to its scope (clean-up standards and environmental restoration; waste management and disposition; stabilization and disposition of non-stockpile nuclear materials; excess facilities; future land use and long-term stewardship; risk assessment and management; and clean-up science and technology activities). Comments outside of the scope may be submitted via written statement as directed above.
                </P>
                <P>
                    <E T="03">Minutes:</E>
                     Minutes will be available by writing or calling Eric Roberts, Board Support Manager, Emerging Technology Center, Room 221, 4810 Alben Barkley Drive, Paducah, KY 42001; Phone: (270) 554-3004. Minutes will also be available at the following website: 
                    <E T="03">https://www.energy.gov/pppo/pgdp-cab/listings/meeting-materials.</E>
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on December 13, 2023.</DATED>
                    <NAME>LaTanya Butler,</NAME>
                    <TITLE>Deputy Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27747 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <DEPDOC>[Docket No. 13-69-LNG; Docket No. 14-88-LNG; Docket No. 15-25-LNG; Docket No. 16-28-LNG; Docket No. 21-131-LNG]</DEPDOC>
                <SUBJECT>Change in Control: Venture Global Calcasieu Pass, LLC; Venture Global Plaquemines LNG, LLC; Venture Global CP2 LNG, LLC</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Fossil Energy and Carbon Management, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of change in control.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office of Fossil Energy and Carbon Management (FECM) of the Department of Energy (DOE) gives notice of receipt of a Notification of Change in Ownership Structure filed by Venture Global LNG, Inc. (Venture Global) on October 24, 2023 (Notification), as supplemented on November 2, 2023 (Supplement). Venture Global provides notice of a recent corporate reorganization that affected the ownership of the following three subsidiaries and authorization holders: Venture Global Calcasieu Pass, LLC; Venture Global Plaquemines LNG, LLC; and Venture Global CP2 LNG, LLC (collectively, Authorization Holders). The relevant portion of Venture Global's Notification subject to this Notice is described herein. The Notification and Supplement were filed under the Natural Gas Act (NGA).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Protests, motions to intervene, or notices of intervention, as applicable, and written comments are to be filed as detailed in the Public Comment Procedures section no later than 4:30 p.m., Eastern time, January 2, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">Electronic Filing by email (Strongly encouraged):</E>
                          
                        <E T="03">fergas@hq.doe.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Postal Mail, Hand Delivery, or Private Delivery Services</E>
                         (
                        <E T="03">e.g.,</E>
                         FedEx, UPS, etc.).
                    </P>
                    <P>U.S. Department of Energy (FE-34), Office of Regulation, Analysis, and Engagement, Office of Fossil Energy and Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence Avenue SW, Washington, DC 20585.</P>
                    <P>Due to potential delays in DOE's receipt and processing of mail sent through the U.S. Postal Service, we encourage respondents to submit filings electronically to ensure timely receipt.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        Jennifer Wade or Peri Ulrey, U.S. Department of Energy (FE-34)  Office of Regulation, Analysis, and Engagement, Office of Resource Sustainability, Office of Fossil Energy and Carbon Management, Forrestal Building, Room 3E-042, 1000 Independence Avenue SW, Washington, DC 20585, (202) 586-4749 or (202) 586-7893, 
                        <E T="03">jennifer.wade@hq.doe.gov</E>
                         or
                        <E T="03"> peri.ulrey@hq.doe.gov</E>
                        .
                    </P>
                    <P>
                        Cassandra Bernstein, U.S. Department of Energy (GC-76) Office of the Assistant General Counsel for Energy Delivery and Resilience, Forrestal Building, Room 6D-033, 1000 Independence Avenue SW, Washington, DC 20585, (202) 586-9793, 
                        <E T="03">cassandra.bernstein@hq.doe.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Summary of Change in Control</HD>
                <P>
                    Venture Global's Notification describes a series of reorganization transactions effective as of September 25, 2023 (Transactions). As relevant here, Venture Global states that its institutional passive, minority owners referenced in prior DOE/FECM filings had a change in their collective ownership, as depicted in the 
                    <PRTPAGE P="87419"/>
                    Organizational Charts submitted as part of the Supplement.
                </P>
                <P>Specifically, before the Transactions, the institutional investors collectively owned a total of 36.46% of the common equity in Venture Global, with no single institutional investor holding 10% or more.</P>
                <P>
                    After the Transactions, Venture Global became a wholly-owned subsidiary of a new Delaware corporation named Venture Global Holdings, Inc. (VG Holdings). Additionally, the institutional investors now own a total of 16.21% of the common equity in VG Holdings,
                    <SU>1</SU>
                    <FTREF/>
                     with funds managed and/or controlled by Pacific Investment Management LLC (PIMCO) owning 15.10%,
                    <SU>2</SU>
                    <FTREF/>
                     and other passive institutional investors together owning the remaining 1.11%.
                    <SU>3</SU>
                    <FTREF/>
                     Venture Global further states that the PIMCO ownership interest creates a rebuttal presumption of control under DOE's Procedures for Changes in Control Affecting Applications and Authorizations to Import or Export Natural Gas (CIC Procedures) 
                    <SU>4</SU>
                    <FTREF/>
                     but, according to Venture Global, that presumption should be deemed rebutted because of the passive nature of PIMCO's investment.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The Supplement provides these updated ownership percentages.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Venture Global states that, as a result of that interest in VG Holdings, PIMCO indirectly owns that same 15.10% ownership in the equity of each of the Authorization Holders—Calcasieu Pass, Plaquemines LNG, and CP2 LNG—though its ownership of Calcasieu Pass will be reduced to approximately of 11.56% when Stonepeak's preferred interests in Calcasieu Pass Holdings, LLC convert into common units upon the commercial operation date of the Calcasieu Pass Project.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         According to Venture Global, these passive institutional investors are comprised of a number of U.S. institutional and related investors with no power to direct the management or policies of Venture Global.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         79 FR 65541 (Nov. 5, 2014).
                    </P>
                </FTNT>
                <P>
                    The remaining 83.79% of the common equity of VG Holdings is owned by the Principals, Robert B. Pender and Michael A. Sabel. Venture Global states that the Principals moved up a level in the corporate structure and now hold their ownership interest in a new entity named Venture Global Partners II, LLC, which remains 50% owned and controlled by each of the two Principals. However, the internal corporate reorganization resulting from the Transactions is described for completeness only and is not subject to this Notice.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         DOE has previously found that the CIC Procedures apply only to external transfers or assignments, not to internal corporate reorganizations. 
                        <E T="03">See, e.g.,</E>
                          
                        <E T="03">Port Arthur LNG, LLC,</E>
                         Notice of Internal Corporate Reorganization, Docket Nos. 15-53-LNG, 
                        <E T="03">et al.</E>
                         (Apr. 11, 2019) (noting that DOE's Change in Control Procedures, 79 FR 65541, focus on “ownership or management of the exporting entity chang[ing] hands, resulting in a change in control . . . .”).
                    </P>
                </FTNT>
                <P>Venture Global further states that, after the Transactions, the Principals continue to retain the sole right to control and direct the management and policies of Venture Global and thus each of the Authorization Holders (other than Stonepeak's rights with regard to Calcasieu Pass detailed in the filing submitted on September 6, 2019).</P>
                <P>
                    In sum, this Notice applies only to the portion of the Notification related to the institutional investors, with PIMCO now owning 15.10% of VG Holdings' common equity. Additional details can be found in the Notification and Supplement, posted on the DOE website at: 
                    <E T="03">https://www.energy.gov/sites/default/files/2023-10/10.24.23.Venture%20Global%20LNG%20DOE%20notification%20re.%20Corp%20Reorganization.pdf.</E>
                      
                    <E T="03">https://www.energy.gov/sites/default/files/2023-11/Supplement%20to%20NOCC%2011.02.2023.pdf.</E>
                </P>
                <HD SOURCE="HD1">DOE Evaluation</HD>
                <P>
                    DOE will review the Notification and Supplement in accordance with its CIC Procedures.
                    <SU>6</SU>
                    <FTREF/>
                     Consistent with the CIC Procedures, this notice addresses the Authorization Holders' various existing authorizations to export liquefied natural gas (LNG) to countries with which the United States has not entered into a free trade agreement (FTA) requiring national treatment for trade in natural gas (FTA countries) and with which trade is not prohibited by Untied States law or policy (non-FTA countries), as identified in the Notification.
                    <SU>7</SU>
                    <FTREF/>
                     If no interested person protests the change in control and DOE takes no action on its own motion, the proposed change in control will be deemed granted 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . If one or more protests are submitted, DOE will review any motions to intervene, protests, and answers, and will issue a determination as to whether the proposed change in control has been demonstrated to render the underlying authorizations inconsistent with the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See infra</E>
                         note 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Venture Global's Notification also applies to: (1) the Authorization Holders' various existing authorizations to export LNG to FTA countries, and (2) the Authorization Holders' various pending applications to export LNG to non-FTA countries, as identified in the Notification. DOE will respond to those portions of the Notification separately pursuant to the CIC Procedures, 79 FR 65542.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Public Comment Procedures</HD>
                <P>
                    Interested persons will be provided 15 days from the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     to move to intervene, protest, and answer the Notification and Supplement.
                    <SU>8</SU>
                    <FTREF/>
                     Protests, motions to intervene, notices of intervention, and written comments are invited in response to this notice only as to the change in control described in the Notification and Supplement. All protests, comments, motions to intervene, or notices of intervention must meet the requirements specified by DOE's regulations in 10 CFR part 590, including the service requirements.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Intervention, if granted, would constitute intervention only in the change in control portion of these proceedings, as described herein.
                    </P>
                </FTNT>
                <P>Filings may be submitted using one of the following methods:</P>
                <P>
                    (1) Submitting the filing electronically at 
                    <E T="03">fergas@hq.doe.gov</E>
                    ;
                </P>
                <P>
                    (2) Mailing the filing to the Office of Regulation, Analysis, and Engagement at the address listed in the 
                    <E T="02">ADDRESSES</E>
                     section; or
                </P>
                <P>
                    (3) Hand delivering the filing to the Office of Regulation, Analysis, and Engagement at the address listed in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <P>
                    For administrative efficiency, DOE prefers filings to be filed electronically. All filings must include a reference to “Docket Nos. 13-69-LNG, 
                    <E T="03">et al.”</E>
                     in the title line, or “Venture Global LNG Change in Control” in the title line.
                </P>
                <P>
                    <E T="03">For electronic submissions:</E>
                     Please include all related documents and attachments (
                    <E T="03">e.g.,</E>
                     exhibits) in the original email correspondence. Please do not include any active hyperlinks or password protection in any of the documents or attachments related to the filing. All electronic filings submitted to DOE must follow these guidelines to ensure that all documents are filed in a timely manner.
                </P>
                <P>
                    The Notification, Supplement, and any filed protests, motions to intervene, notices of intervention, and comments will be available electronically on the DOE website at: 
                    <E T="03">www.energy.gov/fecm/regulation</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on December 12, 2023.</DATED>
                    <NAME>Amy R. Sweeney,</NAME>
                    <TITLE>Director, Office of Regulation, Analysis, and Engagement, Office of Resource Sustainability.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27717 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87420"/>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. ER24-619-000]</DEPDOC>
                <SUBJECT>MS Solar 5, LLC; Supplemental Notice That Initial Market-Based Rate Filing Includes Request for Blanket Section 204 Authorization</SUBJECT>
                <P>This is a supplemental notice in the above-referenced proceeding of MS Solar 5, LLC's application for market-based rate authority, with an accompanying rate tariff, noting that such application includes a request for blanket authorization, under 18 CFR part 34, of future issuances of securities and assumptions of liability.</P>
                <P>Any person desiring to intervene or to protest should file with the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, in accordance with Rules 211 and 214 of the Commission's Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone filing a motion to intervene or protest must serve a copy of that document on the Applicant.</P>
                <P>Notice is hereby given that the deadline for filing protests with regard to the applicant's request for blanket authorization, under 18 CFR part 34, of future issuances of securities and assumptions of liability, is January 2, 2024.</P>
                <P>
                    The Commission encourages electronic submission of protests and interventions in lieu of paper, using the FERC Online links at 
                    <E T="03">http://www.ferc.gov.</E>
                     To facilitate electronic service, persons with internet access who will eFile a document and/or be listed as a contact for an intervenor must create and validate an eRegistration account using the eRegistration link. Select the eFiling link to log on and submit the intervention or protests.
                </P>
                <P>Persons unable to file electronically may mail similar pleadings to the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426. Hand delivered submissions in docketed proceedings should be delivered to Health and Human Services, 12225 Wilkins Avenue, Rockville, Maryland 20852.</P>
                <P>
                    In addition to publishing the full text of this document in the 
                    <E T="04">Federal Register</E>
                    , the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the internet through the Commission's Home Page (
                    <E T="03">http://www.ferc.gov</E>
                    ) using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document. At this time, the Commission has suspended access to the Commission's Public Reference Room, due to the proclamation declaring a National Emergency concerning the Novel Coronavirus Disease (COVID-19), issued by the President on March 13, 2020. For assistance, contact the Federal Energy Regulatory Commission at 
                    <E T="03">FERCOnlineSupport@ferc.gov</E>
                     or call toll-free, (886) 208-3676 or TYY, (202) 502-8659.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Kimberly D. Bose,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27749 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. AD18-6-000]</DEPDOC>
                <SUBJECT>Notice of Availability of Revised Final Engineering Guidelines for the Evaluation of Hydropower Projects: Chapter 11—Arch Dams</SUBJECT>
                <P>On March 14, 2018, the Federal Energy Regulatory Commission issued a Notice of Availability of Final Engineering Guidelines for the Evaluation of Hydropower Projects: Chapter 11—Arch Dams. Appendix 11A provides an approach to estimate erosion of rock downstream of arch dams and is applicable to similar evaluations at other types of dams. Commission staff recently became aware of errors in several equations and one table in Appendix 11A; this notice provides a revised version of Chapter 11 correcting those errors.</P>
                <P>
                    All information related to “Chapter 11—Arch Dams,” including the draft chapter, all submitted comments, the final chapter, and the revised final chapter incorporating the revisions to Appendix A, can be found on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ) using the eLibrary link. Click on the eLibrary link, click on “General Search” and enter the docket number, excluding the last three digits in the Docket Number field (
                    <E T="03">i.e.,</E>
                     AD18-6). Be sure you have selected an appropriate date range. The Commission also offers a free service called eSubscription which allows you to keep track of all formal issuances and submittals in specific dockets. This can reduce the amount of time you spend researching proceedings by automatically providing you with electronic notification of these filings and direct links to the documents. Go to the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ), select the FERC Online option from the left-hand column, and click on eSubscription. Users must be registered in order to use eSubscription.
                </P>
                <P>
                    The revised version of Chapter 11 is also available on the Commission's Division of Dam Safety and Inspections website at: Engineering Guidelines for the Evaluation of Hydropower Projects | Federal Energy Regulatory Commission (
                    <E T="03">ferc.gov</E>
                    ).
                </P>
                <P>
                    For assistance with any of the Commission's online systems, please contact FERC Online Support at 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                     or toll free at (866) 208-3676, or for TTY, contact (202) 502-8258.
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Kimberly D. Bose,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27751 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Project No. 3428-205]</DEPDOC>
                <SUBJECT>Brown Bear II Hydro, Inc.; Notice of Application Tendered for Filing With the Commission and Establishing Procedural Schedule for Licensing and Deadline for Submission of Final Amendments</SUBJECT>
                <P>Take notice that the following hydroelectric application has been filed with the Commission and is available for public inspection.</P>
                <P>
                    a. 
                    <E T="03">Type of Application:</E>
                     New Major License.
                </P>
                <P>
                    b. 
                    <E T="03">Project No.:</E>
                     3428-2050.
                </P>
                <P>
                    c. 
                    <E T="03">Date Filed:</E>
                     November 29, 2023.
                </P>
                <P>
                    d. 
                    <E T="03">Applicant:</E>
                     Brown Bear II Hydro, Inc.
                </P>
                <P>
                    e. 
                    <E T="03">Name of Project:</E>
                     Worumbo Hydroelectric Project.
                </P>
                <P>
                    f. 
                    <E T="03">Location:</E>
                     On the Androscoggin River, in Androscoggin County, Maine.
                </P>
                <P>
                    g. 
                    <E T="03">Filed Pursuant to:</E>
                     Federal Power Act, 16 U.S.C. 791(a)-825(r).
                    <PRTPAGE P="87421"/>
                </P>
                <P>
                    h. 
                    <E T="03">Applicant Contact:</E>
                     Matthew Nini, Brown Bear II Hydro Inc., (973) 998-8171 or email at 
                    <E T="03">matthew.nini@eaglecreekre.com.</E>
                </P>
                <P>
                    i. 
                    <E T="03">FERC Contact:</E>
                     Ryan Hansen at (202) 502-8074 or email at 
                    <E T="03">ryan.hansen@ferc.gov.</E>
                     j. The application is not ready for environmental analysis at this time.
                </P>
                <P>
                    k. 
                    <E T="03">Project Description:</E>
                     The project consists of the following existing facilities: (1) an 870-foot-long concrete gravity dam with an 116-foot-long flood spillway containing four 18-foot-wide and 26-foot-high vertical lift gates and three flashboard sections including (from left to right facing downstream) a 233-foot-long ogee spillway topped by 38 2-foot-high hinged steel flashboard panels, a 167-foot-long concrete gravity section topped by 21 2-foot-high steel flashboard panels controlled by inflatable air bags, and a 349-foot-long concrete gravity section topped by 26 steel flashboard panels ranging in height from 1.5 to 1.9-foot-high controlled by inflatable air bags; (2) a reservoir with a gross storage capacity of 2,000 acre-feet and a surface area of 240 acres at the normal full-pond elevation of 98.5 feet; (3) a 337-foot-long concrete retaining wall with a top elevation of 108 feet leading to the intake structure; (4) a concrete intake structure integral with the powerhouse, containing two vertical slide gates each 33-foot-wide and 40- foot-high which are normally fully open and protected by trash racks; (5) a 105-foot-wide, 145-foot-long reinforced concrete powerhouse containing two Kaplan bulb turbines each with a generating capacity of 10.5 MW at 28.5 feet net head; (6) an approximately 30-foot-high vertical fish-lift, four vertical attraction pumps, an eight-foot-long and 8-foot-wide hopper lift tank, and a viewing room; (7) an upstream eel passage system consisting of two two-foot-wide, seven-foot-long bristled ramps, and an eel trap; (8) a downstream fish passage system consisting of three entry way gates with trashracks, a 36-inch-diameter downstream passage pipe, and a 30-foot-wide, 20-foot-long, 10-foot-deep plunge pool; (9) an 850-foot-long, approximately 80-foot wide, tailrace excavated from the downstream powerhouse wall to the State Route 125 (Canal Street) bridge, flanked by a 200-foot-long concrete retaining wall on the left and a 230-foot-long concrete training wall on the right; (10) a 3,540-foot-long, 34.5-kilovolt (kV) transmission line leading to the Central Maine Power Company's Lisbon Falls substation; and (11) appurtenant facilities. Brown Bear Hydro II Hydro, LLC has not proposed any new construction at the project. The project is operated in a run-of-river mode and average annual generation from the project is 83,911 megawatt-hours.
                </P>
                <P>
                    l. 
                    <E T="03">Location of the Application:</E>
                     In addition to publishing the full text of this notice in the 
                    <E T="04">Federal Register</E>
                    , the Commission provides all interested persons an opportunity to view and/or print the contents of this notice, as well as other documents in the proceeding (
                    <E T="03">e.g.,</E>
                     license application) via the internet through the Commission's Home Page (
                    <E T="03">http://www.ferc.gov</E>
                    ) using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document (P-3428). For assistance, contact FERC at 
                    <E T="03">FERCOnlineSupport@ferc.gov</E>
                     or call toll-free, (866) 208-3676 or (202) 502-8659 (TTY).
                </P>
                <P>
                    m. You may also register online at 
                    <E T="03">http://www.ferc.gov/docs-filing/esubscription.asp</E>
                     to be notified via email of new filings and issuances related to this or other pending projects. For assistance, contact FERC Online Support.
                </P>
                <P>
                    n. 
                    <E T="03">Procedural Schedule:</E>
                     The application will be processed according to the following preliminary Hydro Licensing Schedule. The need for additional tagging and cfd modeling studies will influence the schedule below. Revisions to the schedule may be made as appropriate.
                </P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s150,xs64">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Milestone</CHED>
                        <CHED H="1">Target date</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Issue Deficiency Letter (if necessary)</ENT>
                        <ENT>December 2023.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Additional Information Request (if necessary)</ENT>
                        <ENT>January 2024.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Study Modification Determination</ENT>
                        <ENT>February 2024.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Notice of Acceptance/Notice of Ready for Environmental Analysis (if no studies are needed)</ENT>
                        <ENT>March 2024.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Filing of recommendations, preliminary terms and conditions, and fishway prescriptions</ENT>
                        <ENT>June 2024.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>o. Final amendments to the application must be filed with the Commission no later than 30 days from the issuance date of the notice of ready for environmental analysis.</P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Kimberly D. Bose,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27750 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings #1</SUBJECT>
                <P>Take notice that the Commission received the following electric corporate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EC24-24-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Georgia Power Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Application for Authorization Under Section 203 of the Federal Power Act of Georgia Power Company.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5177.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>Take notice that the Commission received the following Complaints and Compliance filings in EL Dockets:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EL24-40-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     City of Tacoma, Department of Public Utilities, Light Division Tacoma Power v. California Independent System Operator Corporation.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Complaint of City of Tacoma, Department of Public Utilities, Light Division d/b/a Tacoma Power, v. California Independent System Operator Corporation.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5029.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>Take notice that the Commission received the following electric rate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER10-2732-022; ER10-2733-022; ER10-2734-022; ER10-2736-022; ER10-2737-022; ER10-2741-022; ER10-2749-023; ER10-2752-022; ER12-2492-018; ER12-2493-018; ER12-2494-018; ER12-2495-018; ER12-2496-018; ER16-2455-012; ER16-2456-012; ER16-2457-012; ER16-2459-012; ER18-1404-008; ER19-2096-005.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Emera Energy LNG, LLC, NS Power Energy Marketing Inc., Emera Energy Services Subsidiary No. 15 LLC, Emera Energy Services Subsidiary No. 13 LLC, Emera Energy Services Subsidiary No. 12 LLC, Emera Energy Services Subsidiary No. 11 LLC, Emera Energy Services Subsidiary No. 10 LLC, Emera Energy Services Subsidiary No. 9 LLC, Emera Energy Services Subsidiary No. 8 LLC, Emera Energy Services 
                    <PRTPAGE P="87422"/>
                    Subsidiary No. 7 LLC, Emera Energy Services Subsidiary No. 6 LLC, Emera Energy Services Subsidiary No. 5 LLC, Emera Energy Services Subsidiary No. 4 LLC, Emera Energy Services Subsidiary No. 3 LLC, Emera Energy Services Subsidiary No. 2 LLC, Emera Energy Services Subsidiary No. 1 LLC, Emera Energy U.S. Subsidiary No. 2, Inc., Emera Energy U.S. Subsidiary No. 1, Inc., Emera Energy Services, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Southeast Region of Emera Energy Services, Inc., et. al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5111.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/12/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER18-548-002; ER18-547-002.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Decatur Energy Center, LLC, CP Energy Marketing (US) Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Southeast Region of CP Energy Marketing (US) Inc., et. al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5129.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/12/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER23-2843-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Response to Commission's 11/9/23 Deficiency Letter in ER23-2843 to be effective 8/16/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5161.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-621-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Amendment to 12 Service Agreements re: FirstEnergy Reorganization to be effective 12/31/9998.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5149.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-622-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Amendment to ISA, Service Agreement No. 6588; Queue AE2-118 to be effective 2/10/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5163.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-623-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Notice of Cancellation of WMPA, SA No. 5804; Queue No. AF2-280 to be effective 1/15/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5103.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24. 
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-624-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Notice of Cancellation of WMPA, SA No. 5843; Queue No. AF2-287 to be effective 1/15/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5108.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-625-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Notice of Cancellation of WMPA, SA No. 5752; Queue No. AF2-432 to be effective 1/15/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5112.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-626-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Chevelon Butte RE LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Chevelon Butte RE LLC Shared Facilities Agreement to be effective 12/13/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5119.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Kimberly D. Bose,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27753 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings</SUBJECT>
                <P>Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings:</P>
                <HD SOURCE="HD1">Filings Instituting Proceedings</HD>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-21-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Targa Midland Gas Pipeline LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Notice of Cancellation of Statement of Operating Conditions to be effective 12/11/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5143.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 12/29/23.
                </P>
                <P>
                    <E T="03">§ 284.123(g) Protest:</E>
                     5 p.m. ET 2/9/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP24-238-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Valero Marketing And Supply Company, Valero Refining-New Orleans, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Joint Petition for Limited Waiver of Capacity Release Regulations, et. al. of Valero Refining-New Orleans, L.L.C., et. al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5094.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 12/26/23.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP24-239-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     BP Gas Marketing Limited v. Venture Global Calcasieu Pass, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Complaint of BP Gas Marketing Limited v. Venture Global Calcasieu Pass, LLC.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/11/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231211-5150.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 1/2/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP24-240-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Deepwater Development Company, LLC, LLOG Deepwater Development Company II, L.L.C., Westlawn GOM 4 Holdco LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Joint Petition for Limited Waiver of Capacity Release Regulations, et. al. of Deepwater Development Company, LLC, et. al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     12/12/23.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20231212-5081.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 12/26/23.
                </P>
                <P>
                    Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5 p.m. Eastern time on the 
                    <PRTPAGE P="87423"/>
                    specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Kimberly D. Bose,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27752 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OPPT-2023-0601; FRL-11581-01-OCSPP]</DEPDOC>
                <SUBJECT>Initiation of Prioritization Under the Toxic Substances Control Act (TSCA); Request for Comment</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency (EPA) is announcing the initiation of and soliciting public comment on the prioritization process for five chemical substances as candidates for designation as High-Priority Substances for risk evaluation under the Toxic Substances Control Act (TSCA) and related implementing regulations. This document provides the identity of the chemical substances being initiated for prioritization, a general explanation of why the Agency chose these chemical substances, and information on the data sources that EPA plans to use to support the designation. EPA is providing a 90-day comment period, during which interested persons may submit relevant information on these chemical substances.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before March 18, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments through 
                        <E T="03">https://www.regulations.gov.</E>
                         Follow the online instructions for submitting comments. Submit comments on the chemicals identified in Unit III.B. to the applicable chemical-specific docket ID number provided in Unit III.B. Submit comments on the chemicals identified in Unit IV.B. and comments not related to a specific chemical, including general comments on Unit IV.A., to Docket ID No. EPA-HQ-OPPT-2023-0601. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at 
                        <E T="03">https://www.epa.gov/dockets.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        <E T="03">For technical information contact:</E>
                         Sarah Au, Data Gathering and Analysis Division (7406M), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-0001; telephone number: (202) 564-0398; email address: 
                        <E T="03">au.sarah@epa.gov.</E>
                    </P>
                    <P>
                        <E T="03">For general information contact:</E>
                         The TSCA-Hotline, ABVI-Goodwill, 422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 554-1404; email address: 
                        <E T="03">TSCA-Hotline@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Executive Summary</HD>
                <HD SOURCE="HD2">A. Does this action apply to me?</HD>
                <P>
                    This action is directed to the public in general and may be of interest to entities that currently or may manufacture (including import) a chemical substance regulated under TSCA (
                    <E T="03">e.g.,</E>
                     entities identified under North American Industrial Classification System (NAICS) codes 325 and 324110). The action may also be of interest to chemical processors, distributors in commerce, users, non-profit organizations in the environmental and public health sectors, state and local government agencies, and members of the public. Since other entities may also be interested, the Agency has not attempted to describe all the specific entities and corresponding NAICS codes for entities that may be interested in or affected by this action.
                </P>
                <HD SOURCE="HD2">B. What action is the Agency taking?</HD>
                <P>
                    EPA is initiating the prioritization process under the Toxic Substances Control Act (TSCA), 15 U.S.C. 2601 
                    <E T="03">et seq.,</E>
                     for five chemical substances as candidates for designation as High-Priority Substances for risk evaluation. This document includes the identity of the chemical substances entering the prioritization process before designation, and a general explanation of why the Agency choose to initiate prioritization on these chemical substances. In addition, EPA is providing a 90-day comment period during which interested persons may submit relevant information on these chemical substances. Relevant information might include, but is not limited to, any information that may inform the prioritization screening review conducted pursuant to 40 CFR 702.9(a).
                </P>
                <HD SOURCE="HD2">C. Why is the Agency taking this action?</HD>
                <P>TSCA section 6(b) requires that EPA initiate the prioritization process for chemical substances that may be designated as high priority and low priority for risk evaluation. In December 2019, EPA designated 20 High-Priority Substances pursuant to TSCA section 6(b)(2)(B), which are currently undergoing risk evaluation. Because EPA generally expects to complete five risk evaluations per year over the next several years, EPA is initiating the prioritization process for five chemical substances per TSCA section 6(b)(3)(C), which requires EPA to designate at least one High-Priority Substance upon completion of each risk evaluation for a High-Priority Substance. By initiating this group of High-Priority Substance candidates, EPA intends to begin building a sustainable pipeline of existing chemical risk evaluations under TSCA section 6(b). The request for interested persons to submit relevant information on a chemical substance for which EPA has initiated the prioritization process is required by TSCA section 6(b)(1)(C)(i).</P>
                <HD SOURCE="HD2">D. What is the Agency's authority for taking this action?</HD>
                <P>This document is issued pursuant to the authority in TSCA section 6(b)(1) and (3)(C).</P>
                <HD SOURCE="HD2">E. What are the estimated incremental impacts of this action?</HD>
                <P>
                    This document identifies the five chemical substances for which EPA is initiating the prioritization process, provides a general explanation of why 
                    <PRTPAGE P="87424"/>
                    the Agency chose to initiate prioritization on these chemical substances, and provides a 90-day comment period for interested persons to submit relevant information. This document does not establish any requirements on persons or entities outside of the Agency. No incremental impacts are therefore anticipated, and consequently EPA did not estimate potential incremental impacts for this action.
                </P>
                <HD SOURCE="HD2">F. What should I consider as I prepare my comments for EPA?</HD>
                <HD SOURCE="HD3">1. Submitting CBI</HD>
                <P>
                    Do not submit CBI to EPA through 
                    <E T="03">https://www.regulations.gov</E>
                     or email. If you wish to include CBI in your comment, please follow the applicable instructions at 
                    <E T="03">https://www.epa.gov/dockets/commenting-epa-dockets#rules</E>
                     and clearly mark the part or all of the information that you claim to be CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2 and/or 40 CFR part 703, as applicable.
                </P>
                <HD SOURCE="HD3">2. Tips for Preparing Your Comments</HD>
                <P>
                    When preparing and submitting your comments, see the commenting tips at 
                    <E T="03">https://www.epa.gov/dockets/commenting-epa-dockets.html.</E>
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>TSCA section 6(b)(1) requires EPA to prioritize chemical substances for risk evaluation and to establish a process for prioritizing chemical substances. Under TSCA section 6(b) and as described in 40 CFR 702.7, EPA is initiating the prioritization process for five chemical substances as candidates for High-Priority Substances for risk evaluation.</P>
                <P>Under TSCA section 6(b)(1)(B) and its implementing regulations (40 CFR 702.3), a High-Priority Substance is defined as a chemical substance that EPA determines, without consideration of costs or other non-risk factors, that may present an unreasonable risk of injury to health or the environment because of a potential hazard and a potential route of exposure under the conditions of use, including an unreasonable risk to potentially exposed or susceptible subpopulations identified as relevant by EPA.</P>
                <P>Initiation of prioritization for chemical substances as High-Priority Substance candidates is not a finding of risk. Rather, when prioritization is complete, for those chemicals designated as high priority, the Agency will have evidence that this substance may present an unreasonable risk of injury to health or the environment because of a potential hazard and a potential route of exposure under the conditions of use. Final designation of a High-Priority Substance initiates the risk evaluation process (40 CFR 702.17), which culminates in a finding of whether or not the chemical substance presents an unreasonable risk under the conditions of use.</P>
                <P>This document is intended to fulfill the TSCA section 6(b)(1)(C)(i) requirement that the Administrator request interested persons to submit relevant information on chemical substances for which the Administrator has initiated the prioritization process. As described in 40 CFR 702.7, this document initiates the prioritization process and provides 90 days during which interested persons may submit relevant information.</P>
                <P>
                    As described in 40 CFR 702.9(b) 
                    <E T="03">Information sources,</E>
                     in conducting the screening review during the prioritization process, EPA will consider sources of information relevant to the screening review criteria as outlined in the statute (TSCA section 6(b)(1)(A)) and implementing regulations (40 CFR 702.9(a)) and consistent with the scientific standards of TSCA section 26(h), including, as appropriate, sources for hazard and exposure data listed in Appendices A and B of the TSCA Work Plan Chemicals: Methods Document (February 2012).
                </P>
                <P>
                    Consistent with the approach in our 
                    <E T="03">A Working Approach for Identifying Potential Candidate Chemicals for Prioritization</E>
                     (September 27, 2018) and prioritization process (40 CFR 702.7), EPA consulted with other federal agencies and intends to continue to collaborate with them to identify information that is useful throughout the prioritization process.
                </P>
                <HD SOURCE="HD1">III. High Priority Candidate Chemical Substances for Which EPA Is Initiating Prioritization</HD>
                <HD SOURCE="HD2">A. How did EPA select these candidates for prioritization for potential designation as High-Priority Substances for risk evaluation?</HD>
                <P>
                    In general, EPA's working approach to select candidates for designation as High-Priority Substances for risk evaluation is outlined in the document, 
                    <E T="03">A Working Approach for Identifying Potential Candidate Chemicals for Prioritization,</E>
                     released to the public on September 27, 2018, available at 
                    <E T="03">https://www.epa.gov/sites/production/files/2018-09/documents/preprioritization_white_paper_9272018.pdf.</E>
                     To identify candidates for designation as High-Priority Substances, the Agency primarily looked to the TSCA Work Plan for Chemical Assessments: 2014 Update (2014 TSCA Work Plan), available at 
                    <E T="03">https://www.epa.gov/sites/default/files/2015-01/documents/tsca_work_plan_chemicals_2014_update-final.pdf.</E>
                     TSCA requires the Agency to preferentially consider chemicals on the 2014 TSCA Work Plan, as these chemicals were selected due to their potential risk to human health and the environment. EPA also consulted with other EPA program offices and partner federal agencies to inform the Agency's prioritization efforts. With these considerations, the chemicals for which prioritization is initiated in this notice were selected based on a variety of factors and reflect Agency priorities. While data availability was a significant driver of the Agency's selections, EPA also considered the complexity of evaluating broad chemical categories such as metal compounds. In order for EPA to build a sustainable TSCA prioritization, evaluation, and (when appropriate) risk management pipeline, chemicals ultimately designated as High-Priority Substances for risk evaluation should have a robust data landscape. In future rounds of prioritization, EPA intends to use its data gathering authorities earlier and commits to regular stakeholder engagement to ensure that the Agency has the information it needs to meet its statutory mandates.
                </P>
                <P>
                    Using data sources such as those described in the document, 
                    <E T="03">A Working Approach for Identifying Potential Candidate Chemicals for Prioritization,</E>
                     EPA considered various types of information and data from existing databases (and dashboards) such as EPA's National Center for Computational Toxicology's Chemistry Dashboard (CompTox Chemicals Dashboard), available at 
                    <E T="03">https://comptox.epa.gov/dashboard.</E>
                     EPA also conducted initial searches of additional sources of information within the public and gray literature domains (
                    <E T="03">e.g.,</E>
                     searches in PubMed, Web of Science, other US government and international websites).
                </P>
                <P>
                    Existing information from public and non-public (
                    <E T="03">i.e.,</E>
                     confidential business information) sources that are maintained by authoritative sources, such as other EPA program offices, state and federal agencies and various U.S. and international organizations are also considered (
                    <E T="03">e.g.,</E>
                     including but not 
                    <PRTPAGE P="87425"/>
                    limited to EPA's Office of Water, EPA's Office of Air and Radiation, EPA's Office of Research and Development, California Environmental Protection Agency (Cal EPA), National Toxicology Program (NTP), National Institute for Occupational Safety and Health (NIOSH), Agency for Toxic Substances and Disease Registry (ATSDR), International Agency for Research on Cancer (IARC), European Chemicals Agency (ECHA), Health Canada and Organisation for Economic Co-operation and Development (OECD)).
                </P>
                <P>After identifying evidence of information from reasonably available sources, the information was screened across several data elements including physical and chemical properties, environmental fate and transport properties, hazard, exposure, and use information to determine the breadth of data availability for a chemical substance. Using experience gained from TSCA implementation activities to date, EPA considered previous and planned Agency activities related to a given chemical substance, including how to better leverage experience gained from previously conducted or ongoing risk evaluations. EPA also considered whether analyses from existing risk assessments could be used to better understand the chemical substance's potential exposure and/or hazard characteristics.</P>
                <P>In the absence of measured data on chemicals being evaluated, EPA may use alternative means or new approach methods (NAMs) to obtain relevant data. These NAMs can reduce vertebrate testing, consistent with TSCA section 4(h)(1)(A). EPA intends to use this approach to the extent practicable and scientifically justified.</P>
                <P>To identify chemical substances, EPA considered information such as the data submitted to EPA in 2020 under the Chemical Data Reporting (CDR) rule under TSCA regarding reported uses and products as a surrogate for complexity of information to inform prioritization and risk evaluation. EPA considered the release and use information for these chemicals and screened them according to the types of industrial uses and types of products where the chemicals were used, as reported in the 2020 CDR.</P>
                <P>EPA intends to update and refine its initial review based on data sources identified by the public during the comment period (see EPA's request for data in Unit IV.) and, where permitted by TSCA section 14 and subject to EPA confidentiality regulations at 40 CFR part 2, subpart B and 40 CFR part 703, intends to make this information publicly available for the initiated chemicals when we publish the proposed priority designation.</P>
                <HD SOURCE="HD2">B. What chemicals are being initiated?</HD>
                <P>EPA is initiating the prioritization process for the following five chemicals as candidates for designation as High-Priority Substances:</P>
                <HD SOURCE="HD3">1. Acetaldehyde, CAS RN 75-07-0, Docket ID No.: EPA-HQ-OPPT-2018-0497</HD>
                <P>This chemical was listed in the 2014 TSCA Work Plan with a hazard score of 3; an exposure score of 3; and a persistence and bioaccumulation score of 1. Data regarding the use of this chemical was reported to EPA in the 2020 CDR. EPA also receives information annually on this chemical through the Toxics Release Inventory (TRI). Information is available from assessments conducted by the state of California, international organizations, and other countries.</P>
                <HD SOURCE="HD3">2. Acrylonitrile, CAS RN 107-13-1, Docket ID No.: EPA-HQ-OPPT-2018-0449</HD>
                <P>This chemical was listed in the 2014 TSCA Work Plan with a hazard score of 3; an exposure score of 3; and a persistence and bioaccumulation score of 1. Data regarding the use of this chemical was reported to EPA in the 2020 CDR. EPA also receives information annually on this chemical through the TRI. Information is available from assessments conducted by other federal agencies, the state of California, international organizations, and other countries.</P>
                <HD SOURCE="HD3">3. Benzenamine, CAS RN 62-53-3, Docket ID No.: EPA-HQ-OPPT-2018-0474</HD>
                <P>This chemical was listed in the 2014 TSCA Work Plan with a hazard score of 3; an exposure score of 3; and a persistence and bioaccumulation score of 1. Data regarding the use of this chemical was reported to EPA in the 2020 CDR. EPA also receives information annually on this chemical through the TRI. Information is available from assessments conducted by the Center for Disease Control (CDC), the state of California, international organizations, and other countries.</P>
                <HD SOURCE="HD3">4. Vinyl Chloride, CAS RN 75-01-4, Docket ID No.: EPA-HQ-OPPT-2018-0448</HD>
                <P>This chemical was listed in the 2014 TSCA Work Plan with a hazard score of 3; an exposure score of 3; and a persistence and bioaccumulation score of 2. Data regarding the use of this chemical was reported to EPA in the 2020 CDR. EPA also receives information annually on this chemical through the TRI. Information is available from assessments conducted by other federal agencies, the state of California, international organizations, and other countries.</P>
                <HD SOURCE="HD3">5. 4,4′-Methylene bis(2-chloroaniline) (MBOCA), CAS RN 101-14-4, Docket ID No.: EPA-HQ-OPPT-2023-0464 </HD>
                <P>This chemical was listed in the 2014 TSCA Work Plan with a hazard score of 3; an exposure score of 2; and a persistence and bioaccumulation score of 2. Data regarding the use of this chemical was reported to EPA in the 2020 CDR. EPA also receives information annually on this chemical through the TRI. Information is available from assessments conducted by other federal agencies, the state of California, international organizations, and other countries.</P>
                <HD SOURCE="HD1">IV. Relevant Information</HD>
                <HD SOURCE="HD2">A. What additional information is relevant to the five candidate chemical substances for which EPA is initiating prioritization?</HD>
                <P>Through this initiation of prioritization for chemical substances, EPA is providing a 90-day comment period as required by the statute (TSCA section 6(b)(1)(C)(i)) and implementing regulations (40 CFR 702.7(d)), and requests that interested persons voluntarily submit relevant information. Relevant information might include, but is not limited to, information that may inform the screening review conducted pursuant to 40 CFR 702.9(a), consistent with the scientific standard of TSCA section 26(h), about the following criteria and considerations:</P>
                <P>• The chemical substance's hazard and exposure potential;</P>
                <P>• The chemical substance's persistence and bioaccumulation;</P>
                <P>• Potentially exposed or susceptible subpopulations which the submitter believes are relevant to the prioritization;</P>
                <P>• Whether there is any storage of the chemical substance near significant sources of drinking water, including the storage facility location and the nearby drinking water source(s);</P>
                <P>• The chemical substance's conditions of use or significant changes in conditions of use, including information regarding trade names;</P>
                <P>• The chemical substance's production volume or significant changes in production volume; and</P>
                <P>
                    • Any other information relevant to the potential risks of the chemical substance that might be relevant to the 
                    <PRTPAGE P="87426"/>
                    designation of the chemical substance's priority for risk evaluation. If the information is publicly available, citations are sufficient (including, but not limited to: title, author, date of publication, publication source), and the submission does not need to include copies of the information.
                </P>
                <P>If the information is publicly available, citations are sufficient (including, but not limited to: Title, author, date of publication, publication source), and the submission does not need to include copies of the information.</P>
                <HD SOURCE="HD2">B. What information is relevant to 10 additional chemical substances that EPA considered for the current round of prioritization?</HD>
                <P>During the pre-prioritization process, EPA met with federal partners, industry, environmental organizations, labor organizations, state and local governments, and tribes to discuss the prioritization process and presented a list of 15 chemical substances that EPA was considering for prioritization. EPA took feedback from these discussions into consideration when selecting the five chemicals for prioritization listed in Unit III.B. Interested persons may submit relevant information on the following chemical substances that are not currently undergoing prioritization by using Docket ID No. EPA-HQ-OPPT-2023-0606.</P>
                <P>• 4-tert-Octylphenol(4-(1,1,3,3-Tetramethylbutyl)-phenol), CAS RN 140-66-9;</P>
                <P>• Benzene, CAS RN 71-43-2;</P>
                <P>• Bisphenol A, CAS RN 80-05-7;</P>
                <P>• Ethylbenzene, CAS RN 100-41-4;</P>
                <P>• Napthalene, CAS RN 91-20-3;</P>
                <P>• Styrene, CAS RN 100-42-5;</P>
                <P>• Tribromomethane, CAS RN 75-25-2;</P>
                <P>• Triglycidyl isocyanurate, CAS RN 2451-62-9;</P>
                <P>• Hydrogen fluoride, CAS RN 7664-39-3; and</P>
                <P>• N-(1,3-Dimethylbutyl)-N′-phenyl-p-phenylenediamine, CAS RN 793-24-8.</P>
                <HD SOURCE="HD2">C. How will confidential business information be protected?</HD>
                <P>
                    A person seeking to protect from disclosure as “confidential business information” any information that person submits under TSCA must assert and substantiate a claim for protection from disclosure concurrent with submission of the information in accordance with the requirements of TSCA section 14 and 40 CFR 703, with limited exceptions provided in the statute. TSCA section 14(b) limits confidentiality protections for health and safety studies and information from such studies, however, and while EPA considers confidential business information when conducting its review under 40 CFR 702.9(a), the Agency encourages submitters to minimize claims for protection from disclosure wherever possible to maximize transparency in EPA's screening review. More information on asserting and submitting confidential business information claims under TSCA can be found at 40 CFR 703 and 
                    <E T="03">https://www.epa.gov/tsca-cbi.</E>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     15 U.S.C. 2601 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Michal Freedhoff,</NAME>
                    <TITLE>Assistant Administrator, Office of Chemical Safety and Pollution Prevention.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27641 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL RESERVE SYSTEM</AGENCY>
                <DEPDOC>[Docket No. OP-1825]</DEPDOC>
                <SUBJECT>Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Board of Governors of the Federal Reserve System (Board).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Board is providing notice of the 2023 aggregate global indicator amounts, as required under the Board's rule regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The 2023 aggregate global indicator amounts are effective December 18, 2023.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Anna Lee Hewko, Associate Director, (202) 530-6260, Brian Chernoff, Manager, (202) 452-2952, Sarah Dunning, Financial Institution Policy Analyst III, (202) 475-6660, or Alexander Jiron, Senior Financial Institution Policy Analyst I, (202) 450-7350, Division of Supervision and Regulation; or Jay Schwarz, Assistant General Counsel, (202) 452-2970, Mark Buresh, Special Counsel, (202) 452-5270, Jonah Kind, Senior Counsel, (202) 452-2045, or David Imhoff, Senior Attorney (202) 452-2249, Legal Division. Board of Governors of the Federal Reserve System, 20th and C, NW, Washington, DC 20551. For users of Telecommunications Device for the Deaf (TDD) and TTY-TRS, please call 711 from any telephone, anywhere in the United States.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Board's GSIB surcharge rule establishes a methodology to identify global systemically important bank holding companies in the United States (GSIBs) based on indicators that are correlated with systemic importance.
                    <SU>1</SU>
                    <FTREF/>
                     Under the GSIB surcharge rule, a firm must calculate its GSIB score using a specific formula (method 1). Method 1 uses five equally weighted categories that are correlated with systemic importance—size, interconnectedness, cross-jurisdictional activity, substitutability, and complexity—and subdivided into twelve systemic indicators.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                          
                        <E T="03">See</E>
                         12 CFR 217.402, 217.404.
                    </P>
                </FTNT>
                <P>
                    A firm divides its own measure of each systemic indicator by an aggregate global indicator amount. A firm's method 1 score is the sum of its weighted systemic indicator scores expressed in basis points. A firm that calculates a method 1 score of 130 basis points or more is identified as a GSIB under the GSIB surcharge rule. The GSIB surcharge for a firm is the higher of the GSIB surcharge determined under method 1 and a second method, method 2, which is calculated based on measures of size, interconnectedness, cross-jurisdictional activity, complexity, and the firm's reliance on short-term wholesale funding.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Method 2 uses similar inputs to those used in method 1, but replaces the substitutability category with a measure of a firm's use of short-term wholesale funding. In addition, method 2 is calibrated differently from method 1. 
                        <E T="03">See</E>
                         12 CFR 217.405.
                    </P>
                </FTNT>
                <P>
                    The aggregate global indicator amounts used in the score calculation under method 1 are based on data collected by the Basel Committee on Banking Supervision (BCBS). The BCBS amounts are determined based on the sum of the systemic indicator amounts as reported by the 75 largest U.S. and foreign banking organizations as measured by the BCBS, and any other banking organization that the BCBS includes in its sample total for that year. The BCBS publicly releases these amounts, denominated in euros, each year.
                    <SU>3</SU>
                    <FTREF/>
                     Pursuant to the GSIB surcharge rule, the Board publishes the aggregate global indicator amounts each year as denominated in U.S. dollars using the euro-dollar exchange rate provided by the BCBS.
                    <SU>4</SU>
                    <FTREF/>
                     Specifically, to determine the 2023 aggregate global indicator amounts, the Board uses the year-end 2022 euro-denominated indicator 
                    <PRTPAGE P="87427"/>
                    amounts published by the BCBS and multiplies each of the euro-denominated indicator amounts by 1.0666, the euro to U.S. dollar spot exchange rate on December 31, 2022.
                    <SU>5</SU>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The data used by the Board are available on the BCBS website at 
                        <E T="03">https://www.bis.org/bcbs/gsib/denominators.htm.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         12 CFR 217.404(b)(1)(i)(B); 
                        <E T="03">see also</E>
                         80 FR 49082, 49086-87 (August 14, 2015). In addition, the Board maintains the GSIB Framework Denominators on its website, available at 
                        <E T="03">https://www.federalreserve.gov/supervisionreg/basel/denominators.htm.</E>
                    </P>
                </FTNT>
                <P>The aggregate global indicator amounts expressed in U.S. dollars for purposes of the 2023 method 1 score calculation under § 217.404(b)(1)(i)(B) of the GSIB surcharge rule are:</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s50,r100,25">
                    <TTITLE>Aggregate Global Indicator Amounts in U.S. Dollars (USD) for 2023</TTITLE>
                    <BOXHD>
                        <CHED H="1">Category</CHED>
                        <CHED H="1">Systemic indicator</CHED>
                        <CHED H="1">
                            Aggregate global
                            <LI>indicator amount</LI>
                            <LI>(in USD)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Size</ENT>
                        <ENT>Total exposures</ENT>
                        <ENT>109,474,896,520,080</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Interconnectedness</ENT>
                        <ENT>Intra-financial system assets</ENT>
                        <ENT>10,797,704,338,692</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Intra-financial system liabilities</ENT>
                        <ENT>10,984,283,231,717</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Securities outstanding</ENT>
                        <ENT>17,155,484,808,186</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Substitutability</ENT>
                        <ENT>Payments activity</ENT>
                        <ENT>3,319,207,880,734,470</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Assets under custody</ENT>
                        <ENT>207,756,162,356,981</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Underwritten transactions in debt and equity markets</ENT>
                        <ENT>6,968,666,666,539</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Complexity</ENT>
                        <ENT>Notional amount of over-the-counter (OTC) derivatives</ENT>
                        <ENT>651,492,378,031,994</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Trading and available-for-sale (AFS) securities</ENT>
                        <ENT>3,857,352,737,659</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Level 3 assets</ENT>
                        <ENT>724,453,375,901</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Cross-jurisdictional activity</ENT>
                        <ENT>Cross-jurisdictional claims</ENT>
                        <ENT>26,802,729,249,960</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Cross-jurisdictional liabilities</ENT>
                        <ENT>22,471,554,408,190</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Authority:</E>
                    <FTREF/>
                     12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Foreign exchange rates provided by the BCBS. Available at 
                        <E T="03">https://www.bis.org/bcbs/gsib/reporting_instructions.htm.</E>
                    </P>
                </FTNT>
                <SIG>
                    <P>By order of the Board of Governors of the Federal Reserve System, acting through the Director of Supervision and Regulation under delegated authority.</P>
                    <NAME>Ann E. Misback, </NAME>
                    <TITLE>Secretary of the Board.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27671 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company</SUBJECT>
                <P>The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).</P>
                <P>
                    The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board's Freedom of Information Office at 
                    <E T="03">https://www.federalreserve.gov/foia/request.htm.</E>
                     Interested persons may express their views in writing on the standards enumerated in paragraph 7 of the Act.
                </P>
                <P>Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001, not later than January 2, 2024.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of Atlanta</E>
                     (Erien O. Terry, Assistant Vice President) 1000 Peachtree Street NE, Atlanta, Georgia 30309; Comments can also be sent electronically to 
                    <E T="03">Applications.Comments@atl.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">Stilwell Activist Investments, L.P., Stilwell Activist Fund, L.P., and Stilwell Value Partners VII, L.P., together known as The Stilwell Group; Stilwell Value LLC, the general partner of each of the limited partnerships, all of New York, New York; and Joseph D. Stilwell, San Juan, Puerto Rico, as managing member of Stilwell Value LLC;</E>
                     as a group acting in concert, to acquire voting shares of Peoples Financial Corporation, and thereby indirectly acquire voting shares of The Peoples Bank, Biloxi, Mississippi, both of Biloxi, Mississippi.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Michele Taylor Fennell,</NAME>
                    <TITLE>Deputy Associate Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27666 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <AGENCY TYPE="O">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <AGENCY TYPE="O">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[OMB Control No. 9000-0013; Docket No. 2023-0053; Sequence No. 11]</DEPDOC>
                <SUBJECT>Information Collection; Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In accordance with the Paperwork Reduction Act of 1995, and the Office of Management and Budget (OMB) regulations, DoD, GSA, and NASA invite the public to comment on an extension concerning certified cost or pricing data and data other than certified cost or pricing data. DoD, GSA, and NASA invite comments on: whether the proposed collection of information is necessary for the proper performance of the functions of Federal Government acquisitions, including whether the information will have practical utility; the accuracy of the estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including the use of automated collection techniques or other forms of information technology. OMB has approved this information collection for use through March 31, 
                        <PRTPAGE P="87428"/>
                        2024. DoD, GSA, and NASA propose that OMB extend its approval for use for three additional years beyond the current expiration date.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>DoD, GSA, and NASA will consider all comments received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        DoD, GSA, and NASA invite interested persons to submit comments on this collection through 
                        <E T="03">https://www.regulations.gov</E>
                         and follow the instructions on the site. This website provides the ability to type short comments directly into the comment field or attach a file for lengthier comments. If there are difficulties submitting comments, contact the GSA Regulatory Secretariat Division at 202-501-4755 or 
                        <E T="03">GSARegSec@gsa.gov.</E>
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All items submitted must cite OMB Control No. 9000-0013, Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data. Comments received generally will be posted without change to 
                        <E T="03">https://www.regulations.gov,</E>
                         including any personal and/or business confidential information provided. To confirm receipt of your comment(s), please check 
                        <E T="03">www.regulations.gov,</E>
                         approximately two-to-three days after submission to verify posting.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Zenaida Delgado, Procurement Analyst, at telephone 202-969-7207, or 
                        <E T="03">zenaida.delgado@gsa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">A. OMB Control Number, Title, and Any Associated Form(s)</HD>
                <P>OMB Control No. 9000-0013, Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.</P>
                <HD SOURCE="HD1">B. Need and Uses</HD>
                <P>The Truth in Negotiations Act, 10 U.S.C. chapter 271 and 41 U.S.C. chapter 35, requires the Government to obtain certified cost or pricing data from contractors prior to the award of certain contract actions. Contractors may be exempt from this requirement under certain conditions. This clearance covers the information that offerors or contractors must submit to comply with the following FAR requirements:</P>
                <P>• FAR 52.214-28, Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding. When contracting by sealed bidding, this clause requires contractors to require subcontractors to submit certified cost or pricing data for a modification involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4(a)(1).</P>
                <P>• FAR 52.215-12, Subcontractor Certified Cost or Pricing Data. When contracting by negotiation, this clause requires contractors to require subcontractors to submit certified cost or pricing data.</P>
                <P>• FAR 52.215-13, Subcontractor Certified Cost or Pricing Data—Modifications. When contracting by negotiation, this clause requires contractors to require subcontractors to submit certified cost or pricing data for a modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4(a)(1).</P>
                <P>• FAR 52.215-20, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data. When contracting by negotiation, this provision requires offerors, if not granted an exception, to prepare and submit certified cost or pricing data, data other than certified cost or pricing data, and supporting attachments in accordance with the instructions contained in Table 15-2 of FAR 15.408, unless the contracting officer and the contractor agree to a different format.</P>
                <P>• FAR 52.215-21, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications. When contracting by negotiation, this clause requires contractors, if not granted an exception, to submit, for a modification or price adjustment expected to exceed the threshold set forth at FAR 15.403-4(a)(1), certified cost or pricing data, data other than certified cost or pricing data, and supporting attachments in accordance with the instructions contained in Table 15-2 of FAR 15.408, unless the contracting officer and the contractor agree to a different format.</P>
                <P>Certified cost or pricing data is used by agencies to assure that contract prices and any subsequent contract modifications are fair and reasonable.</P>
                <HD SOURCE="HD1">C. Annual Burden</HD>
                <P>
                    <E T="03">Respondents:</E>
                     17,704.
                </P>
                <P>
                    <E T="03">Total Annual Responses:</E>
                     53,966.
                </P>
                <P>
                    <E T="03">Total Burden Hours:</E>
                     2,878,033.
                </P>
                <P>
                    <E T="03">Obtaining Copies:</E>
                     Requesters may obtain a copy of the information collection documents from the GSA Regulatory Secretariat Division, by calling 202-501-4755 or emailing 
                    <E T="03">GSARegSec@gsa.gov.</E>
                     Please cite OMB Control No. 9000-0013, Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.
                </P>
                <SIG>
                    <NAME>Janet Fry,</NAME>
                    <TITLE>Director,Federal Acquisition Policy Division,Office of Governmentwide Acquisition Policy,Office of Acquisition Policy,Office of Governmentwide Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27768 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-EP-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Advisory Board on Radiation and Worker Health, National Institute for Occupational Safety and Health</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with regulatory provisions, the Centers for Disease Control and Prevention (CDC) announces a meeting of the Advisory Board on Radiation and Worker Health (ABRWH or the Advisory Board). This meeting is open to the public, but without a public comment period. The public is welcome to submit written comments in advance of the meeting, to the contact person below. Written comments received in advance of the meeting will be included in the official record of the meeting. The public is also welcomed to listen to the meeting by joining the teleconference (information below). The audio conference line has 150 ports for callers.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held on February 14, 2024, from 11 a.m. to 1 p.m., EST. Written comments must be received on or before February 7, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by mail to: Rashaun Roberts, National Institute for Occupational Safety and Health, 1090 Tusculum Avenue, MS C-24, Cincinnati, Ohio 45226.</P>
                    <P>
                        <E T="03">Meeting Information:</E>
                         Audio Conference Call via FTS Conferencing. The USA toll-free dial-in number is 1-866-659-0537; the pass code is 9933701.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rashaun Roberts, Ph.D., Designated Federal Officer, National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention, 1090 Tusculum Avenue, Mailstop C-24, Cincinnati, Ohio 45226, Telephone (513) 533-6800, Toll Free 1(800) CDC-INFO, Email 
                        <E T="03">ocas@cdc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    <PRTPAGE P="87429"/>
                </P>
                <P>
                    <E T="03">Background:</E>
                     The Advisory Board was established under the Energy Employees Occupational Illness Compensation Program Act of 2000 to advise the President on a variety of policy and technical functions required to implement and effectively manage the new compensation program. Key functions of the Advisory Board include providing advice on the development of probability of causation guidelines which have been promulgated by the Department of Health and Human Services (HHS) as a final rule, advice on methods of dose reconstruction which have also been promulgated by HHS as a final rule, advice on the scientific validity and quality of dose estimation and reconstruction efforts being performed for purposes of the compensation program, and advice on petitions to add classes of workers to the Special Exposure Cohort (SEC). In December 2000, the President delegated responsibility for funding, staffing, and operating the Advisory Board to HHS, which subsequently delegated this authority to the Centers for Disease Control and Prevention (CDC). The National Institute for Occupational Safety and Health implements this responsibility for CDC.
                </P>
                <P>The charter was issued on August 3, 2001, renewed at appropriate intervals, and rechartered under Executive Order 13889 on March 22, 2022, and will terminate on March 22, 2024.</P>
                <P>
                    <E T="03">Purpose:</E>
                     This Advisory Board is charged with a) providing advice to the Secretary, HHS, on the development of guidelines under Executive Order 13179; b) providing advice to the Secretary, HHS, on the scientific validity and quality of dose reconstruction efforts performed for this program; and c) upon request by the Secretary, HHS, advising the Secretary on whether there is a class of employees at any Department of Energy facility who were exposed to radiation but for whom it is not feasible to estimate their radiation dose, and on whether there is reasonable likelihood that such radiation doses may have endangered the health of members of this class.
                </P>
                <P>
                    <E T="03">Matters To Be Considered:</E>
                     The agenda will include discussions on the following: Update on Cybersecurity Modernization Initiative; Work Group and Subcommittee Reports; Update on the Status of SEC Petitions; and plans for the April 2024 Advisory Board Meeting. Agenda items are subject to change as priorities dictate.
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27716 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Medicare &amp; Medicaid Services</SUBAGY>
                <DEPDOC>[Document Identifiers: CMS-10174]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Medicare &amp; Medicaid Services, Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Centers for Medicare &amp; Medicaid Services (CMS) is announcing an opportunity for the public to comment on CMS' intention to collect information from the public. Under the Paperwork Reduction Act of 1995 (PRA), federal agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information (including each proposed extension or reinstatement of an existing collection of information) and to allow 60 days for public comment on the proposed action. Interested persons are invited to send comments regarding our burden estimates or any other aspect of this collection of information, including the necessity and utility of the proposed information collection for the proper performance of the agency's functions, the accuracy of the estimated burden, ways to enhance the quality, utility, and clarity of the information to be collected, and the use of automated collection techniques or other forms of information technology to minimize the information collection burden.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>When commenting, please reference the document identifier or OMB control number. To be assured consideration, comments and recommendations must be submitted in any one of the following ways:</P>
                    <P>
                        1. 
                        <E T="03">Electronically.</E>
                         You may send your comments electronically to 
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions for “Comment or Submission” or “More Search Options” to find the information collection document(s) that are accepting comments.
                    </P>
                    <P>
                        2. 
                        <E T="03">By regular mail.</E>
                         You may mail written comments to the following address: CMS, Office of Strategic Operations and Regulatory Affairs, Division of Regulations Development, Attention: Document Identifier/OMB Control Number: __, Room C4-26-05, 7500 Security Boulevard, Baltimore, Maryland 21244-1850.
                    </P>
                    <P>
                        To obtain copies of a supporting statement and any related forms for the proposed collection(s) summarized in this notice, please access the CMS PRA website by copying and pasting the following web address into your web browser: 
                        <E T="03">https://www.cms.gov/Regulations-and-Guidance/Legislation/PaperworkReductionActof1995/PRA-Listing.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>William N. Parham at (410) 786-4669.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Contents</HD>
                <P>
                    This notice sets out a summary of the use and burden associated with the following information collections. More detailed information can be found in each collection's supporting statement and associated materials (see 
                    <E T="02">ADDRESSES</E>
                    ).
                </P>
                <FP SOURCE="FP-1">CMS-10174 Collection of Prescription Drug Data from MA-PD, PDP and Fallout Plans/Sponsors for Medicare Part D Payments</FP>
                <P>
                    Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. The term “collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA requires federal agencies to publish a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     concerning each proposed collection of information, including each proposed extension or reinstatement of an existing collection of information, before submitting the collection to OMB for approval. To comply with this requirement, CMS is publishing this notice.
                </P>
                <HD SOURCE="HD1">Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection Request:</E>
                     Revision with change of a currently approved collection; 
                    <E T="03">
                        Title of 
                        <PRTPAGE P="87430"/>
                        Information Collection:
                    </E>
                     Collection of Prescription Drug Data from MA-PD, PDP and Fallout Plans/Sponsors for Medicare Part D Payments; 
                    <E T="03">Use:</E>
                     The PDE data is used in the Payment Reconciliation System to perform the annual Part D payment reconciliation, any PDE data within the Coverage Gap Phase of the Part D benefit is used for invoicing in the CGDP, and the data are part of the report provided to the Secretary of the Treasury for Section 9008.
                </P>
                <P>Sections 11001 through 11004 of the Inflation Reduction Act of 2022 establish a Medicare Drug Negotiation Program for high-expenditure drugs. Section 11102 of the Inflation Reduction Act of 2022 establishes a Part D inflation rebate by manufacturers of certain single source drugs and biologicals with prices increasing at a rate faster than the rate of inflation. CMS will use data reported under sections 1860D-15(c)(1)(C) and (d)(2), in part, to rank drugs by total expenditures under Part D in order to select drugs for negotiation and to identify units to calculate inflation rebates.</P>
                <P>
                    The information users will be pharmacy benefit managers (PBMs), third party administrators and pharmacies, and the PDPs, MA-PDs, Fallbacks, and other plans that offer coverage of outpatient prescription drugs under the Medicare Part D benefit to Medicare beneficiaries. The statutorily required data is used primarily for payment and is used for claim validation as well as for other legislated functions such as quality monitoring, program integrity and oversight. In addition, the PDE data are used to support operations and program development. 
                    <E T="03">Form Number:</E>
                     CMS-10174 (OMB control number: 0938-0982); 
                    <E T="03">Frequency:</E>
                     Monthly; 
                    <E T="03">Affected Public:</E>
                     Private sector and Federal Government; 
                    <E T="03">Number of Respondents:</E>
                     856; 
                    <E T="03">Total Annual Responses:</E>
                     1,499,064,780; 
                    <E T="03">Total Annual Hours:</E>
                     62,918. (For policy questions regarding this collection contact Shelly Winston at 410-786-3694.)
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>William N. Parham, III</NAME>
                    <TITLE>Director, Paperwork Reduction Staff, Office of Strategic Operations and Regulatory Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27684 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4120-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <SUBJECT>Submission for Office of Management and Budget Review; Temporary Assistance for Needy Families Expenditure Report, Form ACF-196R</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Family Assistance, Administration for Children and Families, United States Department of Health and Human Services.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for public comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Administration for Children and Families (ACF) Office of Family Assistance (OFA) is requesting a 3-year extension of the Temporary Assistance for Needy Families (TANF) Expenditure Report, Form ACF-196R (Office of Management and Budget (OMB) #0970-0446 expires February 29, 2024). ACF is proposing minor updates to the form to update references to lapsed timeframes, add demonstrative tables that aid in a recipient's comprehension of reporting requirements, incorporate minor edits to the instructions, and to adjust formatting to improve presentation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments due within 30 days of publication.</E>
                         OMB must make a decision about the collection of information between 30 and 60 days after publication of this document in the 
                        <E T="04">Federal Register</E>
                        . Therefore, a comment is best assured of having its full effect if OMB receives it within 30 days of publication.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. You can also obtain copies of the proposed collection of information by emailing 
                        <E T="03">infocollection@acf.hhs.gov.</E>
                         Identify all emailed requests by the title of the information collection.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Description:</E>
                     Form ACF-196R is used by states administering the TANF program to report quarterly expenditure data and to request quarterly grant funds. Failure to collect the data would seriously compromise OFA's and ACF's ability to monitor TANF expenditures and compliance with statutory requirements. These data are also needed to estimate outlays and to prepare reports and budget submissions for Congress.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     State agencies administering the TANF program (50 States and the District of Columbia).
                </P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12C,12C,12C,12C">
                    <TTITLE>Annual Burden Estimates</TTITLE>
                    <BOXHD>
                        <CHED H="1">Instrument</CHED>
                        <CHED H="1">
                            Total number
                            <LI>of respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden hours</LI>
                            <LI>per response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>burden hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Form ACF-196R</ENT>
                        <ENT>51</ENT>
                        <ENT>4</ENT>
                        <ENT>14</ENT>
                        <ENT>2,856</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Authority:</E>
                     Social Security Act, Section 409; 45 CFR 265.3-265.9.
                </P>
                <SIG>
                    <NAME>Mary B. Jones,</NAME>
                    <TITLE>ACF/OPRE Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27756 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-36-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87431"/>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2023-N-0795]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; A Survey on Quantitative Claims in Direct-to-Consumer Prescription Drug Advertising</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Food and Drug Administration (FDA) is announcing that a proposed collection of information has been submitted to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit written comments (including recommendations) on the collection of information by January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To ensure that comments on the information collection are received, OMB recommends that written comments be submitted to 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under Review—Open for Public Comments” or by using the search function. The title of this information collection is “A Survey on Quantitative Claims in Direct-to-Consumer Prescription Drug Advertising.” Also include the FDA docket number found in brackets in the heading of this document.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        JonnaLynn Capezzuto, Office of Operations, Food and Drug Administration, Three White Flint North, 10A-12M, 11601 Landsdown St., North Bethesda, MD 20852, 301-796-3794, 
                        <E T="03">PRAStaff@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In compliance with 44 U.S.C. 3507, FDA has submitted the following proposed collection of information to OMB for review and clearance.</P>
                <HD SOURCE="HD1">A Survey on Quantitative Claims in Direct-to-Consumer Prescription Drug Advertising</HD>
                <HD SOURCE="HD2">OMB Control Number 0910-NEW</HD>
                <P>Section 1701(a)(4) of the Public Health Service Act (42 U.S.C. 300u(a)(4)) authorizes FDA to conduct research relating to health information. Section 1003(d)(2)(C) of the Federal Food, Drug, and Cosmetic Act (FD&amp;C Act) (21 U.S.C. 393(d)(2)(C)) authorizes FDA to conduct research relating to drugs and other FDA-regulated products in carrying out the provisions of the FD&amp;C Act.</P>
                <P>The mission of the Office of Prescription Drug Promotion (OPDP) is to protect the public health by helping to ensure that prescription drug promotion is truthful, balanced, and accurately communicated so that patients and healthcare providers can make informed decisions about treatment options. OPDP's research program provides scientific evidence to help ensure that our policies related to prescription drug promotion will have the greatest benefit to public health. Toward that end, we have consistently conducted research to evaluate the aspects of prescription drug promotion that are most central to our mission, focusing in particular on three main topic areas: advertising features, including content and format; target populations; and research quality. Through the evaluation of advertising features, we assess how elements such as graphics, format, and the characteristics of the disease and product impact the communication and understanding of prescription drug risks and benefits. Focusing on target populations allows us to evaluate how understanding of prescription drug risks and benefits may vary as a function of audience. Our focus on research quality aims at maximizing the quality of our research data through analytical methodology development and investigation of sampling and response issues. This study will inform the first topic area, advertising features.</P>
                <P>
                    Because we recognize that the strength of data and the confidence in the robust nature of the findings are improved through the results of multiple converging studies, we continue to develop evidence to inform our thinking. We evaluate the results from our studies within the broader context of research and findings from other sources, and this larger body of knowledge collectively informs our policies as well as our research program. Our research is documented on our homepage at 
                    <E T="03">https://www.fda.gov/about-fda/center-drug-evaluation-and-research-cder/office-prescription-drug-promotion-opdp-research,</E>
                     which includes links to the latest 
                    <E T="04">Federal Register</E>
                     notices and peer-reviewed publications produced by our office.
                </P>
                <P>
                    Direct-to-consumer (DTC) prescription drug advertising may make quantitative claims about the drug's efficacy or risks (Ref. 1). Although there is research and FDA guidance (“Presenting Quantitative Efficacy and Risk Information in Direct-to-Consumer Promotional Labeling and Advertisements,” available at 
                    <E T="03">https://www.fda.gov/media/169803/download</E>
                    ) that provides general guidelines for how to present quantitative information, it is not fully understood how consumers will interpret specific quantitative claims. We conducted a literature review and found that while some types of quantitative information are well-studied (
                    <E T="03">e.g.,</E>
                     relative frequencies), many questions remain on how best to communicate certain quantitative information about prescription drugs. For example, we do not have sufficient information about how consumers interpret different claims describing medians (
                    <E T="03">e.g.,</E>
                     “People treated with Drug X lived for a median of 8 months” alone or in combination with a definition such as “In people receiving Drug X, this means that about half lived more than 8 months and about half lived less than 8 months” or “A median is the middle number in a group of numbers ordered from smallest to largest”). This study aims to survey U.S. adults about their interpretation of specific quantitative claims.
                </P>
                <P>We plan to use an address-based, mixed-mode methodology that will direct one randomly chosen member of sampled households to complete a 20-minute online survey, with nonrespondents receiving a paper questionnaire. The sample will be representative of the U.S. population. A sample of U.S. households will be drawn from the U.S. Postal Service Computerized Delivery Sequence File. Adults aged 18 or over will be eligible for participation. Up to four contacts (mailings) will be sent to respondents by U.S. mail. The contacts will include the URL for the online survey and a unique survey login. This unique survey login will be used to track completed surveys without the use of personally identifying information. The contact method, based on recent recommendations (Ref. 2), includes a prenotification letter (week 1), a web survey invitation letter (soft launch in week 2, full launch in week 3), a reminder postcard sent to nonresponders (week 5), and a final mailing with the paper version of the survey sent to nonresponders (Week 7). We estimate a 40-percent response rate, based on recent experience with similar surveys. We estimate 1,100 respondents will complete the main study (see table 1).</P>
                <P>
                    Based on previous research (Refs. 3, 4, and 5), we plan to include a small prepaid incentive in the second mailing sent to the sampled addresses as a gesture to encourage response and maintain data quality. We expect that 
                    <PRTPAGE P="87432"/>
                    approximately 5 percent of the sampled addresses will be postal non-deliverable returned letters from the first mailing (prenotification letter), so the second mailing is estimated to go out to the remaining addresses. We also will conduct an experiment to assess the efficacy of using a promised post-paid incentive. Seventy-five percent of the sample will be sent the promised incentive upon completion of the survey, and the remaining 25 percent of the sample will not be notified of or provided with any promised incentive. We opted to split the sample 75-25 rather than 50-50 because the initial evidence shows the benefits of including a promised incentive (Refs. 4, 6, and 7), and we aimed to maximize response rates.
                </P>
                <P>
                    The survey contains questions about respondents' perceptions and understanding of several quantitative claims drawn from DTC ads in the marketplace. We will also measure other potentially important variables, such as demographics and numeracy. The survey questions will be informed by consumer feedback elicited in one-on-one interviews (approved under OMB Control No. 0910-0847). The survey is available upon request from 
                    <E T="03">DTCResearch@fda.hhs.gov.</E>
                </P>
                <P>
                    We will test whether any variables differed between modes (online versus mail survey) and will account for any mode effects in our analyses. We will examine the descriptive statistics for the survey items (
                    <E T="03">e.g.,</E>
                     frequencies and percentages) and explore the relationship between the survey items and demographic and health characteristics. We will weigh the data to account for different probability of selection and nonresponse.
                </P>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of April 25, 2023 (88 FR 24997), FDA published a 60-day notice requesting public comment on the proposed collection of information. FDA received two submissions that were Paperwork Reduction Act (PRA) related. Within the submissions, FDA received multiple comments that the Agency has addressed in this notice. For brevity, some public comments are paraphrased and, therefore, may not state the exact language used by the commenter. All comments were considered even if not fully captured by our paraphrasing in this document. Comments and responses are numbered here for organizational purposes only.
                </P>
                <P>(Comment 1) One comment suggested testing claims that are addressed by the guidance for industry entitled “Medical Product Communications That Are Consistent With the FDA-Required Labeling—Questions and Answers.”</P>
                <P>(Response 1) The focus of this study is not to test such claims. In addition, because these drugs are fictional, there is no label with which to compare the claims, which means that the guidance is not an applicable concept in this study. These study results could apply to any quantitative claims similar to those we will test.</P>
                <P>(Comment 2) One comment suggested recruiting a sufficient number of individuals with a health condition or their caregivers because they may be more familiar with the quantitative information in the claims than the general population would be.</P>
                <P>
                    (Response 2) Our intent is to conduct a nationally representative sample to get a broad sense of how the public interprets quantitative claims that appear in prescription drug ads across drug classes. Moreover, the claims we are testing refer to several medical conditions (
                    <E T="03">i.e.,</E>
                     colon cancer, arthritis, seizures, migraine, lung cancer, heart attack or stroke, eczema), which makes it impractical to recruit a sufficient number of patients and caregivers for each medical condition. However, in response to this comment, we have added an item to the survey to assess whether participants have these conditions or have cared for someone with these conditions. This will allow us to explore associations between survey responses and experiences with the medical conditions.
                </P>
                <P>(Comment 3) One comment recommended determining participants' comprehension of information regarding relative risk, absolute risk, relative benefit, and absolute benefit.</P>
                <P>
                    (Response 3) There is a body of research on many of these topics; see, for example, the references section in the guidance for industry entitled “Presenting Quantitative Efficacy and Risk Information in Direct-to-Consumer (DTC) Promotional Labeling and Advertisements,” available at 
                    <E T="03">https://www.fda.gov/media/169803/download.</E>
                     In this survey, we will examine participants' interpretations of relative benefit.
                </P>
                <P>(Comment 4) One comment requested information on the number of and demographic diversity of the one-on-one interviews.</P>
                <P>
                    (Response 4) Since the 60-day 
                    <E T="04">Federal Register</E>
                     notice was published, we conducted 24 interviews (approved under OMB Control No. 0910-0847). We recruited with demographic diversity in mind. Half (50 percent) of the participants had some college or more education, and half (50 percent) had less education. Overall, 58 percent of the participants were women, 29 percent were non-Hispanic White, 29 percent were non-Hispanic Black, and 25 percent were Hispanic. We also recruited participants of different ages: 42 percent were between the ages of 18 and 39, 29 percent were between the ages of 40 and 59, and 29 percent were 60 and older.
                </P>
                <P>FDA estimates the burden of this collection of information as follows:</P>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,12,xs72,12">
                    <TTITLE>
                        Table 1—Estimated Annual Reporting Burden 
                        <SU>1</SU>
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">Activity</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">Total annual responses</CHED>
                        <CHED H="1">Average burden per response</CHED>
                        <CHED H="1">Total hours</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Read prenotification letter</ENT>
                        <ENT>2,993</ENT>
                        <ENT>1</ENT>
                        <ENT>2,993</ENT>
                        <ENT>0.08 (5 min.)</ENT>
                        <ENT>239</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Read web survey invitation letter 
                            <SU>2</SU>
                        </ENT>
                        <ENT>2,843</ENT>
                        <ENT>1</ENT>
                        <ENT>2,843</ENT>
                        <ENT>0.08 (5 min.)</ENT>
                        <ENT>227</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Read reminder postcard</ENT>
                        <ENT>2,585</ENT>
                        <ENT>1</ENT>
                        <ENT>2,585</ENT>
                        <ENT>0.03 (2 min.)</ENT>
                        <ENT>78</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Respond to survey (web and paper)</ENT>
                        <ENT>1,100</ENT>
                        <ENT>1</ENT>
                        <ENT>1,100</ENT>
                        <ENT>0.33 (20 min.)</ENT>
                        <ENT>363</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>907</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         There are no capital costs or operating and maintenance costs associated with this collection of information.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         The numbers assume around 5 percent postal non-deliverables from the prenotification letter and estimates nonrespondents for the subsequent mailings.
                    </TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">References</HD>
                <P>
                    The following references marked with an asterisk (*) are on display at the Dockets Management Staff, (see 
                    <E T="02">ADDRESSES</E>
                    ) and are available for viewing by interested persons between 9 a.m. and 4 p.m., Monday through Friday; they also are available electronically at 
                    <E T="03">
                        https://
                        <PRTPAGE P="87433"/>
                        www.regulations.gov.
                    </E>
                     References without asterisks are not on public display at 
                    <E T="03">https://www.regulations.gov</E>
                     because they have copyright restriction. Some may be available at the website address, if listed. References without asterisks are available for viewing only at the Dockets Management Staff. Although FDA verified the website addresses in this document, please note that websites are subject to change over time.
                </P>
                <EXTRACT>
                    <FP SOURCE="FP-2">
                        *1. Sullivan, H.W., K.J. Aikin, and L.B. Squiers, “Quantitative Information on Oncology Prescription Drug websites,” 
                        <E T="03">Journal of Cancer Education,</E>
                         vol. 33, Issue 2, pp. 371-374, 2018. (
                        <E T="03">https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5334459</E>
                        )
                    </FP>
                    <FP SOURCE="FP-2">
                        2. Dillman, D.A., J.D. Smyth, and L.M. Christian, 
                        <E T="03">internet, Phone, Mail, and Mixed-Mode Surveys: The Tailored Design Method, 4th ed.,</E>
                         John Wiley &amp; Sons, Inc.: Hoboken, NJ, 2014.
                    </FP>
                    <FP SOURCE="FP-2">
                        *3. Cheung, Y.T.D., X. Weng, M.P. Wang, et al., “Effect of Prepaid and Promised Financial Incentive on Follow-Up Survey Response in Cigarette Smokers: A Randomized Controlled Trial,” 
                        <E T="03">BMC Medical Research Methodology,</E>
                         vol. 19, Article 138, 2019. (
                        <E T="03">https://link.springer.com/article/10.1186/s12874-019-0786-9</E>
                        )
                    </FP>
                    <FP SOURCE="FP-2">
                        4. Mercer, A., A. Caporaso, D. Cantor, et al., “How Much Gets You How Much? Monetary Incentives and Response Rates in Household Surveys,” 
                        <E T="03">Public Opinion Quarterly,</E>
                         vol. 79, pp. 105-129, 2015.
                    </FP>
                    <FP SOURCE="FP-2">
                        5. Sun, H., J. Newsome, J. McNulty, et al., “What Works, What Doesn't? Three Studies Designed to Improve Survey Response,” 
                        <E T="03">Field Methods,</E>
                         vol. 32, Issue 3, pp. 235-252, 2020. (
                        <E T="03">https://doi.org/10.1177/1525822X20915464</E>
                        )
                    </FP>
                    <FP SOURCE="FP-2">
                        6. Ellis, J., J. Charbonnier, C. Lowenstein, et al., “Assessing the Impacts of Different Incentives and Use of Postal Mail on Response Rates,” 
                        <E T="03">American Association for Public Opinion Research (AAPOR) Conference,</E>
                         Chicago, IL, 2022, May.
                    </FP>
                    <FP SOURCE="FP-2">
                        *7. Yu, S., H.E. Alper, A.M. Nguyen, et al., “The Effectiveness of a Monetary Incentive Offer on Survey Response Rates and Response Completeness in a Longitudinal Study,” 
                        <E T="03">BMC Medical Research Methodology,</E>
                         vol. 17, Article 77, 2017. (
                        <E T="03">https://bmcmedresmethodol.biomedcentral.com/articles/10.1186/s12874-017-0353-1</E>
                        )
                    </FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27652 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2023-N-5323]</DEPDOC>
                <SUBJECT>Hoffmann-La Roche, Inc., et al.; Withdrawal of Approval of Two New Drug Applications</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Food and Drug Administration (FDA or the Agency) is withdrawing approval of two new drug applications (NDAs) from multiple applicants. The applicants notified the Agency in writing that the drug products were no longer marketed and requested that the approval of the applications be withdrawn.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Approval is withdrawn as of January 17, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Kimberly Lehrfeld, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 51, Rm. 6226, Silver Spring, MD 20993-0002, 301-796-3137, 
                        <E T="03">Kimberly.Lehrfeld@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The applicants listed in the table have informed FDA that these drug products are no longer marketed and have requested that FDA withdraw approval of the applications under the process in § 314.150(c) (21 CFR 314.150(c)). The applicants have also, by their requests, waived their opportunity for a hearing. Withdrawal of approval of an application under § 314.150(c) is without prejudice to refiling.</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="xs60,r100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Application No.</CHED>
                        <CHED H="1">Drug</CHED>
                        <CHED H="1">Applicant</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">NDA 021455</ENT>
                        <ENT>Boniva (ibandronate sodium) Tablets, equivalent to (EQ) 2.5 milligrams (mg) base and EQ 150 mg base</ENT>
                        <ENT>Hoffmann-La Roche, Inc. c/o Genentech, Inc., 1 DNA Way, South San Francisco, CA 94080-4990.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NDA 022424</ENT>
                        <ENT>Flowtuss (guaifenesin 200 mg/5 milliliters (mL) and hydrocodone bitartrate 2.5 mg/5 mL) Oral Solution</ENT>
                        <ENT>Chartwell RX Sciences, LLC, 77 Brenner Dr., Congers, NY 10920.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Therefore, approval of the applications listed in the table, and all amendments and supplements thereto, is hereby withdrawn as of January 17, 2024. Approval of each entire application is withdrawn, including any strengths and dosage forms inadvertently missing from the table. Introduction or delivery for introduction into interstate commerce of products listed in the table without an approved NDA violates sections 505(a) and 301(d) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(a) and 331(d)). Drug products that are listed in the table that are in inventory on January 17, 2024 may continue to be dispensed until the inventories have been depleted or the drug products have reached their expiration dates or otherwise become violative, whichever occurs first.</P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27661 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2023-D-3740]</DEPDOC>
                <SUBJECT>Priority Zoonotic Animal Drug Designation and Review Process; Draft Guidance for Industry; Availability</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Food and Drug Administration (FDA or Agency) is announcing the availability of a draft guidance for industry (GFI) #283 entitled “Priority Zoonotic Animal Drug Designation and Review Process.” This draft guidance is intended to assist sponsors pursuing priority zoonotic animal drug (PZAD) designation for a new animal drug. This draft guidance is intended to provide the eligibility criteria for PZAD designation, the process for requesting PZAD designation, and enhancements in the FDA review process for PZADs.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit either electronic or written comments on the draft guidance by February 16, 2024 to ensure that the Agency considers your comment on this draft guidance before it begins work on the final version of the guidance.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit comments on any guidance at any time as follows:
                        <PRTPAGE P="87434"/>
                    </P>
                </ADD>
                <HD SOURCE="HD2">Electronic Submissions</HD>
                <P>Submit electronic comments in the following way:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                     Follow the instructions for submitting comments. Comments submitted electronically, including attachments, to 
                    <E T="03">https://www.regulations.gov</E>
                     will be posted to the docket unchanged. Because your comment will be made public, you are solely responsible for ensuring that your comment does not include any confidential information that you or a third party may not wish to be posted, such as medical information, your or anyone else's Social Security number, or confidential business information, such as a manufacturing process. Please note that if you include your name, contact information, or other information that identifies you in the body of your comments, that information will be posted on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).</P>
                <HD SOURCE="HD2">Written/Paper Submissions</HD>
                <P>Submit written/paper submissions as follows:</P>
                <P>
                    • 
                    <E T="03">Mail/Hand Delivery/Courier (for written/paper submissions):</E>
                     Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
                </P>
                <P>• For written/paper comments submitted to the Dockets Management Staff, FDA will post your comment, as well as any attachments, except for information submitted, marked, and identified, as confidential, if submitted as detailed in “Instructions.”</P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the Docket No. FDA-2023-D-3740 for “Priority Zoonotic Animal Drug Designation and Review Process.” Received comments will be placed in the docket and, except for those submitted as “Confidential Submissions,” publicly viewable at 
                    <E T="03">https://www.regulations.gov</E>
                     or at the Dockets Management Staff between 9 a.m. and 4 p.m., Monday through Friday, 240-402-7500.
                </P>
                <P>
                    • Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.” The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on 
                    <E T="03">https://www.regulations.gov.</E>
                     Submit both copies to the Dockets Management Staff. If you do not wish your name and contact information to be made publicly available, you can provide this information on the cover sheet and not in the body of your comments and you must identify this information as “confidential.” Any information marked as “confidential” will not be disclosed except in accordance with 21 CFR 10.20 and other applicable disclosure law. For more information about FDA's posting of comments to public dockets, see 80 FR 56469, September 18, 2015, or access the information at: 
                    <E T="03">https://www.govinfo.gov/content/pkg/FR-2015-09-18/pdf/2015-23389.pdf.</E>
                </P>
                <P>
                    <E T="03">Docket:</E>
                     For access to the docket to read background documents or the electronic and written/paper comments received, go to 
                    <E T="03">https://www.regulations.gov</E>
                     and insert the docket number, found in brackets in the heading of this document, into the “Search” box and follow the prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852, 240-402-7500.
                </P>
                <P>You may submit comments on any guidance at any time (see 21 CFR 10.115(g)(5)).</P>
                <P>
                    Submit written requests for single copies of the guidance to the Policy and Regulations Staff (HFV-6), Center for Veterinary Medicine, Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855. Send one self-addressed adhesive label to assist that office in processing your requests. See the 
                    <E T="02">SUPPLEMENTARY INFORMATION</E>
                     section for electronic access to the draft guidance document.
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Evgenij Evdokimov, Center for Veterinary Medicine (HFV-108), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 240-402-0712, 
                        <E T="03">evgenij.evdokimov@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>FDA is announcing the availability of draft GFI #283 entitled “Priority Zoonotic Animal Drug Designation and Review Process.” The Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136), signed into law on March 27, 2020, added section 512A “Priority zoonotic animal drugs” to the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360b-1), which provides for the designation of a new animal drug as a PZAD. This legislation is intended to expedite the development and review of certain new animal drugs that have the potential to prevent or treat a zoonotic disease in animals, including a vector-borne disease, that has the potential to cause serious adverse health consequences for, or serious or life-threatening diseases in, humans.</P>
                <P>This draft guidance is intended to assist sponsors pursuing designation of a new animal drug as a PZAD. This draft guidance proposes the eligibility criteria a new animal drug should meet to obtain PZAD designation and describes the process sponsors may use to request such designation. In addition, this draft guidance identifies the enhancements FDA intends to implement to expedite the PZAD review process.</P>
                <P>This level 1 draft guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The draft guidance, when finalized, will represent the current thinking of FDA on “Priority Zoonotic Animal Drug Designation and Review Process.” It does not establish any rights for any person and is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.</P>
                <HD SOURCE="HD1">II. Paperwork Reduction Act of 1995</HD>
                <P>While this guidance contains no collection of information, it does refer to previously approved FDA collections of information. The previously approved collections of information are subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3521). The collections of information in 21 CFR 514 have been approved under OMB control number 0910-0032; 21 CFR 511.1 have been approved under OMB control number 0910-0117.</P>
                <HD SOURCE="HD1">III. Electronic Access</HD>
                <P>
                    Persons with access to the internet may obtain the draft guidance at 
                    <E T="03">https://www.fda.gov/AnimalVeterinary/GuidanceComplianceEnforcement/GuidanceforIndustry/default.htm, https://www.fda.gov/regulatory-information/search-fda-guidance-documents,</E>
                     or 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <SIG>
                    <PRTPAGE P="87435"/>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27655 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2023-N-5344]</DEPDOC>
                <SUBJECT>Pharmacyclics LLC.; Withdrawal of Approval of Indications for Mantle Cell Lymphoma and Marginal Zone Lymphoma for IMBRUVICA (ibrutinib) Capsules and Tablets</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Food and Drug Administration (FDA or Agency) is announcing that it is withdrawing approval of the indications for mantle cell lymphoma (MCL) and marginal zone lymphoma (MZL) for IMBRUVICA (ibrutinib) Capsules and Tablets approved, respectively, under new drug applications (NDAs) 205552 and 210563. These NDAs are held by Pharmacyclics LLC, 1000 Gateway Blvd., South San Francisco, CA 94080 (Pharmacyclics). Pharmacyclics voluntarily requested that the Agency withdraw approval of these indications and waived its opportunity for a hearing.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Approval is withdrawn as of December 18, 2023.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Kimberly Lehrfeld, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 51, Rm. 6226, Silver Spring, MD 20993-0002, 301-796-3137, 
                        <E T="03">Kimberly.Lehrfeld@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On November 13, 2013, FDA approved NDA 205552 for IMBRUVICA (ibrutinib) Capsules for the treatment of adult patients with MCL who have received at least one prior therapy (the MCL indication). On January 18, 2017, FDA approved a prior approval supplement for NDA 205552 for IMBRUVICA (ibrutinib) Capsules for the treatment of adult patients with MZL who require systemic therapy and have received at least one prior anti-CD20-based therapy (the MZL indication). On February 16, 2018, FDA approved NDA 210563 for IMBRUVICA (ibrutinib) Tablets, a new dosage form of IMBRUVICA (ibrutinib), for the MCL and MZL indications. FDA approved the MCL and MZL indications for both products under the Agency's accelerated approval regulations, 21 CFR part 314, subpart H. As a condition of accelerated approval of IMBRUVICA (ibrutinib) Capsules and Tablets for the MCL and MZL indications, the applicant was required to conduct postmarketing trials to verify the clinical benefit of ibrutinib for the MCL and MZL indications.</P>
                <P>On February 8, 2023, FDA met with Pharmacyclics to inform the applicant of the plans to convene the Oncologic Drugs Advisory Committee regarding the accelerated approvals for the MCL and MZL indications because the required postmarketing trials did not verify the clinical benefit of ibrutinib for these indications. On March 21, 2023, FDA met with Pharmacyclics to discuss the applicant's request to voluntarily withdraw approval of the MCL and MZL indications for IMBRUVICA (ibrutinib) Capsules and Tablets. On April 6, 2023, Pharmacyclics submitted a letter requesting withdrawal of the MCL and MZL indications for IMBRUVICA (ibrutinib) Capsules and Tablets pursuant to § 314.150(d) (21 CFR 314.150(d)) and waiving its opportunity for a hearing.</P>
                <P>Therefore, under § 314.150(d), approvals of the MCL and MZL indications for IMBRUVICA (ibrutinib) Capsules and Tablets are withdrawn as of December 18, 2023. Withdrawal of approval of these indications does not affect any other approved indication for IMBRUVICA (ibrutinib) Capsules and Tablets.</P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27662 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Indian Health Service</SUBAGY>
                <SUBJECT>Funding Opportunity for the Community Opioid Intervention Prevention Program</SUBJECT>
                <P>
                    <E T="03">Announcement Type:</E>
                     New.
                </P>
                <P>
                    <E T="03">Funding Announcement Number:</E>
                     HHS-2024-IHS-COIPP-0001.
                </P>
                <P>
                    <E T="03">Assistance Listing (Catalog of Federal Domestic Assistance or CFDA) Number:</E>
                     93.654.
                </P>
                <HD SOURCE="HD1">Key Dates</HD>
                <P>
                    <E T="03">Application Deadline Date:</E>
                     February 7, 2024.
                </P>
                <P>
                    <E T="03">Earliest Anticipated Start Date:</E>
                     April 1, 2024.
                </P>
                <HD SOURCE="HD1">I. Funding Opportunity Description</HD>
                <HD SOURCE="HD2">Statutory Authority</HD>
                <P>
                    The Indian Health Service (IHS), Office of Clinical and Preventive Services, Division of Behavioral Health (DBH) is accepting applications for grants for the Community Opioid Intervention Prevention Program (COIPP). This program is authorized under the Snyder Act, 25 U.S.C. 13, and the Transfer Act, 42 U.S.C. 2001(a). Funding for this program is provided in the Consolidated Appropriations Act, 2023, Public Law 117-328, 136 Stat. 4459, 4808 (2022). The Assistance Listings section of 
                    <E T="03">SAM.gov</E>
                     (
                    <E T="03">https://sam.gov/content/home</E>
                    ) describes this program under 93.654.
                </P>
                <HD SOURCE="HD2">Background</HD>
                <P>
                    The initial opioid prevention program, called the Community Opioid Intervention Pilot Project, was first established in Fiscal Year (FY) 2019, pursuant to Congressional instruction to better combat the opioid epidemic. The goal was to create a pilot program to address the opioid epidemic in Indian Country and award grants that supported the development, documentation, and sharing of locally designed and culturally appropriate prevention, treatment, recovery, and aftercare services for opioid use disorders in the American Indian and Alaska Native (AI/AN) communities. Evidence-based activities are available for reference at 
                    <E T="03">https://www.ihs.gov/asap/coipp/.</E>
                     A total of 35 grants were awarded to Tribal and Urban Indian communities in the pilot phase. Based on evaluation results from the pilot project, this funding opportunity will continue to provide grant support to Tribal and Urban Indian communities to continue efforts to combat the opioid epidemic and develop strategies that align with the Department of Health and Human Services Overdose Prevention Strategy.
                </P>
                <P>
                    The Centers for Disease Control and Prevention (CDC) reported that the AI/AN population had the highest drug overdose death rates in both 2020 and 2021, at rates of 42.5 and 56.6 deaths per 100,000 persons, respectively. The AI/AN population also experienced a 33 percent increase in drug overdose deaths from 2020 through 2021. Overdose deaths among AI/AN have continued to increase over the last 20 years. The CDC reported from 2019 to 2020, overdose death rates increased 39 percent for the non-Hispanic AI/AN population and drug overdose death rates were highest for AI/AN people compared to other racial and ethnic groups.
                    <PRTPAGE P="87436"/>
                </P>
                <P>While the overall AI/AN population is at risk for overdoses, special populations to consider are youth, pregnant persons, young parents, and those experiencing housing insecurity. Over the last two decades, opioid-related overdose mortality among adolescent and young adults has increased dramatically. Low-income women and women of color are at higher risk for barriers to seek appropriate care for substance use disorders during pregnancy. AI/AN women with opioid use disorder (OUD) encounter barriers to accessing services for treatment. Maternal substance misuse can result in neonatal abstinence syndrome, a drug withdrawal process in newborns exposed in utero to drugs. Correct racial classification is an important factor in improving data quality for AI/AN populations and establishing accurate surveillance to help address the disproportionate burden of neonatal abstinence syndrome among AI/AN.</P>
                <P>Housing insecurity takes on many forms, including homelessness, housing cost burden, overcrowding, poor quality housing, and living with persons who use substances. The rate of AI/AN that experience housing insecurity is 45 out of 10,000. Young AI/AN adults are three times more likely to experience homelessness than their non-Native peers and one third of AI/AN adults experienced homelessness.</P>
                <HD SOURCE="HD2">Purpose</HD>
                <P>The purpose of this grant program is to address the opioid crisis in AI/AN communities by doing the following: first, developing and expanding community education and awareness of prevention, treatment, and recovery activities for opioid misuse and opioid use disorder; second, increasing knowledge and use of culturally appropriate interventions and to encourage an increased use of medication-assisted treatment/medications for opioid use disorder (MAT/MOUD); third, supporting Tribal and Urban Indian communities in their effort to provide prevention, treatment, and recovery services to address the impact of the opioid crisis; and fourth, increase harm reduction within their communities.</P>
                <P>Recipients for this funding opportunity are required to address the following four objectives:</P>
                <P>1. Increase public awareness and education about culturally appropriate and family-centered opioid and overdose prevention, treatment, and recovery practices and programs in AI/AN communities.</P>
                <P>2. Create comprehensive support teams to strengthen and empower AI/AN families in addressing the opioid and overdose crisis in Tribal or Urban Indian communities.</P>
                <P>3. Increase access to MAT/MOUD treatment for persons who experience opioid misuse, opioid use disorder, and opioid related overdoses.</P>
                <P>4. Increase harm reduction activities in Tribal and Urban Indian communities.</P>
                <P>In alignment with the agency goals to ensure that comprehensive, culturally appropriate personal and public health services are available and accessible to AI/AN people, the COIPP is designed to provide recipients with the ability to develop unique and innovative community interventions that will address the opioid crisis at a local level. The IHS supports Tribal and Urban Indian efforts that include addressing substance use prevention, treatment, and aftercare from a community-driven context. The IHS encourages applicants to develop and submit a plan that emphasizes cross-system collaboration, the inclusion of family, youth, community resources, and culturally appropriate approaches.</P>
                <P>
                    Recipients are also encouraged to incorporate foundational elements, priorities, and strategies from the National Tribal Behavioral Health Agenda (TBHA) as appropriate. The TBHA was developed by Substance Abuse and Mental Health Services Administration (SAMHSA) in collaboration with Tribes, the Indian Health Service, and the National Indian Health Board. A component of the TBHA is the AI/AN Cultural Wisdom Declaration (CWD), which elevates the importance of Tribal identities, culture, spiritual beliefs, and practices for improving well-being. This grant announcement supports the CWD and inclusion of ancestral cultural knowledge, wisdom, ceremony, and practices of AI/AN Tribes into the grant application. The TBHA can be found at 
                    <E T="03">https://store.samhsa.gov/product/The-National-Tribal-Behavioral-HealthAgenda/PEP16-NTBH-AGENDA.</E>
                </P>
                <HD SOURCE="HD2">Required Activities</HD>
                <P>The focus of this program is to support AI/ANs in their efforts to provide prevention, treatment, aftercare, and recovery services to address the impact of the opioid crisis in Native communities. All COIPP activities should be culturally-based, and family-oriented.</P>
                <P>The IHS is seeking applications that include the following required activities:</P>
                <P>1. Community Awareness and Education:</P>
                <P>a. Recipients shall promote family, youth and community engagement in the planning and implementation of opioid use prevention and harm reduction activities.</P>
                <P>b. Recipients shall design community awareness campaigns and education programs that inform and train community members on how to recognize the signs of opioid misuse and overdose. Educational tool(s) shall be culturally-appropriate and intended to engage families.</P>
                <P>c. Recipients will develop educational resources, such as factsheets using culturally relevant messaging; disseminate materials through community stakeholders and community partners, and identify culturally appropriate ways to implement educational programs in their local communities.</P>
                <P>d. Awareness Campaign should include instructions on the following, among others:</P>
                <P>• How to access local opioid-specific services.</P>
                <P>• How to safeguard controlled prescription medications from children and adolescents.</P>
                <P>• How to dispose properly of unused controlled prescription medications.</P>
                <P>2. Expand access to MAT/MOUD services that include Tribal values, culture and treatments:</P>
                <P>a. Promote family, youth and community engagement in the planning and implementation of opioid use treatment.</P>
                <P>b. Increase number of providers receiving training in MAT/MOUD services that include Tribal values, culture, and treatments.</P>
                <P>c. Increase access to continuing education on MAT/MOUD.</P>
                <P>d. Expand access to integrated MAT/MOUD services for Tribal communities, including TeleMAT.</P>
                <P>e. Increase the availability and utilization of buprenorphine to Tribal communities in both rural and urban settings including increased collaboration with local Emergency Departments to establish buprenorphine bridge programs.</P>
                <P>3. Build a support system for strengthening Native families by implementing culturally-appropriate approaches.</P>
                <P>a. Promote family, youth and community engagement in the planning and implementation of opioid use recovery activities.</P>
                <P>
                    b. Develop a family-focused and culturally-based assessment that captures biopsychosocial needs of AI/ANs.
                    <PRTPAGE P="87437"/>
                </P>
                <P>c. Link assessment needs to support and recovery services.</P>
                <P>d. Collaborate with relevant partners to build a support system for recovery.</P>
                <P>4. Increase harm reduction activities.</P>
                <P>a. Increase awareness and distribution of naloxone as an overdose intervention and teach skills in how to use it.</P>
                <P>b. Increase awareness and distribution of medication lock boxes and teach skills in how to use.</P>
                <P>c. Collaborate with relevant partners to implement harm reduction activities.</P>
                <HD SOURCE="HD1">II. Award Information</HD>
                <HD SOURCE="HD2">Funding Instrument—Grant</HD>
                <HD SOURCE="HD3">Estimated Funds Available</HD>
                <P>The total annual funding identified is approximately $9.5 million. Individual award amounts for the first budget year are anticipated to be between $350,000 and $500,000. The funding available for subsequent budget years issued under this announcement is subject to the availability of appropriations and budgetary priorities of the Agency. The IHS is under no obligation to make awards to applicants selected for funding under this announcement.</P>
                <P>The actual amount available will not be determined until enactment of the FY 24 Fiscal Year federal budget. This program announcement is subject to the appropriation of funds, and is a contingency action taken to ensure that, should funds become available for this purpose, applications can be processed, and funds can be awarded in a timely manner.</P>
                <HD SOURCE="HD3">Anticipated Number of Awards</HD>
                <P>The IHS anticipates issuing up to 27 awards under this program announcement.</P>
                <HD SOURCE="HD3">Period of Performance</HD>
                <P>The period of performance is for 5 years.</P>
                <HD SOURCE="HD1">III. Eligibility Information</HD>
                <HD SOURCE="HD2">1. Eligibility</HD>
                <P>To be eligible for this funding opportunity an applicant must be one of the following, as defined by 25 U.S.C. 1603:</P>
                <P>
                    • A federally recognized Indian Tribe as defined by 25 U.S.C. 1603(14). The term “Indian Tribe” means any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native village or group, or regional or village corporation, as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) [43 U.S.C. 1601 
                    <E T="03">et seq.</E>
                    ], which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
                </P>
                <P>• A Tribal organization as defined by 25 U.S.C. 1603(26). The term “Tribal organization” has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(l)): “Tribal organization” means the recognized governing body of any Indian Tribe; any legally established organization of Indians which is controlled, sanctioned, or chartered by such governing body or which is democratically elected by the adult members of the Indian community to be served by such organization and which includes the maximum participation of Indians in all phases of its activities: provided that, in any case where a contract is let or grant made to an organization to perform services benefiting more than one Indian Tribe, the approval of each such Indian Tribe shall be a prerequisite to the letting or making of such contract or grant. Applicant shall submit letters of support and/or Tribal Resolutions from the Tribes to be served.</P>
                <P>
                    • An Urban Indian Organization (UIO), as defined by 25 U.S.C. 1603(29). The term “Urban Indian Organization” means a nonprofit corporate body situated in an urban center, governed by an Urban Indian controlled board of directors, and providing for the maximum participation of all interested Indian groups and individuals, which body is capable of legally cooperating with other public and private entities for the purpose of performing the activities described in 25 U.S.C. 1653(a). Applicants must provide proof of non-profit status with the application, 
                    <E T="03">e.g.,</E>
                     501(c)(3).
                </P>
                <HD SOURCE="HD2">2. Additional Information on Eligibility</HD>
                <P>The IHS does not fund concurrent projects. If an applicant is successful under this announcement, any subsequent applications in response to other COIPP announcements from the same applicant will not be funded. Applications on behalf of individuals (including sole proprietorships) and foreign organizations are not eligible. Applications deemed ineligible will be disqualified from competitive review and funding under this funding opportunity.</P>
                <NOTE>
                    <HD SOURCE="HED">Note: </HD>
                    <P>Please refer to Section IV.2 (Application and Submission Information/Subsection 2, Content and Form of Application Submission) for additional proof of applicant status documents required, such as Tribal Resolutions, proof of nonprofit status, etc.</P>
                </NOTE>
                <HD SOURCE="HD2">3. Cost Sharing or Matching</HD>
                <P>The IHS does not require matching funds or cost sharing for grants or cooperative agreements.</P>
                <HD SOURCE="HD2">4. Other Requirements</HD>
                <P>Applications with budget requests that exceed the highest dollar amount outlined under Section II Award Information, Estimated Funds Available, or exceed the period of performance outlined under Section II Award Information, Period of Performance, are considered not responsive and will not be reviewed. The DGM will notify the applicant.</P>
                <HD SOURCE="HD3">Additional Required Documentation</HD>
                <HD SOURCE="HD3">Tribal Resolution</HD>
                <P>The DGM must receive an official, signed Tribal Resolution prior to issuing a Notice of Award (NoA) to any Tribe or Tribal organization selected for funding. An applicant that is proposing a project affecting another Indian Tribe must include resolutions from all affected Tribes to be served. However, if an official signed Tribal Resolution cannot be submitted with the application prior to the application deadline date, a draft Tribal Resolution must be submitted with the application by the deadline date in order for the application to be considered complete and eligible for review. The draft Tribal Resolution is not in lieu of the required signed resolution but is acceptable until a signed resolution is received. If an application without a signed Tribal Resolution is selected for funding, the applicant will be contacted by the Grants Management Specialist (GMS) listed in this funding announcement and given 90 days to submit an official signed Tribal Resolution to the GMS. If the signed Tribal Resolution is not received within 90 days, the award will be forfeited.</P>
                <P>Applicants organized with a governing structure other than a Tribal council may submit an equivalent document commensurate with their governing organization. Please include documentation explaining and substantiating this.</P>
                <HD SOURCE="HD3">Proof of Non-Profit Status</HD>
                <P>Organizations claiming non-profit status must submit a current copy of the 501(c)(3) Certificate with the application.</P>
                <HD SOURCE="HD1">IV. Application and Submission Information</HD>
                <P>
                    <E T="03">Grants.gov</E>
                     uses a Workspace model for accepting applications. The Workspace consists of several online forms and three forms in which to 
                    <PRTPAGE P="87438"/>
                    upload documents—Project Narrative, Budget Narrative, and Other Documents. Give your files brief descriptive names. The filenames are key in finding specific documents during the merit review and in processing awards. Upload all requested and optional documents individually, rather than combining them into a single file. Creating a single file creates confusion when trying to find specific documents. Such confusion can contribute to delays in processing awards, and could lead to lower scores during the merit review.
                </P>
                <HD SOURCE="HD2">1. Obtaining Application Materials</HD>
                <P>
                    The application package and detailed instructions for this announcement are available at 
                    <E T="03">https://www.Grants.gov.</E>
                </P>
                <P>
                    Please direct questions regarding the application process to 
                    <E T="03">DGM@ihs.gov.</E>
                </P>
                <HD SOURCE="HD2">2. Content and Form Application Submission</HD>
                <P>Mandatory documents for all applications are listed below. An application is incomplete if any of the listed mandatory documents are missing. Incomplete applications will not be reviewed.</P>
                <P>• Application forms:</P>
                <P>1. SF-424, Application for Federal Assistance.</P>
                <P>2. SF-424A, Budget Information—Non-Construction Programs.</P>
                <P>3. SF-424B, Assurances—Non-Construction Programs.</P>
                <P>4. Project Abstract Summary form.</P>
                <P>• Project Narrative (not to exceed 10 pages). See Section IV.2.A, Project Narrative for instructions.</P>
                <P>• Budget Narrative (not to exceed 4 pages). See Section IV.2.B, Budget Narrative for instructions.</P>
                <P>• One-page Timeframe Chart.</P>
                <P>• Biographical sketches for all Key Personnel.</P>
                <P>• Contractor/Consultant resumes or qualifications and scope of work.</P>
                <P>• Certification Regarding Lobbying (GG-Lobbying Form).</P>
                <P>• Organizational Chart (optional).</P>
                <P>The documents listed here may be required. Please read this list carefully.</P>
                <P>• Tribal Resolution(s) as described in Section III, Eligibility.</P>
                <P>• Letters of Support from organization's Board of Directors.</P>
                <P>• Disclosure of Lobbying Activities (SF-LLL), if applicant conducts reportable lobbying.</P>
                <P>• Copy of current Negotiated Indirect Cost (IDC) rate agreement (required in order to receive IDC).</P>
                <P>• Documentation of current Office of Management and Budget (OMB) Financial Audit (if applicable).</P>
                <P>Acceptable forms of documentation include:</P>
                <P>1. Email confirmation from Federal Audit Clearinghouse (FAC) that audits were submitted; or</P>
                <P>
                    2. Face sheets from audit reports. Applicants can find these on the FAC website at 
                    <E T="03">https://facdissem.census.gov/.</E>
                </P>
                <P>
                    Additional documents can be uploaded as Other Attachments in 
                    <E T="03">Grants.gov</E>
                    . These can include:
                </P>
                <P>• Work plan, logic model, and/or timeline for proposed objectives.</P>
                <P>• Position descriptions for key staff.</P>
                <P>• Resumes of key staff that reflect current duties.</P>
                <P>• Consultant or contractor proposed scope of work and letter of commitment (if applicable).</P>
                <P>• Current Indirect Cost Rate Agreement.</P>
                <P>• Organizational chart.</P>
                <P>• Map of area identifying project location(s).</P>
                <P>
                    • Additional documents to support narrative (
                    <E T="03">i.e.,</E>
                     data tables, key news articles, etc.).
                </P>
                <HD SOURCE="HD3">Public Policy Requirements</HD>
                <P>
                    All Federal public policies apply to IHS grants and cooperative agreements. Pursuant to 45 CFR 80.3(d), an individual shall not be deemed subjected to discrimination by reason of their exclusion from benefits limited by Federal law to individuals eligible for benefits and services from the IHS. See 
                    <E T="03">https://www.hhs.gov/grants/grants/grants-policies-regulations/index.html.</E>
                </P>
                <HD SOURCE="HD3">Requirements for Project and Budget Narratives</HD>
                <HD SOURCE="HD3">A. Project Narrative</HD>
                <P>
                    This narrative should be a separate document that is no more than 10 pages and must: (1) have consecutively numbered pages; (2) use black font 12 points or larger (applicants may use 10 point font for tables); (3) be single-spaced; and (4) be formatted to fit standard letter paper (8
                    <FR>1/2</FR>
                     x 11 inches). Do not combine this document with any others.
                </P>
                <P>Be sure to succinctly answer all questions listed under the evaluation criteria (refer to Section V.1, Evaluation Criteria), and place all responses and required information in the correct section noted below or they will not be considered or scored. If the narrative exceeds the overall page limit, the reviewers will be directed to ignore any content beyond the page limit. The 10-page limit for the project narrative does not include the work plan, standard forms, Tribal Resolutions, budget, budget narratives, and/or other items. Page limits for each section within the project narrative are guidelines, not hard limits.</P>
                <P>There are four parts to the project narrative:</P>
                <P>Part 1—Statement of Need;</P>
                <P>Part 2—Program Plan—Objectives and Activities;</P>
                <P>Part 3—Organizational Capacity; and</P>
                <P>Part 4—Program Evaluation (Data Collection and Reporting).</P>
                <P>See below for additional details about what must be included in the narrative.</P>
                <HD SOURCE="HD3">Part 1: Statement of Need (Limit—1 Page)</HD>
                <P>Describe the extent of the problem related to opioid misuse, opioid use disorder, and opioid related overdoses in the applicant's community (“community” means the applicant's Tribe, village, Tribal organization, consortium of Tribes or Tribal organizations, or urban center). Provide the facts and evidence that support the need for the project and establish that the Tribe, Tribal organization, or UIO understand the problems and can reasonably address them. This section must also succinctly but completely answer the questions listed under the evaluation criteria in Section V.1.A. Statement of Need.</P>
                <HD SOURCE="HD3">Part 2: Program Plan—Objectives and Activities (Limit—6 Pages)</HD>
                <P>Describe the scope of work the Tribe, Tribal organization, or UIO by clearly and concisely outlining the following required components:</P>
                <P>1. Goals and Objectives. Reference all required objectives.</P>
                <P>2. Project Activities. Link your project activities to your outlined goals and objectives.</P>
                <P>This section must also succinctly but completely answer the questions listed under the evaluation criteria in Section V.1.B. Program Plan (Objectives and Activities).</P>
                <HD SOURCE="HD3">Part 3: Organizational Capacity (Limit—2 Pages)</HD>
                <P>
                    Describe the Tribe, Tribal organization, or UIO's organizational capacity to implement the proposed activities, in the following areas: Ability to provide direct care, treatment, and services, including MAT/MOUD; current or ongoing projects related to opioid prevention, treatment, recovery support, and aftercare; a detailed description of partnerships and networks with opioid misuse and harm reduction providers. Provide detail on significant program activities and achievements/accomplishments over the past 5 years associated with opioid prevention, treatment, recovery support, and aftercare activities. Provide success stories, data, or other examples of how other funded projects/programs made an 
                    <PRTPAGE P="87439"/>
                    impact in your community to address opioid use. If applicable, provide justification for lack of progress of previous efforts. This section must also succinctly but completely answer the questions listed under the evaluation criteria in Section V.1.C. Organizational Capacity.
                </P>
                <HD SOURCE="HD3">Part 4: Program Evaluation (Limit 1 Page)</HD>
                <P>
                    Based on the required activities in Section V, describe how the Tribe, Tribal organization, or UIO plans to collect data for the proposed project and activities. Identify any type(s) of evaluation(s) that will be used and how you will collaborate with partners to complete any evaluation efforts or data collection. Progress reports will include compilation of quantitative data (
                    <E T="03">e.g.,</E>
                     number served; screenings completed, etc.) and qualitative or narrative (text) data. Reporting elements should be specific to activities/programs, processes and outcomes such as performance measures and other data relevant to evaluation outcomes including intended results (
                    <E T="03">i.e.,</E>
                     impact and outcomes). Logic Models are highly recommended to include in the application. The IHS will partner with Technical Assistance Providers to assist recipients develop data collection and evaluation plans and tools. Recipients will be required to collect and submit semi-annual and annual progress reports. Additional information regarding Data Collection refer to Section V.1.D. Program Evaluation (Data Collection &amp; Reporting).
                </P>
                <HD SOURCE="HD3">B. Budget Narrative (Limit—4 Pages)</HD>
                <P>Provide a budget narrative that explains the amounts requested for each line item of the budget from the SF-424A (Budget Information for Non-Construction Programs) for the entire project, by year. The applicant can submit with the budget narrative a more detailed spreadsheet than is provided by the SF-424A (the spreadsheet will not be considered part of the budget narrative). The budget narrative should specifically describe how each item would support the achievement of proposed objectives. Be very careful about showing how each item in the “Other” category is justified. Do NOT use the budget narrative to expand the project narrative.</P>
                <HD SOURCE="HD2">3. Submission Dates and Times</HD>
                <P>
                    Applications must be submitted through 
                    <E T="03">Grants.gov</E>
                     by 11:59 p.m. Eastern Time on the Application Deadline Date. Any application received after the application deadline will not be accepted for review. 
                    <E T="03">Grants.gov</E>
                     will notify the applicant via email if the application is rejected.
                </P>
                <P>
                    If technical challenges arise and assistance is required with the application process, contact 
                    <E T="03">Grants.gov</E>
                     Customer Support (see contact information at 
                    <E T="03">https://www.Grants.gov</E>
                    ). If problems persist, contact Mr. Paul Gettys, Deputy Director, DGM, by email at 
                    <E T="03">DGM@ihs.gov.</E>
                     Please be sure to contact Mr. Gettys at least 10 days prior to the application deadline. Please do not contact the DGM until you have received a 
                    <E T="03">Grants.gov</E>
                     tracking number. In the event you are not able to obtain a tracking number, call the DGM as soon as possible.
                </P>
                <P>The IHS will not acknowledge receipt of applications.</P>
                <HD SOURCE="HD2">4. Intergovernmental Review</HD>
                <P>Executive Order 12372 requiring intergovernmental review is not applicable to this program.</P>
                <HD SOURCE="HD2">5. Funding Restrictions</HD>
                <P>• The available funds are inclusive of direct and indirect costs.</P>
                <P>• Only one grant may be awarded per applicant.</P>
                <P>• Food is an allowable expense under this program. Recipient may not exceed $10,000.00.</P>
                <P>• While construction is not an allowable cost, alteration and renovation (A&amp;R) is allowable. A&amp;R must be consistent with the following criteria and documentation requirements:</P>
                <P>a. The building has a useful life consistent with program purposes and is architecturally and structurally suitable for conversion to the type of space required.</P>
                <P>b. The A&amp;R is essential to the purpose of the grant-supported project or program.</P>
                <P>c. The space involved will be occupied by the project or program.</P>
                <P>d. The space is suitable for human occupancy before A&amp;R work is started except where the purpose of the A&amp;R is to make the space suitable for some purpose other than human occupancy, such as storage.</P>
                <P>e. For minor A&amp;R, if the space is rented, evidence is provided that the terms of the lease are compatible with the A&amp;R proposed and cover the duration of the period of performance.</P>
                <HD SOURCE="HD2">6. Electronic Submission Requirements</HD>
                <P>
                    All applications must be submitted via 
                    <E T="03">Grants.gov</E>
                    . Please use the 
                    <E T="03">https://www.Grants.gov</E>
                     website to submit an application. Find the application by selecting the “Search Grants” link on the homepage. Follow the instructions for submitting an application under the Package tab. No other method of application submission is acceptable.
                </P>
                <P>
                    If you cannot submit an application through 
                    <E T="03">Grants.gov</E>
                    , you must request a waiver prior to the application due date. You must submit your waiver request by email to 
                    <E T="03">DGM@ihs.gov.</E>
                     Your waiver request must include clear justification for the need to deviate from the required application submission process. The IHS will not accept any applications submitted through any means outside of 
                    <E T="03">Grants.gov</E>
                     without an approved waiver.
                </P>
                <P>
                    If the DGM approves your waiver request, you will receive a confirmation of approval email containing submission instructions. You must include a copy of the written approval with the application submitted to the DGM. Applications that do not include a copy of the waiver approval from the DGM will not be reviewed. The Grants Management Officer of the DGM will notify the applicant via email of this decision. Applications submitted under waiver must be received by the DGM no later than 5:00 p.m. Eastern Time on the Application Deadline Date. Late applications will not be accepted for processing. Applicants that do not register for both the System for Award Management (SAM) and 
                    <E T="03">Grants.gov</E>
                     and/or fail to request timely assistance with technical issues will not be considered for a waiver to submit an application via alternative method.
                </P>
                <P>Please be aware of the following:</P>
                <P>
                    • Please search for the application package in 
                    <E T="03">https://www.Grants.gov</E>
                     by entering the Assistance Listing number or the Funding Opportunity Number. Both numbers are located in the header of this announcement.
                </P>
                <P>
                    • If you experience technical challenges while submitting your application, please contact 
                    <E T="03">Grants.gov</E>
                     Customer Support (see contact information at 
                    <E T="03">https://www.Grants.gov</E>
                    ).
                </P>
                <P>
                    • Upon contacting 
                    <E T="03">Grants.gov</E>
                    , obtain a tracking number as proof of contact. The tracking number is helpful if there are technical issues that cannot be resolved and a waiver from the agency must be obtained.
                </P>
                <P>
                    • Applicants are strongly encouraged not to wait until the deadline date to begin the application process through 
                    <E T="03">Grants.gov</E>
                     as the registration process for SAM and 
                    <E T="03">Grants.gov</E>
                     could take up to 20 working days.
                </P>
                <P>
                    • Please follow the instructions on 
                    <E T="03">Grants.gov</E>
                     to include additional documentation that may be requested by this funding announcement.
                </P>
                <P>• Applicants must comply with any page limits described in this funding announcement.</P>
                <P>
                    • After submitting the application, you will receive an automatic 
                    <PRTPAGE P="87440"/>
                    acknowledgment from 
                    <E T="03">Grants.gov</E>
                     that contains a 
                    <E T="03">Grants.gov</E>
                     tracking number. The IHS will not notify you that the application has been received.
                </P>
                <HD SOURCE="HD3">System for Award Management</HD>
                <P>
                    Organizations that are not registered with the System for Award Management (SAM) must access the SAM online registration through the SAM home page at 
                    <E T="03">https://sam.gov.</E>
                     Organizations based in the United States (U.S.) will also need to provide an Employer Identification Number from the Internal Revenue Service that may take an additional 2-5 weeks to become active. Please see 
                    <E T="03">SAM.gov</E>
                     for details on the registration process and timeline. Registration with the SAM is free of charge but can take several weeks to process. Applicants may register online at 
                    <E T="03">https://sam.gov.</E>
                </P>
                <HD SOURCE="HD3">Unique Entity Identifier</HD>
                <P>
                    Your 
                    <E T="03">SAM.gov</E>
                     registration now includes a Unique Entity Identifier (UEI), generated by 
                    <E T="03">SAM.gov,</E>
                     which replaces the DUNS number obtained from Dun and Bradstreet. 
                    <E T="03">SAM.gov</E>
                     registration no longer requires a DUNS number.
                </P>
                <P>
                    Check your organization's 
                    <E T="03">SAM.gov</E>
                     registration as soon as you decide to apply for this program. If your 
                    <E T="03">SAM.gov</E>
                     registration is expired, you will not be able to submit an application. It can take several weeks to renew it or resolve any issues with your registration, so do not wait.
                </P>
                <P>
                    Check your 
                    <E T="03">Grants.gov</E>
                     registration. Registration and role assignments in 
                    <E T="03">Grants.gov</E>
                     are self-serve functions. One user for your organization will have the authority to approve role assignments, and these must be approved for active users in order to ensure someone in your organization has the necessary access to submit an application.
                </P>
                <P>The Federal Funding Accountability and Transparency Act of 2006, as amended (“Transparency Act”), requires all HHS recipients to report information on sub-awards. Accordingly, all IHS recipients must notify potential first-tier sub-recipients that no entity may receive a first-tier sub-award unless the entity has provided its UEI number to the prime recipient organization. This requirement ensures the use of a universal identifier to enhance the quality of information available to the public pursuant to the Transparency Act.</P>
                <P>
                    Additional information on implementing the Transparency Act, including the specific requirements for SAM, are available on the DGM Grants Management, Policy Topics web page at 
                    <E T="03">https://www.ihs.gov/dgm/policytopics/.</E>
                </P>
                <HD SOURCE="HD1">V. Application Review Information</HD>
                <P>Possible points assigned to each section are noted in parentheses. The project narrative and budget narrative should include the proposed activities for the entire period of performance. The project narrative should be written in a manner that is clear to outside reviewers unfamiliar with prior related activities of the applicant. It should be well organized, succinct, and contain all information necessary for reviewers to fully understand the project. Attachments requested in the criteria do not count toward the page limit for the narratives. Points will be assigned to each evaluation criteria adding up to a total of 100 possible points. Points are assigned as follows:</P>
                <HD SOURCE="HD2">1. Evaluation Criteria</HD>
                <P>Applications will be reviewed and scored according to the quality of responses to the required application components in Sections A—E. The number of points after each heading is the maximum number of points a review committee may assign to that section. Although scoring weights are not assigned to individual numbers, responses to each number are assessed in deriving the overall section score.</P>
                <HD SOURCE="HD3">A. Statement of Need (20 Points)</HD>
                <P>(1) Describe the extent of the problem related to opioid misuse, opioid use disorder and opioid related overdoses in the applicant's community (“community” means the applicant's Tribe, village, Tribal organization, consortium of Tribes or Tribal organizations, or urban center). Provide the facts and evidence that support the need for the project and establishes that the Tribe, Tribal organization, or UIO understands the problems, and can reasonably address them.</P>
                <P>(2) Include a description of social determinants of health that may contribute to the opioid misuse, opioid use disorder, and opioid related overdoses in the community. Include details on economic stability (such as housing and food insecurity); education (such as early childhood education and development, high school graduation, and language and literacy); social and community context (such as discrimination, incarceration, and social cohesion); health and health care (such as access to health care and health literacy); and neighborhood and built environment (such as access to foods that support healthy eating patterns, crime and violence, environmental conditions, and quality of housing).</P>
                <P>(3) Provides background information on the Tribe, Tribal organization, or UIO.</P>
                <P>(4) Based on the information and/or data currently available, document the prevalence of opioid misuse and overdose rates.</P>
                <P>(5) Based on the information and/or data currently available, document the need to increase the capacity to implement, sustain, and improve effective opioid misuse and overdose prevention, treatment, aftercare, recovery, and harm reduction services in the proposed catchment area that is consistent with the purpose of this funding opportunity announcement.</P>
                <P>(6) Describe the service gaps and other problems related to the need for funds targeting opioid misuse. Identify the source of the data.</P>
                <P>(7) Describe potential Tribal and community partners and resources in the catchment area that can participate in the broad community awareness campaign.</P>
                <P>(8) Affirm the goals of the project are consistent with priorities of the Tribal government or board of directors and that the governing body is in support of this application.</P>
                <HD SOURCE="HD3">B. Program Plan—Objectives and Activities (35 Points)</HD>
                <P>(1) Identify the population of focus for your project. Describe the purpose of the proposed project, including goals and objectives and how they are linked. Describe how the achievement of goals will increase Tribe, Tribal organization, or UIO's capacity to support the goals and required activities identified in Section I of this announcement.</P>
                <P>(2) Describe how the proposed project activities relate to the proposed project's goals and objectives. Describe how the project activities will increase the capacity of the community to prevent and treat opioid misuse, opioid use disorder, and overdose in the communities and implement harm reduction activities.</P>
                <P>(3) Describe organizational capacity to implement the proposed activities, including increased public awareness and education on opioids and overdose; developing a comprehensive support team to strengthen and empower AI/AN families in addressing the opioid and overdose crisis in Tribal or Urban Indian communities; integrating the use of MAT/MOUD, and harm reduction into the community.</P>
                <P>
                    (4) Describe how community partners (prevention and recovery support providers, substance use disorder treatment programs, peer recovery specialists, social workers, behavioral health clinics, community health centers, youth serving organizations, family and youth homeless providers, child welfare agencies, primary care 
                    <PRTPAGE P="87441"/>
                    providers, pharmacists, schools, clergy, and law enforcement, among others) will be involved in the planning and implementation of the project.
                </P>
                <P>(5) Describe if/how the efforts of the proposed project will be coordinated with any other related Federal grants or programs funded through the IHS, SAMHSA, BIA, or other Federal agencies.</P>
                <P>(6) Provide a timeline chart depicting a realistic timeline for the project period showing key activities, milestones, and responsible staff. These key activities should include the required activities identified in Section V of this announcement.</P>
                <HD SOURCE="HD3">C. Organizational Capacity (15 Points)</HD>
                <P>Organizational capacity including increased public awareness and education on opioids; developing a comprehensive support team to strengthen and empower AI/AN families in addressing the opioid crisis in Tribal or Urban Indian communities; integrating the use of MAT/MOUD, and implementing harm reduction activities into the Tribal and Urban Indian community.</P>
                <P>(1) Describe significant harm reduction activities, achievements, and/or accomplishments over the past five years for opioid misuse, opioid use disorder, and opioid related overdoses.</P>
                <P>(2) Describe the applicant Tribe, Tribal organization, or UIO experience and capacity to provide culturally appropriate/competent opioid misuse and harm reduction services to the community and specific populations of focus.</P>
                <P>
                    (3) Describe the resources available for the proposed project (
                    <E T="03">e.g.,</E>
                     facilities, equipment, information technology systems, and financial management systems).
                </P>
                <P>
                    (4) Describe how project continuity will be maintained if/when there is a change in the operational environment (
                    <E T="03">e.g.,</E>
                     staff turnover, change in project leadership, change in elected officials) to ensure project stability over the life of the grant.
                </P>
                <P>(5) Provide a complete list of staff positions anticipated for the project, including the Project Director, Project Coordinator, and other key personnel, showing the role of each and their level of effort and qualifications. Key staff have the following:</P>
                <P>a. Relevant health or behavioral health experience.</P>
                <P>b. Experience with award program management, including skills in program coordination, budgeting, reporting, and staff supervision.</P>
                <P>(6) For key staff currently on board, include a biographical sketch for the Project Director, Project Coordinator, or other key positions as attachments to the project proposal/application. Do not include any of the following in the biographical sketch:</P>
                <P>
                    a. Personal Identifiable Information (
                    <E T="03">i.e.,</E>
                     SSN, home address, etc.);
                </P>
                <P>b. Resumes; or</P>
                <P>c. Curriculum Vitae.</P>
                <HD SOURCE="HD3">D. Program Evaluation (Data Collection and Reporting) (20 Points)</HD>
                <P>Recipients will be required to collect and submit semi-annual and annual progress reports. Logic Models are highly recommended to provide guidance on collecting data for evaluation purposes (see Attachment A). Applicants are required to collect data within their communities on the prevalence and incidence rates for opioid misuse, opioid use disorders, opioid related overdoses, and other data metrics such as mortality and morbidity rates from opioid related events.</P>
                <P>
                    (1) Progress reports will include the compilation of quantitative data (
                    <E T="03">e.g.</E>
                     number served; screenings completed, etc.) and qualitative or narrative (text) data.
                </P>
                <P>
                    (2) Reporting elements should include data from local community-based, and evidence-based programs which pertain to proposed activities, processes and outcomes such as performance measures and other data relevant to evaluation outcomes including intended results (
                    <E T="03">i.e.,</E>
                     impact and outcomes).
                </P>
                <P>(3) Describe how the applicant will measure variables, what method will be used and how the data will be used for quality improvement and sustainability of program and meeting required reporting deadlines.</P>
                <P>(4) Based on the required objectives, did the applicant describe any type(s) of evaluation(s) that will be used and how they will collaborate with partners such as Tribal Epidemiology Centers to complete any evaluation efforts or data collection?</P>
                <P>(5) Did the applicant affirm their organization will participate in completing the annual progress report and did they describe their capability and experience with similar evaluations?</P>
                <P>(6) Did applicant describe necessary data-sharing agreements established, or will be established in support of these activities?</P>
                <HD SOURCE="HD3">E. Budget and Budget Justification (10 Points)</HD>
                <P>(1) The applicant is required to include a line item budget for all expenditures identifying reasonable and allowable costs necessary to accomplish the goals and objectives as outlined in the project narrative for the entire period of performance. The budget expenditures should correlate with the scope of work described in the project narrative.</P>
                <P>(2) The applicant must provide a narrative justification of the budget line items, as well as a description of existing resources and other support the applicant expects to receive for the proposed project. Other support is defined as funds or resources, whether Federal, non-federal or institutional, in direct support of activities through fellowships, gifts, prizes, in-kind contributions, or non-federal means. (This should correspond to Item #18 on the applicant's SF-424, Estimated Funding, and SF-424A Budget Information, Section C Non-federal resources.)</P>
                <P>(3) Provide a narrative justification supporting the development or continued collaboration with other partners regarding the proposed activities to be implemented.</P>
                <P>(4) Depending on the availability of funds, the IHS may host annual meetings to provide in-depth training and technical assistance to awardees. In order to help establish critical mass of community and staff members who are informed and committed to implement the project, awardees should plan to send a minimum of two people (including the Project Director/Project Coordinator) to one meeting of all awardees in each year of the grant. At these meetings, awardees will receive training related to grant objectives, discuss success and challenges in implementation of the program, present the results of their projects, and receive other technical assistance from IHS staff and/or contractors. Each meeting may be up to 3 days. The locations will be determined at a later date, but applicants should estimate costs for Denver, CO as a potential site that is accessible to most of “Indian Country” and attendance is strongly encouraged.</P>
                <HD SOURCE="HD2">2. Review and Selection</HD>
                <P>
                    Each application will be prescreened for eligibility and completeness as outlined in this funding announcement. The Review Committee (RC) will review applications that meet the eligibility criteria. The RC will review the applications for merit based on the evaluation criteria. Incomplete applications and applications that are not responsive to the administrative thresholds (budget limit, period of performance limit) will not be referred to the RC and will not be funded. The DGM will notify the applicant of this determination.
                    <PRTPAGE P="87442"/>
                </P>
                <P>Applicants must address all program requirements and provide all required documentation.</P>
                <HD SOURCE="HD2">3. Notifications of Disposition</HD>
                <P>All applicants will receive an Executive Summary Statement from the IHS DBH within 30 days of the conclusion of the review outlining the strengths and weaknesses of their application. The summary statement will be sent to the Authorizing Official identified on the face page (SF-424) of the application.</P>
                <HD SOURCE="HD3">A. Award Notices for Funded Applications</HD>
                <P>The NoA is the authorizing document for which funds are dispersed to the approved entities and reflects the amount of Federal funds awarded, the purpose of the award, the terms and conditions of the award, the effective date of the award, the budget period, and period of performance. Each entity approved for funding must have a user account in GrantSolutions in order to retrieve the NoA. Please see the Agency Contacts list in Section VII for the systems contact information.</P>
                <HD SOURCE="HD3">B. Approved But Unfunded Applications</HD>
                <P>Approved applications not funded due to lack of available funds will be held for 1 year. If funding becomes available during the course of the year, the application may be reconsidered.</P>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P> Any correspondence, other than the official NoA executed by an IHS grants management official announcing to the project director that an award has been made to their organization, is not an authorization to implement their program on behalf of the IHS.</P>
                </NOTE>
                <HD SOURCE="HD1">VI. Award Administration Information</HD>
                <HD SOURCE="HD2">1. Administrative Requirements</HD>
                <P>Awards issued under this announcement are subject to, and are administered in accordance with, the following regulations and policies:</P>
                <P>A. The criteria as outlined in this program announcement.</P>
                <P>B. Administrative Regulations for Awards:</P>
                <P>
                    • Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards currently in effect or implemented during the period of award, other Department regulations and policies in effect at the time of award, and applicable statutory provisions. At the time of publication, this includes 45 CFR part 75, at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2022-title45-vol1/pdf/CFR-2022-title45-vol1-part75.pdf.</E>
                </P>
                <P>
                    • If you receive an award, HHS may terminate it if any of the conditions in 2 CFR 200.340(a)(1)-(4) are met. Please review all HHS regulatory provisions for Termination at 2 CFR 200.340, at the time of this publication located at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2023-title2-vol1/pdf/CFR-2023-title2-vol1-sec200-340.pdf.</E>
                     No other termination conditions apply.
                </P>
                <P>C. Grants Policy:</P>
                <P>
                    • HHS Grants Policy Statement, Revised January 2007, at 
                    <E T="03">https://www.hhs.gov/sites/default/files/grants/grants/policies-regulations/hhsgps107.pdf.</E>
                </P>
                <P>D. Cost Principles:</P>
                <P>
                    • Uniform Administrative Requirements for HHS Awards, “Cost Principles,” at 45 CFR part 75 subpart E, at the time of this publication located at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2022-title45-vol1/pdf/CFR-2022-title45-vol1-part75-subpartE.pdf.</E>
                </P>
                <P>E. Audit Requirements:</P>
                <P>
                    • Uniform Administrative Requirements for HHS Awards, “Audit Requirements,” at 45 CFR part 75 subpart F, at the time of this publication located at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2022-title45-vol1/pdf/CFR-2022-title45-vol1-part75-subpartF.pdf.</E>
                </P>
                <P>
                    F. As of August 13, 2020, 2 CFR part 200 was updated to include a prohibition on certain telecommunications and video surveillance services or equipment. This prohibition is described in 2 CFR 200.216, at the time of this publication located at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2023-title2-vol1/pdf/CFR-2023-title2-vol1-sec200-216.pdf.</E>
                     This will also be described in the terms and conditions of every IHS grant and cooperative agreement awarded on or after August 13, 2020.
                </P>
                <HD SOURCE="HD2">2. Indirect Costs</HD>
                <P>This section applies to all recipients that request reimbursement of IDC in their application budget. In accordance with HHS Grants Policy Statement, Part II-27, the IHS requires applicants to obtain a current IDC rate agreement and submit it to the DGM prior to the DGM issuing an award. The rate agreement must be prepared in accordance with the applicable cost principles and guidance as provided by the cognizant agency or office. A current rate covers the applicable award activities under the current award's budget period. If the current rate agreement is not on file with the DGM at the time of award, the IDC portion of the budget will be restricted. The restrictions remain in place until the current rate agreement is provided to the DGM.</P>
                <P>
                    Please refer to 2 CFR 200.414(f) Indirect (F&amp;A) costs, found at 
                    <E T="03">https://www.govinfo.gov/content/pkg/CFR-2023-title2-vol1/pdf/CFR-2023-title2-vol1-sec200-414.pdf.</E>
                </P>
                <P>Electing to charge a de minimis rate of 10 percent can be used by applicants that have received an approved negotiated indirect cost rate from HHS or another cognizant Federal agency. Applicants awaiting approval of their indirect cost proposal may request the 10 percent de minimis rate. When the applicant chooses this method, costs included in the indirect cost pool must not be charged as direct costs to the award.</P>
                <P>Available funds are inclusive of direct and appropriate indirect costs. Approved indirect funds are awarded as part of the award amount, and no additional funds will be provided.</P>
                <P>
                    Generally, IDC rates for IHS recipients are negotiated with the Division of Cost Allocation at 
                    <E T="03">https://rates.psc.gov/</E>
                     or the Department of the Interior (Interior Business Center) at 
                    <E T="03">https://ibc.doi.gov/ICS/tribal.</E>
                     For questions regarding the indirect cost policy, please write to 
                    <E T="03">DGM@ihs.gov.</E>
                </P>
                <HD SOURCE="HD2">3. Reporting Requirements</HD>
                <P>
                    The recipient must submit required reports consistent with the applicable deadlines. Failure to submit required reports within the time allowed may result in suspension or termination of an active award, withholding of additional awards for the project, or other enforcement actions such as withholding of payments or converting to the reimbursement method of payment. Continued failure to submit required reports may result in the imposition of special award provisions and/or the non-funding or non-award of other eligible projects or activities. This requirement applies whether the delinquency is attributable to the failure of the recipient organization or the individual responsible for preparation of the reports. Per DGM policy, all reports must be submitted electronically by attaching them as a “Grant Note” in GrantSolutions. Personnel responsible for submitting reports will be required to obtain a login and password for GrantSolutions. Please use the form under the Recipient User section of 
                    <E T="03">https://www.grantsolutions.gov/home/getting-started-request-a-user-account/.</E>
                     Download the Recipient User Account Request Form, fill it out completely, and submit it as described on the web page and in the form.
                </P>
                <P>
                    The reporting requirements for this program are noted below.
                    <PRTPAGE P="87443"/>
                </P>
                <HD SOURCE="HD3">A. Progress Reports</HD>
                <P>Program progress reports are required semi-annually. The progress reports are due within 30 days after the reporting period ends (specific dates will be listed in the NoA Terms and Conditions). These reports must include a brief comparison of actual accomplishments to the goals established for the period, a summary of progress to date or, if applicable, provide sound justification for the lack of progress, and other pertinent information as required. Recipient must submit a final report within 120 days of the period of performance end date.</P>
                <HD SOURCE="HD3">B. Financial Reports</HD>
                <P>Federal Financial Reports are due 30 days after the end of each budget period, and a final report is due 120 days after the end of the period of performance.</P>
                <P>Recipients are responsible and accountable for reporting accurate information on all required reports: the Progress Reports and the Federal Financial Report.</P>
                <P>Failure to submit timely reports may result in adverse award actions blocking access to funds.</P>
                <HD SOURCE="HD3">C. Data Collection and Reporting</HD>
                <P>All recipients will be required to collect and report data pertaining to activities, processes, and outcomes. Logic Models are highly recommended to provide guidance on collecting data for evaluation purposes (see Attachment A). The IHS DBH will provide guidance on data collection and reporting for evaluation purposes within 6 months of award. All reporting items will be submitted via the GrantSolutions. Technical assistance for web-based data entry will be timely and readily available to recipients by assigned IHS DBH staff. Recipients are responsible and accountable for accurate information being submitted by required due dates for Data Collection and Reporting.</P>
                <HD SOURCE="HD3">D. Federal Sub-Award Reporting System (FSRS)</HD>
                <P>This award may be subject to the Transparency Act sub-award and executive compensation reporting requirements of 2 CFR part 170.</P>
                <P>The Transparency Act requires the OMB to establish a single searchable database, accessible to the public, with information on financial assistance awards made by Federal agencies. The Transparency Act also includes a requirement for recipients of Federal awards to report information about first-tier sub-awards and executive compensation under Federal assistance awards.</P>
                <P>The IHS has implemented a Term of Award into all IHS Standard Terms and Conditions, NoAs, and funding announcements regarding the FSRS reporting requirement. This IHS Term of Award is applicable to all IHS grant and cooperative agreements issued on or after October 1, 2010, with a $25,000 sub-award obligation threshold met for any specific reporting period.</P>
                <P>
                    For the full IHS award term implementing this requirement and additional award applicability information, visit the DGM Grants Management website at 
                    <E T="03">https://www.ihs.gov/dgm/policytopics/.</E>
                </P>
                <HD SOURCE="HD3">E. Non-Discrimination Legal Requirements for Recipients of Federal Financial Assistance (FFA)</HD>
                <P>
                    If you receive an award, you must follow all applicable nondiscrimination laws. You agree to this when you register in 
                    <E T="03">SAM.gov.</E>
                     You must also submit an Assurance of Compliance (HHS-690). To learn more, see 
                    <E T="03">https://www.hhs.gov/civil-rights/for-providers/laws-regulations-guidance/laws/index.html.</E>
                     Pursuant to 45 CFR 80.3(d), an individual shall not be deemed subjected to discrimination by reason of their exclusion from benefits limited by Federal law to individuals eligible for benefits and services from the IHS.
                </P>
                <HD SOURCE="HD3">F. Federal Awardee Performance and Integrity Information System (FAPIIS)</HD>
                <P>
                    The IHS is required to review and consider any information about the applicant that is in the FAPIIS at 
                    <E T="03">https://sam.gov/content/fapiis</E>
                     before making any award in excess of the simplified acquisition threshold (currently $250,000) over the period of performance. An applicant may review and comment on any information about itself that a Federal awarding agency previously entered. The IHS will consider any comments by the applicant, in addition to other information in FAPIIS, in making a judgment about the applicant's integrity, business ethics, and record of performance under Federal awards when completing the review of risk posed by applicants, as described in 45 CFR 75.205.
                </P>
                <P>As required by 45 CFR part 75 Appendix XII of the Uniform Guidance, NFEs are required to disclose in FAPIIS any information about criminal, civil, and administrative proceedings, and/or affirm that there is no new information to provide. This applies to NFEs that receive Federal awards (currently active grants, cooperative agreements, and procurement contracts) greater than $10 million for any period of time during the period of performance of an award/project.</P>
                <HD SOURCE="HD3">Mandatory Disclosure Requirements</HD>
                <P>As required by 2 CFR part 200 of the Uniform Guidance, and HHS implementing regulations at 45 CFR part 75, the IHS must require an NFE or an applicant for a Federal award to disclose, in a timely manner, in writing to the IHS or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award.</P>
                <P>All applicants and recipients must disclose in writing, in a timely manner, to the IHS and to the HHS Office of Inspector General all information related to violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. 45 CFR 75.113.</P>
                <P>Disclosures must be sent in writing to:</P>
                <FP SOURCE="FP-1">
                    U.S. Department of Health and Human Services, Indian Health Service, Division of Grants Management, ATTN: Marsha Brookins, Director, 5600 Fishers Lane, Mail Stop: 09E70, Rockville, MD 20857. (Include “Mandatory Grant Disclosures” in subject line.) Office: (301) 443-5204, Fax: (301) 594-0899, Email: 
                    <E T="03">DGM@ihs.gov</E>
                    , AND
                </FP>
                <FP SOURCE="FP-1">
                    U.S. Department of Health and Human Services, Office of Inspector General, ATTN: Mandatory Grant Disclosures, Intake Coordinator, 330 Independence Avenue SW, Cohen Building, Room 5527, Washington, DC 20201, URL: 
                    <E T="03">https://oig.hhs.gov/fraud/report-fraud/.</E>
                     (Include “Mandatory Grant Disclosures” in subject line.) Fax: (202) 205-0604. (Include “Mandatory Grant Disclosures” in subject line.) or Email: 
                    <E T="03">MandatoryGranteeDisclosures@oig.hhs.gov</E>
                </FP>
                <P>Failure to make required disclosures can result in any of the remedies described in 45 CFR 75.371 Remedies for noncompliance, including suspension or debarment (see 2 CFR part 180 and 2 CFR part 376).</P>
                <HD SOURCE="HD1">VII. Agency Contacts</HD>
                <P>
                    1. 
                    <E T="03">Questions on the program matters may be directed to:</E>
                     Cassandra Allen, Public Health Advisor, Indian Health Service, Division of Behavioral Health, 5600 Fishers Lane, Mail Stop: 0834NB, Rockville, MD 20857, Phone: (240) 485-7524, Email: 
                    <E T="03">Cassandra.Allen@ihs.gov.</E>
                </P>
                <P>
                    2. 
                    <E T="03">Questions on awards management and fiscal matters may be directed to:</E>
                     Indian Health Service, Division of Grants Management, 5600 Fishers Lane, Mail Stop: 09E70, Rockville, MD 20857, Email: 
                    <E T="03">DGM@ihs.gov.</E>
                    <PRTPAGE P="87444"/>
                </P>
                <P>
                    3. For technical assistance with 
                    <E T="03">Grants.gov</E>
                    , please contact the 
                    <E T="03">Grants.gov</E>
                     help desk at (800) 518-4726, or by email at 
                    <E T="03">support@grants.gov.</E>
                </P>
                <P>
                    4. For technical assistance with GrantSolutions, please contact the GrantSolutions help desk at (866) 577-0771, or by email at 
                    <E T="03">help@grantsolutions.gov.</E>
                </P>
                <HD SOURCE="HD1">VIII. Other Information</HD>
                <P>The Public Health Service strongly encourages all grant, cooperative agreement, and contract recipients to provide a smoke-free workplace and promote the non-use of all tobacco products. In addition, Public Law 103-227, the Pro-Children Act of 1994, prohibits smoking in certain facilities (or in some cases, any portion of the facility) in which regular or routine education, library, day care, health care, or early childhood development services are provided to children. This is consistent with the HHS mission to protect and advance the physical and mental health of the American people.</P>
                <SIG>
                    <NAME>Roselyn Tso, </NAME>
                    <TITLE>Director,  Indian Health Service.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Attachment A: Community Opioid Intervention Prevention Program Logic Model (Example)</HD>
                <GPOTABLE COLS="4" OPTS="L2,nj,tp0,i1" CDEF="xl50,xl50,xl50,xl50">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Input</CHED>
                        <CHED H="1">Activities</CHED>
                        <CHED H="1">Outputs</CHED>
                        <CHED H="1">Outcomes</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                             Implementing agency leadership and support.
                            <LI> Participants (families, community leaders, Tribal leaders, professional staff).</LI>
                        </ENT>
                        <ENT>
                            1. Community awareness/education:
                            <LI>—Cultural integration.</LI>
                            <LI>—Promote family and community engagement.</LI>
                        </ENT>
                        <ENT>
                            • # of trainings offered.
                            <LI>• # of educational awareness campaigns across service population.</LI>
                        </ENT>
                        <ENT>• Increasing community awareness.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                             Community support and partnerships.
                            <LI> Program management, evaluation and continuous improvement.</LI>
                            <LI> Training.</LI>
                            <LI> Technical Assistance to grantees.</LI>
                            <LI> Annual convening of grantees.</LI>
                        </ENT>
                        <ENT>
                            2. Build support system to strengthen AI/AN families:
                            <LI>—Cultural integration.</LI>
                            <LI>—Maternal &amp; Child Health.</LI>
                            <LI>—Promote family and community engagement.</LI>
                        </ENT>
                        <ENT>
                             # of partnerships/collaboration (MOU, MOA, etc).
                            <LI> # of providers supporting activities.</LI>
                            <LI> # of facilities providing MAT/MOUD.</LI>
                            <LI> # of referrals to treatment.</LI>
                            <LI> # of systems involved (social services, child advocacy, etc).</LI>
                        </ENT>
                        <ENT>• Develop a response team.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>
                            3. Expand access to MAT/MOUD:
                            <LI>—Cultural integration.</LI>
                            <LI>—Buprenorphine/Suboxone.</LI>
                            <LI>—Promote family and community engagement.</LI>
                        </ENT>
                        <ENT>
                             # of providers trained in MAT/MOUD.
                            <LI> # of Buprenorphine/Suboxone administered.</LI>
                            <LI> # of active MAT/MOUD prescribers.</LI>
                            <LI> Promote family engagement in treatment.</LI>
                        </ENT>
                        <ENT>• Increase access to treatment.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>
                            4. Implement harm reduction activities:
                            <LI>—Naloxone.</LI>
                            <LI>—Medication lock boxes.</LI>
                            <LI>—Syringe Service Program.</LI>
                            <LI>—Fentanyl Test Strips (FTS).</LI>
                        </ENT>
                        <ENT>
                             # of Naloxone provided.
                            <LI> # of Naloxone administered.</LI>
                            <LI> # Medication lock boxes.</LI>
                            <LI> # Syringe exchange.</LI>
                            <LI> # of FTS administered.</LI>
                        </ENT>
                        <ENT>• Increase access to harm reduction services.</ENT>
                    </ROW>
                </GPOTABLE>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27765 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4166-14 -P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute on Aging; Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Institute on Aging Initial Review Group Career Development for Established Investigators and Conference Grants Study Section
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         February 8-9, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         10:00 a.m. to 5:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institute on Aging, Gateway Building, 7201 Wisconsin Avenue, Suite: 2W200,  Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Rajasri Roy, Ph.D., M.P.H.,  Scientific Review Officer,  Scientific Review Branch,  National Institute on Aging, 7201 Wisconsin Avenue, Gateway Bldg. Suite 2W200, Bethesda, MD 20892, 301-496-6477, 
                        <E T="03">rajasri.roy@nih.gov</E>
                        .
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.866, Aging Research, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: December 8, 2023. </DATED>
                    <NAME>Miguelina Perez, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy. </TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27685 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute of Dental and Craniofacial Research; Notice of Closed Meetings</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meetings.</P>
                <P>
                    The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose 
                    <PRTPAGE P="87445"/>
                    confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
                </P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Institute of Dental and Craniofacial Research Special Emphasis Panel; New Investigator R03 and DSR Member-Conflict Applications.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         February 27, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         9:00 a.m. to 6:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institute of Dental and Craniofacial Research, 6701 Democracy Boulevard, Bethesda, MD 20817 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Jingshan Chen, Ph.D., Scientific Review Officer, Scientific Review Branch, Division of Extramural Activities, National Institute of Dental and Craniofacial Research, 6701 Democracy Blvd., Bethesda, MD 20892, (301) 451-2405, 
                        <E T="03">jingshan.chen@nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Institute of Dental and Craniofacial Research Special Emphasis Panel; Developing Salivary Components as Therapeutics for Oral Health.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         March 7, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         12:30 p.m. to 5:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institute of Dental and Craniofacial Research, 6701 Democracy Blvd., Bethesda, MD 20817 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Aiwu Cheng, Ph.D., MD, Scientific Review Officer, Scientific Review Branch, Division of Extramural Activities, National Institute of Dental and Craniofacial Research, 6701 Democracy Blvd., Bethesda, MD 20892, 301-594-4859, 
                        <E T="03">Aiwu.cheng@nih.gov</E>
                        .
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program No. 93.121, Oral Diseases and Disorders Research, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: December 13, 2023.</DATED>
                    <NAME>Melanie J. Pantoja, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27744 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Substance Abuse and Mental Health Services Administration</SUBAGY>
                <SUBJECT>Meeting of the Substance Abuse and Mental Health Services Administration's Tribal Technical Advisory Committee (TTAC)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Substance Abuse and Mental Health Services Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to Presidential Executive Order No. 13175, November 6, 2000, and the Presidential Memorandum of September 23, 2004, notice is hereby given for the meeting on February 27, 2024, of the Substance Abuse and Mental Health Services Administration's Tribal Technical Advisory Committee (TTAC). The meeting is open to the public and will be held in person. Agenda with call-in information will be posted on the SAMHSA website prior to the meeting at: 
                        <E T="03">https://www.samhsa.gov/about-us/advisory-councils/meetings.</E>
                         The meeting will include, but not be limited to, remarks from the Assistant Secretary for Mental Health and Substance Use; updates on SAMHSA priorities; follow up on topics related to the previous TTAC meetings; and council discussions.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>February 27, 2024, 8 a.m. to approximately 5 p.m. (ET).</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>5600 Fishers Lane, Rockville, MD 20857, 5th Floor 5W07.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Karen Hearod, CAPT USPHS, Director, Office of Tribal Affairs Policy, 5600 Fishers Lane, Rockville, Maryland 20857 (mail); telephone: (202) 868-9931; email: 
                        <E T="03">karen.hearod@samhsa.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>SAMHSA TTAC provides a venue wherein Tribal leadership and SAMHSA staff can exchange information about public health issues, identify urgent mental health and substance use needs, and discuss collaborative approaches to addressing these behavioral health issues and needs.</P>
                <P>TTAC meetings are exclusively between Federal officials and elected officials of Tribal governments (or their designated employees) to exchange views, information, or advice related to the management or implementation of SAMHSA programs.</P>
                <P>The public may attend but are not allowed to participate in the meeting.</P>
                <P>
                    To obtain the call-in number, access code, and/or web access link; or request special accommodations for persons with disabilities, please register on-line at: 
                    <E T="03">https://snacregister.samhsa.gov</E>
                     or communicate with Karen Hearod.
                </P>
                <P>
                    Meeting information and a roster of TTAC members may be obtained either by accessing the SAMHSA Council's website at: 
                    <E T="03">https://www.samhsa.gov/about-us/advisory-councils/,</E>
                     or by contacting Karen Hearod.
                </P>
                <P>
                    <E T="03">Authority:</E>
                </P>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Carlos Castillo,</NAME>
                    <TITLE>Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27471 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4162-20-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <DEPDOC>[Docket ID: DHS-2023-0048]</DEPDOC>
                <SUBJECT>Request for Information Regarding Department of Homeland Security Activities and Advancing Environmental Justice</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Homeland Security (DHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information regarding Department of Homeland Security Activities and Advancing Environmental Justice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Homeland Security (DHS or Department) is comprised of 15 Operational and Support Components with far-reaching programs and activities. With this Request for information (RFI), DHS is seeking public comment and feedback on how environmental justice is considered Department-wide, how it can provide opportunities for meaningful engagement in decision-making, and what to include in the next DHS Environmental Justice Strategy. The public is encouraged to provide input in response to the questions in this RFI and to share barriers and challenges, successes, suggestions, and ideas. DHS will use this information to help improve and advance the Department's environmental justice program, conduct meaningful engagement, and address environmental justice challenges that communities are facing.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are requested on or before 60 days after publication of this RFI and must be received no later than 11:59 p.m. eastern time (ET) on February 16, 2024. DHS will not reply individually to responders but will consider all comments submitted by the deadline. DHS will consider comments received after this date for future advisory communications and outreach efforts to the extent possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Any information obtained from this RFI is intended for Government planning and strategy development. Response to this RFI is voluntary. Respondents may answer as many or as few questions as they wish. Comments of five pages or fewer are requested. Comments must be identified with the Agency's name and Docket Number DHS-2023-0048 and may be sent to DHS via the 
                        <E T="03">Federal e-Rulemaking Portal: https://www.regulations.gov</E>
                        . Follow the online instructions for submitting comments. All public comments received are subject to the Freedom of Information Act and will be posted in their entirety 
                        <PRTPAGE P="87446"/>
                        at 
                        <E T="03">https://www.regulations.gov,</E>
                         including any personal and/or business confidential information provided. Do not include any information you would not like to be made publicly available.
                    </P>
                    <P>
                        <E T="03">Email: DHSEnvironmentalJustice@hq.dhs.gov</E>
                         include 
                        <E T="03">Environmental Justice RFI</E>
                         in the message's subject line. Email submissions should be machine-readable (
                        <E T="03">i.e.,</E>
                         in PDF or Microsoft Word format) and not copyright-protected.
                    </P>
                    <P>
                        <E T="03">Mail or Hand Delivery:</E>
                         Please note that DHS will not accept any comments that are hand-delivered, mailed, or couriered. In addition, DHS cannot accept comments contained on any form of digital media storage devices, such as CDs/DVDs and USB drives. If you cannot submit your comment using 
                        <E T="03">https://www.regulations.gov,</E>
                         please email 
                        <E T="03">DHSEnvironmentalJustice@hq.dhs.gov</E>
                         for alternate instructions.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Sarah Koeppel, Senior Environmental Protection Specialist, by phone at 202-868-2759, or by email at 
                        <E T="03">DHSEnvironmentalJustice@hq.dhs.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    Executive Order (E.O.) 14096,
                    <SU>1</SU>
                    <FTREF/>
                      
                    <E T="03">Revitalizing Our Nation's Commitment to Environmental Justice for All,</E>
                     signed April 21, 2023, defines “environmental justice” as the just treatment and meaningful involvement of all people, regardless of income, race, color, national origin, Tribal affiliation, or disability, in agency decision-making and other Federal activities that affect human health and the environment so that people:
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         88 FR 25251, April 26, 2023.
                    </P>
                </FTNT>
                <P>(1) are fully protected from disproportionate and adverse human health and environmental effects (including risks) and hazards, including those related to climate change, the cumulative impacts of environmental and other burdens, and the legacy of racism or other structural or systemic barriers; and</P>
                <P>(2) have equitable access to a healthy, sustainable, and resilient environment in which to live, play, work, learn, grow, worship, and engage in cultural and subsistence practices.</P>
                <P>
                    E.O. 12898,
                    <SU>2</SU>
                    <FTREF/>
                      
                    <E T="03">Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations,</E>
                     was issued in 1994 and was the first executive order to recognize environmental justice concerns. This E.O. required Federal agencies to consider environmental justice impacts in their planning and decision-making processes, and set the stage for future guidance, policies, and E.O.s focused on identifying disproportionately high and adverse impacts. With the issuance of E.O. 14096, the White House called on the Federal Government to bring clean energy and healthy environments to all and to recognize, undo, and mitigate harm to those who have disproportionately suffered from toxic pollution and other environmental burdens like climate change. To better focus Federal agency resources and attention on the needs and priorities of marginalized and overburdened communities, the White House also launched the White House Campaign for Environmental Justice.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         59 FR 7629, February 16, 1994.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">DHS and Environmental Justice</HD>
                <P>DHS Components include: U.S. Citizenship and Immigration Services (USCIS), U.S. Coast Guard (USCG), U.S. Customs and Border Protection (CBP), Cybersecurity and Infrastructure Security Agency (CISA), Federal Emergency Management Agency (FEMA), Federal Law Enforcement Training Center (FLETC), U.S. Immigration and Customs Enforcement (ICE), U.S. Secret Service (USSS), Transportation Security Administration (TSA), Management Directorate, Science and Technology Directorate (S&amp;T), Countering Weapons of Mass Destruction Office (CWMD), Office of Intelligence and Analysis (I&amp;A), Office of Homeland Security Situational Awareness (OSA), Office of Health Security (OHS), Office of the Citizenship and Immigration Services Ombudsman (CIS Ombudsman), and Office of the Immigration Detention Ombudsman (OIDO).</P>
                <P>As a reflection of the many and varied DHS Components, DHS programs and activities are far-reaching and include:</P>
                <P>(1) maritime safety, security, and stewardship;</P>
                <P>(2) the administration of federally assisted programs;</P>
                <P>(3) emergency management programs;</P>
                <P>(4) border security;</P>
                <P>(5) transportation security;</P>
                <P>(6) immigration services;</P>
                <P>(7) law enforcement training;</P>
                <P>(8) science and technology research;</P>
                <P>(9) cyber security and infrastructure security; and</P>
                <P>(10) mission support and asset management.</P>
                <P>
                    The Department's ability to identify and advance environmental justice arises principally through environmental review during compliance with the National Environmental Policy Act (42 U.S.C. 4321-4347); compliance and enforcement related to title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 
                    <E T="03">et seq.</E>
                    ); section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794 
                    <E T="03">et seq.</E>
                    ), as amended and other applicable Federal civil rights authorities in connection with programs and activities funded by DHS financial assistance to State, Tribal, Territorial, local governments, and other recipients; environmental compliance and remediation activities; and regulatory permitting. Examples of DHS programs, policies, and activities in which environmental justice consideration may arise include concerns about air and/or water quality related to DHS buildings or operations; DHS's storage, replacement, removal, and transportation of hazardous materials; disruption to communities due to DHS goods movement; restoration and remediation of impacts from ongoing DHS activities and legacy contamination; equitable resilience and recovery programs and activities carried out by DHS and/or recipients of DHS financial assistance following a flood or other disaster or emergency, for example, new construction, demolition of property, or relocation of communities; or strengthening resilience to climate change and other natural and human-made disruptive events.
                </P>
                <P>The DHS Environmental Justice Program is co-led by the Office of the Chief Readiness Support Officer (OCRSO) and the Office for Civil Rights and Civil Liberties (CRCL). Recognizing that the incorporation of environmental justice policies may differ across the Department depending on a Component's mission, the DHS Environmental Justice Program promotes a comprehensive, consistent, and adaptive strategy among DHS Components through training, ongoing policy development to incorporate environmental justice considerations, and strong partnerships with various stakeholders.</P>
                <HD SOURCE="HD1">II. Purpose of RFI</HD>
                <P>DHS is interested in receiving input from the public on any perceived environmental impacts that the public believes result from DHS mission programs and activities and/or those programs and activities funded by DHS. DHS is issuing this RFI to receive input from the public, specifically on any interests, concerns, and perspectives about:</P>
                <P>(1) how DHS addresses environmental justice Department-wide,</P>
                <P>
                    (2) how it can provide opportunities for meaningful engagement in decision-making processes that may affect human health or the environment, and
                    <PRTPAGE P="87447"/>
                </P>
                <P>(3) what should be included in the next DHS Environmental Justice Strategy.</P>
                <P>DHS seeks engagement and collaboration with communities with environmental justice concerns who are potentially affected by DHS mission programs and activities and/or those programs and activities funded by DHS. DHS may use the information to evaluate, implement, modify, expand, and/or streamline its policies, practices, and processes to promote meaningful involvement, establish new and strengthen community partnerships, and inform its update to the DHS Environmental Justice Strategy and other policymaking.</P>
                <P>
                    This effort will enable DHS to further implement E.O. 12898; E.O. 13985,
                    <SU>3</SU>
                    <FTREF/>
                      
                    <E T="03">Advancing Racial Equity and Support for Underserved Communities Through the Federal Government;</E>
                     E.O. 13990,
                    <SU>4</SU>
                    <FTREF/>
                      
                    <E T="03">Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis</E>
                    ; E.O. 14008,
                    <SU>5</SU>
                    <FTREF/>
                      
                    <E T="03">Tackling the Climate Crisis at Home and Abroad</E>
                    ; E.O. 14052,
                    <SU>6</SU>
                    <FTREF/>
                      
                    <E T="03">Implementation of the Infrastructure Investment and Jobs Act</E>
                    ; E.O. 14057,
                    <SU>7</SU>
                    <FTREF/>
                      
                    <E T="03">Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability</E>
                    ; E.O. 14082,
                    <SU>8</SU>
                    <FTREF/>
                      
                    <E T="03">Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022</E>
                    ; E.O. 14091,
                    <SU>9</SU>
                    <FTREF/>
                      
                    <E T="03">Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government</E>
                    ; and E.O. 14096, 
                    <E T="03">Revitalizing Our Nation's Commitment to Environmental Justice For All</E>
                    .
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         86 FR 7009, January 25, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         86 FR 7037, January 25, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         86 FR 7619, February 1, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         86 FR 64335, November 18, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         86 FR 70935, December 13, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         87 FR 56861, September 16, 2022.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         88 FR 10825, February 22, 2023.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Key Questions for Input</HD>
                <P>DHS seeks to establish new goals and objectives to support resilient communities and provide meaningful participation for all persons in DHS decision-making processes that may affect human health or the environment. A central goal of DHS's existing Environmental Justice Strategy is to build resilience and promote adaptation in low-income and minority communities. The Department's environmental justice program must evolve as the environmental justice landscape evolves due to climate change, new scientific developments, and an increased policy focus on environmental justice and equity throughout the Federal Government. In brief, new and more ambitious approaches are essential, with concrete, meaningful steps needed to advance environmental justice.</P>
                <P>
                    The five identified environmental justice strategy goals listed in the FY 2021-2025 DHS Environmental Justice Strategy 
                    <SU>10</SU>
                    <FTREF/>
                     include objectives and outcomes that will help the Department advance equity and environmental justice:
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">https://www.dhs.gov/publication/dhs-environmental-justice-strategy-fiscal-years-2021-2025.</E>
                    </P>
                </FTNT>
                <P>(1) Expand Department-wide awareness of environmental justice considerations that might result from its programs, policies, and activities.</P>
                <P>(2) Further the integration of environmental justice principles into DHS lines of business, prominently including mitigation, adaptation, and resilience.</P>
                <P>(3) Strengthen outreach to communities, organizations, and interest groups through public engagement.</P>
                <P>(4) Expand collaboration and knowledge-sharing with interagency partners to efficiently focus Department resources and technical assistance.</P>
                <P>(5) Integrate environmental justice principles into Departmental climate change initiatives.</P>
                <HD SOURCE="HD2">Engagement/Collaboration</HD>
                <P>(1) What are examples of successful collaborations between Federal agencies and Tribal, Territorial, local, and State governments or communities with environmental justice concerns?</P>
                <P>(2) How can DHS enhance public participation in decision-making that impacts human health and the environment?</P>
                <P>(3) What resources and technical assistance are needed regarding Departmental activities that may impact environmental justice communities to plan meaningful engagement with community organizations and interest groups?</P>
                <P>(4) How can DHS more effectively engage and collaborate with underserved communities with environmental justice concerns, including communities with members of various races, religions, gender identities, and national origins?</P>
                <P>(5) How can DHS better engage and collaborate effectively with Tribes, both federally and non-federally recognized, Native Hawaiian organizations, and Indigenous Peoples, including Indigenous migrant communities?</P>
                <P>(6) How can DHS better engage with individuals with disabilities and integrate disability considerations into its decision-making?</P>
                <HD SOURCE="HD2">Assessing Existing DHS Programs</HD>
                <P>(1) How can DHS better understand and integrate environmental justice concerns and evaluate the potential for disproportionate effects on communities with these concerns when preparing documentation in accordance with the National Environmental Policy Act of 1969?</P>
                <P>
                    (2) How can DHS increase recipient, 
                    <E T="03">e.g.,</E>
                     grantee of DHS funding, awareness of environmental justice considerations and responsibilities with respect to disabilities, such as under section 504 of the Rehabilitation Act of 1973 
                    <SU>11</SU>
                    <FTREF/>
                     in federally assisted programs?
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The Rehabilitation Act of 1973 prohibits discrimination based on disability in federally assisted and conducted programs.
                    </P>
                </FTNT>
                <P>
                    (3) How can DHS increase recipient, 
                    <E T="03">e.g.,</E>
                     grantee of DHS funding, awareness of environmental justice considerations, and responsibilities with respect to race, color, and national origin, such as under title VI of the Civil Rights Act of 1964 
                    <SU>12</SU>
                    <FTREF/>
                     in federally assisted programs and activities, including obligations to people who are limited English proficient?
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Title VI of the Civil Rights Act of 1964, as amended, prohibits discrimination based on race, color, or national origin in programs and activities received Federal financial assistance.
                    </P>
                </FTNT>
                <P>
                    (4) How can DHS assist communities with environmental justice concerns to receive Justice40 
                    <SU>13</SU>
                    <FTREF/>
                     benefits?
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The Justice 40 Initiative, established under E.O. 14008, commits the Federal Government to directing 40% of the benefits from certain Federal investments, such as clean energy and energy efficiency; clean transit; affordable and sustainable housing; training and workforce development; remediation and reduction of legacy pollution; and development of critical clean water and wastewater infrastructure, to communities with environmental justice concerns. There are four covered programs within DHS/FEMA, including the Building Resilient Infrastructure and Communities, Flood Mitigation Assistance, FEMA Risk Mapping, Assessment and Planning, and the Regional Catastrophic Preparedness Grant Program.
                    </P>
                </FTNT>
                <P>(5) How should DHS consider environmental justice during building, facility, and land management and operations and maintenance activities?</P>
                <P>(6) Do you have suggestions for changes to DHS's current programs, regulations, or policies that would combat climate change, bolster underserved communities' resilience to climate change, or help communities adapt to its impacts?</P>
                <HD SOURCE="HD2">DHS Environmental Justice Strategy</HD>
                <P>
                    (1) Please provide additional feedback on the vision, framework, and outcomes of the DHS Environmental Justice 
                    <PRTPAGE P="87448"/>
                    Strategy for Fiscal Years 2021-2025 
                    <SU>14</SU>
                    <FTREF/>
                     and the DHS Environmental Justice Annual Implementation Report for Fiscal Year 2022.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">https://www.dhs.gov/publication/dhs-environmental-justice-strategy-fiscal-years-2021-2025.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">https://www.dhs.gov/publication/environmental-justice-annual-implementation-report-fiscal-year-2022.</E>
                    </P>
                </FTNT>
                <P>(2) What other strategic goals should DHS include in the next Environmental Justice Strategy to advance environmental justice?</P>
                <P>(3) How can DHS better address environmental justice concerns through its environmental review of the impact of operations, financial assistance to State, local, and Tribal governments, and regulatory permitting activities?</P>
                <P>
                    (4) In addition to the nine program areas identified in DHS Directive 023-04, 
                    <E T="03">Environmental Justice,</E>
                     are there other DHS programs where DHS could incorporate environmental justice policies and considerations?
                </P>
                <HD SOURCE="HD1">IV. Written Comments</HD>
                <P>You may respond to some or all questions listed in this RFI. Please ensure your response is clear and indicate which question you are responding to. You may also include links to online materials and should ensure all links are publicly available. Each response should include:</P>
                <P>(1) the name of the individual(s) and/or organization(s) responding;</P>
                <P>(2) policy suggestions that your submission and materials support; and</P>
                <P>(3) a contact for questions or other follow-up on your response.</P>
                <P>Please note that this RFI is only a planning document and should not be construed as policy, a solicitation for proposals, or an obligation by DHS or the Federal Government.</P>
                <HD SOURCE="HD1">V. Review of Public Feedback</HD>
                <P>DHS encourages all potentially interested parties—individuals, associations, State, local, Tribal, and Territorial governmental organizations, non-governmental organizations, academic institutions, and private sector entities—to respond. DHS may use the feedback received to help further environmental justice initiatives, consider reforms, and update the Department's Environmental Justice Strategy in accordance with recent Executive Orders on environmental justice and equity. This RFI is used solely for information-gathering purposes, and DHS is not initiating a rulemaking at this time. Public input in response to this RFI does not bind DHS to take any further actions, including publishing a formal response or initiating a recommended change. DHS will consider the feedback received and may make changes or process improvements at its sole discretion.</P>
                <SIG>
                    <NAME>Thomas D. Chaleki,</NAME>
                    <TITLE>Chief Readiness Support Officer, Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27628 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9112-FF-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7075-N-16]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: Data Collection for the HUD Secretary's Awards Including The Secretary's Award for Public-Philanthropic Partnerships, The Secretary's Awards for Healthy Homes, The Secretary's Award for Excellence in Historic Preservation, The Secretary's Award for Planning, The Secretary's Housing Design Awards, The Secretary's Award for Tribal Housing Impact, and The HUD Innovation in Affordable Housing Student Design and Planning Competition; OMB Control No.: 2528-0324</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Policy Development and Research, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 60 days of public comment.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments Due Date:</E>
                         January 17, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Interested persons are invited to submit comments regarding this proposal.</P>
                    <P>
                        Written comments and recommendations for the proposed information collection can be submitted within 60 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting, “Currently under 60-day Review—Open for Public Comments” or by using the search function. Interested persons are also invited to submit comments regarding this proposal by name and/or OMB Control Number and can be sent to: Anna Guido, Reports Management Officer, REE, Department of Housing and Urban Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000 or email at 
                        <E T="03">PaperworkReductionActOffice@hud.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anna Guido, Reports Management Officer, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email; 
                        <E T="03">Anna.P.Guido@hud.gov;</E>
                         telephone (202) 402-5535 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                    <P>Copies of available documents submitted to OMB may be obtained from Ms. Guido.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.</P>
                <HD SOURCE="HD1">A. Overview of Information Collection</HD>
                <P>
                    <E T="03">Title of Information Collection:</E>
                     Data Collection for the HUD Secretary's Awards including The Secretary's Award for Public-Philanthropic Partnerships, The Secretary's Awards for Healthy Homes, The Secretary's Award for Excellence in Historic Preservation, The Secretary's Award for Planning, The Secretary's Housing Design Awards, The Secretary's Award for Tribal Housing Impact, and The HUD Innovation in Affordable Housing Student Design and Planning Competition.
                </P>
                <P>
                    <E T="03">OMB Approval Number:</E>
                     2528-0324.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Description of the need for the information and proposed use:</E>
                     HUD seeks to collect information that will be used to implement the following HUD Secretary's Awards: (1) the Secretary's Award for Public-Philanthropic Partnerships, (2) the Secretary's Awards for Healthy Homes, (3) the Secretary's Award for Excellence in Historic Preservation, (4) the Secretary's Planning Award, (5) the Secretary's Housing Design Awards, (6) The Secretary's Award for Tribal Housing Impact, and (7) the HUD Innovation in Affordable Housing Student Design and Planning Competition.
                </P>
                <P>
                    On an annual basis, HUD accepts nominations for the above listed awards. A template application form for nominations streamlines information 
                    <PRTPAGE P="87449"/>
                    collection across these six award programs. Each award recognizes awardees for their innovation and commitment to raising industry standards and increasing the quality of life for low- and moderate-income households. Below is a brief description of each of the six award programs.
                </P>
                <HD SOURCE="HD2">The HUD Secretary's Award for Public-Philanthropic Partnerships</HD>
                <P>The Public-Philanthropic Partnerships Award recognizes excellence in partnerships that have transformed the relationships between the public and philanthropic sectors and led to measurable benefits in housing and community development for low- and moderate-income families. By strengthening the connection between HUD and philanthropy, these awards highlight the power of collective impact that can be achieved through public-philanthropic partnerships between government entities and foundations.</P>
                <HD SOURCE="HD2">The HUD Secretary's Awards for Healthy Homes</HD>
                <P>The Healthy Homes Awards promote the innovation and partnerships needed to create healthy homes and communities for low-income residents by working across the health, environment, and housing sectors.</P>
                <HD SOURCE="HD2">HUD Secretary's Award for Excellence in Historic Preservation</HD>
                <P>The Secretary's Award for Excellence in Historic Preservation recognizes developers, organizations, and agencies for their success in advancing the goals of historic preservation while providing affordable housing and/or expanded economic opportunities for low-and moderate-income families and individuals.</P>
                <HD SOURCE="HD2">HUD Secretary's Planning Award</HD>
                <P>The Secretary's Planning Award honors excellence in community planning that has led to measurable benefits in economic development, employment, education, or housing choice and mobility for low- and moderate-income residents. The award stresses that communities demonstrate how integrative planning led to tangible results, such as expanding the supply of available affordable housing, employment opportunities connected by effective transportation systems, or a host of community-empowering strategies. The award recognizes the planning discipline as an important partner in how creative housing, economic development, and private investments are used in—or in tandem with—a comprehensive community development plan.</P>
                <HD SOURCE="HD2">HUD Secretary's Housing Design Awards</HD>
                <P>The Secretary's Housing Design Awards recognize excellence in affordable housing design, community-based design, participatory design, and accessibility. These awards demonstrate that design matters and provide examples of important benchmarks in the housing industry.</P>
                <HD SOURCE="HD2">HUD Secretary's Award for Tribal Housing Impact</HD>
                <P>The Secretary's Tribal Housing Impact Award celebrates excellence and innovation in addressing housing and community development needs within Native American communities. By honoring Tribes and Tribally Designated Housing Entities (TDHES) significant housing and community development related achievements, HUD is fostering sustainable and vibrant Tribal communities for generations to come.</P>
                <HD SOURCE="HD2">HUD Innovation in Affordable Housing Student Design and Planning Competition</HD>
                <P>The Innovation in Affordable Housing Student Design and Planning Competition advances design and production of livable and sustainable housing for low- and moderate-income people. This competition invites teams of graduate students from multiple disciplines to submit plans in response to a real-world affordable housing design issue. The competition encourages research and innovation in affordable housing, increases practitioner capacity to produce more livable and sustainable housing for low- and moderate-income communities through best practices in building design and construction, and fosters cross-cutting teamwork within the design and community development process.</P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     310.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     3 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Once annually.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     930 hours.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost:</E>
                     The cost to respondents to complete a nomination is estimated at the Social and Human Service Assistant median hourly wage rate ($18.52) for 3 hours of work. The total estimated cost is $17,223.60.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     The authority to collect information is in Sections 501 and 502 of the Housing and Urban Development Act of 1970 (Pub. L. 91-609) (12 U.S.C. 1701z-1; 1701z-2(d) and (g)).
                </P>
                <P>
                    <E T="03">Respondents (i.e., affected public):</E>
                     Organizations.
                </P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,r100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Respondent</CHED>
                        <CHED H="1">Occupation</CHED>
                        <CHED H="1">SOC code</CHED>
                        <CHED H="1">Median hourly wage rate</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Secretary's Award Nominee</ENT>
                        <ENT>Social and Human Service Assistant</ENT>
                        <ENT>21-1093</ENT>
                        <ENT>$18.52</ENT>
                    </ROW>
                    <TNOTE>
                        Source: Bureau of Labor Statistics, Occupational Employment Statistics (Accessed November 2023, Data Released April 2023), 
                        <E T="03">https://www.bls.gov/oes/current/oes211093.htm.</E>
                    </TNOTE>
                </GPOTABLE>
                <GPOTABLE COLS="8" OPTS="L2,nj,tp0,p7,7/8,i1" CDEF="s50,12,12,12,12,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Information collection</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Frequency of response</CHED>
                        <CHED H="1">Responses per annum</CHED>
                        <CHED H="1">Burden hour per response</CHED>
                        <CHED H="1">Annual burden hours</CHED>
                        <CHED H="1">Hourly cost per response</CHED>
                        <CHED H="1">Annual cost</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">HUD Secretary's Awards for Public-Philanthropic Partnerships</ENT>
                        <ENT>50</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>150</ENT>
                        <ENT>$18.52</ENT>
                        <ENT>$2,778.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HUD Secretary's Awards for Healthy Homes</ENT>
                        <ENT>30</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>90</ENT>
                        <ENT>18.52</ENT>
                        <ENT>1,666.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HUD Secretary's Awards for Excellence in Historic Preservation</ENT>
                        <ENT>50</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>150</ENT>
                        <ENT>18.52</ENT>
                        <ENT>2,778.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HUD Secretary's Planning Awards</ENT>
                        <ENT>50</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>150</ENT>
                        <ENT>18.52</ENT>
                        <ENT>2,778.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HUD Secretary's Housing Design Awards</ENT>
                        <ENT>50</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>150</ENT>
                        <ENT>18.52</ENT>
                        <ENT>2,778.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HUD Secretary's Awards for Tribal Housing Impact</ENT>
                        <ENT>30</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>90</ENT>
                        <ENT>18.52</ENT>
                        <ENT>1,666.80</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Innovation in Affordable Housing Student Design and Planning Competition</ENT>
                        <ENT>50</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>3</ENT>
                        <ENT>150</ENT>
                        <ENT>18.52</ENT>
                        <ENT>2,778.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT>310</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>930</ENT>
                        <ENT/>
                        <ENT>17,233.60</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="87450"/>
                <HD SOURCE="HD1">B. Solicitation of Public Comment</HD>
                <P>This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:</P>
                <P>(1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;</P>
                <P>(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected, and</P>
                <P>
                    (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <P>HUD encourages interested parties to submit comments in response to these questions.</P>
                <HD SOURCE="HD1">C. Authority</HD>
                <P>Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507.</P>
                <SIG>
                    <NAME>Todd M. Richardson,</NAME>
                    <TITLE>General Deputy Assistant Secretary for Policy, Development and Research.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27701 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7077-N-29]</DEPDOC>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Housing, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a modified system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the provisions of the Privacy Act of 1974, as amended, the Department of Housing and Urban Development (HUD), Office of Housing, Single Family Insurance Operations Division, is modify a system of records titled “Single Family Insurance System.” The Single-Family Insurance System (SFIS). The SFIS maintains all Federal Housing Administration (FHA)-insured Single-Family mortgage loan case records and is the primary repository of FHA's single family insured loan portfolio. This system of records is being revised to make clarifying changes within: System Location, System Manager, Record Authority for Maintenance of the System, Purpose of the System, Categories of Individuals Covered by the System, Categories of Records in the System, Records Source Categories, Routine Uses of Records Maintained in the System, Retrieval of Records, and Retention and Disposal of Records. The SORN modifications are outlined in the SORN 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments will be accepted on or before January 17, 2024. The SORN becomes effective immediately, while the routine uses become effective after the comment period immediately upon publication except for the routine uses, which will become effective on the date following the end of the comment period unless comments are received which result in a contrary determination.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number or by one of the following methods:</P>
                    <P>
                        <E T="03">Federal e-Rulemaking Portal:</E>
                          
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions provided on that site to submit comments electronically.
                    </P>
                    <P>
                        <E T="03">Fax:</E>
                         202-619-8365.
                    </P>
                    <P>
                        <E T="03">Email:</E>
                          
                        <E T="03">www.privacy@hud.gov.</E>
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Attention: Privacy Office; Mr. LaDonne White, Chief Privacy Officer; Office of the Executive Secretariat; 451 Seventh Street SW, Room 10139; Washington, DC 20410-0001.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to 
                        <E T="03">http://www.regulations.gov.</E>
                         including any personal information provided.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         For access to the docket to read background documents or comments received go to 
                        <E T="03">http://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        LaDonne White; 451 Seventh Street SW, Room 10139; Washington, DC 20410-0001; telephone number 202-708-3054 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>HUD, Office of Housing, Single Family Operations Division, maintains the Single-Family Insurance System (SFIS) system. Specific changes to the SORN are explained below:</P>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>Modified the systems title and code from “Single Family Insurance System (SFIS) A43—Insurance-in-force (IIF) database, HSNG.SF/HWAFS.01 to Single Family Insurance System HUD/HOU-04.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Added systems of record classification status.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Replaced former data center location in West Virginia with new locations in Virginia, Mississippi, and Washington, DC.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>Identified new system manager.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>Updated with existing authorities that permit the maintenance of the systems records, by clarifying citations, correcting errors, and including relevant citations to the Code of Federal Regulations Statutes and regulations are listed below.</P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>Updated to make clarifying changes to the systems purpose. This update does not impact the business requirements scoped for this system.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>Reorganized this section to group and clarify individuals according to their program responsibilities.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>Updated this section to clarify the records collected.</P>
                    <HD SOURCE="HD2">RECORDS SOURCE CATEGORIES:</HD>
                    <P>Updated with record sources for internal and external systems.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>HUD will make new disclosures from this system of records to authorized agencies and participants as described below. This will enable HUD to resolve disputes, implement remedial actions, test new technology, work with researchers, and respond to investigations for enforcement actions. HUD's responsiveness to records maintained by this system of records makes these disclosures appropriate. To keep track of legal, reporting, hearing, and procedural processes related to these documents, HUD may maintain summaries or details on these disclosures in this system.</P>
                    <P>
                        <E T="03">New Routine Use:</E>
                    </P>
                    <P>
                        Routine Use (1) was added to assist in the resolution of disputes between HUD 
                        <PRTPAGE P="87451"/>
                        and persons making FOIA requests; Routine Use (2) was added to was added to assist with congressional inquiries made at the request of the individual; Routine Use (3) was added to allow for researchers to use access HUD data as needed; Routine Use (4) was added to allow for support from contractors and others when necessary to accomplish an agency function; Routine Use (5) was added to allow for testing new technology to enhance program information technology and services; Routine Uses (6) and (7) were updated to comply with the requirements of OMB M-17-12; Routine Uses (8) and (9) were updated to assist in the enforcement of civil or criminal laws; and Routine Use (10) was updated to allow HUD to litigate as needed and receive effective representation by its representatives (such as the Department of Justice).
                    </P>
                    <P>Records Retention and Disposition: Updated this section to describe current retention and disposal requirements in a simplified format by adding existing NARA approved general records schedules the agency generally uses to dispose of program related records.</P>
                    <P>Policy and Practice for Retrieval of Records: Reformatted the retrieval statement for borrowers' records retrieved. The FHA Case Number was removed since this record is not being used as a personal identifier.</P>
                </PRIACT>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>Single Family Insurance System HUD/HOU-04.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>National Center for Critical Information Processing and Storage located in Mississippi and Virginia; HUD Headquarters building, 451 Seventh Street SW, Washington, DC 20410-0001; and the Pyramid Systems, Inc. (PSI) 2677 Prosperity Ave., Ste. 250, Fairfax, VA 22031</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>Pauline Devore, System Manager, Single Family Insurance Operations Division, HWAFS, Department of Housing and Urban Development, 451 Seventh Street SW, Ninth floor, Washington, DC 20410-0001.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>
                        Sec. 203, National Housing Act, Public Law 73-479; The National Housing Act (12 U.S.C. 1701 
                        <E T="03">et seq.</E>
                        ) and the Department of Housing and Urban Development Act (42 U.S.C. 3531 
                        <E T="03">et seq.</E>
                        ); 24 CFR parts 202, 203, and 206. The Housing and Community Development Act of 1987, 42 U.S.C. 3543(a). FHA Single Family Housing Handbook 4000.1.
                    </P>
                    <HD SOURCE="HD2">PURPOSES OF THE SYSTEM:</HD>
                    <P>
                        The purpose of Single-Family Insurance System (SFIS) is to provide oversight for the servicing of the Single Family insured mortgage loans and allows internal HUD users' on-line access to accurate and detailed case information to make inquiries, and to report on insured case activities (
                        <E T="03">e.g.,</E>
                         new insured case records, reinstated or terminated case records, case record changes, servicer transfers or merger, and mortgage insurance premium (MIP) calculations initiated, renewed, or adjusted including any MIP status resets). SFISnet is a web-based application which allows the viewing of FHA case information in a user-friendly environment.
                    </P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>Mortgagors who assumed, obtained, or had a mortgage insured under HUD Federal Housing Administration (FHA) single family mortgage insurance programs; FHA-approved Mortgagees (Lenders) who are the servicer or holder of the loan; and HUD users and authorized contractors with system access and responsibility for servicing functions.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>Full Name, Social Security Number (SSN), Address (work, home, and business), phone number (home, work, and business), Date of Birth, Age, Race/Ethnicity, Sex, Email (work, home, and business), Taxpayer Identification Number, Employee Identification Number, User Ids, and Lender Ids.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>FHA-approved Mortgagees (Lenders), appraisers on behalf of the mortgagors, staff underwriters, and HUD employees indirectly or exchanged by HUD operational systems listed below:</P>
                    <P>
                        <E T="03">Housing Office of Finance and Budget:</E>
                    </P>
                    <P>—Distributive Shares and Refunds Subsystem (DSRS),</P>
                    <P>—Single Family Insurance System Claims Subsystem (CLAIMS),</P>
                    <P>—Electronic Data Interchange System (EDIS)</P>
                    <P>
                        <E T="03">Housing Office of Single Family Housing:</E>
                    </P>
                    <P>—Computerized Homes Underwriting Management System (CHUMS)</P>
                    <P>—Lender Electronic Assessment Portal (LEAP)</P>
                    <P>
                        <E T="03">Office of the Chief Information Officer:</E>
                    </P>
                    <P>—Digital Identity Access Management System (DIAMS).</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>(1) To the National Archives and Records Administration, Office of Government Information Services (OGIS), to the extent necessary to fulfill its responsibilities in 5 U.S.C. 552(h), to review administrative agency policies, procedures, and compliance with the Freedom of Information Act (FOIA), and to facilitate OGIS's offering of mediation service to resolve disputes between persons making FOIA requests and administrative agencies.</P>
                    <P>(2) To a congressional office from the record of an individual, in response to an inquiry from the congressional office made at the request of that individual.</P>
                    <P>(3) To contractors, grantees, experts, consultants, Federal agencies, and non-Federal entities, including, but not limited to, State and local governments and other research institutions or their parties and entities and their agents with whom HUD has a contract, service agreement, grant, cooperative agreement, or other agreement, for the purposes of statistical analysis and research in support of program operations, management, performance monitoring, evaluation, risk management, and policy development, or to otherwise support the Department's mission. Records under this routine use may not be used in whole or in part to make decisions that affect the rights, benefits, or privileges of specific individuals. The results of the matched information may not be disclosed in identifiable form.</P>
                    <P>(4) To contractors, grantees, experts, consultants and their agents, or others performing or working under a contract, service, grant, or cooperative agreement with HUD, when necessary to accomplish an agency function related to a system of records. Disclosure requirements are limited to only those data elements considered relevant to accomplishing an agency function.</P>
                    <P>(5) To contractors, experts, and consultants with whom HUD has a contract, service agreement, or other assignment of the Department when necessary to utilize relevant data for the purpose of testing new technology and systems designed to enhance program operations and performance.</P>
                    <P>
                        (6) To another Federal agency or Federal entity when HUD determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or 
                        <PRTPAGE P="87452"/>
                        remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security resulting from a suspected or confirmed breach.
                    </P>
                    <P>(7) To appropriate agencies, entities, and persons when (1) HUD suspects or has confirmed that there has been a breach of the system of records; (2) HUD has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, HUD (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with HUD's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>(8) To appropriate Federal, state, local, tribal, or governmental agencies or multilateral governmental organizations responsible for investigating or prosecuting the violations of, or for enforcing or implementing, a statute, rule, regulation, order, or license where HUD determines that the information would assist in the enforcement of civil or criminal laws when such records, either alone or in conjunction with other information, indicate a violation or potential violation of law. Records may only be disclosed upon a showing by the requester that the information is pertinent to the investigation. (2) To third parties during the course of a law enforcement investigation, to the extent necessary to obtain information pertinent to the investigation, provided the disclosure of such information is appropriate to the proper performance of the official duties of the officer making the disclosure.</P>
                    <P>(9) To a court, magistrate, administrative tribunal, or arbitrator in the course of presenting evidence, including disclosures to opposing counsel or witnesses in the course of civil discovery, litigation, mediation, or settlement negotiations; or in connection with criminal law proceedings; when HUD determines that use of such records is relevant and necessary to the litigation and when any of the following is a party to the litigation or have an interest in such litigation: (1) HUD, or any component thereof; (2) any HUD employee in his or her official capacity; (3) any HUD employee in his or her individual capacity where HUD has agreed to represent the employee; or (4) the United States, or any agency thereof, where HUD determines that litigation is likely to affect HUD or any of its components.</P>
                    <P>(10) To any component of the Department of Justice or other Federal agency conducting litigation or in proceedings before any court, adjudicative, or administrative body when HUD determines that the use of such records is relevant and necessary to the litigation and when any of the following is a party to the litigation or have an interest in such litigation: (1) HUD, or any component thereof; (2) any HUD employee in his or her official capacity; (3) any HUD employee in his or her individual capacity where the Department of Justice or agency conducting the litigation has agreed to represent the employee; or (4) the United States, or any agency thereof, where HUD determines that litigation is likely to affect HUD or any of its components.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Paper and electronic.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Name, Social Security Number, Property Address, and User ID.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Disposition is Temporary—Paper records are either burned or shredded, and electronic and media records are erased following NIST Special Publication 800-88 guidelines.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>
                        <E T="03">Administrative Controls:</E>
                         Data backups Secured Off-Site; Encryption of Backups; Methods to Ensure Only Authorized Personnel Access to PII; Periodic Security Audits; and Regular Monitoring of User's Security Practices.
                    </P>
                    <P>
                        <E T="03">Technical Controls:</E>
                         Firewall; Role-Based Access Controls; Virtual Private Network; Encryption of Data in Transit; Least Privilege Access; User Identification and Password; Personal Identity Verification Card; Intrusion Detection System.
                    </P>
                    <P>
                        <E T="03">Physical Safeguards:</E>
                         Combination locks; Key Cards; Security Guards; Identification Badges; and paper files will be stored securely in a locked cabinet that can only be accessed by authorized individuals working on the data. The locked cabinet will be stored in a locked office in a limited-access building. Additionally, permissions will be defined for each authorized user based on the user's role.
                    </P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>Individuals requesting records of themselves should address written inquiries to the Department of Housing Urban and Development 451 7th Street, SW Washington, DC 20410-0001. For verification, individuals should provide their full name, current address, and telephone number. In addition, the requester must provide either a notarized statement or an unsworn declaration made under 24 CFR 16.4.</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>The HUD rule for accessing, contesting, and appealing agency determinations by the individual concerned are published in 24 CFR part 16.8.</P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>Individuals requesting notification of records of themselves should address written inquiries to the Department of Housing Urban Development, 451 7th street SW, Washington, DC 20410-0001. For verification purposes, individuals should provide their full name, office or organization where assigned, if applicable, and current address and telephone number. In addition, the requester must provide either a notarized statement or an unsworn declaration made under 24 CFR part 16.</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>Docket No. 81 FR 59235 (August 29, 2016), and 64 FR 40032 (July 23, 1999).</P>
                </PRIACT>
                <SIG>
                    <NAME>LaDonne White,</NAME>
                    <TITLE>Chief Privacy Officer, Office of Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27709 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7071-N-22]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: Housing Counseling Program—Application for Approval as a Housing Counseling Agency, OMB Control No.: 2502-0573</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Development (HUD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice 
                        <PRTPAGE P="87453"/>
                        is to allow for 60 days of public comment.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments Due Date:</E>
                         February 16, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit comments regarding this proposal. Written comments and recommendations for the proposed information collection can be submitted within 60 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 60-day Review—Open for Public Comments” or by using the search function. Comments should refer to the proposal by name and/or OMB Control Number and should be sent to: Colette Pollard, Reports Management Officer, Department of Housing and Urban Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000; telephone 202-402-3400 (this is not a toll-free number) or email at 
                        <E T="03">PaperworkReductionActOffice@hud.gov.</E>
                         for a copy of the proposed forms or other available information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Colette Pollard, Reports Management Officer, REE, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email 
                        <E T="03">Colette.Pollard@hud.gov</E>
                         or telephone 202-402-3400. This is not a toll-free number. HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit: 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                    <P>Copies of available documents submitted to OMB may be obtained from Ms. Pollard.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.</P>
                <HD SOURCE="HD1">A. Overview of Information Collection</HD>
                <P>
                    <E T="03">Title of Information Collection:</E>
                     Housing Counseling Program—Application for Approval as a Housing Counseling Agency.
                </P>
                <P>
                    <E T="03">OMB Approval Number:</E>
                     2502-0573.
                </P>
                <P>
                    <E T="03">OMB Expiration Date:</E>
                     April 30, 2024.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    <E T="03">Form Numbers:</E>
                     Form HUD-9900 and Form HUD-9900a.
                </P>
                <P>
                    <E T="03">Description of the need for the information and proposed use:</E>
                     The Office of Housing Counseling (OHC) is responsible for the administration of the Department's Housing Counseling Program, authorized by section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. and 42 U.S.C. 3533(g)). The Housing Counseling Program supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to moderate-income renters, and the homeless. The primary objective of the program is to educate families and individuals to help them improve their housing situation and meet the responsibilities of tenancy and homeownership, including through budget and financial counseling. Counselors also help borrowers avoid predatory lending practices, such as inflated appraisals, unreasonably high interest rates, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and possible foreclosure. Counselors may also provide reverse mortgage counseling to senior homeowners who seek to convert equity in their homes to pay for home improvements, medical costs, living expenses or other expenses. Additionally, housing counselors may distribute and be a resource for information concerning Fair Housing and Fair Lending. The Housing Counseling Program is instrumental to the achievement of HUD's mission. The Program's far-reaching effects support numerous departmental programs, including Federal Housing Administration (FHA) single family housing programs.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Not-for-profit institutions; Individuals; households; Federal Government; State, Local or Tribal Government.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     973.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses:</E>
                     973.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     1.
                </P>
                <P>
                    <E T="03">Average Hours per Response:</E>
                     8.
                </P>
                <P>
                    <E T="03">Total Estimated Burden:</E>
                     7,946 hours.
                </P>
                <HD SOURCE="HD1">B. Solicitation of Public Comment</HD>
                <P>This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:</P>
                <P>(1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;</P>
                <P>(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) Ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <P>HUD encourages interested parties to submit comments in response to these questions.</P>
                <HD SOURCE="HD1">C. Authority</HD>
                <P>Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 3507.</P>
                <SIG>
                    <NAME>Jeffrey D. Little,</NAME>
                    <TITLE>General Deputy Assistant Secretary for Housing.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27702 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7071-N-26]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: HUD Loan Sale Bidder Qualification Statement; OMB Control No.: 2502-0576</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Development (HUD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 60 days of public comment.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments Due Date:</E>
                         February 16, 2024.
                    </P>
                </DATES>
                <ADD>
                    <PRTPAGE P="87454"/>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit comments regarding this proposal. Written comments and recommendations for the proposed information collection can be submitted within 60 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 60-day Review—Open for Public Comments” or by using the search function. Comments should refer to the proposal by name and/or OMB Control Number and should be sent to: Colette Pollard, Reports Management Officer, Department of Housing and Urban Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000; telephone 202-402-3400 (this is not a toll-free number) or email at 
                        <E T="03">PaperworkReductionActOffice@hud.gov.</E>
                         for a copy of the proposed forms or other available information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Colette Pollard, Reports Management Officer, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email 
                        <E T="03">Colette.Pollard@hud.gov</E>
                         or telephone (202) 402-3400 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit: 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                         Copies of available documents submitted to OMB may be obtained from Ms. Pollard.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.</P>
                <HD SOURCE="HD1">A. Overview of Information Collection</HD>
                <P>
                    <E T="03">Title of Information Collection:</E>
                     HUD Loan Sale Bidder Qualification Statement.
                </P>
                <P>
                    <E T="03">OMB Approval Number:</E>
                     2502-0576.
                </P>
                <P>
                    <E T="03">OMB Expiration Date:</E>
                     April 30, 2024.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     HUD-90092; HUD-9611; HUD-9612.
                </P>
                <P>
                    <E T="03">Description of the need for the information and proposed use:</E>
                     The Qualification Statement solicits from prospective bidders to the HUD Loan Sales the basic qualifications required for bidding including Purchaser Information (Name of Purchaser, Corporate Entity, Address, Tax ID), Business Type, Net Worth, Equity Size, Prior History with HUD Loans and prior sales participation. By executing the Qualification Statement, the purchaser certifies, represents and warrants to HUD that each of the statements included are true and correct as to the purchaser and thereby qualifies them to bid.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit; Not-for-profit institutions; State, Local or Tribal Government.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     320.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses:</E>
                     640.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Average Hours per Response:</E>
                     0.25 hours.
                </P>
                <P>
                    <E T="03">Total Estimated Burden:</E>
                     160 hours.
                </P>
                <HD SOURCE="HD1">B. Solicitation of Public Comment</HD>
                <P>This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:</P>
                <P>(1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;</P>
                <P>(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <P>HUD encourages interested parties to submit comment in response to these questions.</P>
                <HD SOURCE="HD1">C. Authority</HD>
                <P>Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507.</P>
                <SIG>
                    <NAME>Jeffrey D. Little,</NAME>
                    <TITLE>General Deputy Assistant Secretary for Housing.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27703 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[BLM_NV_FRN_MO4500174065]</DEPDOC>
                <SUBJECT>Notice of Realty Action: Recreation and Public Purposes Act Classification of Public Lands for Lease or Conveyance as a Community Park and Fire Station Complex in Henderson, NV</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of realty action.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Land Management (BLM) Las Vegas Field Office has examined approximately 80 acres of public lands in Henderson, Nevada, and has found them suitable for classification to lease and convey under the provisions of the Recreation and Public Purposes Act (RPPA), as amended. The City of Henderson proposes to develop a community park over approximately 76 acres and a fire station that will be located on approximately 4 acres on the north-east corner of the parcel.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit written comments regarding this classification and RPPA lease/conveyance on or before February 1, 2024. Only written comments submitted to the Assistant Field Manager, at the address below, will be considered properly filed.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Written comments may be mailed to the BLM Las Vegas Field Office, Assistant Field Manager, Division of Lands, 4701 North Torrey Pines Drive, Las Vegas, NV 89130, or fax to (775) 515-5010.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Joseph Varner, Supervisory Realty Specialist, Las Vegas Field Office, at the above address, by telephone at (702) 515-5488, or by email at 
                        <E T="03">jvarner@blm.gov.</E>
                         Additional detailed information pertaining to the BLM's proposed lease and conveyance, or the city's plan of development and site plan, is available for review at the BLM Las Vegas Field Office at the above address in the 
                        <E T="02">ADDRESSES</E>
                         section.
                    </P>
                    <P>Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States. You will receive a reply during normal business hours.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The parcel is located at the southeast corner of Larson Lane and Bermuda Road in Henderson, Nevada, and is legally described as:</P>
                <EXTRACT>
                    <HD SOURCE="HD1">Mount Diablo Meridian, Nevada</HD>
                    <FP SOURCE="FP-2">T. 23 S., R. 61 E.,</FP>
                    <FP SOURCE="FP1-2">
                        Sec. 15, N
                        <FR>1/2</FR>
                        NW
                        <FR>1/4</FR>
                        .
                    </FP>
                </EXTRACT>
                <P>
                    The area described contains 80 acres, according to the official plats of the surveys of said land on file with the BLM. The subject lands are not needed for any Federal purpose and lease/conveyance of the RPPA parcel is 
                    <PRTPAGE P="87455"/>
                    consistent with the BLM Las Vegas Resource Management Plan dated October 5, 1998.
                </P>
                <P>The planned park would consist of several multi-use fields, an outdoor track, events plaza, a recreation center, tennis and pickleball courts, a field house with a gym, basketball and volleyball courts, a skate park, a multi-use recreation center with an indoor aquatics area, an outdoor aquatics area, playgrounds, a splash pad, restrooms, storage areas, concession space, picnic areas, activity areas, parking areas, a parking garage, bus parking, an undercrossing for pedestrian access, an irrigation system, utility services, and a maintenance site with a fill-up station and wash area for recreation and fire support vehicles.</P>
                <P>The fire station would include an approximately 12,000 square foot structure with four apparatus bays, 14 dorms, 7 bathrooms, and other accessory spaces to support 24-hour staffing, 365 days a year. The building will be based on the design of other similar Henderson fire station facilities (Fire Stations 91, 85, 87) with an added bay and dorms for additional staff. This fire station would be known as the Henderson Fire Station 92. There would also be an area outside of the firehouse dedicated for fire response training.</P>
                <P>Several trails would meander through and around the entire 80-acre parcel. All buildings would be constructed using Type 11B unprotected non-combustible materials and would be fabricated using a combination of tilt up concrete slabs, concrete masonry units, wood and steel frames, refrigerated air-conditioning, and heating systems that are placed throughout. Paved parking would be provided for faculty, visitors, buses, maintenance staff, and delivery vehicles. Access would be on paved roads 25 feet to 45 feet in width to allow for automobile and emergency vehicle travel.</P>
                <P>
                    Under the Southern Nevada Public Land Management Act of 1998 (Public Law 105-263) as amended, lands identified for disposal within the Las Vegas Valley are already withdrawn from location and entry under the U.S. mining laws and from operation of the mineral and geothermal leasing laws. Upon publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , the land described above will be segregated from all other forms of appropriation under the public land laws, except for lease and conveyance under the RPPA. The segregation will terminate upon issuance of a patent, upon rejection of the application, or 18 months from the date of this notice, whichever occurs first.
                </P>
                <P>The lease or conveyance, when issued, will be subject to the provisions of the RPPA and applicable regulations of the Secretary of the Interior, and in addition, when a patent is issued, it will contain the following additional reservations to the United States:</P>
                <P>1. A right-of-way thereon for ditches or canals constructed by the authority of the United States, Act of August 30, 1890 (43 U.S.C. 945),</P>
                <P>2. All minerals shall be reserved to the United States, together with the right to prospect for, mine, and remove such deposits for the same under applicable law and such regulations as the Secretary of the Interior may prescribe,</P>
                <P>3. Subject to valid existing rights,</P>
                <P>4. Any terms or conditions required by law (including, but not limited to, any terms or conditions required by 43 CFR 2741.4),</P>
                <P>5. An appropriate indemnification clause protecting the United States from claims arising out of the lessee's/patentee's use, occupancy, or operations on the leased/patented lands,</P>
                <P>6. Any other reservations that the authorized officer determines appropriate to ensure public access and proper management of Federal lands and interests therein,</P>
                <P>7. A reversionary provision stating that title shall revert to the United States upon a finding, after notice and opportunity for a hearing, that, without the approval of the Secretary of the Interior or her delegate, the patentee or its approved successor attempted to convey title to or control over the lands to another; the lands have been devoted to a use other than that for which the lands were conveyed; the lands have not been used for the purpose for which the lands were conveyed for a 5-year period; or the patentee has failed to follow the approved development plan or management plan, except that any portion of the lands that may result in the disposal, placement, or release of any hazardous substance shall under no circumstance return to the U.S. Those lands must be patented without lease and must include a limited reversionary clause for 5 years, which if not developed within that time, the lands will return to the U.S., so long as no hazardous materials exist.</P>
                <P>Subject to limitations prescribed by law and regulation, prior to patent issuance, the holder of any right-of-way grant from the BLM within the lease area would be given the opportunity to amend the right-of-way grant for conversion to a new term, including perpetuity, if applicable.</P>
                <P>Classification Comments: Comments on the classification are restricted to whether the land is physically suited for the proposal, whether the use will maximize the future use or uses of the land, whether the use is consistent with local planning and zoning, or whether the use is consistent with State and Federal programs.</P>
                <P>Application Comments: Interested parties may submit written comments regarding the specific use proposed in the application and plan of development and whether the BLM followed proper administrative procedures in reaching the decision to lease and convey under the RPPA.</P>
                <P>Any adverse comments on the classification will be reviewed as protests by the BLM Nevada State Director, who may sustain, vacate, or modify this realty action. In the absence of any adverse comments, the decision will become effective on February 16, 2024. The lands will not be offered for lease and conveyance until after the classification becomes effective.</P>
                <P>Before including your address, phone number, email, address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <EXTRACT>
                    <FP>(Authority: 43 CFR 2741.5)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Bruce L. Sillitoe,</NAME>
                    <TITLE>Field Manager, Las Vegas Field Office.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27710 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-21-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>National Park Service</SUBAGY>
                <DEPDOC>[NPS-WASO-NRNHL-DTS#-37121; PPWOCRADI0, PCU00RP14.R50000]</DEPDOC>
                <SUBJECT>National Register of Historic Places; Notification of Pending Nominations and Related Actions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Park Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The National Park Service is soliciting electronic comments on the significance of properties nominated before December 9, 2023, for listing or related actions in the National Register of Historic Places.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments should be submitted electronically by January 2, 2024.</P>
                </DATES>
                <ADD>
                    <PRTPAGE P="87456"/>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments are encouraged to be submitted electronically to 
                        <E T="03">National_Register_Submissions@nps.gov</E>
                         with the subject line “Public Comment on &lt;property or proposed district name, (County) State&gt;.” If you have no access to email, you may send them via U.S. Postal Service and all other carriers to the National Register of Historic Places, National Park Service, 1849 C Street NW, MS 7228, Washington, DC 20240.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Sherry A. Frear, Chief, National Register of Historic Places/National Historic Landmarks Program, 1849 C Street NW, MS 7228, Washington, DC 20240, 
                        <E T="03">sherry_frear@nps.gov,</E>
                         202-913-3763.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The properties listed in this notice are being considered for listing or related actions in the National Register of Historic Places. Nominations for their consideration were received by the National Park Service before December 9, 2023. Pursuant to section 60.13 of 36 CFR part 60, comments are being accepted concerning the significance of the nominated properties under the National Register criteria for evaluation.</P>
                <P>Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <P>Nominations submitted by State or Tribal Historic Preservation Officers</P>
                <P>
                    <E T="03">Key:</E>
                     State, County, Property Name, Multiple Name(if applicable), Address/Boundary, City, Vicinity, Reference Number.
                </P>
                <EXTRACT>
                    <HD SOURCE="HD1">ARKANSAS</HD>
                    <HD SOURCE="HD1">Hempstead County</HD>
                    <FP SOURCE="FP-1">First Presbyterian Church,  701 South Main Street,  Hope, SG100009766</FP>
                    <HD SOURCE="HD1">Phillips County</HD>
                    <FP SOURCE="FP-1">Eliza Miller Junior and Senior High School,  106 Miller Loop,  Helena-West Helena, SG100009768</FP>
                    <HD SOURCE="HD1">Pulaski County</HD>
                    <FP SOURCE="FP-1">La Belle Creole,  8101 Barrett Road,  Roland vicinity, SG100009764</FP>
                    <FP SOURCE="FP-1">Arkansas State Highway Department Headquarters,  10324 Interstate 30,  Little Rock, SG100009769</FP>
                    <HD SOURCE="HD1">Washington County</HD>
                    <FP SOURCE="FP-1">Tisdale Store-Goshen Post Office,  119 Turtle Rd.,  Goshen, SG100009770</FP>
                    <HD SOURCE="HD1">CALIFORNIA</HD>
                    <HD SOURCE="HD1">Santa Clara County</HD>
                    <FP SOURCE="FP-1">Allen, Clifford, House,  637 Alvarado Row,  Stanford, SG100009748</FP>
                    <HD SOURCE="HD1">Sonoma County</HD>
                    <FP SOURCE="FP-1">Belden/Birkhofer House,  13555 Highway 116,  Guerneville, SG100009749</FP>
                    <HD SOURCE="HD1">MISSISSIPPI</HD>
                    <HD SOURCE="HD1">Lincoln County</HD>
                    <FP SOURCE="FP-1">Hartman Funeral Home,  101 W Chickasaw Street,  Brookhaven, SG100009745</FP>
                    <HD SOURCE="HD1">NEW YORK</HD>
                    <HD SOURCE="HD1">Broome County</HD>
                    <FP SOURCE="FP-1">Sheltered Workshop for the Disabled Building,  (Industrial Resources of Broome County, New York MPS),  200-204 Court Street,  Binghamton, MP100009750</FP>
                    <HD SOURCE="HD1">Erie County</HD>
                    <FP SOURCE="FP-1">Gates Circle Medical Building,  50 Gates Circle,  Buffalo, SG100009751</FP>
                    <HD SOURCE="HD1">SOUTH CAROLINA</HD>
                    <HD SOURCE="HD1">Orangeburg County</HD>
                    <FP SOURCE="FP-1">Holly Hill Downtown Historic District,  Portions of Gardner Blvd., Old State Road, and Railroad Ave.,  Holly Hill, SG100009752</FP>
                    <HD SOURCE="HD1">TEXAS</HD>
                    <HD SOURCE="HD1">Caldwell County</HD>
                    <FP SOURCE="FP-1">Zedler Mill Historic District,  1115 and 1170 South Laurel Avenue,  Luling, SG100009739</FP>
                    <HD SOURCE="HD1">Galveston County</HD>
                    <FP SOURCE="FP-1">Congregation Beth Jacob,  2401 Avenue K,  Galveston, SG100009737</FP>
                    <HD SOURCE="HD1">Harris County</HD>
                    <FP SOURCE="FP-1">Houston Light Guard Armory,  3820 Caroline Street,  Houston, SG100009738</FP>
                </EXTRACT>
                <P>A request for removal has been made for the following resource(s):</P>
                <EXTRACT>
                    <HD SOURCE="HD1">ARKANSAS</HD>
                    <HD SOURCE="HD1">Clay County</HD>
                    <FP SOURCE="FP-1">Esso Station,  (Arkansas Highway History and Architecture MPS),  287 W Main,  Piggott, OT00000604</FP>
                    <HD SOURCE="HD1">Cleveland County</HD>
                    <FP SOURCE="FP-1">Phoenix Hotel,  108 Main St.,  Rison, OT02001071</FP>
                    <HD SOURCE="HD1">Hempstead County</HD>
                    <FP SOURCE="FP-1">Ethridge House,  511 N Main St.,  Hope, OT93001259</FP>
                    <HD SOURCE="HD1">Pope County</HD>
                    <FP SOURCE="FP-1">Old South Restaurant,  (Arkansas Highway History and Architecture MPS),  1330 E Main St.,  Russellville vicinity, OT99001064</FP>
                    <HD SOURCE="HD1">Washington County</HD>
                    <FP SOURCE="FP-1">St. Joseph Catholic Church,  110 E Henri de Tonti Blvd.,  Tontitown, OT06000080</FP>
                    <HD SOURCE="HD1">Yell County</HD>
                    <FP SOURCE="FP-1">First Presbyterian Church-Berry House,  203 Pecan St.,  Dardanelle, OT98000582</FP>
                </EXTRACT>
                <P>Additional documentation has been received for the following resource(s):</P>
                <EXTRACT>
                    <HD SOURCE="HD1">ALABAMA</HD>
                    <HD SOURCE="HD1">Morgan County</HD>
                    <FP SOURCE="FP-1">Simpson's Florist (Additional Documentation),  902 6th Avenue SE,  Decatur, AD100009550</FP>
                    <HD SOURCE="HD1">Tallapoosa County</HD>
                    <FP SOURCE="FP-1">Dadeville Historic District (Additional Documentation),  Lafayette, East, South, S. Tallassee &amp; West Sts.,  Dadeville, AD13000471</FP>
                    <HD SOURCE="HD1">ARIZONA</HD>
                    <HD SOURCE="HD1">Pima County</HD>
                    <FP SOURCE="FP-1">Catalina Vista Historic District (Additional Documentation),  2200 E Edison St.,  Tucson, AD03000317</FP>
                    <HD SOURCE="HD1">MARYLAND</HD>
                    <HD SOURCE="HD1">Harford County</HD>
                    <FP SOURCE="FP-1">Griffith House (Additional Documentation),  SW of Aberdeen at 1120 Old Philadelphia Rd.,  Aberdeen vicinity, AD78001465</FP>
                    <HD SOURCE="HD1">TENNESSEE</HD>
                    <FP SOURCE="FP-1">Marshall County,  Verona Methodist Episcopal Church, South (additional Documentation),  724 John Lunn Rd.,  Verona, AD85002755</FP>
                    <HD SOURCE="HD1">Maury County</HD>
                    <FP SOURCE="FP-1">Mount Pleasant Commercial Historic District (Additional Documentation),  (Mount Pleasant MPS),  Roughly bounded by N and S Main Sts., Public Sq. and Hay Long Ave.,  Mount Pleasant, AD03001160</FP>
                    <HD SOURCE="HD1">Meigs County</HD>
                    <FP SOURCE="FP-1">Grubb, Jacob L., Store (Additional Documentation),  (Meigs County, Tennessee MRA),  TN 58,  Decatur, AD82004000</FP>
                    <FP SOURCE="FP-1">Hutsell, Sam, House (Additional Documentation),  (Meigs County, Tennessee MRA),  240 Sliger Lane,  Decatur, AD82004025</FP>
                </EXTRACT>
                <P>
                    <E T="03">Authority:</E>
                     Section 60.13 of 36 CFR part 60.
                </P>
                <SIG>
                    <NAME>Sherry A. Frear,</NAME>
                    <TITLE>Chief,  National Register of Historic Places/National Historic Landmarks Program.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27762 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4312-52-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87457"/>
                <AGENCY TYPE="N">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Investigation No. 731-TA-1189 (Second Review)]</DEPDOC>
                <SUBJECT>Large Power Transformers From South Korea; Notice of Commission Determination To Conduct a Full Five-Year Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>United States International Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commission hereby gives notice that it will proceed with a full review pursuant to the Tariff Act of 1930 to determine whether revocation of the antidumping duty order on large power transformers from South Korea would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. A schedule for the review will be established and announced at a later date.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>December 5, 2023.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Kenneth Gatten III (202-708-1447), Office of Investigations, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Hearing-impaired persons can obtain information on this matter by contacting the Commission's TDD terminal on 202-205-1810. Persons with mobility impairments who will need special assistance in gaining access to the Commission should contact the Office of the Secretary at 202-205-2000. General information concerning the Commission may also be obtained by accessing its internet server (
                        <E T="03">https://www.usitc.gov</E>
                        ). The public record for these reviews may be viewed on the Commission's electronic docket (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                    </P>
                    <P>For further information concerning the conduct of this review and rules of general application, consult the Commission's Rules of Practice and Procedure, part 201, subparts A through E (19 CFR part 201), and part 207, subparts A, D, E, and F (19 CFR part 207).</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On December 5, 2023, the Commission determined that it should proceed to a full review in the subject five-year review pursuant to section 751(c) of the Tariff Act of 1930 (19 U.S.C. 1675(c)). The Commission found that both the domestic and respondent interested party group responses from South Korea to its notice of institution (88 FR 60496, September 1, 2023) were adequate, and determined to conduct a full review of the order on imports from South Korea. A record of the Commissioners' votes will be available from the Office of the Secretary and at the Commission's website.</P>
                <P>
                    <E T="03">Authority:</E>
                     This review is being conducted under authority of title VII of the Tariff Act of 1930; this notice is published pursuant to § 207.62 of the Commission's rules.
                </P>
                <SIG>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: December 12, 2023.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27657 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <SUBJECT>Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public Interest</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. International Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Notice is hereby given that the U.S. International Trade Commission has received a complaint 
                        <E T="03">regarding Certain Electronic Computing Devices, and Components and Modules Thereof,</E>
                         DN 3712
                        <E T="03">;</E>
                         the Commission is soliciting comments on any public interest issues raised by the complaint or complainant's filing pursuant to the Commission's Rules of Practice and Procedure.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lisa R. Barton, Secretary to the Commission, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 205-2000. The public version of the complaint can be accessed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         For help accessing EDIS, please email 
                        <E T="03">EDIS3Help@usitc.gov.</E>
                    </P>
                    <P>
                        General information concerning the Commission may also be obtained by accessing its internet server at United States International Trade Commission (USITC) at 
                        <E T="03">https://www.usitc.gov</E>
                         . The public record for this investigation may be viewed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on (202) 205-1810.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Commission has received a complaint and a submission pursuant to § 210.8(b) of the Commission's Rules of Practice and Procedure filed on behalf of Telefonaktiebolaget LM Ericsson on December 12, 2023. The complaint alleges violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain electronic computing devices, and components and modules thereof. The complaint names as respondents: Lenovo (United States) Inc. of Morrisville, NC; Lenovo Group Limited of China; Lenovo (Shanghai) Electronics Technology Co., Ltd. of China; Lenovo Beijing Co., Limited of China; Lenovo PC HK Limited of China and Lenovo Information Products (Shenzhen) Co. Ltd. of China. The complainant requests that the Commission issue a limited exclusion order, a cease and desist order, and impose a bond upon respondents' alleged infringing articles during the 60-day Presidential review period pursuant to 19 U.S.C. 1337(j).</P>
                <P>Proposed respondents, other interested parties, and members of the public are invited to file comments on any public interest issues raised by the complaint or § 210.8(b) filing. Comments should address whether issuance of the relief specifically requested by the complainant in this investigation would affect the public health and welfare in the United States, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, or United States consumers.</P>
                <P>In particular, the Commission is interested in comments that:</P>
                <P>(i) explain how the articles potentially subject to the requested remedial orders are used in the United States;</P>
                <P>(ii) identify any public health, safety, or welfare concerns in the United States relating to the requested remedial orders;</P>
                <P>(iii) identify like or directly competitive articles that complainant, its licensees, or third parties make in the United States which could replace the subject articles if they were to be excluded;</P>
                <P>(iv) indicate whether complainant, complainant's licensees, and/or third party suppliers have the capacity to replace the volume of articles potentially subject to the requested exclusion order and/or a cease and desist order within a commercially reasonable time; and</P>
                <P>(v) explain how the requested remedial orders would impact United States consumers.</P>
                <P>
                    Written submissions on the public interest must be filed no later than by 
                    <PRTPAGE P="87458"/>
                    close of business, eight calendar days after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . There will be further opportunities for comment on the public interest after the issuance of any final initial determination in this investigation. Any written submissions on other issues must also be filed by no later than the close of business, eight calendar days after publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . Complainant may file replies to any written submissions no later than three calendar days after the date on which any initial submissions were due, notwithstanding § 201.14(a) of the Commission's Rules of Practice and Procedure. No other submissions will be accepted, unless requested by the Commission. Any submissions and replies filed in response to this Notice are limited to five (5) pages in length, inclusive of attachments.
                </P>
                <P>
                    Persons filing written submissions must file the original document electronically on or before the deadlines stated above. Submissions should refer to the docket number (“Docket No. 3712”) in a prominent place on the cover page and/or the first page. (
                    <E T="03">See</E>
                     Handbook for Electronic Filing Procedures, Electronic Filing Procedures 
                    <SU>1</SU>
                    <FTREF/>
                    ). Please note the Secretary's Office will accept only electronic filings during this time. Filings must be made through the Commission's Electronic Document Information System (EDIS, 
                    <E T="03">https://edis.usitc.gov.</E>
                    ) No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding filing should contact the Secretary 
                    <E T="03">atEDIS3Help@usitc.gov.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Handbook for Electronic Filing Procedures: 
                        <E T="03">https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Any person desiring to submit a document to the Commission in confidence must request confidential treatment. All such requests should be directed to the Secretary to the Commission and must include a full statement of the reasons why the Commission should grant such treatment. 
                    <E T="03">See</E>
                     19 CFR 201.6. Documents for which confidential treatment by the Commission is properly sought will be treated accordingly. All information, including confidential business information and documents for which confidential treatment is properly sought, submitted to the Commission for purposes of this Investigation may be disclosed to and used: (i) by the Commission, its employees and Offices, and contract personnel (a) for developing or maintaining the records of this or a related proceeding, or (b) in internal investigations, audits, reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C. appendix 3; or (ii) by U.S. government employees and contract personnel,
                    <SU>2</SU>
                    <FTREF/>
                     solely for cybersecurity purposes. All nonconfidential written submissions will be available for public inspection at the Office of the Secretary and on EDIS.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         All contract personnel will sign appropriate nondisclosure agreements.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Electronic Document Information System (EDIS): 
                        <E T="03">https://edis.usitc.gov.</E>
                    </P>
                </FTNT>
                <P>This action is taken under the authority of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and of §§ 201.10 and 210.8(c) of the Commission's Rules of Practice and Procedure (19 CFR 201.10, 210.8(c)).</P>
                <SIG>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: December 13, 2023.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27767 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">JUDICIAL CONFERENCE OF THE UNITED STATES</AGENCY>
                <SUBJECT>Advisory Committee on Bankruptcy Rules; Hearing of the Judicial Conference</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Judicial Conference of the United States.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Advisory Committee on Bankruptcy Rules; Notice of cancellation of open hearing.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The following public hearing on proposed amendments to the Federal Rules of Bankruptcy Procedure has been canceled: Bankruptcy Rules Hearing on January 12, 2024. The announcement for this hearing was previously published in the 
                        <E T="04">Federal Register</E>
                         on August 9, 2023.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>January 12, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        H. Thomas Byron III, Esq., Chief Counsel, Rules Committee Staff, Administrative Office of the U.S. Courts, Thurgood Marshall Federal Judiciary Building, One Columbus Circle NE, Suite 7-300, Washington, DC 20544, Phone (202) 502-1820, 
                        <E T="03">RulesCommittee_Secretary@ao.uscourts.gov.</E>
                    </P>
                    <EXTRACT>
                        <FP>(Authority: 28 U.S.C. 2073.)</FP>
                    </EXTRACT>
                    <SIG>
                        <DATED>Dated: December 13, 2023.</DATED>
                        <NAME>Shelly L. Cox,</NAME>
                        <TITLE>Management Analyst,  Rules Committee Staff.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27766 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 2210-55-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. DEA-1308]</DEPDOC>
                <SUBJECT>Bulk Manufacturer of Controlled Substances Application: Kinetochem LLC</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Drug Enforcement Administration, Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of application.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Kinetochem LLC has applied to be registered as a bulk manufacturer of basic class(es) of controlled substance(s). Refer to Supplementary Information listed below for further drug information.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Registered bulk manufacturers of the affected basic class(es), and applicants therefore, may submit electronic comments on or objections to the issuance of the proposed registration on or before February 16, 2024. Such persons may also file a written request for a hearing on the application on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Drug Enforcement Administration requires that all comments be submitted electronically through the Federal eRulemaking Portal, which provides the ability to type short comments directly into the comment field on the web page or attach a file for lengthier comments. Please go to 
                        <E T="03">https://www.regulations.gov</E>
                         and follow the online instructions at that site for submitting comments. Upon submission of your comment, you will receive a Comment Tracking Number. Please be aware that submitted comments are not instantaneously available for public view on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you have received a Comment Tracking Number, your comment has been successfully submitted and there is no need to resubmit the same comment.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In accordance with 21 CFR 1301.33(a), this is notice that on November 28, 2023, Kinetochem LLC, 96 Market Street, Suite 102, Georgetown, Texas 78626-3618, applied to be registered as a bulk manufacturer of the following basic class(es) of controlled substance(s):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,5,xs34">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Controlled substance</CHED>
                        <CHED H="1">
                            Drug
                            <LI>code</LI>
                        </CHED>
                        <CHED H="1">Schedule</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Marihuana</ENT>
                        <ENT>7360</ENT>
                        <ENT>I</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tetrahyrocannabinols</ENT>
                        <ENT>7370</ENT>
                        <ENT>I</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The company plans to bulk manufacture the listed controlled substances as Active Pharmaceutical Ingredients to its customers as well as for research and clinical trials. In reference to drug codes 7360 
                    <PRTPAGE P="87459"/>
                    (Marihuana), and 7370 (Tetrahydrocannabinols) the company plans to bulk manufacture these drug codes as synthetic. No other activities for these drug codes are authorized for this registration.
                </P>
                <SIG>
                    <NAME>Claude Redd,</NAME>
                    <TITLE>Acting Deputy Assistant Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27708 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. DEA-1307]</DEPDOC>
                <SUBJECT>Importer of Controlled Substances Application: Siegfried USA, LLC</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Drug Enforcement Administration, Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of application.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Siegfried USA, LLC has applied to be registered as an importer of basic class(es) of controlled substance(s). Refer to Supplementary Information listed below for further drug information.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Registered bulk manufacturers of the affected basic class(es), and applicants therefore, may submit electronic comments on or objections to the issuance of the proposed registration on or before January 17, 2024. Such persons may also file a written request for a hearing on the application on or before January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Drug Enforcement Administration requires that all comments be submitted electronically through the Federal eRulemaking Portal, which provides the ability to type short comments directly into the comment field on the web page or attach a file for lengthier comments. Please go to 
                        <E T="03">https://www.regulations.gov</E>
                         and follow the online instructions at that site for submitting comments. Upon submission of your comment, you will receive a Comment Tracking Number. Please be aware that submitted comments are not instantaneously available for public view on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you have received a Comment Tracking Number, your comment has been successfully submitted and there is no need to resubmit the same comment. All requests for a hearing must be sent to: (1) Drug Enforcement Administration, Attn: Hearing Clerk/OALJ, 8701 Morrissette Drive, Springfield, Virginia 22152; and (2) Drug Enforcement Administration, Attn: DEA Federal Register Representative/DPW, 8701 Morrissette Drive, Springfield, Virginia 22152. All requests for a hearing should also be sent to: Drug Enforcement Administration, Attn: Administrator, 8701 Morrissette Drive, Springfield, Virginia 22152.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In accordance with 21 CFR 1301.34(a), this is notice that on November 28, 2023, Siegfried USA, LLC, 33 Industrial Park Road, Pennsville, New Jersey 08070, applied to be registered as an importer of the following basic class(es) of controlled substance(s):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,5,xs34">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Controlled substance</CHED>
                        <CHED H="1">
                            Drug
                            <LI>code</LI>
                        </CHED>
                        <CHED H="1">Schedule</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Phenylacetone</ENT>
                        <ENT>8501</ENT>
                        <ENT>II</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Opium, raw</ENT>
                        <ENT>9600</ENT>
                        <ENT>II</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Poppy Straw Concentrate</ENT>
                        <ENT>9670</ENT>
                        <ENT>II</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The company plans to import the listed controlled substances to manufacture bulk Active Pharmaceuticals Ingredients for distribution to its customers. No other activities for these drug codes are authorized for this registration.</P>
                <P>Approval of permit applications will occur only when the registrant's business activity is consistent with what is authorized under 21 U.S.C. 952(a)(2). Authorization will not extend to the import of Food and Drug Administration-approved or non-approved finished dosage forms for commercial sale.</P>
                <SIG>
                    <NAME>Claude Redd,</NAME>
                    <TITLE>Acting Deputy Assistant Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27705 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. DEA-1306]</DEPDOC>
                <SUBJECT>Bulk Manufacturer of Controlled Substances Application: AJNA BioSciences</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Drug Enforcement Administration, Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of application.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>AJNA BioSciences has applied to be registered as a bulk manufacturer of basic class(es) of controlled substance(s). Refer to Supplementary Information listed below for further drug information.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Registered bulk manufacturers of the affected basic class(es), and applicants therefore, may submit electronic comments on or objections to the issuance of the proposed registration on or before February 16, 2024. Such persons may also file a written request for a hearing on the application on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Drug Enforcement Administration requires that all comments be submitted electronically through the Federal eRulemaking Portal, which provides the ability to type short comments directly into the comment field on the web page or attach a file for lengthier comments. Please go to 
                        <E T="03">https://www.regulations.gov</E>
                         and follow the online instructions at that site for submitting comments. Upon submission of your comment, you will receive a Comment Tracking Number. Please be aware that submitted comments are not instantaneously available for public view on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you have received a Comment Tracking Number, your comment has been successfully submitted and there is no need to resubmit the same comment.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In accordance with 21 CFR 1301.33(a), this is notice that on September 20, 2023, AJNA BioSciences, 8022 Southpark Circle, Suite 500, Littleton, Colorado 80120-5659, applied to be registered as a bulk manufacturer of the following basic class(es) of controlled substance(s):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,5,xs34">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Controlled substance</CHED>
                        <CHED H="1">
                            Drug
                            <LI>code</LI>
                        </CHED>
                        <CHED H="1">Schedule</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Psilocybin</ENT>
                        <ENT>7437</ENT>
                        <ENT>I</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Psilocyn</ENT>
                        <ENT>7438</ENT>
                        <ENT>I</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The company plans to bulk manufacture by cultivating research Good Manufacturing Practices whole plant mushrooms containing Psilocybin (7437) and Psilocyn (7438) to support internal research, clinical trials, and analytical purposes as well as to distribute to their customers conducting schedule I clinical research. No other activities for these drug codes are authorized for this registration.</P>
                <SIG>
                    <NAME>Claude Redd,</NAME>
                    <TITLE>Acting Deputy Assistant Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27707 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. DEA-1309]</DEPDOC>
                <SUBJECT>Bulk Manufacturer of Controlled Substances Application: Groff Health, Inc.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Drug Enforcement Administration, Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of application.</P>
                </ACT>
                <SUM>
                    <PRTPAGE P="87460"/>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Groff Health, Inc. has applied to be registered as a bulk manufacturer of basic class(es) of controlled substance(s). Refer to 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         listed below for further drug information.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Registered bulk manufacturers of the affected basic class(es), and applicants therefore, may submit electronic comments on or objections to the issuance of the proposed registration on or before February 16, 2024. Such persons may also file a written request for a hearing on the application on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Drug Enforcement Administration requires that all comments be submitted electronically through the Federal eRulemaking Portal, which provides the ability to type short comments directly into the comment field on the web page or attach a file for lengthier comments. Please go to 
                        <E T="03">https://www.regulations.gov</E>
                         and follow the online instructions at that site for submitting comments. Upon submission of your comment, you will receive a Comment Tracking Number. Please be aware that submitted comments are not instantaneously available for public view on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you have received a Comment Tracking Number, your comment has been successfully submitted and there is no need to resubmit the same comment.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In accordance with 21 CFR 1301.33(a), this is notice that on September 22, 2023, Groff Health, Inc., 2218 South Queen Street, York, Pennsylvania 17402-4631, applied to be registered as a bulk manufacturer of the following basic class(es) of controlled substance(s):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,5,xs34">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Controlled substance</CHED>
                        <CHED H="1">Drug code</CHED>
                        <CHED H="1">Schedule</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Psilocybin</ENT>
                        <ENT>7437</ENT>
                        <ENT>I</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Psilocyn</ENT>
                        <ENT>7438</ENT>
                        <ENT>I</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The company plans to bulk manufacture the listed controlled substances for internal use or for sale to its customers.</P>
                <SIG>
                    <NAME>Claude Redd,</NAME>
                    <TITLE>Acting Deputy Assistant Administrator. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27706 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF LABOR</AGENCY>
                <SUBAGY>Occupational Safety and Health Administration</SUBAGY>
                <DEPDOC>[Docket No. OSHA-2007-0039]</DEPDOC>
                <SUBJECT>Intertek Testing Services NA, Inc.: Application for Expansion of Recognition</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Occupational Safety and Health Administration (OSHA), Labor.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In this notice, OSHA announces the application of Intertek Testing Services NA, Inc., for expansion of the recognition as a Nationally Recognized Testing Laboratory (NRTL) and presents the agency's preliminary finding to grant the application.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments, information, and documents in response to this notice, or requests for an extension of time to make a submission, on or before January 2, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Submit comments by any of the following methods:</P>
                    <P>
                        <E T="03">Electronically:</E>
                         Submit comments and attachments electronically at 
                        <E T="03">http://www.regulations.gov,</E>
                         which is the Federal eRulemaking Portal. Follow the instructions online for making electronic submissions.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         To read or download comments or other material in the docket, go to 
                        <E T="03">http://www.regulations.gov</E>
                         or the OSHA Docket Office. All documents in the docket (including this 
                        <E T="04">Federal Register</E>
                         notice) are listed in the 
                        <E T="03">http://www.regulations.gov</E>
                         index; however, some information (
                        <E T="03">e.g.,</E>
                         copyrighted material) is not publicly available to read or download through the website. All submissions, including copyrighted material, are available for inspection through the OSHA Docket Office. Contact the OSHA Docket Office at (202) 693-2350 (TTY (877) 889-5627) for assistance in locating docket submissions.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions must include the agency name and the OSHA docket number (OSHA-2007-0039). OSHA places comments and other materials, including any personal information, in the public docket without revision, and these materials will be available online at 
                        <E T="03">http://www.regulations.gov.</E>
                         Therefore, the agency cautions commenters about submitting statements they do not want made available to the public, or submitting comments that contain personal information (either about themselves or others) such as Social Security numbers, birth dates, and medical data.
                    </P>
                    <P>
                        <E T="03">Extension of comment period:</E>
                         Submit requests for an extension of the comment period on or before January 2, 2024 to the Office of Technical Programs and Coordination Activities, Directorate of Technical Support and Emergency Management, Occupational Safety and Health Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Room N-3653, Washington, DC 20210, or by fax to (202) 693-1644.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Information regarding this notice is available from the following sources:</P>
                    <P>
                        <E T="03">Press inquiries:</E>
                         Contact Mr. Frank Meilinger, Director, OSHA Office of Communications, phone: (202) 693-1999 or email: 
                        <E T="03">meilinger.francis2@dol.gov.</E>
                    </P>
                    <P>
                        <E T="03">General and technical information:</E>
                         Contact Mr. Kevin Robinson, Director, Office of Technical Programs and Coordination Activities, Directorate of Technical Support and Emergency Management, Occupational Safety and Health Administration, phone: (202) 693-1911 or email: 
                        <E T="03">robinson.kevin@dol.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Notice of the Application for Expansion</HD>
                <P>OSHA is providing notice that Intertek Testing Services NA, Inc. (ITSNA), is applying for expansion of the current recognition as a NRTL. ITSNA requests the addition of one test standard to the NRTL scope of recognition.</P>
                <P>OSHA recognition of a NRTL signifies that the organization meets the requirements specified in 29 CFR 1910.7. Recognition is an acknowledgment that the organization can perform independent safety testing and certification of the specific products covered within the scope of recognition. Each NRTL's scope of recognition includes: (1) the type of products the NRTL may test, with each type specified by the applicable test standard; and (2) the recognized site(s) that has/have the technical capability to perform the product-testing and product-certification activities for test standards within the NRTL's scope. Recognition is not a delegation or grant of government authority; however, recognition enables employers to use products approved by the NRTL to meet OSHA standards that require product testing and certification.</P>
                <P>
                    The agency processes applications by a NRTL for initial recognition and for an expansion or renewal of this recognition, following requirements in Appendix A to 29 CFR 1910.7. This appendix requires that the agency 
                    <PRTPAGE P="87461"/>
                    publish two notices in the 
                    <E T="04">Federal Register</E>
                     in processing an application. In the first notice, OSHA announces the application and provides a preliminary finding. In the second notice, the agency provides a final decision on the application. These notices set forth the NRTL's scope of recognition or modifications of that scope. OSHA maintains an informational web page for each NRTL, including ITSNA, which details the NRTL's scope of recognition. These pages are available from the OSHA website at 
                    <E T="03">http://www.osha.gov/dts/otpca/nrtl/index.html.</E>
                </P>
                <P>
                    ITSNA currently has thirty-five facilities (sites) recognized by OSHA for product testing and certification, with the headquarters located at: Intertek Testing Services NA, Inc., 545 East Algonquin Road, Suite F, Arlington Heights, Illinois 60005. A complete list of ITSNA's scope of recognition is available at 
                    <E T="03">https://www.osha.gov/nationally-recognized-testing-laboratory-program/its.</E>
                </P>
                <HD SOURCE="HD1">II. General Background on the Application</HD>
                <P>ITSNA submitted an application dated April 5, 2023 (OSHA-2007-0039-0051), requesting the addition of one test standard to the NRTL scope of recognition. OSHA staff performed a detailed analysis of the application packet and reviewed other pertinent information. OSHA did not perform any on-site reviews in relation to this application.</P>
                <P>Table 1, below, lists the appropriate test standard found in ITSNA's application for expansion for testing and certification of products under the NRTL Program.</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,i1" CDEF="xs36,r50">
                    <TTITLE>Table 1—Proposed Appropriate Test Standard for Inclusion in ITSNA's NRTL Scope of Recognition</TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Test
                            <LI>standard</LI>
                        </CHED>
                        <CHED H="1">Test standard title</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">UL 2225</ENT>
                        <ENT>Cables and Cables Fittings for Use in Hazardous (Classified) Locations.</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">III. Preliminary Findings on the Application</HD>
                <P>ITSNA submitted an acceptable application for expansion of the scope of recognition. OSHA's review of the application files and pertinent documentation indicates that ITSNA can meet the requirements prescribed by 29 CFR 1910.7 for expanding the recognition to include the addition of this one test standard for NRTL testing and certification listed in Table 1. This preliminary finding does not constitute an interim or temporary approval of ITSNA's application.</P>
                <P>OSHA seeks comment on this preliminary determination.</P>
                <HD SOURCE="HD1">IV. Public Participation</HD>
                <P>OSHA welcomes public comment as to whether ITSNA meets the requirements of 29 CFR 1910.7 for expansion of recognition as a NRTL. Comments should consist of pertinent written documents and exhibits.</P>
                <P>Commenters needing more time to comment must submit a request in writing, stating the reasons for the request by the due date for comments. OSHA will limit any extension to 10 days unless the requester justifies a longer time period. OSHA may deny a request for an extension if it is not adequately justified.</P>
                <P>
                    To review copies of the exhibits identified in this notice, as well as comments submitted to the docket, contact the Docket Office, Occupational Safety and Health Administration, U.S. Department of Labor. These materials also are generally available online at 
                    <E T="03">https://www.regulations.gov</E>
                     under Docket No. OSHA-2007-0039 (for further information, see the “
                    <E T="03">Docket”</E>
                     heading in the section of this notice titled 
                    <E T="02">ADDRESSES</E>
                    ).
                </P>
                <P>OSHA staff will review all comments to the docket submitted in a timely manner. After addressing the issues raised by these comments, staff will make a recommendation to the Assistant Secretary of Labor for Occupational Safety and Health on whether to grant ITSNA's application for expansion of the scope of recognition. The Assistant Secretary will make the final decision on granting the application. In making this decision, the Assistant Secretary may undertake other proceedings prescribed in Appendix A to 29 CFR 1910.7.</P>
                <P>
                    OSHA will publish a public notice of the final decision in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">V. Authority and Signature</HD>
                <P>James S. Frederick, Deputy Assistant Secretary of Labor for Occupational Safety and Health, authorized the preparation of this notice. Accordingly, the agency is issuing this notice pursuant to 29 U.S.C. 657(g)(2), Secretary of Labor's Order No. 8-2020 (85 FR 58393, Sept. 18, 2020), and 29 CFR 1910.7.</P>
                <SIG>
                    <P>Signed at Washington, DC.</P>
                    <NAME>James S. Frederick,</NAME>
                    <TITLE>Deputy Assistant Secretary of Labor for Occupational Safety and Health.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27697 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4510-26-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES</AGENCY>
                <SUBAGY>Institute of Museum and Library Services</SUBAGY>
                <SUBJECT>Notice of Proposed Information Collection Requests: Granicus Email Marketing</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Institute of Museum and Library Services, National Foundation on the Arts and the Humanities.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice, request for comments, collection of information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Institute of Museum and Library Services (IMLS), as part of its continuing effort to reduce paperwork and respondent burden, conducts a pre-clearance consultation program to provide the general public and Federal agencies with an opportunity to comment on proposed and/or continuing collections of information in accordance with the Paperwork Reduction Act. This pre-clearance consultation program helps to ensure that requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements on respondents can be properly assessed. The purpose of this Notice is to inform the public of background questions IMLS plans to ask of people subscribing to IMLS's content from Granicus's GovDelivery, an email marketing service for governments. A copy of the proposed information collection request can be obtained by contacting the individual listed below in the 
                        <E T="02">ADDRESSES</E>
                         section of this Notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments must be submitted to the office listed in the addressee section below on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send comments to Sandra Narva, Acting Director of Grants Policy and Management, Office of Grants Policy and Management, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW, Suite 4000, Washington, DC 20024-2135. Ms. Narva can be reached by telephone: 202-653-4634, or by email at 
                        <E T="03">snarva@imls.gov.</E>
                         Office hours are from 8:30 a.m. to 5 p.m., E.T., Monday through Friday, except Federal holidays.
                    </P>
                    <P>Persons who are deaf or hard of hearing (TTY users) can contact IMLS at 202-207-7858 via 711 for TTY-Based Telecommunications Relay Service.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Erica Jaros, Communications Specialist, Office of Communications, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW, Suite 4000, 
                        <PRTPAGE P="87462"/>
                        Washington DC 20024-2135. Ms. Jaros can be reached by telephone at 202-653-4701, or by email at 
                        <E T="03">ejaros@imls.gov.</E>
                         Persons who are deaf or hard of hearing (TTY users) can contact IMLS at 202-207-7858 via 711 for TTY-Based Telecommunications Relay Service.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>IMLS is particularly interested in public comments that help the agency to:</P>
                <P>• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;</P>
                <P>• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information including the validity of the methodology and assumptions used;</P>
                <P>• Enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    • Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques, or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submissions of responses.
                </P>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    IMLS is the primary source of Federal support for the Nation's libraries and museums. We advance, support, and empower America's museums, libraries, and related organizations through grant making, research, and policy development. To learn more, visit 
                    <E T="03">www.imls.gov.</E>
                </P>
                <HD SOURCE="HD1">II. Current Actions</HD>
                <P>The purpose of this collection is to allow IMLS to collect background information from subscribers during the email marketing subscription process. The information IMLS may collect from subscribers includes their role or position, their institution's type, and past or present awardee status. This one-time inquiry will help facilitate the distribution of the appropriate content to IMLS email subscribers.</P>
                <P>
                    <E T="03">Agency:</E>
                     Institute of Museum and Library Services.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Granicus Email Marketing.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3137-NEW.
                </P>
                <P>
                    <E T="03">Agency Number:</E>
                     3137.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     Museum staff, library staff, State Library Administrative Agencies, IMLS awardees, IMLS applicants, industry professional associations, general public.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Respondents:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Once per request.
                </P>
                <P>
                    <E T="03">Average Minutes per Response:</E>
                     Less than 5 minutes.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Cost Burden (dollars):</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Public Comments Invited:</E>
                     Comments submitted in response to this Notice will be summarized and/or included in the request for OMB's clearance of this information collection.
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Suzanne Mbollo,</NAME>
                    <TITLE>Grants Management Specialist, Institute of Museum and Library Services.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27695 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7036-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES</AGENCY>
                <SUBAGY>Institute of Museum and Library Services</SUBAGY>
                <SUBJECT>Notice of Proposed Information Collection Requests: Generic Clearance To Conduct Pre-Testing of Surveys</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Institute of Museum and Library Services, National Foundation on the Arts and the Humanities.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice, request for comments, collection of information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Institute of Museum and Library Services (IMLS), as part of its continuing effort to reduce paperwork and respondent burden, conducts a pre-clearance consultation to provide subject matter experts, the general public, and Federal agencies with an opportunity to comment on proposed and/or continuing collections of information in accordance with the Paperwork Reduction Act. This pre-clearance consultation practice helps ensure that requested data can be provided in the agency's desired format; that respondents' reporting burden (time and financial resources) is minimized; that collection instruments are clearly understood and cover material to which respondents can be responsive; and, that the impact of collection requirements on respondents can be properly assessed. The purpose of this Notice is to solicit comments related to conducting pre-tests of quantitative and qualitative data collection instruments and their related data collection procedures to improve the quality and usability of information collection instruments. A copy of the proposed information collection request can be obtained by contacting the individual listed below in the 
                        <E T="02">ADDRESSES</E>
                         section of this notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Written comments must be submitted to the office listed in the 
                        <E T="02">ADDRESSES</E>
                         section below on or before February 16, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send comments to: Sandra Narva, Acting Director of Grants Policy and Management, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW, Suite 4000, Washington, DC 20024-2135. Ms. Narva can be reached by telephone at 202-653-4634, or by email at 
                        <E T="03">snarva@imls.gov.</E>
                         Office hours are from 8:30 a.m. to 5 p.m., E.T., Monday through Friday, except Federal holidays. Persons who are deaf or hard of hearing (TTY users) can contact IMLS at 202-207-7858 via 711 for TTY-Based Telecommunications Relay Service.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For a copy of the documents contact: Jake Soffronoff, Survey Methodologist, Office of Research and Evaluation, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW, Suite 4000, Washington, DC 20024-2135. Mr. Soffronoff can be reached by telephone: 202-653-4648, or by email at 
                        <E T="03">jsoffronoff@imls.gov.</E>
                         Persons who are deaf or hard of hearing (TTY users) can contact IMLS at 202-207-7858 via 711 for TTY-Based Telecommunications Relay Service.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>IMLS is especially interested in comments that help the agency to:</P>
                <P>• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;</P>
                <P>• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information including the validity of the methodology and assumptions used;</P>
                <P>• Enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    • Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques, or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submissions of responses.
                </P>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    IMLS is the primary source of Federal support for the Nation's libraries and museums. We advance, support, and empower America's museums, libraries, and related organizations through grant making, research, and policy development. To learn more, visit 
                    <E T="03">www.imls.gov.</E>
                    <PRTPAGE P="87463"/>
                </P>
                <HD SOURCE="HD1">II. Current Actions</HD>
                <P>This notice proposes the Generic Clearance to Conduct Pre-Testing of Surveys.</P>
                <P>IMLS requests approval from the Office of Management and Budget (OMB) for a generic clearance that will allow IMLS to conduct a variety of data-gathering activities aimed at improving the quality and usability of information collection instruments associated with research and analysis activities, including but not limited to the National Museum Survey, the Public Libraries Survey and the State Library Administrative Agencies Survey.</P>
                <P>IMLS envisions using a variety of techniques including field tests, respondent debriefing questionnaires, cognitive interviews, and focus groups to identify questionnaire and procedural problems, suggest solutions, and measure the relative effectiveness of alternative solutions.</P>
                <P>Following standard OMB requirements, IMLS will submit a change request to OMB for each data collection activity undertaken under this generic clearance. IMLS will provide OMB with the instruments and supporting materials describing the research project and specific pre-testing activities.</P>
                <P>
                    <E T="03">Agency:</E>
                     Institute of Museum and Library Services.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Generic Clearance to Conduct Pre-Testing of Surveys.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     3137-0125.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     The respondents will be identified at the time that each change request is submitted to OMB. Respondents will include State, local, and Tribal governments.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses per Respondent:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Responses:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     TBD.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden on Respondents:</E>
                     TBD.
                </P>
                <SIG>
                    <DATED>Dated: December 12, 2023.</DATED>
                    <NAME>Suzanne Mbollo,</NAME>
                    <TITLE>Grants Management Specialist, Institute of Museum and Library Services.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27694 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7036-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[NRC-2023-0001]</DEPDOC>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>
                        Weeks of December 18, 25, 2023 and January 1, 8, 15, 22, 2024. The schedule for Commission meetings is subject to change on short notice. The NRC Commission Meeting Schedule can be found on the internet at: 
                        <E T="03">https://www.nrc.gov/public-involve/public-meetings/schedule.html.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>
                        The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings or need this meeting notice or the transcript or other information from the public meetings in another format (
                        <E T="03">e.g.,</E>
                         braille, large print), please notify Anne Silk, NRC Disability Program Specialist, at 301-287-0745, by videophone at 240-428-3217, or by email at 
                        <E T="03">Anne.Silk@nrc.gov.</E>
                         Determinations on requests for reasonable accommodation will be made on a case-by-case basis.
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>Public.</P>
                    <P>
                        Members of the public may request to receive the information in these notices electronically. If you would like to be added to the distribution, please contact the Nuclear Regulatory Commission, Office of the Secretary, Washington, DC 20555, at 301-415-1969, or by email at 
                        <E T="03">Betty.Thweatt@nrc.gov</E>
                         or 
                        <E T="03">Samantha.Miklaszewski@nrc.gov.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P/>
                </PREAMHD>
                <HD SOURCE="HD1">Week of December 18, 2023</HD>
                <P>There are no meetings scheduled for the week of December 18, 2023.</P>
                <HD SOURCE="HD1">Week of December 25, 2023—Tentative</HD>
                <P>There are no meetings scheduled for the week of December 25, 2023.</P>
                <HD SOURCE="HD1">Week of January 1, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of January 1, 2024.</P>
                <HD SOURCE="HD1">Week of January 8, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of January 8, 2024.</P>
                <HD SOURCE="HD1">Week of January 15, 2024—Tentative</HD>
                <HD SOURCE="HD2">Thursday, January 18, 2024</HD>
                <FP SOURCE="FP-1">9:00 a.m. Strategic Programmatic Overview of the Decommissioning and Low-Level Waste and Nuclear Materials Users Business Lines (Public Meeting) (Contact: Candace Spore: 301-415-8537)</FP>
                <P>
                    <E T="03">Additional Information:</E>
                     The meeting will be held in the Commissioners' Conference Room, 11555 Rockville Pike, Rockville, Maryland. The public is invited to attend the Commission's meeting in person or watch live via webcast at the Web address—
                    <E T="03">https://video.nrc.gov/.</E>
                </P>
                <HD SOURCE="HD1">Week of January 22, 2024—Tentative</HD>
                <HD SOURCE="HD2">Tuesday, January 23, 2024</HD>
                <FP SOURCE="FP-1">10:00 a.m. Briefing on International Activities (Public Meeting) (Contacts: Jennifer Holzman: 301-415-8537, Doris Lewis 301-287-3794)</FP>
                <P>
                    <E T="03">Additional Information:</E>
                     The meeting will be held in the Commissioners' Conference Room, 11555 Rockville Pike, Rockville, Maryland. The public is invited to attend the Commission's meeting in person or watch live via webcast at the Web address—
                    <E T="03">https://video.nrc.gov/.</E>
                </P>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>
                        For more information or to verify the status of meetings, contact Wesley Held at 301-287-3591 or via email at 
                        <E T="03">Wesley.Held@nrc.gov.</E>
                    </P>
                    <P>The NRC is holding the meetings under the authority of the Government in the Sunshine Act, 5 U.S.C. 552b.</P>
                </PREAMHD>
                <SIG>
                    <DATED>Dated: December 14, 2023.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Wesley W Held,</NAME>
                    <TITLE>Policy Coordinator,Office of the Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27838 Filed 12-14-23; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket No. MC2020-73; Order No. 6853]</DEPDOC>
                <SUBJECT>Inbound Competitive PRIME Registered Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Postal Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commission acknowledges a recent Postal Service request regarding revised versions and updates concerning parties to Inbound Competitive Registered Service Agreement 1. This notice informs the public of the filing, invites public comment, and takes other administrative steps.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments are due:</E>
                         December 27, 2023.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit comments electronically via the Commission's Filing Online system at 
                        <E T="03">http://www.prc.gov.</E>
                         Those who cannot submit comments electronically should contact the person identified in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section by telephone for advice on filing alternatives.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>David A. Trissell, General Counsel, at 202-789-6820.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">
                        I. Introduction
                        <PRTPAGE P="87464"/>
                    </FP>
                    <FP SOURCE="FP-2">II. Contents of Filing</FP>
                    <FP SOURCE="FP-2">III. Commission Action</FP>
                    <FP SOURCE="FP-2">IV. Order Requiring Further Action by the Postal Service</FP>
                    <FP SOURCE="FP-2">V. Ordering Paragraphs</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    On December 8, 2023, the Postal Service filed notice of revised versions of and updates concerning parties to Inbound Competitive PRIME Registered Service Agreement 1 (Agreement).
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Notice of United States Postal Service of Filing Revised Versions of and Updates Concerning Parties to Inbound Competitive PRIME Registered Service Agreement, and Application for Non-Public Treatment, December 8, 2023 (Notice).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Contents of Filing</HD>
                <P>
                    The Postal Service acknowledges that due to an oversight, revisions to the Agreement that went into effect on January 1, 2023, and July 1, 2023, respectively, were not timely notified to the Commission at least 15 days before the effective dates of the respective changes in accordance with 39 CFR 3035.105. Notice at 2. The Postal Service also states that “it has taken action to correct future oversights by educating responsible team members on their responsibility to provide information to promote timely filing of changes to the Agreement.” 
                    <E T="03">Id.</E>
                     The Postal Service further states that it provides discussion “in greater detail” in the Notice regarding the oversight and the corrective action. 
                    <E T="03">Id.</E>
                     at 1. However, there is no such discussion in greater detail elsewhere in the Notice.
                </P>
                <P>
                    With the Notice, the Postal Service filed: a redacted copy of Governors' Decision No. 19-1 (Attachment 1); redacted copies of the revised versions of the Agreement that went into effect on January 1, 2023, and July 1, 2023, respectively (Attachments 2 and 3, respectively); a redacted table listing the parties to the Agreement as of November 30, 2023 (Attachment 4); and a certified statement required by 39 CFR 3035.105(c)(2) (Attachment 5). Notice at 2; 
                    <E T="03">see id.</E>
                     Attachments 1-5. The Postal Service also filed redacted Excel versions of financial workpapers. Notice at 2.
                </P>
                <P>
                    Additionally, the Postal Service filed unredacted versions of Attachments 1-4 and unredacted Excel versions of financial workpapers under seal. 
                    <E T="03">Id.</E>
                     The Postal Service filed an application for non-public treatment of materials filed under seal. 
                    <E T="03">Id.</E>
                     at 2-3; 
                    <E T="03">id.</E>
                     Attachment 6.
                </P>
                <P>
                    The Postal Service lists the changes made in the revised versions of the Agreement that went into effect on January 1, 2023, and July 1, 2023, respectively. Notice at 3-4. The Postal Service states that the financial workpapers filed under seal show sufficient cost coverage for this Agreement. 
                    <E T="03">Id.</E>
                     at 4.
                </P>
                <HD SOURCE="HD1">III. Commission Action</HD>
                <P>The Commission reopens Docket No. MC2020-73 for consideration of matters raised by the Notice.</P>
                <P>
                    The Commission invites comments on whether the Postal Service's filing is consistent with 39 U.S.C. 3632 and 3633 and 39 CFR part 3035. Comments are due no later than December 27, 2023. The public portions of the filing can be accessed via the Commission's website (
                    <E T="03">http://www.prc.gov</E>
                    ).
                </P>
                <P>The Commission appoints Katalin K. Clendenin to serve as Public Representative in this docket.</P>
                <HD SOURCE="HD1">IV. Order Requiring Further Action by the Postal Service</HD>
                <P>
                    The Governors of the Postal Service “shall cause” each decision of rate or class not of general applicability and the record of the proceedings in connection with such decision “to be filed with the Postal Regulatory Commission by such date before the effective date of any new rates or classes as the Governors consider appropriate, but in no case less than 15 days.” 39 U.S.C. 3632(b)(3). Accordingly, the Commission regulations require the Postal Service to file notice of such decision at least 15 days before the effective date of the change. 39 CFR 3035.105(a) (“When the Postal Service determines to add or change a rate or class not of general applicability, it shall file notice of its decision with the Commission at least 15 days before the effective date of the change.”). In Order No. 4016, the Commission discussed the Postal Service's previous pattern of untimely filing of the revisions to the predecessor version (a Market Dominant PRIME Registered Services Agreement), and in response to a Presiding Officer's Information Request, the Postal Service identified several steps it took to ensure timely filing of future revisions.
                    <SU>2</SU>
                    <FTREF/>
                     For purposes of the instant Agreement, it appears that these steps were not followed by the Postal Service, and they were insufficient to ensure timely filings notifying the Commission of modifications.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Docket No. R2016-6, Order Approving Modifications of PRIME Registered Agreement, July 26, 2017, 6-7 (Order No. 4016). The Postal Service identified the following steps: (1) “[e]mployees who regularly work on the Inbound Market Dominant Registered Service Agreement 1 have been reminded of the Commission's request that financial information be timely filed when a modification to the Agreement proposes changes to rates, fees, or mail classifications;” (2) “[c]hanges to Annex 3 delivery standards proposed by the Postal Service will be submitted to the Commission at the same time they are transmitted to the head of PRIME;” (3) “[t]he Postal Service's lead representative to PRIME will notify the Postal Service's Law Department as soon as possible concerning other proposed revisions to the PRIME Registered Service Agreement that affect rates, fees, and mail classifications so that filings can be made with the Commission as soon as possible.” 
                        <E T="03">Id.</E>
                         at 7.
                    </P>
                </FTNT>
                <P>
                    As noted above, the Postal Service acknowledges that an oversight led to the extremely late filing of the Notice and states it has taken corrective action to promote timely filing in the future. Notice at 2. The Postal Service also states that it provides discussion “in greater detail” in the Notice regarding the oversight and the corrective action. 
                    <E T="03">Id.</E>
                     at 1-2. However, there is no such discussion in greater detail elsewhere in the Notice. In addition, the Postal Service did not file a motion for late acceptance of its Notice either prior to or concurrent with the Notice, as required by Commission regulations. 39 CFR 3010.163.
                </P>
                <P>Additionally, the Commission observes that there appears to be discrepancies between the list of current parties to the Agreement in Attachment 4 and the parties reflected with rates in the financial workpapers. Some countries that are listed in Attachment 4 do not have rates reflected in the financial workpapers, some countries that are not listed in Attachment 4 have rates reflected in the financial workpapers, and one country listed in Attachment 4 is missing entirely in the financial workpapers.</P>
                <P>To remedy the deficiencies identified above, the Commission orders the Postal Service to:</P>
                <P>1. File a motion for late acceptance of its Notice no later than December 18, 2023.</P>
                <P>2. In its motion for late acceptance:</P>
                <P>a. Discuss in greater detail what oversight led to the filing of the Notice almost 1 year later and 6 months later than the correct filing dates pursuant to 39 CFR 3035.105, respectively, for the changes to the Agreement that went into effect on January 1, 2023, and July 1, 2023, respectively.</P>
                <P>b. Discuss in greater detail what corrective action the Postal Service has taken (and will take) to prevent similar untimely filings in the future, including but not limited to, designating the Postal Service employee(s)(along with the individual's name and title) responsible for monitoring whether a modification requires notification to Commission as well as the Postal Service employee(s) (along with the individual's name and title) who will be accountable for ensuring timely filings notifying the Commission of such modifications in the future.</P>
                <P>
                    c. Explain the apparent discrepancy between the list of current parties to the 
                    <PRTPAGE P="87465"/>
                    Agreement in Attachment 4 and the parties reflected with rates in the financial workpapers and provide revised Attachment 4 and/or financial workpapers as necessary.
                </P>
                <HD SOURCE="HD1">V. Ordering Paragraphs</HD>
                <P>
                    <E T="03">It is ordered:</E>
                </P>
                <P>1. The Commission reopens Docket No. MC2020-73 for consideration of the matters raised by the Postal Service's Notice.</P>
                <P>2. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is appointed to serve as an officer of the Commission to represent the interests of the general public in this proceeding (Public Representative).</P>
                <P>3. The Postal Service shall file a motion for late acceptance no later than December 18, 2023. The motion shall include the content specified in the body of the Order.</P>
                <P>4. Comments are due no later than December 27, 2023.</P>
                <P>
                    5. The Secretary shall arrange for the publication of this Order in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <P>By the Commission.</P>
                    <NAME>Erica A. Barker,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27651 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-FW-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SCIENCE AND TECHNOLOGY POLICY OFFICE</AGENCY>
                <SUBJECT>Request for Information To Support the Development of a Federal Environmental Justice Science, Data, and Research Plan; Reopening of Comment Period</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>White House Office of Science and Technology Policy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information; reopening of comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        On October 13, 2023, the Office of Science and Technology Policy (OSTP) published in the 
                        <E T="04">Federal Register</E>
                         a document entitled “Request for Information to Support the Development of a Federal Environmental Justice Science.” This RFI invited comments to the Subcommittee on Environmental Justice formed under the National Science and Technology Council Committee on the Environment in support of developing a coordinated Federal strategy to identify and address gaps in science, data, and research related to environmental justice. Information received through this RFI will inform the biennial Environmental Justice Science, Data, and Research Plan (Research Plan). Executive Order 14096 directed the formation of both the Subcommittee on Environmental Justice and the development of the Research Plan. In response to requests by prospective commenters that they would benefit from additional time to adequately consider and respond to the RFI, OSTP has determined that a reopening of the comment period until January 12, 2024 is appropriate.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The end of the comment period for the document entitled “Request for Information To Support the Development of a Federal Environmental Justice Science,” published on October 13, 2023 (88 FR 71041), is reopened from December 18, 2023 to January 12, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Interested individuals and organizations should submit comments electronically via regulations.gov. Due to time constraints, mailed paper submissions will not be accepted, and electronic submissions received after the deadline may not be incorporated or taken into consideration.</P>
                    <P>
                        <E T="03">Instructions:</E>
                         Federal eRulemaking Portal: Go to 
                        <E T="03">www.regulations.gov</E>
                         to submit your comments electronically. Information on how to use 
                        <E T="03">Regulations.gov</E>
                        , including instructions for accessing agency documents, submitting comments, and viewing the docket, is available on the site under “FAQ” (
                        <E T="03">https://www.regulations.gov/faq</E>
                        ).
                    </P>
                    <P>
                        <E T="03">Privacy Note:</E>
                         OSTP's policy is to make all comments received from members of the public available for public viewing in their entirety on the Federal eRulemaking Portal at 
                        <E T="03">www.regulations.gov.</E>
                         Therefore, commenters should be careful to include in their comments only information that they wish to make publicly available. OSTP requests that no proprietary information, copyrighted information, or personally identifiable information be submitted in response to this RFI.
                    </P>
                    <P>
                        Response to this RFI is voluntary. Each responding entity (individual or organization) is requested to submit only one response. The National Science and Technology Council Environmental Justice Subcommittee welcomes any responses to inform and guide the work of the subcommittee. Please feel free to respond to as many prompts as you choose, indicating the section number and question letter being addressed. Responses are encouraged to include the name of the person(s) or organization(s) filing the comment, and may also include the respondent type (
                        <E T="03">e.g.,</E>
                         academic, non-profit, professional society, community-based organization, industry, trainee/student, member of the public, government, other). Respondent's role in the organization may also be provided (
                        <E T="03">e.g.,</E>
                         researcher, faculty, student, program manager, journalist) on a voluntary basis. Additionally, please include the Docket ID at the top of your comments.
                    </P>
                    <P>Comments containing references, studies, research, and other empirical data that are not widely published should include copies or electronic links of the referenced materials.</P>
                    <P>Please note that the U.S. Government will not pay for response preparation, or for the use of any information contained in the response. A response to this RFI will not be viewed as a binding commitment to develop or pursue the project or ideas discussed.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For additional information, please direct questions to Dr. Kristi Pullen Fedinick, OSTP Assistant Director of Environmental Justice Science and Technology at 
                        <E T="03">EJ@ostp.eop.gov</E>
                         or via phone at (202) 881-9335.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In accordance with Executive Order 14096, OSTP seeks information to assist in developing a coordinated Federal strategy to identify and address gaps in science, data, and research related to environmental justice. Information received through this RFI will inform the biennial Environmental Justice Science, Data, and Research Plan (Research Plan). On October 13, 2023, OSTP published in the 
                    <E T="04">Federal Register</E>
                     a document inviting comments on a series of questions to support the development of the Research Plan (88 FR 71041). The RFI was issued to seek input from a broad array of stakeholders on the collection and use of science, data, and research in Federal decision making. The document stated that the comment period would close on December 12, 2023. OSTP has received requests to extend the comment period. A reopening of the comment period will provide additional opportunity for the public to consider the RFI and prepare comments to address the topics listed therein. Therefore, OSTP is reopening the comment period for the RFI from December 18, 2023 to January 12, 2024.
                </P>
                <SIG>
                    <DATED>Submitted by the White House Office of Science and Technology Policy on December 12, 2023.</DATED>
                    <NAME>Stacy Murphy,</NAME>
                    <TITLE>Deputy Chief Operations Officer/Security Officer. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27632 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3270-F1-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87466"/>
                <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>2:00 p.m. on Thursday, December 21, 2023. </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>The meeting will be held via remote means and/or at the Commission's headquarters, 100 F Street NE, Washington, DC 20549. </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>This meeting will be closed to the public.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P>Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present.</P>
                    <P>
                        In the event that the time, date, or location of this meeting changes, an announcement of the change, along with the new time, date, and/or place of the meeting will be posted on the Commission's website at 
                        <E T="03">https://www.sec.gov.</E>
                    </P>
                    <P>The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting.</P>
                    <P>The subject matter of the closed meeting will consist of the following topics:</P>
                    <P>Institution and settlement of injunctive actions;</P>
                    <P>Institution and settlement of administrative proceedings;</P>
                    <P>Resolution of litigation claims; and</P>
                    <P>Other matters relating to examinations and enforcement proceedings.</P>
                    <P>At times, changes in Commission priorities require alterations in the scheduling of meeting agenda items that may consist of adjudicatory, examination, litigation, or regulatory matters.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>For further information; please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551-5400.</P>
                </PREAMHD>
                <EXTRACT>
                    <FP>(Authority: 5 U.S.C. 552b.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: December 14, 2023. </DATED>
                    <NAME>Vanessa A. Countryman, </NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27848 Filed 12-14-23; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99141; File No. SR-Phlx-2023-55]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Fees for Options on the Nasdaq 100 Index in the Exchange's Pricing Schedule at Options 7</SUBJECT>
                <DATE>December 12, 2023.</DATE>
                <P>
                    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on November 30, 2023, Nasdaq PHLX LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend the fees for Nasdaq 100 Index options in the Exchange's Pricing Schedule at Options 7, Section 5A. While these amendments are effective upon filing, the Exchange has designated the proposed amendments to be operative on December 1, 2023.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The purpose of the proposed rule change is to amend the fees for NDX 
                    <SU>3</SU>
                    <FTREF/>
                     and NDXP.
                    <SU>4</SU>
                    <FTREF/>
                     As set forth in Options 7, Section 5A, the Exchange currently charges all Non-Customer 
                    <SU>5</SU>
                    <FTREF/>
                     orders in NDX and NDXP a $0.75 per contract transaction fee. Customer 
                    <SU>6</SU>
                    <FTREF/>
                     orders receive free executions in NDX and NDXP today. These transaction fees apply to electronic simple and complex executions as well as floor transactions.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         NDX represents A.M.-settled options on the full value of the Nasdaq 100 Index traded under the symbol NDX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         NDXP represents P.M.-settled options on the full value of the Nasdaq 100 Index traded under the symbol NDXP.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The term “Non-Customer” applies to transactions for the accounts of Lead Market Makers, Market Makers, Firms, Professionals, Broker-Dealers and JBOs.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The term “Customer” applies to any transaction that is identified by a member or member organization for clearing in the Customer range at The Options Clearing Corporation (“OCC”) which is not for the account of a broker or dealer or for the account of a “Professional” (as that term is defined in Options 1, Section 1(b)(45)).
                    </P>
                </FTNT>
                <P>
                    The Exchange now proposes to begin assessing Customer NDX and NDXP orders a $0.25 per contract transaction fee. The Exchange notes that the proposed fee amount is in line with customer transaction fees assessed on other index products.
                    <SU>7</SU>
                    <FTREF/>
                     The Exchange also proposes to assess a surcharge of $0.50 per contract to all Non-Customer complex executions in NDX and NDXP, and a surcharge of 0.25 per contract to all Customer complex executions in NDX and NDXP.
                    <SU>8</SU>
                    <FTREF/>
                     The Exchange notes that the proposed surcharge amounts are within the range of various surcharges assessed at another options exchange.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         For example, Cboe Options (“Cboe”) currently assesses a $0.25 per contract customer transaction fee for MXEA and MXEF options, $0.35 per contract for OEX and XEO options, and $0.36 per contract (if premium &lt; $1.00) or $0.45 per contract (if premium &gt;= $1.00) for SPX and SPESG options. 
                        <E T="03">See</E>
                         Cboe Fees Schedule.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         proposed notes 5 and 6 of Options 7, Section 5.A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         For example, Cboe currently assesses customers a $0.25 per contract exotic surcharge and a $0.21 per contract execution surcharge in SPX and SPESG options. Cboe also assesses non-customers a $0.45 per contract license surcharge in RUT, and LEAPS surcharge fees in SPX ranging from $1.00 to $2.50 per contract, according to time-to-expiration. 
                        <E T="03">See</E>
                         Cboe Fees Schedule.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with section 6(b) of the Act,
                    <SU>10</SU>
                    <FTREF/>
                     in general, and furthers the objectives of sections 6(b)(4) and 6(b)(5) 
                    <PRTPAGE P="87467"/>
                    of the Act,
                    <SU>11</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes it is reasonable to begin assessing a $0.25 per contract transaction fee to all Customer orders in NDX and NDXP, a $0.25 per contract complex surcharge to Customer complex orders in NDX and NDXP, and a $0.50 per contract complex surcharge to Non-Customer complex orders in NDX and NDXP because the proposed pricing reflects the proprietary nature of this product. Similar to other proprietary products like options overlying the Nasdaq 100 Micro Index (“XND”), the Exchange seeks to recoup the operational costs of listing proprietary products.
                    <SU>12</SU>
                    <FTREF/>
                     Also, pricing by symbol is a common practice on many U.S. options exchanges as a means to incentivize order flow to be sent to an exchange for execution in particular products. Other options exchanges price by symbol.
                    <SU>13</SU>
                    <FTREF/>
                     Further, the Exchange notes that market participants are offered different ways to gain exposure to the Nasdaq 100 Index, whether through the Exchange's proprietary products like options overlying NDX, NDPX, or XND, or separately through multi-listed options overlying Invesco QQQ Trust (“QQQ”).
                    <SU>14</SU>
                    <FTREF/>
                     Offering such products provides market participants with a variety of choices in selecting the product they desire to utilize in order to gain exposure to the Nasdaq 100 Index. When exchanges are able to recoup costs associated with offering proprietary products, it incentivizes growth and competition for the innovation of additional products.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         By way of example, in analyzing an obvious error, the Exchange would have additional data points available in establishing a theoretical price for a multiply listed option as compared to a proprietary product, which requires additional analysis and administrative time to comply with Exchange rules to resolve an obvious error.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See supra</E>
                         note 7.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         QQQ is an exchange-traded fund based on the same Nasdaq 100 Index as NDX, NDXP, and XND.
                    </P>
                </FTNT>
                <P>
                    The Exchange further believes that the proposed pricing described above is reasonable because the proposal is designed to update fees for the Exchange's services to reflect their current value—rather than their value when the Exchange last updated NDX and NDXP pricing five years ago 
                    <SU>15</SU>
                    <FTREF/>
                    —based on the Exchange's ability to deliver value to its customers by offering proprietary products on its market like NDX and NDXP.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange has not amended NDX and NDXP transaction fees since 2018, so the fees have remained at $0.75 per contract for Non-Customers and $0.00 for Priority Customers during this time. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 82499 (January 12, 2018), 83 FR 2834 (January 19, 2018) (SR-Phlx-2018-02).
                    </P>
                </FTNT>
                <P>
                    While NDX and NDXP pricing is increasing for all market participants under this proposal, the Exchange believes that the proposal is reasonable and would continue to incentivize market participants to transact in NDX and NDXP, and especially in Customer NDX and NDXP orders because Customers would continue to be charged at a lower rate for NDX and NDXP than Non-Customers. As a result, the Exchange believes that the proposed pricing is structured in a way that continues to encourage market participants, especially Customers, to transact in NDX and NDXP on Phlx. An increase in Customer order flow would benefit all market participants through quality of order interaction and increased trading opportunities. As noted above, the proposed fee and surcharge amounts are in line with fees and surcharges assessed on other products at another options exchange.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See supra</E>
                         notes 7 and 9.
                    </P>
                </FTNT>
                <P>The Exchange's proposal to assess a $0.25 per contract transaction fee to Customer orders in NDX and NDXP is equitable and not unfairly discriminatory it will apply uniformly to all similarly situated market participants. The Exchange believes it is equitable and not unfairly discriminatory to continue charging Customers a lower transaction fee for NDX and NDXP orders because Customer orders bring valuable liquidity to the market by providing more trading opportunities, which, in turn, attracts Market Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow to the benefit of all market participants.</P>
                <P>
                    The Exchange also believes that it is equitable and not unfairly discriminatory to assess the $0.25 per contract surcharge to Customer complex orders in NDX and NDXP and the $0.50 per contract surcharge to Non-Customer complex orders in NDX and NDXP because the proposed surcharges will apply uniformly to all similarly situated participants. The Exchange believes it is equitable and not unfairly discriminatory to assess a lower complex surcharge to Customers than Non-Customers as the Exchange has historically provided more favorable pricing to Customers in its Pricing Schedule.
                    <SU>17</SU>
                    <FTREF/>
                     In addition, Customer orders bring valuable liquidity to the market by providing more trading opportunities. This, in turn, attracts Market Maker activity, which facilitates tighter spreads, which may cause an additional corresponding increase in order flow to the benefit of all market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         For example, the Exchange offers a Customer Rebate Program in Options 7, Section 2.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. As noted above, market participants are offered an opportunity to transact in NDX, NDXP, or XND, or separately execute options overlying QQQ. Offering these products provides market participants with a variety of choices in selecting the product they desire to use to gain exposure to the Nasdaq 100 Index. Furthermore, the proposed fee amounts are in line with customer transaction fees and surcharges assessed on other products at another options exchange.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See supra</E>
                         notes 7 and 9.
                    </P>
                </FTNT>
                <P>Further, the Exchange does not believe that the proposed changes will impose an undue burden on intra-market competition because Customers will continue to be assessed lower fees in NDX and NDXP than Non-Customers, which is in line with how the Exchange historically assessed fees. As discussed above, Customer order flow enhances liquidity on the Exchange for the benefit of all market participants.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <P>
                    At any time within 60 days of the filing of the proposed rule change, the 
                    <PRTPAGE P="87468"/>
                    Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
                </P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-Phlx-2023-55 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-Phlx-2023-55. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-Phlx-2023-55 and should be submitted on or before January 8, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>20</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27676 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99142; File No. SR-ISE-2023-35]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend ISE Options 7</SUBJECT>
                <DATE>December 12, 2023.</DATE>
                <P>
                    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on December 1, 2023, Nasdaq ISE, LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend the Exchange's Pricing Schedule at Options 7.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/ise/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The purpose of the proposed rule change is to amend the Exchange's Pricing Schedule at Options 7 to: (i) decrease the Fees for Crossing Orders,
                    <SU>3</SU>
                    <FTREF/>
                     except Price Improvement Mechanism or “PIM” Orders,
                    <SU>4</SU>
                    <FTREF/>
                     in Sections 3 and 4, (ii) eliminate the Crossing Fee Cap in Section 6.H and reserve certain footnotes related to the cap, (iii) increase the Facilitation 
                    <SU>5</SU>
                    <FTREF/>
                     and Solicitation 
                    <SU>6</SU>
                    <FTREF/>
                     Break-Up Rebates in Sections 3 and 4, (iv) eliminate the Fees for Crossing Orders applicable to Professional Customers 
                    <SU>7</SU>
                    <FTREF/>
                     for Qualified Contingent Cross or “QCC” Orders 
                    <SU>8</SU>
                    <FTREF/>
                     and SOM Orders in Sections 3 and 4, (v) amend the Solicitation Rebate in Section 6.A, and (vi) amend the QCC 
                    <PRTPAGE P="87469"/>
                    Rebate Program in Section 6.B. Each change is discussed in detail below.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         A “Crossing Order” is an order executed in the Exchange's Facilitation Mechanism, Solicited Order Mechanism (“SOM”), Price Improvement Mechanism (“PIM”) or submitted as a Qualified Contingent Cross (“QCC”) order. For purposes of the Pricing Schedule, orders executed in the Block Order Mechanism are also considered Crossing Orders. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The PIM is a process by which an Electronic Access Member can provide price improvement opportunities for a transaction wherein the Electronic Access Member seeks to facilitate an order it represents as agent, and/or a transaction wherein the Electronic Access Member solicited interest to execute against an order it represents as agent. 
                        <E T="03">See</E>
                         Options 3, Section 13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The Facilitation Mechanism is a process by which an Electronic Access Member can execute a transaction wherein the Electronic Access Member seeks to facilitate a block-size order it represents as agent, and/or a transaction wherein the Electronic Access Member solicited interest to execute against a block-size order it represents as agent. Electronic Access Members must be willing to execute the entire size of orders entered into the Facilitation Mechanism. 
                        <E T="03">See</E>
                         Options 3, Section 11(b). Complex Facilitation is described in Options 3, Section 11(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The Solicited Order Mechanism or “SOM” is a process by which an Electronic Access Member can attempt to execute orders of 500 or more contracts it represents as agent (the “Agency Order”) against contra orders that it solicited. Each order entered into the Solicited Order Mechanism shall be designated as all-or-none. 
                        <E T="03">See</E>
                         Options 3, Section 11(d). The Complex Solicited Order Mechanism is described in Options 3, Section 11(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         A ”Professional Customer” is a person or entity that is not a broker/dealer and is not a Priority Customer. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         A QCC Order is comprised of an originating order to buy or sell at least 1000 contracts that is identified as being part of a qualified contingent trade, as that term is defined in Supplementary Material .01 to Options 3, Section 7, coupled with a contra-side order or orders totaling an equal number of contracts. 
                        <E T="03">See</E>
                         Options 3, Section 7(j).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Fees for Crossing Orders, Except PIM Orders, and Crossing Fee Cap</HD>
                <P>
                    Today, the Exchange assesses all Non-Priority Customers 
                    <SU>9</SU>
                    <FTREF/>
                     a $0.20 per contract Regular Order 
                    <SU>10</SU>
                    <FTREF/>
                     Fee for Crossing Orders, which fee does not apply to PIM Orders, in Select 
                    <SU>11</SU>
                    <FTREF/>
                     and Non-Select 
                    <SU>12</SU>
                    <FTREF/>
                     Symbols, excluding Index Options.
                    <SU>13</SU>
                    <FTREF/>
                     Priority Customers 
                    <SU>14</SU>
                    <FTREF/>
                     are not assessed a Regular Order Fee for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols. The Regular Order Fees for Crossing Orders, except PIM Orders, apply to the originating and contra orders.
                    <SU>15</SU>
                    <FTREF/>
                     Today, Regular Order Firm Proprietary 
                    <SU>16</SU>
                    <FTREF/>
                     contracts traded are subject to the Crossing Fee Cap, as provided in Options 7, Section 6.H.
                    <SU>17</SU>
                    <FTREF/>
                     With the Crossing Fee Cap, fees are capped at $200,000 per month, per Member on all Firm Proprietary transactions that are part of the originating or contra side of a Crossing Order. Once a Member exceeds the fee cap level, the Member is subject to a reduced transaction fee of $0.02 per capped contract, unless the Member also qualifies for free executions.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         “Non-Priority Customers” include Market Makers, Non-Nasdaq ISE Market Makers (FarMMs), Firm Proprietary/Broker-Dealers, and Professional Customers. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         A “Regular Order” is an order that consists of only a single option series and is not submitted with a stock leg. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         “Select Symbols” are options overlying all symbols listed on the Nasdaq ISE that are in the Penny Interval Program. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         “Non-Select Symbols” are options overlying all symbols excluding Select Symbols. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         For all executions in regular NDX, XND and NQX orders, the applicable index options fees in Section 5 will apply. 
                        <E T="03">See</E>
                         note 7 of Options 7, Section 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         A “Priority Customer” is a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s), as defined in Nasdaq ISE Options 1, Section 1(a)(37). Unless otherwise noted, when used in this Pricing Schedule the term “Priority Customer” includes “Retail” as defined below. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         note 2 of Options 7, Section 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         A “Firm Proprietary” order is an order submitted by a member for its own proprietary account. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         note 1 of Options 7, Section 3.
                    </P>
                </FTNT>
                <P>The Exchange proposes to decrease the Non-Priority Customer Regular Order Fee for Crossing Orders, except for PIM Orders, from $0.20 to $0.17 per contract in Select and Non-Select Symbols. Priority Customers will continue to not be assessed a Regular Order Fee for Crossing Orders, except for PIM Orders, in Select and Non-Select Symbols. The Exchange proposes to no longer offer the Crossing Fee Cap for Firm Proprietary contracts and would therefore reserve note 1 of Options 7, Section 3. The Exchange is also reserving the Regular Order Crossing Fee Cap in Options 7, Section 6.H for Select and Non-Select Symbols as the Crossing Fee Cap would not apply to pricing in Options 7, Section 4 as explained below. Despite the elimination of the Crossing Fee Cap, the Exchange believes that the decreased Regular Order Fees for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols will continue to attract certain Crossing Orders to the Exchange.</P>
                <P>
                    Similarly, today, the Exchange assesses Non-Priority Customers a $0.17 per contract Complex Order Fee for Crossing Orders, except PIM Orders, for Select and Non-Select Symbols. Priority Customers are assessed no Complex Order Fee for Crossing Orders, except PIM Orders, for Select and Non-Select Symbols. The Complex Order Fees for Crossing Orders, except PIM Orders, apply to the originating and contra orders.
                    <SU>18</SU>
                    <FTREF/>
                     Today, Complex Order Firm Proprietary contracts traded are subject to the Crossing Fee Cap, as provided in Options 7, Section 6.H.
                    <SU>19</SU>
                    <FTREF/>
                     Also, other than for Priority Customer orders, the Complex Order Fee for Crossing Orders is reduced to $0.05 per contract for orders executed by Members that execute an average daily volume (“ADV”) of 7,500 or more contracts in the PIM in a given month.
                    <SU>20</SU>
                    <FTREF/>
                     Further, Members that execute an ADV of 12,500 or more contracts in the PIM will not be charged a fee.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         note 11 of Options 7, Section 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         note 6 of Options 7, Section 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         note 10 of Options 7, Section 4. The discounted fees are applied retroactively to all eligible PIM volume in that month once the threshold has been reached.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>Similar to Regular Orders, the Exchange proposes to decrease the Non-Priority Customer Complex Order Fee for Crossing Orders, except PIM Orders, from $0.20 to $0.17 per contract for Select and Non-Select Symbols. Priority Customers will continue to not be assessed a Complex Order Fee for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols. Similar to Regular Orders, the Exchange proposes to no longer offer the Crossing Fee Cap for Firm Proprietary contracts and would therefore reserve note 6 of Options 7, Section 4. As mentioned herein, the Exchange is also reserving the Crossing Fee Cap in Options 7, Section 6.H. Despite the elimination of the Crossing Fee Cap, the Exchange believes that the decreased Complex Order Fees for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols will continue to attract Crossing Orders to the Exchange.</P>
                <HD SOURCE="HD3">Facilitation and Solicitation Break-Up Rebates</HD>
                <P>
                    Today, pursuant to Options 7, Section 3, the Exchange pays Non-Nasdaq ISE Market Makers (FarMM),
                    <SU>22</SU>
                    <FTREF/>
                     Firm Proprietary 
                    <SU>23</SU>
                    <FTREF/>
                    /Broker Dealers,
                    <SU>24</SU>
                    <FTREF/>
                     Professionals and Priority Customers a Regular Order Facilitation and Solicitation Break-up Rebate of $0.15 per contract in Select and Non-Select Symbols. Market Makers 
                    <SU>25</SU>
                    <FTREF/>
                     are not paid a Regular Order Facilitation and Solicitation Break-up Rebate in Select and Non-Select Symbols. The Exchange proposes to increase the Regular Order Facilitation and Solicitation Break-up Rebate from $0.15 to $0.20 per contract in Select and Non-Select Symbols for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers. Market Makers would continue to not be paid a Regular Order Facilitation and Solicitation Break-up Rebate in Select and Non-Select Symbols. The Exchange believes that the increase to the Regular Order Facilitation and Solicitation Break-up Rebate will attract ISE Members to utilize the Facilitation and Solicitation Mechanisms.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         A “Non-Nasdaq ISE Market Maker” is a market maker as defined in section 3(a)(38) of the Securities Exchange Act of 1934, as amended, registered in the same options class on another options exchange. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         A “Firm Proprietary” order is an order submitted by a member for its own proprietary account. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         A “Broker-Dealer” order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. 
                        <E T="03">See</E>
                         Options 7, Section 1(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         The term “Market Makers” refers to “Competitive Market Makers” and “Primary Market Makers” collectively. 
                        <E T="03">See</E>
                         Options 1, Section 1(a)(21).
                    </P>
                </FTNT>
                <P>
                    Today, pursuant to Options 7, Section 4, the Exchange pays Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers a Complex Order Facilitation and Solicitation Break-up Rebate of $0.15 per contract in Select and Non-Select Symbols. Market Makers are not paid a Complex Order Facilitation and Solicitation Break-up Rebate in Select and Non-Select Symbols. The Exchange proposes to increase the Complex Order Facilitation and Solicitation Break-up Rebate from $0.15 to $0.20 per contract in Select and Non-Select Symbols for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers. Market Makers would 
                    <PRTPAGE P="87470"/>
                    continue to not be paid a Complex Order Facilitation and Solicitation Break-up Rebate in Select and Non-Select Symbols. The Exchange believes that the increase to the Complex Order Facilitation and Solicitation Break-up Rebate will attract ISE Members to utilize the Facilitation and Solicitation Mechanisms.
                </P>
                <P>
                    Today, Facilitation and Solicitation Break-up Rebates for Regular Order and Comple Order Select and Non-Select Symbols are provided for contracts that are submitted to the Facilitation and Solicited Order Mechanisms that do not trade with their contra order except when those contracts trade against pre-existing orders and quotes on the Exchanges order books.
                    <SU>26</SU>
                    <FTREF/>
                     The applicable fee is applied to any contracts for which a rebate is provided.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange proposes to amend this sentence in note 4 of Options 7, Section 3 and note 2 of Options 7, Section 4 to more specifically provide, “The applicable Fee for Responses to Crossing Orders is applied to any contracts for which a rebate is provided.” The Exchange believes that this proposed change to the wording of the sentence does not substantively amend the sentence, rather it conforms the reference to the Fee for Crossing Orders to the title of the fees in the tables of Options 7, Sections 3 and 4, which is the Fee for Responses to Crossing Orders for Regular Orders and Complex Orders in Select and Non-Select Symbols. This amendment adds clarity to the fee being referenced.
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         note 4 in Options 7, Section 3 and note 2 in Options 7, Section 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Professional Customer QCC and SOM Fees For Crossing Orders</HD>
                <P>
                    As noted above, today, Professional Customers are assessed a $0.20 per contract Regular Order and Complex Order Fee for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols. Also, today, transaction fees applicable to Professional Customers for an order submitted as a QCC Order and orders executed in the Solicited Order Mechanism would be assessed a $0.10 per contract Regular Order and Complex Order Fee for Crossing Orders, except PIM Orders, instead of $0.20 per contract, in Select and Non-Select Symbols.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4.
                    </P>
                </FTNT>
                <P>At this time, the Exchange proposes to amend note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to provide, “Fees for Crossing Orders applicable to Professional Customers for an order submitted as a Qualified Contingent Cross order and orders executed in the Exchange's Solicited Order Mechanism will be $0.00 per contract.” The Exchange proposes to substitute the words “Transaction fees” with “Fees for Crossing Orders” to conform to the title of the fees in the tables in Options 7, Sections 3 and 4, thereby providing additional clarity. The Exchange also proposes to eliminate the Professional Customer Regular Order and Complex Order Fee for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols, when the order is submitted as a QCC Order or a SOM Order. The Exchange believes that reducing the Professional Customer Regular Order and Complex Order Fee for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols, when the order is submitted as a QCC Order or a SOM Order from $0.10 to $0.00 per contract will attract additional Professional Customer QCC and SOM Orders to the Exchange.</P>
                <HD SOURCE="HD3">Solicitation Rebate</HD>
                <HD SOURCE="HD3">Background</HD>
                <P>Today, the Exchange offers a Solicitation Rebate program in Options 7, Section 6.A whereby Members using QCC and/or other solicited orders executed in the Solicited Order Mechanism or Facilitation Mechanism receive rebates for solicited orders executed in the Solicited Order or Facilitation Mechanisms (“Solicited Orders”) according to the table in Section 6.A for each originating contract side in all symbols traded on the Exchange. Volume associated with QCC executions are aggregated in calculating the Solicitation Rebate volume tiers in Section 6.A, but Members that execute QCC volume receive the QCC Rebate in Section 6.B instead.</P>
                <P>
                    Once a Member reaches a certain volume threshold in combined QCC and Solicited Orders during a month, the Exchange provides rebates to that Member for all of its Solicited Order traded contracts for that month.
                    <SU>29</SU>
                    <FTREF/>
                     Today, Members receive the rebate for all Solicited Orders except for Solicited Orders between two Priority Customers. Solicited Orders between two Priority Customers do not receive any rebates under the Solicitation Rebate program. The volume threshold and corresponding rebates in Section 6.A are currently as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         All eligible volume from affiliated Members will be aggregated in determining the combined QCC and Solicited Order volume totals, provided there is at least 75% common ownership between the Members as reflected on each Member's Form BD, Schedule A.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,r100,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">Originating contract sides</CHED>
                        <CHED H="1">Rebate</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Tier 1</ENT>
                        <ENT>0 to 99,999</ENT>
                        <ENT>$0.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tier 2</ENT>
                        <ENT>100,000 to 199,999</ENT>
                        <ENT>(0.05)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tier 3</ENT>
                        <ENT>200,000 to 499,999</ENT>
                        <ENT>(0.07)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tier 4</ENT>
                        <ENT>500,000 to 749,999</ENT>
                        <ENT>(0.09)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tier 5</ENT>
                        <ENT>750,000 to 999,999</ENT>
                        <ENT>(0.10)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tier 6</ENT>
                        <ENT>1,000,000+</ENT>
                        <ENT>(0.11)</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Volume resulting from all QCC and Solicited Orders is aggregated in determining the applicable volume tier set forth above. For Members that achieve the highest volume threshold of 1,000,000 or more originating contract sides (
                    <E T="03">i.e.,</E>
                     tier 6), the Exchange also currently provides an additional rebate of $0.01 per originating contract side on Solicited Orders that qualify for the Solicitation Rebate program if the Member achieves in a given month: (i) combined QCC and Solicited Order volume of more than 1,750,000 originating contract sides and (ii) Priority Customer Complex Tier 6 or higher in Section 4 (the “note * incentive”).
                    <SU>30</SU>
                    <FTREF/>
                     In addition, the Exchange provides an additional rebate of $0.01 per originating contract side on Solicited Orders that qualify for the Solicitation Rebate program, which is applied to each Solicitation Rebate volume tier where the Member receives the rebate (
                    <E T="03">i.e.,</E>
                     tier 2 or higher), if the Member also achieves Priority Customer Complex Tier 2 or higher in a given 
                    <PRTPAGE P="87471"/>
                    month (the “note &amp; incentive”). Thus, qualifying Members may receive up to $0.06 in tier 2, $0.08 in tier 3, $0.10 in tier 4, $0.11 in tier 5, and $0.13 in tier 6 (
                    <E T="03">i.e.,</E>
                     the $0.11 base rebate, the $0.01 note * incentive, and the $0.01 note &amp; incentive).
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         As set forth in Options 7, Section 4, Priority Customer Complex Tiers are based on Total Affiliated Member or Affiliated Entity complex order volume (excluding Crossing Orders and Responses to Crossing Orders) calculated as a percentage of Customer Total Consolidated Volume.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange now proposes to amend the Solicitation Rebate program in a number of ways. First, the Exchange proposes to no longer provide any rebates under this program when both sides of the Solicited Order transaction are between two Professional Customers or between a Priority Customer and a Professional Customer. This will be in addition to the current restriction that Solicited Orders between two Priority Customers will not receive any rebate under the Solicitation Rebate program. As such, the Exchange will only provide the Solicitation Rebate when at least one side of the Solicited Order is neither a Priority Customer nor Professional Customer (
                    <E T="03">i.e.,</E>
                     when at least one side is a Market Maker, Non-ISE Market Maker, or Firm Proprietary/Broker-Dealer). As amended, the language governing the Solicitation Rebate program in Section 6.A will provide:
                </P>
                <EXTRACT>
                    <P>Members will receive the rebate for all Solicited Orders when at least one side of the Solicited Order is neither a Priority Customer nor Professional Customer. Solicited Orders between two Priority Customers, two Professional Customers, or a Priority Customer and a Professional Customer will not receive any rebate.</P>
                </EXTRACT>
                <P>
                    The Exchange is proposing to exclude Professional Customers from the Solicitation Rebate in the manner described above because it is also proposing to eliminate the fees applicable to Professional Customers for orders executed in the Solicited Order Mechanism (which are included as Solicited Orders for purposes of qualifying for and receiving the Solicitation Rebate).
                    <SU>31</SU>
                    <FTREF/>
                     As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer Solicited Orders to the Exchange without the added incentive of the Solicitation Rebate.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         As discussed above, the Exchange is proposing to eliminate the fees applicable to Professional Customers for SOM Orders and for QCC Orders. 
                        <E T="03">See</E>
                         proposed note 16 of Options 7, Section 3 and proposed note 14 of Options 7, Section 4.
                    </P>
                </FTNT>
                <P>The Exchange also proposes to amend the volume thresholds and rebate amounts described above as follows:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,9">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Originating contract sides</CHED>
                        <CHED H="1">Rebate</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0 to 749,999</ENT>
                        <ENT>($0.10)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">750,000 to 1,499,999</ENT>
                        <ENT>(0.11)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1,500,000+</ENT>
                        <ENT>(0.12)</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As described above, the Exchange is proposing to condense the current Solicitation Rebate volume tiers 1-4 into one new base volume tier, and increase the rebate to $0.10 for all qualifying Members.
                    <SU>32</SU>
                    <FTREF/>
                     The current Solicitation Rebate volume tier 5 will be amended as the second highest volume tier, and expanded to be capped at a higher level of volume (1,499,999 versus the current 999,999 originating contract sides). The Exchange is also increasing the rebate to $0.11 per contract for this tier.
                    <SU>33</SU>
                    <FTREF/>
                     As it relates to the highest volume tier under this proposal (
                    <E T="03">i.e.,</E>
                     1,500,000+ originating contract sides), the Exchange is likewise increasing the rebate to $0.12 per contract.
                    <SU>34</SU>
                    <FTREF/>
                     As such, Members would generally receive higher rebates under this proposal for achieving the same amount of volume as they do today.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         Today, the rebates in tiers 1—4 range from $0.00 to $0.09 per contract for qualifying Members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         Today, the tier 5 rebate is $0.10 per contract for qualifying Members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         Today, the highest tier 6 rebate is $0.11 per contract for qualifying Members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         The Exchange notes that if a Member reaches a volume threshold between 1,000,000 to 1,499,999 originating contract sides in a given month, they would continue to receive the same rebate amount (
                        <E T="03">i.e.,</E>
                         $0.11 per contract) under this proposal as they do currently.
                    </P>
                </FTNT>
                <P>
                    Lastly, the Exchange proposes to apply the note &amp; incentive to the new base volume tier such that qualifying Members may be eligible to receive an additional rebate of $0.01 per originating contract side in addition to the $0.10 rebate.
                    <SU>36</SU>
                    <FTREF/>
                     Today, Members in the current base Solicitation Rebate tier are not eligible to receive this additional rebate. With the proposed extension to the new base tier, the Exchange seeks to encourage Members to send more order flow, particularly Solicited Order and complex order flow, to ISE.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         As discussed above, Members may qualify for the note &amp; incentive if they qualify for the Solicitation Rebate program and they also achieve Priority Customer Complex Tier 2 or higher in a given month.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">QCC Rebate</HD>
                <HD SOURCE="HD3">Background</HD>
                <P>Today, the Exchange offers a QCC Rebate program in Options 7, Section 6.B whereby Members that submit QCC Orders when at least one side of the QCC transaction is a Non-Priority Customer receive the QCC Rebates in Section 6.B. By implication, the QCC Rebates are not available when both sides of the QCC transaction are Priority Customers. QCC Rebates are paid to each originating contract side (“QCC Agency Side”) in all symbols traded on the Exchange. Specifically:</P>
                <P>• When only one side of the QCC transaction is a Non-Priority Customer, the Member would receive a $0.14 per contract rebate for each QCC Agency Side (“QCC Rebate 1”)</P>
                <P>• When both sides of the QCC transaction are Non-Priority Customers, the Member would receive a $0.22 per contract rebate for each QCC Agency Side today (“QCC Rebate 2”).</P>
                <P>In addition, the Exchange currently offers an additional incentive of $0.03 per contract for each QCC Agency Side that qualifies for the QCC Rebate program if they achieve Priority Customer Complex Tier 2 or higher in a given month. The additional incentive is applied to each QCC Rebate and is cumulative of the QCC Rebates so that qualifying Members could receive up to $0.17 per contract for each QCC Agency Side when only one side of the QCC transaction is a Non-Priority Customer, and up to $0.25 per contract for each QCC Agency Side when both sides of the QCC transaction are Non-Priority Customers.</P>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange now proposes to no longer provide any rebates under this program when both sides of the QCC transaction are between two Professional Customers or between a Priority Customer and a Professional Customer. This will be in addition to the current restriction that QCC Orders between two Priority Customers would not receive any rebates. Specifically, Section 6.B will be amended to provide that Members that submit QCC Orders when at least one side of the QCC transaction is neither a Priority Customer nor Professional Customer will receive the QCC Rebates in Section 6.B. This is similar to the proposed changes in the Solicitation Rebate program where the Exchange is likewise proposing to exclude Professional Customers from the Solicitation Rebate in the manner described above. Similar to the Solicitation Rebate changes, the Exchange is proposing to exclude Professional Customers from the QCC Rebates because it is also proposing to eliminate the fees applicable to Professional Customers for QCC Orders.
                    <SU>37</SU>
                    <FTREF/>
                     As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer QCC Orders to the Exchange 
                    <PRTPAGE P="87472"/>
                    without the added incentive of the QCC Rebates.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         As discussed above, the Exchange is proposing to eliminate the fees applicable to Professional Customers for QCC Orders and for SOM Orders. 
                        <E T="03">See</E>
                         proposed note 16 of Options 7, Section 3 and proposed note 14 of Options 7, Section 4.
                    </P>
                </FTNT>
                <P>The Exchange also proposes to amend QCC Rebate 1 and QCC Rebate 2 to similarly exclude Professional Customers and to increase the rebate amounts. Specifically, QCC Rebate 1 will be amended to provide that when only one side of the QCC transaction is neither a Priority Customer nor Professional Customer, the Member will receive a $0.15 per contract rebate for each QCC Agency Side. QCC Rebate 2 will be amended to provide that when both sides of the QCC transaction are not any combination of Priority Customers and/or Professional Customers, the Member will receive a $0.23 per contract rebate for each QCC Agency Side. The Exchange also proposes to specifically delineate the QCC Rebates into two separate sections titled “QCC Rebate 1” and “QCC Rebate 2.”</P>
                <P>Further, the Exchange proposes to amend the additional QCC incentive by decreasing the amount from $0.03 to $0.01 per contract as applied to QCC Rebate 1. The qualifications for this incentive will remain unchanged. Accordingly, the Exchange will add the following language in the QCC Rebate 1 section: “Members will receive an additional rebate of $0.01 per contract for each QCC Agency Side that qualifies for QCC Rebate 1 if they achieve Priority Customer Complex Tier 2 or higher in a given month.”</P>
                <P>The Exchange also proposes to amend additional incentive as applied to QCC Rebate 2 by increasing the amount from $0.03 to $0.04 per contract. As noted above, the incentive qualifications will remain unchanged. Accordingly, the Exchange will add the following language in the QCC Rebate 2 section: “Members will receive an additional rebate of $0.03 per contract for each QCC Agency Side that qualifies for QCC Rebate 2 if they achieve Priority Customer Complex Tier 2 or higher in a given month.”</P>
                <P>The additional incentives will continue to be cumulative of the QCC Rebates so that qualifying Members could receive up to $0.16 per contract for each QCC Agency Side when only one side of the QCC transaction is neither a Priority Customer nor Professional Customer, and up to $0.27 per contract for each QCC Agency Side when both sides of the QCC transaction are not any combination of Priority Customers and/or Professional Customers.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with section 6(b) of the Act,
                    <SU>38</SU>
                    <FTREF/>
                     in general, and furthers the objectives of sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>39</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The Exchange's proposed changes to its Pricing Schedule are reasonable in several respects. As a threshold matter, the Exchange is subject to significant competitive forces in the market for options securities transaction services that constrain its pricing determinations in that market. The fact that this market is competitive has long been recognized by the courts. In 
                    <E T="03">NetCoalition</E>
                     v. 
                    <E T="03">Securities and Exchange Commission,</E>
                     the D.C. Circuit stated as follows: “[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .” 
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">NetCoalition</E>
                         v. 
                        <E T="03">SEC,</E>
                         615 F.3d 525, 539 (D.C. Cir. 2010) (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)).
                    </P>
                </FTNT>
                <P>
                    The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system “has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.” 
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (“Regulation NMS Adopting Release”).
                    </P>
                </FTNT>
                <P>Numerous indicia demonstrate the competitive nature of this market. For example, clear substitutes to the Exchange exist in the market for options security transaction services. The Exchange is only one of seventeen options exchanges to which market participants may direct their order flow. Within this environment, market participants can freely and often do shift their order flow among the Exchange and competing venues in response to changes in their respective pricing schedules. As such, the proposal represents a reasonable attempt by the Exchange to increase its liquidity and market share relative to its competitors.</P>
                <HD SOURCE="HD3">Fees for Crossing Orders Except PIM Orders and Crossing Fee Cap</HD>
                <P>The Exchange's proposal to decrease the Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders, except for PIM Orders, from $0.20 to $0.17 per contract, in Select and Non-Select Symbols, is reasonable because the reduction in these fees should attract additional Crossing Orders to the Exchange. Priority Customers will continue to not be assessed a Regular Order or Complex Order Fee for Crossing Orders in Select and Non-Select Symbols.</P>
                <P>The Exchange's proposal to decrease the Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders, except for PIM Orders, from $0.20 to $0.17 per contract, in Select and Non-Select Symbols, is equitable and not unfairly discriminatory as all Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders will be reduced in Select and Non-Select Symbols. The Exchange believes that it is equitable and not unfairly discriminatory to not assess Priority Customers a Regular Order or Complex Order Fee for Crossing Orders in Select and Non-Select Symbols. Priority Customer liquidity benefits all market participants by providing more trading opportunities, which attracts Market Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants.</P>
                <P>The Exchange's proposal to no longer offer the Crossing Fee Cap for Firm Proprietary contracts is reasonable because the Exchange is lowering Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders, except for PIM Orders, from $0.20 to $0.17 per contract, in Select and Non-Select Symbols. Despite the elimination of the Crossing Fee Cap, the Exchange believes that the decreased Regular Order and Complex Order Fees for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols will continue to attract Crossing Orders to the Exchange.</P>
                <P>
                    The Exchange's proposal to no longer offer the Crossing Fee Cap for Firm 
                    <PRTPAGE P="87473"/>
                    Proprietary contracts is equitable and not unfairly discriminatory because no Member would be offered an opportunity to cap their Firm Proprietary transactions.
                </P>
                <HD SOURCE="HD3">Facilitation and Solicitation Break-Up Rebates</HD>
                <P>The Exchange's proposal to increase the Regular Order and Complex Order Facilitation and Solicitation Break-up Rebates from $0.15 to $0.20 per contract, in Select and Non-Select Symbols, for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers is reasonable because the increase will attract ISE Members to utilize the Facilitation and Solicitation Mechanisms. Specifically, the Exchange believes that the increased Facilitation and Solicitation Break-up Rebates will encourage increased originating Regular Order and Complex Order Non-Nasdaq ISE Market Maker, Firm Proprietary/Broker-Dealer, Professional Customer, and Priority Customer order flow to the Facilitation and Solicited Order Mechanisms, thereby potentially increasing the initiation of and volume executed through such auctions. Additional auction order flow provides market participants with additional trading opportunities at potentially improved prices. Market Makers would continue to not be paid a Regular Order Facilitation and Solicitation Break-up Rebate in Select and Non-Select Symbols.</P>
                <P>The Exchange's proposal to increase the Regular Order and Complex Order Facilitation and Solicitation Break-up Rebates from $0.15 to $0.20 per contract, in Select and Non-Select Symbols, for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers is equitable and not unfairly discriminatory because the increased Facilitation and Solicitation Break-up Rebates will apply equally to all non-Market Maker originating orders submitted to the Facilitation and Solicited Order Mechanisms that do not trade with their contra orders (except when those originating contracts trade against pre-existing orders and quotes on the Exchange's order books). While Market Makers will continue to not receive Regular Order and Complex Order Facilitation and Solicitation Break-up Rebates for Select and Non-Select Symbols, the Exchange believes that the application of the rebate is equitable and not unfairly discriminatory because Market Makers are not eligible for Facilitation and Solicitation Break-up Rebates today. In addition, the Exchange currently offers Market Makers other rebate programs that do not apply to non-Market Makers, such as the Market Maker Plus Program.</P>
                <P>The Exchange's proposal to amend note 4 of Options 7, Section 3 and note 2 of Options 7, Section 4 to more specifically provide, “The applicable Fee for Responses to Crossing Orders is applied to any contracts for which a rebate is provided” is reasonable, equitable and not unfairly discriminatory because the amendment conforms the reference to the Fees for Crossing Orders for Regular Orders and Complex Orders to the title of the fee in the tables of Options 7, Sections 3 and 4, which is the Fee for Responses to Crossing Orders. This amendment adds clarity to the fee being referenced.</P>
                <HD SOURCE="HD3">Professional Customer QCC and SOM Fees for Crossing Orders</HD>
                <P>The Exchange's proposal to amend note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to provide, “Fees for Crossing Orders applicable to Professional Customers for an order submitted as a Qualified Contingent Cross order and orders executed in the Exchange's Solicited Order Mechanism will be $0.00 per contract” is reasonable because reducing the Professional Customer Regular Order and Complex Order Fees for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols, when the order is submitted as a QCC Order or a SOM Order from $0.10 to $0.00 per contract will attract additional Professional Customer QCC and SOM Orders to the Exchange. The proposed fee is designed to be attractive to Professional Customers that trade on ISE, and the fee is lower than the Regular Order and Complex Order Fees for Crossing Orders, except PIM Orders, in Select and Non-Select Symbols, except for Priority Customers. Additional auction order flow provides market participants with additional trading opportunities at potentially improved prices.</P>
                <P>
                    The Exchange's proposal to amend note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to provide, “Fees for Crossing Orders applicable to Professional Customers for an order submitted as a Qualified Contingent Cross order and orders executed in the Exchange's Solicited Order Mechanism will be $0.00 per contract” is equitable and not unfairly discriminatory because providing Professional Customers a lower Fee for Crossing Orders in Regular Orders and Complex Orders in Select and Non-Select Symbols submitted as a QCC or SOM Order will allow other market participants the opportunity to interact with those orders in the applicable auctions. The Exchange does not believe that it is unfairly discriminatory to offer Professional Customers lower Fees for Crossing Orders for QCC and SOM Orders because differentiated pricing encourages different segments of order flow. For instance, the Exchange generally provides Priority Customer orders more favorable pricing through lower or no transaction fees, including Priority Customer Crossing Orders that are presently assessed no fees. Professional Customer orders are presently charged a lower transaction fee for QCC and SOM Orders ($0.10 for Professional Customers versus $0.20 for all other non-Priority Customers). Additionally, Broker-Dealer and Firm Proprietary orders are incentivized in the Exchange's PIM and Facilitation Rebate program.
                    <SU>42</SU>
                    <FTREF/>
                     Market Makers are offered rebates through the Exchange's Market Maker Plus program.
                    <SU>43</SU>
                    <FTREF/>
                     The Exchange further believes there is nothing impermissible about offering Professional Customers lower transaction fee for QCC and SOM Orders given that this practice is consistent with lower Professional Fees for QCC on other options exchanges.
                    <SU>44</SU>
                    <FTREF/>
                     To the extent the amended lower transaction fee for QCC and SOM Orders offered to Professional Customers continues to encourage market participants to send additional QCC and SOM Orders to ISE, such increased order flow brings increased liquidity and additional opportunities for interaction with this order flow, which ultimately benefits all market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Options 7, Sections 6.C.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         note 5 at Options 7, Sections 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Nasdaq Phlx LLC (“Phlx”) Options 7, Section 4. Phlx does not assess a QCC Transaction Fee to Customers and Professionals. 
                        <E T="03">See also</E>
                         BOX Exchange LLC's (“BOX”) Fee Schedule at Section IV, D. BOX does not assess a QCC Transaction Fee to Customers and Professionals.
                    </P>
                </FTNT>
                <P>Amending note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to specifically refer to “Fees for Crossing Orders” is reasonable, equitable and not unfairly discriminatory because it will conform the wording to the title of the fees in the tables in Options 7, Sections 3 and 4 for Regular Orders and Complex Orders, thereby adding clarity.</P>
                <HD SOURCE="HD3">Solicitation Rebate</HD>
                <P>
                    The Exchange believes that the proposed changes to the Solicitation Rebate program are reasonable for the reasons that follow. The Exchange believes it is reasonable to exclude Professional Customers from the Solicitation Rebate program in the manner described above because it is 
                    <PRTPAGE P="87474"/>
                    simultaneously proposing to eliminate the fees applicable to Professional Customers for SOM Orders (which are included as Solicited Orders for purposes of qualifying for and receiving the Solicitation Rebate). As such, the Exchange believes that Members will continue to be incentivized to send more Professional Customer Solicited Orders to the Exchange without the added incentive of the Solicitation Rebate.
                </P>
                <P>
                    The Exchange also believes that the proposed volume thresholds and rebate amounts for the Solicitation Rebate program are set at reasonable levels that would encourage additional Solicited Order flow to ISE. As described above, Members would generally receive higher rebates under this proposal for achieving the same amount of volume as they do today.
                    <SU>45</SU>
                    <FTREF/>
                     As such, more Members may seek to qualify for the proposed Solicitation Rebates by sending additional Solicited Order flow to ISE, which benefits all market participants through quality of order interaction and increased trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         As noted above, if a Member reaches a volume threshold between 1,000,000 to 1,499,999 originating contract sides in a given month, they would continue to receive the same rebate amount (
                        <E T="03">i.e.,</E>
                         $0.11 per contract) under this proposal as they do currently.
                    </P>
                </FTNT>
                <P>The Exchange further believes that its proposal to apply the note &amp; incentive to the new base volume tier is reasonable as it is intended to encourage Members to send more Solicited Order and complex order flow to the Exchange. Today, Members in the current base volume tier are not eligible for the note &amp; incentive. Under this proposal, Members may now be eligible to receive an additional rebate of $0.01 per originating contract side in addition to the $0.10 base rebate on their Solicited Orders that qualify for the Solicitation Rebate program if the Member also achieves Priority Customer Complex Tier 2 or higher in a given month. To the extent the proposal incentivizes Members to send more order flow (particularly Solicited Order and complex order flow) to ISE, all market participants will benefit from increased order interaction when more order flow is available on the Exchange.</P>
                <P>The Exchange believes that the proposed changes to the Solicitation Rebate program in Options 7, Section 6.A are equitable and not unfairly discriminatory because all Members will be eligible for the proposed rebates by sending Solicited Order and complex order flow to the Exchange. Further, the Exchange believes that excluding Professional Customers from the Solicitation Rebate program in the manner described above and applying the proposed rebates only where at least one party to the Solicited Order is neither a Priority Customer nor Professional Customer is equitable and not unfairly discriminatory because the Exchange is simultaneously eliminating the transaction fees for Professional Customer SAM Orders (which are included as Solicited Orders for purposes of qualifying for and receiving the Solicitation Rebate) under this proposal. As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer Solicited Orders to the Exchange without the added incentive of the proposed rebates. In addition, to the extent the proposed Solicitation Rebate program encourages Members to send more Solicited Order and complex order flow to ISE, all market participants will benefit from the resulting additional liquidity and trading opportunities on ISE.</P>
                <HD SOURCE="HD3">QCC Rebate</HD>
                <P>The Exchange believes that the proposed changes to the QCC Rebate program are reasonable for the reasons that follow. The Exchange believes it is reasonable to exclude Professional Customers from the QCC Rebate program in the manner described above because it is simultaneously proposing to eliminate the fees applicable to Professional Customers for their QCC Orders. As such, the Exchange believes that Members will continue to be incentivized to send more Professional Customer QCC Orders to the Exchange without the added incentive of the QCC Rebates.</P>
                <P>The Exchange also believes that the proposed changes to QCC Rebate 1 and QCC Rebate 2 are reasonable because the rebate amounts are increasing. As discussed above, QCC Rebate 1 will be amended to provide that when only one side of the QCC transaction is neither a Priority Customer nor Professional Customer, the Member will receive a $0.15 per contract rebate for each QCC Agency Side (increased from $0.14 per contract). QCC Rebate 2 will be amended to provide that when both sides of the QCC transaction are not any combination of Priority Customers and/or Professional Customers, the Member will receive a $0.23 per contract rebate for each QCC Agency Side (increased from $0.22 per contract). With the proposed changes, more Members may seek to qualify for proposed QCC Rebate 1 and proposed QCC Rebate 2 by sending additional QCC Order flow to ISE, which benefits all market participants through quality of order interaction and increased trading opportunities.</P>
                <P>
                    The Exchange further believes that the proposed changes to the additional QCC incentives are reasonable. As applied to QCC Rebate 1, the Exchange is proposing to lower the additional incentive amount from $0.03 to $0.01 per contract. As applied to QCC Rebate 2, the Exchange is proposing to increase the additional incentive amount from $0.03 to $0.04 per contract.
                    <SU>46</SU>
                    <FTREF/>
                     With the additional incentives, Members will be eligible to receive up to $0.16 per contract if they also qualify for QCC Rebate 1, and up to $0.27 per contract if they also qualify for QCC Rebate 2. The Exchange believes that the proposed additional incentives are structured at appropriate levels that would continue to encourage additional QCC and complex order flow to ISE, which benefits all market participants in the quality of order interaction and through increased trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         As described above, Members are eligible to receive the additional incentives for each QCC Agency Side that qualifies for the QCC Rebate program if they achieve Priority Customer Complex Tier 2 or higher in a given month. These qualifications are not changing under this proposal.
                    </P>
                </FTNT>
                <P>The Exchange believes that the proposed changes to the QCC Rebate program in Options 7, Section 6.B are equitable and not unfairly discriminatory because all Members will be eligible for the proposed rebates by sending more QCC and complex order flow to the Exchange. The Exchange further believes that excluding Professional Customers from the QCC Rebate program in the manner described above and applying the proposed rebates only where at least one party to the QCC transaction is neither a Priority Customer nor Professional Customer is equitable and not unfairly discriminatory because the Exchange is simultaneously eliminating transaction fees for Professional Customer QCC Orders under this proposal. As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer QCC Orders to the Exchange without the added incentive of the proposed rebates. In addition, to the extent the proposed QCC Rebate program encourages Members to send more QCC Order and complex order flow to ISE, all market participants will benefit from the resulting additional liquidity and trading opportunities.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    The Exchange does not believe that the proposed rule change will impose any burden on competition not 
                    <PRTPAGE P="87475"/>
                    necessary or appropriate in furtherance of the purposes of the Act.
                </P>
                <P>In terms of intra-market competition, the Exchange does not believe that this proposal will place any category of market participant at a competitive disadvantage.</P>
                <HD SOURCE="HD3">Fees for Crossing Orders Except PIM Orders and Crossing Fee Cap</HD>
                <P>The Exchange's proposal to decrease the Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders, except for PIM Orders, from $0.20 to $0.17 per contract, in Select and Non-Select Symbols, does not impose an undue burden on competition because all Non-Priority Customer Regular Order and Complex Order Fees for Crossing Orders will be reduced in Select and Non-Select Symbols. Priority Customer liquidity benefits all market participants by providing more trading opportunities, which attracts Market Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants.</P>
                <P>The Exchange's proposal to no longer offer the Crossing Fee Cap for Firm Proprietary contracts does not impose an undue burden on competition because no Member would be offered an opportunity to cap their Firm Proprietary transactions.</P>
                <HD SOURCE="HD3">Facilitation and Solicitation Break-Up Rebates</HD>
                <P>The Exchange's proposal to increase the Regular Order and Complex Order Facilitation and Solicitation Break-up Rebates from $0.15 to $0.20 per contract, in Select and Non-Select Symbols, for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker Dealers, Professionals and Priority Customers does not impose an undue burden on competition because the increased Facilitation and Solicitation Break-up Rebates will apply equally to all non-Market Maker originating orders submitted to the Facilitation and Solicited Order Mechanisms that do not trade with their contra orders (except when those originating contracts trade against pre-existing orders and quotes on the Exchange's order books). Today, Market Makers are not eligible for Facilitation and Solicitation Break-up Rebates. Conversely, the Exchange currently offers Market Makers other rebate programs that do not apply to non-Market Makers, such as the Market Maker Plus Program.</P>
                <P>The Exchange's proposal to amend note 4 of Options 7, Section 3 and note 2 of Options 7, Section 4 to more specifically provide, “The applicable Fee for Responses to Crossing Orders is applied to any contracts for which a rebate is provided” does not impose an undue burden on competition because the amendment conforms the reference to the Fees for Crossing Orders for Regular Orders and Complex Orders to the title of the fee in the tables of Options 7, Sections 3 and 4, which is the Fee for Responses to Crossing Orders. This amendment adds clarity to the fee being referenced.</P>
                <HD SOURCE="HD3">Professional Customer QCC and SOM Fees for Crossing Orders</HD>
                <P>
                    The Exchange's proposal to amend note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to provide, “Fees for Crossing Orders applicable to Professional Customers for an order submitted as a Qualified Contingent Cross order and orders executed in the Exchange's Solicited Order Mechanism will be $0.00 per contract” does not impose an undue burden on competition because providing Professional Customers a lower Fee for Crossing Orders in Regular Orders and Complex Orders in Select and Non-Select Symbols submitted as a QCC or SOM Order will allow other market participants the opportunity to interact with those orders in the applicable auctions. The Exchange believes that offering Professional Customers lower Fees for Crossing Orders for QCC and SOM Orders does not impose an undue burden on competition because differentiated pricing encourages different segments of order flow. For instance, the Exchange generally provides Priority Customer orders more favorable pricing through lower or no transaction fees, including Priority Customer Crossing Orders that are presently assessed no fees. Professional Customer orders are presently charged a lower transaction fee for QCC and SOM Orders ($0.10 for Professional Customers versus $0.20 for all other non-Priority Customers). Additionally, Broker-Dealer and Firm Proprietary orders are incentivized in the Exchange's PIM and Facilitation Rebate program.
                    <SU>47</SU>
                    <FTREF/>
                     Market Makers are offered rebates through the Exchange's Market Maker Plus program.
                    <SU>48</SU>
                    <FTREF/>
                     The Exchange further believes there is nothing impermissible about offering Professional Customers lower transaction fee for QCC and SOM Orders given that this practice is consistent with lower Professional Fees for QCC on other options exchanges.
                    <SU>49</SU>
                    <FTREF/>
                     To the extent the amended lower transaction fee for QCC and SOM Orders offered to Professional Customers continues to encourage market participants to send additional QCC and SOM Orders to ISE, such increased order flow brings increased liquidity and additional opportunities for interaction with this order flow, which ultimately benefits all market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Options 7, Sections 6.C.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         note 5 at Options 7, Sections 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See</E>
                         Nasdaq Phlx LLC (“Phlx”) Options 7, Section 4. Phlx does not assess a QCC Transaction Fee to Customers and Professionals. 
                        <E T="03">See also</E>
                         BOX Exchange LLC's (“BOX”) Fee Schedule at Section IV, D. BOX does not assess a QCC Transaction Fee to Customers and Professionals.
                    </P>
                </FTNT>
                <P>Amending note 16 of Options 7, Section 3 and note 14 of Options 7, Section 4 to specifically refer to “Fees for Crossing Orders” does not impose an undue burden on competition because it will conform the wording to the title of the fees in the tables in Options 7, Sections 3 and 4 for Regular Orders and Complex Orders, thereby adding clarity.</P>
                <HD SOURCE="HD3">Solicitation Rebate</HD>
                <P>The Exchange believes that the proposed changes to the Solicitation Rebate program in Options 7, Section 6.A do not impose an undue burden on intra-market competition because all Members will be eligible for the proposed rebates by sending Solicited Order and complex order flow to the Exchange. As discussed above, the Exchange is proposing to exclude Professional Customers from the Solicitation Rebate program in the manner described above and to apply the proposed rebates only where at least one party to the Solicited Order is neither a Priority Customer nor Professional Customer because the Exchange is simultaneously eliminating the transaction fees for Professional Customer SAM Orders (which are included as Solicited Orders for purposes of qualifying for and receiving the Solicitation Rebate) under this proposal. As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer Solicited Orders to the Exchange without the added incentive of the proposed rebates. In addition, to the extent the proposed Solicitation Rebate program encourages Members to send more Solicited Order and complex order flow to ISE, all market participants will benefit from the resulting additional liquidity and trading opportunities on ISE.</P>
                <HD SOURCE="HD3">QCC Rebate</HD>
                <P>
                    The Exchange believes that the proposed changes to the QCC Rebate program in Options 7, Section 6.B do 
                    <PRTPAGE P="87476"/>
                    not impose an undue burden on competition because all Members will be eligible for the proposed rebates by sending more QCC and complex order flow to the Exchange. The Exchange is proposing to exclude Professional Customers from the QCC Rebate program in the manner described above and to apply the proposed rebates only where at least one party to the QCC transaction is neither a Priority Customer nor Professional Customer because the Exchange is simultaneously eliminating transaction fees for Professional Customer QCC Orders under this proposal. As such, the Exchange believes that Members will continue to be incentivized to send Professional Customer QCC Orders to the Exchange without the added incentive of the proposed rebates. In addition, to the extent the proposed QCC Rebate program encourages Members to send more QCC Order and complex order flow to ISE, all market participants will benefit from the resulting additional liquidity and trading opportunities.
                </P>
                <P>In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act 
                    <SU>50</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(2) 
                    <SU>51</SU>
                    <FTREF/>
                     thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         17 CFR 240.19b-4(f)(2).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-ISE-2023-35 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-ISE-2023-35. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-ISE-2023-35 and should be submitted on or before January 8, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27674 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99147; File No. SR-CboeBZX-2023-099]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule Applicable to Members and Non-Members of the Exchange Pursuant to BZX Rules 15.1(a) and (c) in Order To Adopt a New Tier Under Footnote 13 (Tape B Volume and Quoting) Specific to Single-Stock Exchange Traded Funds (“Single-Stock ETFs”)</SUBJECT>
                <DATE>December 12, 2023.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on December 1, 2023, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to 
                    <PRTPAGE P="87477"/>
                    solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX Exchange, Inc. (“BZX” or the “Exchange”) is filing with the Securities and Exchange Commission (“Commission” or “SEC”) a proposed rule change to amend the Fee Schedule applicable to Members and non-members of the Exchange pursuant to BZX Rules 15.1(a) and (c) in order to adopt a new Tier under footnote 13 (Tape B Volume and Quoting) specific to Single-Stock Exchange Traded Funds (“Single-Stock ETFs”). The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend its Fee Schedule applicable to its equities trading platform (“BZX Equities”) to adopt a new Tier under footnote 13 (Tape B Volume and Quoting) specific to Single-Stock ETFs.
                    <SU>5</SU>
                    <FTREF/>
                     The Exchange proposes to implement these amendments to its fee schedule December 1, 2023.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Single-Stock ETFs are investment products that pay positive or negative multiples of the market performance of the single underlying security.
                    </P>
                </FTNT>
                <P>
                    The Exchange first notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange is only one of 16 registered equities exchanges, as well as a number of alternative trading systems and other off-exchange venues that do not have similar self-regulatory responsibilities under the Exchange Act, to which market participants may direct their order flow. Based on publicly available information,
                    <SU>6</SU>
                    <FTREF/>
                     no single registered equities exchange has more than 17% of the market share. Thus, in such a low-concentrated and highly competitive market, no single equities exchange possesses significant pricing power in the execution of order flow. The Exchange in particular operates a “Maker-Taker” model whereby it pays credits to Members that add liquidity and assesses fees to those that remove liquidity. The Exchange's fee schedule sets forth the standard rebates and rates applied per share for orders that provide and remove liquidity, respectively. Currently, for orders in securities priced at or above $1.00, the Exchange provides a standard rebate of $0.00160 per share for orders that add liquidity and assesses a fee of $0.0030 per share for orders that remove liquidity.
                    <SU>7</SU>
                    <FTREF/>
                     For orders in securities priced below $1.00, the Exchange does not provide a rebate or assess a fee for orders that add liquidity and assesses a fee of 0.30% of total dollar value for orders that remove liquidity.
                    <SU>8</SU>
                    <FTREF/>
                     Additionally, in response to the competitive environment, the Exchange also offers Tiered pricing which provides Members opportunities to qualify for higher rebates or reduced fees where certain volume criteria and thresholds are met. Tiered pricing provides an incremental incentive for Members to strive for higher Tier levels, which provides increasingly higher benefits or discounts for satisfying increasingly more stringent criteria.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Cboe Global Markets, U.S. Equities Market Volume Summary, Month-to-Date (July 31, 2023), available at 
                        <E T="03">https://www.cboe.com/us/equities/market_statistics/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         BZX Equities Fee Schedule, Standard Rates.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Now, the Exchange proposes to adopt a new pricing Tier under footnote 13 of the Fee Schedule. Specifically, for orders yielding fee code B,
                    <SU>9</SU>
                    <FTREF/>
                     the Exchange proposes to adopt LEP Tier 1 under footnote 13 of the Fee Schedule.
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange is proposing that a Member 
                    <SU>11</SU>
                    <FTREF/>
                     will qualify for the LEP Tier 1 where the Member is enrolled in a minimum of five LEP Securities 
                    <SU>12</SU>
                    <FTREF/>
                     for which it meets certain required criteria (the “Required Criteria”). A Member must be enrolled in at least the minimum number of LEP Securities for which it meets the Required Criteria every day in a trading month in order to be eligible for the proposed rebate. As proposed, the Exchange would count an LEP Security toward the minimum number of LEP Securities requirement where the Member meets the Required Criteria for at least 75% of the trading days in a particular month. As noted above, these proposed requirements are very similar to the existing LMP Tiers under footnote 13.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Fee code B is appended to displayed orders that add liquidity to BZX in Tape B securities.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The existing tiers under footnote 13 were added in a fee filing adopting a similar structure related to LMP securities on the Exchange. 
                        <E T="03">See</E>
                         Securities Exchange Act No. 78338 (July 15, 2016) 81 FR 47458 (July 21, 2016) (SR-BatsBZX-2016-041) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of Bats BZX Exchange, Inc.).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(n).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         As discussed further below, the Exchange proposes to adopt the term “LEP Securities”, which means a list of Single-Stock ETFs, including options-based ETFs in a single underlying equity security, for which the Exchange wants to incentivize Members to provide enhanced market quality. The Exchange will not remove a security from the list of LEP Securities without 30 days prior notice.
                    </P>
                </FTNT>
                <P>To qualify for proposed LEP Tier 1 a Member must be enrolled in at least five BZX-listed LEP Securities and meet the following Required Criteria,:</P>
                <P>
                    (1) The Member has an NBBO Time 
                    <SU>13</SU>
                    <FTREF/>
                     of equal or greater than 20%;
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         “NBBO Time” means the average of the percentage of time during regular trading hours during which the Member maintains at least 100 shares at each of the NBB and NBO.
                    </P>
                </FTNT>
                <P>
                    (2) Member has bids and offers with a “Notional Depth” 
                    <SU>14</SU>
                    <FTREF/>
                     of $75,000 on each side for at least 90% of the trading day; and
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         As discussed further below, the Exchange proposes to adopt a new definition for “Notional Depth” which means the notional value of bids of at least 100 shares that are within $0.05 of the BZX NBB and offers of at least 100 shares that are within $0.05 of the BZX NBO.
                    </P>
                </FTNT>
                <P>(3) The difference in the NBBO spread of each LEP Security is less than 0.50% for at least 95% of the trading day.</P>
                <P>The Required Criteria for each LEP Security will each be evaluated separately, and the Member does not need to meet the Required Criteria for all applicable LEP Securities on the same 75% of trading days. For example, in a month with 22 trading days, a Member would be eligible for Tier 1 where the Member met the Required Criteria in five LEP Securities in the first 11 trading days of the month and met the Required Criteria for a different set of five LEP Securities in the second 11 trading days of the month.</P>
                <P>
                    Members that meet proposed LEP Tier 1 would receive a rebate of $0.0025 per share. In the event that a Member would receive a higher rebate under a different Tier set forth in the Fee Schedule, the 
                    <PRTPAGE P="87478"/>
                    Member would be entitled to the higher of the two rebates. As noted above, the Exchange also proposes to adopt two new definitions to the Fee Schedule. First, the Exchange proposes to adopt the term Notional Depth which will mean the notional value of bids of at least 100 shares that are within $0.05 of the NBB or offers of at least 100 shares that are within $0.05 of the NBO. Second, the Exchange proposes to adopt the term “LEP Securities” which will a list of Single-Stock ETFs, including options-based ETFs in a single underlying equity security, for which the Exchange wants to incentivize Members to provide enhanced market quality.
                </P>
                <P>
                    All Members will be eligible to enroll in LEP Securities, there will be no limit to the number of LEP Securities in which a Member may enroll, and there will be no limit to the number of Members that can enroll in each LEP Security.
                    <SU>15</SU>
                    <FTREF/>
                     All Members enrolled in LMP Securities will be eligible for the rebate where the Member meets the Tape B Quoting LMP Tier 1 requirements. Such LEP Securities will include all Cboe-listed Single-Stock ETFs for which the Exchange wants to incentivize Members to provide enhanced market quality. The Exchange will not remove a security from the list of LEP Securities without 30 days prior notice.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange anticipates that the initial list of LMP Securities will include at least nine ETPs. A current list of LEP Securities will be available on 
                        <E T="03">www.cboe.com,</E>
                         which will be updated as new securities are added to the list of LEP Securities. All Cboe-listed LEP Securities will be enrolled in the program immediately upon listing on the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange also proposes to make a conforming change to the existing Tiers under footnote 13 of the Fee Schedule. Specifically, the Exchange proposes to rename existing Tiers 1 and 2 under footnote 13 “LMP Tier 1” and “LMP Tier 2”, respectively.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>16</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>18</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers as well as Section 6(b)(4) 
                    <SU>19</SU>
                    <FTREF/>
                     as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         15 U.S.C. 78f(b)(4).
                    </P>
                </FTNT>
                <P>The proposed rule reflects a competitive pricing structure designed to incent market participants to direct their order flow to the Exchange and enhance market quality in LEP Securities and Tape B securities. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. The Exchange believes that the proposed LEP Tier represents an equitable allocation of rebates and are not unfairly discriminatory because all Members are eligible for such LEP Tier and would have the opportunity to meet the LEP Tier's criteria and would receive the proposed rebate if such criteria is met. Further, the proposed rebates are commensurate with the proposed criteria. That is, the rebates reasonably reflect the difficulty in achieving the applicable criteria as proposed. Without having a view of activity on other markets and off-exchange venues, the Exchange has no way of knowing whether this proposed rule change would definitely result in any Members qualifying for the proposed LEP Tier. While the Exchange has no way of predicting with certainty how the proposed LEP Tier will impact Member activity, the Exchange reasonably expects four Members to compete for and reach the proposed LEP Tier. The Exchange also notes that proposed Tier/rebate will not adversely impact any Member's ability to qualify for other reduced fee or enhanced rebate Tiers. Should a Member not meet the proposed criteria under the proposed LEP Tier, the Member will merely not receive that corresponding rebate.</P>
                <P>The Exchange believes that the proposed new LEP Tier is reasonable in that they will enhance market quality on the Exchange in two ways: (i) by incentivizing Members to meet certain quoting standards in LEP Securities designed to narrow spreads, increase size at the inside, and increase liquidity depth; and (ii) providing a rebate for all of a qualifying Member's orders that add liquidity in LEP Securities will incentivize Members to increase their participation on the Exchange in LEP Securities. Furthermore, the Exchange believes it is appropriate to incentivize Members to meet the Required Criteria in LEP Securities as such securities poses an enhanced risk to Members providing liquidity in those securities. Therefore, the proposal offers an incentive to Members providing liquidity in LEP Securities.</P>
                <P>The Exchange believes that such incentives will promote price discovery and market quality in such securities and, further, that the tightened spreads and increased liquidity from the proposal will benefit all investors by deepening the Exchange's liquidity pool, offering additional flexibility for all investors to enjoy cost savings, supporting the quality of price discovery, enhancing quoting competition across exchanges, promoting market transparency, and improving investor protection. Accordingly, the Exchange believes that the proposal is reasonable, equitably allocated, and non-discriminatory because it would apply uniformly to all Members and is consistent with the overall goals of enhancing market quality.</P>
                <P>
                    The Exchange notes that the proposed pricing structure is not dissimilar from volume-based rebates and fees (“Volume Tiers”) that have been widely adopted by exchanges, including the Exchange, and are equitable and not unfairly discriminatory because they are open to all Members on an equal basis and provide higher rebates and lower fees that are reasonably related to the value to an exchange's market quality. Much like Volume Tiers are generally designed to incentivize higher levels of liquidity provision and/or growth patterns on the Exchange, the proposal is designed to incentivize enhanced market quality on the Exchange through tighter spreads, greater size at the inside, and greater quoting depth in LEP Securities by offering a rebate in LEP Securities. Such rebates will simultaneously incentivize higher levels of liquidity provision in all LEP Securities. Accordingly, the Exchange believes that the proposal will act to enhance liquidity and competition across exchanges in LEP Securities on the Exchange by providing a rebate reasonably related to such enhanced 
                    <PRTPAGE P="87479"/>
                    market quality to the benefit of all investors, thereby promoting the principles discussed in Section 6(b)(5) of the Act.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>The Exchange also believes that the proposed definitions and name changes to existing Tiers under footnote 13 are reasonable, fair and equitable and non-discriminatory because it is designed to make sure that the fee schedule is as clear and easily understandable as possible.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Particularly, the proposed LEP Tier is available to all Members equally in that all Members are eligible for the proposed LEP Tier, have a reasonable opportunity to meet the LEP Tier's criteria and will receive the corresponding rebate if such criteria is met. Additionally, the proposed LEP Tier is designed to attract additional order flow to the Exchange. The Exchange believes that the proposed LEP Tier criteria would incentivize market participants to direct liquidity adding displayed order flow to the Exchange, bringing with it additional execution opportunities for market participants and improved price transparency. Greater overall order flow, trading opportunities, and pricing transparency benefits all market participants on the Exchange by enhancing market quality and continuing to encourage Members to send orders, thereby contributing towards a robust and well-balanced market ecosystem.</P>
                <P>
                    Next, the Exchange believes the proposed rule change does not impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. As previously discussed, the Exchange operates in a highly competitive market. Members have numerous alternative venues that they may participate on and direct their order flow, including 15 other equities exchanges and off exchange venues and alternative trading systems. Additionally, the Exchange represents a small percentage of the overall market. Based on publicly available information, no single equities exchange has more than 17% 
                    <SU>21</SU>
                    <FTREF/>
                     of the market share. Therefore, no exchange possesses significant pricing power in the execution of order flow. Indeed, participants can readily choose to send their orders to other exchange and off-exchange venues if they deem fee levels at those other venues to be more favorable. Moreover, the Commission has repeatedly expressed its preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. Specifically, in Regulation NMS, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system “has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.” 
                    <SU>22</SU>
                    <FTREF/>
                     The fact that this market is competitive has also long been recognized by the courts. In 
                    <E T="03">NetCoalition</E>
                     v. 
                    <E T="03">Securities and Exchange Commission,</E>
                     the D.C. Circuit stated as follows: “[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .”.
                    <SU>23</SU>
                    <FTREF/>
                     Accordingly, the Exchange does not believe its proposed fee change imposes any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">Supra</E>
                         note 6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">NetCoalition</E>
                         v. 
                        <E T="03">SEC,</E>
                         615 F.3d 525, 539 (D.C. Cir. 2010) (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Because the foregoing proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>24</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>25</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>26</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>27</SU>
                    <FTREF/>
                     the Commission may designate a shorter time of such action is consistent with the protection of investor and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange states that waiving the operative delay would allow market participants to realize the benefits of the proposal immediately and that such waiver is consistent with the protection of investors and the public interest because it would promote enhanced market quality and serve as an additional safeguard against extreme price dislocation. Based on the foregoing, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                    <PRTPAGE P="87480"/>
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2023-099 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2023-099. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeBZX-2023-099 and should be submitted on or before January 8, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Christina Z. Milnor,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2023-27675 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <SUBJECT>Data Collection Available for Public Comments</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Small Business Administration (SBA) intends to request approval, from the Office of Management and Budget (OMB) for the collection of information described below. The Paperwork Reduction Act (PRA) of 1995 requires federal agencies to publish a notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information before submission to OMB, and to allow 60 days for public comment in response to the notice. This notice complies with that requirement.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on or before February 13, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send all comments to Pamela Beavers, Area Director, Government Contracting Area IV, Office of Government Contracting, Small Business Administration, Washington, DC 20416.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Pamela Beavers, Area Director, Government Contracting IV, Office of Government Contracting 312-353-7381, 
                        <E T="03">pamela.beavers@sba.gov,</E>
                         or Curtis B. Rich, A, 202-205-7030, Agency Clearance Officer 
                        <E T="03">curtis.rich@sba.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>A small business determined to be non-responsible for award of a specific prime Government contract by a Government contracting office has the right to appeal that decision through the Small Business Administration (SBA). The information contained on this form, as well as, other information developed by SBA, is used in determining whether the decision by the Contracting Officer should be overturned.</P>
                <HD SOURCE="HD1">Solicitation of Public Comments</HD>
                <P>SBA is requesting comments on (a) Whether the collection of information is necessary for the agency to properly perform its functions; (b) whether the burden estimates are accurate; (c) whether there are ways to minimize the burden, including through the use of automated techniques or other forms of information technology; and (d) whether there are ways to enhance the quality, utility, and clarity of the information.</P>
                <HD SOURCE="HD1">Summary of Information Collection</HD>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3245-0225.
                </P>
                <P>
                    <E T="03">(1) Title:</E>
                     Small Business Administration Application for Certificate of Competency.
                </P>
                <P>
                    <E T="03">Description of Respondents:</E>
                     Small Businesses.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     SBA Form 1531.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Responses:</E>
                     300.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Hour Burden:</E>
                     2,400.
                </P>
                <SIG>
                    <NAME>Curtis Rich,</NAME>
                    <TITLE>Agency Clearance Officer. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27668 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <SUBJECT>Reporting and Recordkeeping Requirements Under OMB Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Small Business Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Small Business Administration (SBA) is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act and OMB procedures, SBA is publishing this notice to allow all interested member of the public an additional 30 days to provide comments on the proposed collection of information.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on or before January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this information collection request should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection request by selecting “Small Business Administration”; “Currently Under Review,” then select the “Only Show ICR for Public Comment” checkbox. This information collection can be identified by title and/or OMB Control Number.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        You may obtain a copy of the information collection and supporting documents from the Agency Clearance Office at 
                        <E T="03">Curtis.Rich@sba.gov;</E>
                         (202) 205-7030, or from 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The recipients of SBA counseling and training grant awards are required by the terms of their Notice of Award and as outlined in each Program Announcement, to collect the information on SBA Form 641 (Counseling Information Form) from each small business or prospective small business that receives one-on-one counseling or advising, and to collect the information on SBA Form 888 (Management Training Report) for each group training session. SBA's Resource Partners submit this information to SBA via the Nexus system. The information is pertinent to management's analysis of each OED program or activity funded by 
                    <PRTPAGE P="87481"/>
                    SBA and assists SBA in evaluating the impact of each program or activity. The information is also used to support SBA's budget requests, performance plans, evaluations and other submissions made to the Office of Management and Budget, the President and the Congress.
                </P>
                <HD SOURCE="HD1">Solicitation of Public Comments</HD>
                <P>Comments may be submitted on (a) whether the collection of information is necessary for the agency to properly perform its functions; (b) whether the burden estimates are accurate; (c) whether there are ways to minimize the burden, including through the use of automated techniques or other forms of information technology; and (d) whether there are ways to enhance the quality, utility, and clarity of the information.</P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3245-0324.
                </P>
                <P>
                    <E T="03">Title:</E>
                     U.S. Small Business Administration Counseling Information Form/U.S. Small Business Administration Management Training Report.
                </P>
                <P>
                    <E T="03">Description of Respondents:</E>
                     To aid, counsel, assist, and protect the interests of small business concerns to preserve free competitive enterprise.
                </P>
                <P>
                    <E T="03">SBA Form Number:</E>
                     SBA Forms 641, 888.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     1,633,000.
                </P>
                <P>
                    <E T="03">Estimated Annual Hour Burden:</E>
                     253, 833.
                </P>
                <SIG>
                    <NAME>Curtis Rich,</NAME>
                    <TITLE>Agency Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27663 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF STATE</AGENCY>
                <DEPDOC>[Public Notice: 12289]</DEPDOC>
                <SUBJECT>Notice of Determinations; Culturally Significant Object Being Imported for Exhibition—Determinations: “Weaving Abstraction in Ancient and Modern Art” Exhibition</SUBJECT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Notice is hereby given of the following determinations: I hereby determine that a certain object being imported from abroad pursuant to an agreement with its foreign owner or custodian for temporary display in the exhibition “Weaving Abstraction in Ancient and Modern Art” at The Metropolitan Museum of Art, New York, New York, and at possible additional exhibitions or venues yet to be determined, is of cultural significance, and, further, that its temporary exhibition or display within the United States as aforementioned is in the national interest. I have ordered that Public Notice of these determinations be published in the 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Reed Liriano, Program Coordinator, Office of the Legal Adviser, U.S. Department of State (telephone: 202-632-6471; email: 
                        <E T="03">section2459@state.gov</E>
                        ). The mailing address is U.S. Department of State, L/PD, 2200 C Street NW (SA-5), Suite 5H03, Washington, DC 20522-0505.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The foregoing determinations were made pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, 
                    <E T="03">et seq.;</E>
                     22 U.S.C. 6501 note, 
                    <E T="03">et seq.</E>
                    ), Delegation of Authority No. 234 of October 1, 1999, Delegation of Authority No. 236-3 of August 28, 2000, and Delegation of Authority No. 523 of December 22, 2021.
                </P>
                <SIG>
                    <NAME>Nicole L. Elkon,</NAME>
                    <TITLE>Deputy Assistant Secretary for Professional and Cultural Exchanges, Bureau of Educational and Cultural Affairs, Department of State.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27696 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4710-05-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Pipeline and Hazardous Materials Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. PHMSA-2023-0078 (Notice No. 2023-15)]</DEPDOC>
                <SUBJECT>Hazardous Materials: Information Collection Activities</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995, PHMSA invites comments on an information collection pertaining to hazardous materials transportation for which PHMSA intends to request renewal from the Office of Management and Budget.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before January 17, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                    </P>
                    <P>Information collections can be found by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.</P>
                    <P>We invite comments on: (1) whether this collection of information is necessary for the proper performance of the functions of the Department, including whether the information will have practical utility; (2) the accuracy of the Department's estimate of the burden of the information collections; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including the use of automated collection techniques or other forms of information technology.</P>
                    <P>
                        <E T="03">Docket:</E>
                         For access to the Dockets to read background documents or comments received, go to 
                        <E T="03">http://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Steven Andrews or Nina Vore, Standards and Rulemaking Division, (202) 366-8553, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Section 1320.8(d), title 5, Code of Federal Regulations (CFR) requires PHMSA to provide interested members of the public and affected agencies an opportunity to comment on information collection and recordkeeping requests. This notice identifies information collection requests that PHMSA previously published on October 3, 2023,
                    <SU>1</SU>
                    <FTREF/>
                     in a 60-day 
                    <E T="04">Federal Register</E>
                     notice seeking comments and is now submitting to the Office of Management and Budget (OMB) for renewal and extension. It should be noted that the 60-day 
                    <E T="04">Federal Register</E>
                     notice also listed OMB Control Number 2137-0612 for “Hazardous Materials Security Plans.” Since the publication of the 60-day notice, PHMSA has submitted a package to OMB for the renewal of 2137-0612 “Hazardous Materials Security Plans” in association with the HM-264A Final Rule titled “Hazardous Materials: Suspension of HMR Amendments Authorizing Transportation of Liquefied Natural Gas by Rail” published on September 1, 2023 [88 FR 60356]. Therefore, PHMSA no longer is listing this OMB control number as a part of the current 30-day notice as it is no longer needed.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">https://www.federalregister.gov/documents/2023/10/03/2023-21870/hazardous-materials-information-collection-activities.</E>
                    </P>
                </FTNT>
                <P>
                    The following information is provided for the information collection titled “Generic Clearance for the Collection of Qualitative Feedback on Agency Service 
                    <PRTPAGE P="87482"/>
                    Delivery”: (1) title of the information collection, including former title if a change is being made; (2) OMB control number; (3) summary of the information collection activity; (4) description of affected public; (5) estimate of total annual reporting and recordkeeping burden; and (6) frequency of collection. PHMSA will request a 3-year term of approval for the information collection activity and will publish a notice in the 
                    <E T="04">Federal Register</E>
                     alerting the public upon OMB's approval. PHMSA requests comments on the following information collection:
                </P>
                <P>
                    <E T="03">Title:</E>
                     Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2137-0640.
                </P>
                <P>
                    <E T="03">Summary:</E>
                     The information collection activity will garner qualitative customer and stakeholder feedback in an efficient, timely manner and in accordance with the Department's commitment to improving service delivery. Qualitative feedback is information that provides useful insights on perceptions and opinions, not statistical surveys that yield quantitative results that can be generalized to the population of study. This feedback will provide insight into customer or stakeholder perceptions, opinions, experiences and expectations, as well as an early warning of issues with service, or focus attention on areas where communication, training or changes in operations might improve delivery of products or services. These collections will allow for ongoing, collaborative, and actionable communications between PHMSA and its customers and stakeholders. It will also allow feedback to contribute directly to the improvement of program management. Feedback or information collected under this generic clearance will provide useful information, but it will not yield data that can be generalized to the overall population.
                </P>
                <P>The Department will submit a collection for approval under this generic clearance if it meets the following conditions:</P>
                <P>• The collections are voluntary.</P>
                <P>• The collections are low-burden for respondents (based on considerations of total burden hours, total number of respondents, or burden-hours per respondent) and are low-cost for both the respondents and the Federal Government.</P>
                <P>• The collections are non-controversial and do not raise issues of concern to other Federal agencies.</P>
                <P>• Any collection is targeted to the solicitation of opinions from respondents who have experience with the program or may have experience with the program in the near future.</P>
                <P>• Personally identifiable information (PII) is collected only to the extent necessary and is not retained.</P>
                <P>• Information gathered is intended to be used only internally for general service improvement and program management purposes and is not intended for release outside of the Department (if released, the Department must indicate the qualitative nature of the information).</P>
                <P>This type of generic clearance for qualitative information will not be used for quantitative information collections that are designed to yield reliably actionable results, such as monitoring trends over time or documenting program performance. Such data uses require more rigorous designs that address: the target population to which generalizations will be made, the sampling frame, the sample design (including stratification and clustering), the precision requirements or power calculations that justify the proposed sample size, the expected response rate, methods for assessing potential nonresponse bias, the protocols for data collection, and any testing procedures that were or will be undertaken prior to fielding the study. Depending on the degree of influence the results are likely to have, such collections may still be eligible for submission for other generic mechanisms that are designed to yield quantitative results.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals and households, businesses and organizations, State, Local or Tribal Governments.
                </P>
                <P>
                    <E T="03">Annual Reporting and Recordkeeping Burden:</E>
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     6,000.
                </P>
                <P>
                    <E T="03">Total Annual Responses:</E>
                     6,000.
                </P>
                <P>
                    <E T="03">Total Annual Burden Hours:</E>
                     3,000.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     One-time requirement.
                </P>
                <SIG>
                    <DATED>Issued in Washington, DC, on December 12, 2023, under authority delegated in 49 CFR 1.97.</DATED>
                    <NAME>T Glenn Foster,</NAME>
                    <TITLE>Chief, Regulatory Review and Reinvention Branch, Office of Hazardous Materials Safety, Pipeline and Hazardous Materials Safety Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27719 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-60-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of Foreign Assets Control</SUBAGY>
                <SUBJECT>Notice of OFAC Sanctions Actions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Foreign Assets Control, Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons that have been placed on OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC's determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        See 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for applicable date(s).
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>OFAC: Bradley T. Smith, Director, tel.: 202-622-2490; Associate Director for Global Targeting, tel.: 202-622-2420; Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions Compliance &amp; Evaluation, tel.: 202-622-2490.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Electronic Availability</HD>
                <P>
                    The SDN List and additional information concerning OFAC sanctions programs are available on OFAC's website (
                    <E T="03">https://ofac.treasury.gov/</E>
                    ).
                </P>
                <HD SOURCE="HD1">Notice of OFAC Action(s)</HD>
                <P>On December 11, 2023, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below.</P>
                <BILCOD>BILLING CODE 4810-AL-P</BILCOD>
                <GPH SPAN="3" DEEP="567">
                    <PRTPAGE P="87483"/>
                    <GID>EN18DE23.005</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87484"/>
                    <GID>EN18DE23.006</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87485"/>
                    <GID>EN18DE23.007</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87486"/>
                    <GID>EN18DE23.008</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87487"/>
                    <GID>EN18DE23.009</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87488"/>
                    <GID>EN18DE23.010</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87489"/>
                    <GID>EN18DE23.011</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87490"/>
                    <GID>EN18DE23.012</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87491"/>
                    <GID>EN18DE23.013</GID>
                </GPH>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="87492"/>
                    <GID>EN18DE23.014</GID>
                </GPH>
                <GPH SPAN="3" DEEP="552">
                    <PRTPAGE P="87493"/>
                    <GID>EN18DE23.015</GID>
                </GPH>
                <SIG>
                    <DATED>Dated: December 11, 2023.</DATED>
                    <NAME>Bradley T. Smith,</NAME>
                    <TITLE>Director, Office of Foreign Assets Control, U.S. Department of the Treasury.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27725 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AL-C</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <SUBJECT>Scoping Notice for Preparation of a Programmatic Environmental Assessment for the National Cemetery Administration</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Veterans Affairs (VA) is preparing a programmatic environmental assessment (PEA) in accordance with the regulations implementing the procedural provisions of the National Environmental Policy Act (NEPA) of 1969, as implemented by the Council on Environmental Quality regulations, and VA's NEPA Implementing Regulations.</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="87494"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments must be received on or before January 17, 2024. VA anticipates releasing the draft PEA for a 30-day public review and comment period in the first quarter of calendar year 2024. VA will notify stakeholders via email/mail, publish a notice of availability of the draft PEA in the 
                        <E T="04">Federal Register</E>
                         and solicit comments at that time. The draft PEA will be available for review via the VA website: 
                        <E T="03">www.cfm.va.gov/environmental/.</E>
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments must be submitted through 
                        <E T="03">www.regulations.gov.</E>
                         Except as provided below, comments received before the close of the comment period will be available at 
                        <E T="03">www.regulations.gov</E>
                         for public viewing, inspection, or copying, including any personally identifiable or confidential business information that is included in a comment. We post the comments received before the close of the comment period on the following website as soon as possible after they have been received: 
                        <E T="03">http://www.regulations.gov.</E>
                         VA will not post on 
                        <E T="03">Regulations.gov</E>
                         public comments that make threats to individuals or institutions or suggest that the commenter will take actions to harm the individual. VA encourages individuals not to submit duplicative comments. We will post acceptable comments from multiple unique commenters even if the content is identical or nearly identical to other comments. Any public comment received after the comment period's closing date is considered late and will not be considered.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Fernando Fernandez, Environmental Engineer, Office of Construction and Facilities Management (003C2), Department of Veterans Affairs, Washington, DC 20420, (202) 876-7608 (this is not a toll-free number), 
                        <E T="03">Fernando.Fernandez@va.gov.</E>
                         Reference “National Cemetery Expansion PEA” in your correspondence.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The VA National Cemetery Administration provides burial services, including gravesites, grave markers, and gravesite maintenance for eligible Veterans, spouses, and dependents. The National Cemetery Administration currently operates 155 National Cemeteries in 42 states and Puerto Rico and 34 soldiers' lots and monument sites across the United States. The PEA will evaluate VA's Proposed Action to undertake future expansions and/or infrastructure and building improvements at all VA National Cemeteries with the sole intent to maintain and improve the service to Veterans and their family and loved ones. The PEA aims to provide a streamlined NEPA compliance process for future National Cemetery expansion projects that would result in less than significant environmental impacts.</P>
                <P>This notice initiates the scoping process for the PEA and invites the public, government agencies, and other interested persons and organizations to provide comments on the scope of issues for analysis, input on potential alternatives, or information/analyses relevant to the proposed action.</P>
                <P>Use of the PEA would decrease the time and cost associated with having to prepare stand-alone NEPA documentation for those future National Cemetery projects that would meet the conditions of the PEA while ensuring that the environment is preserved. VA would complete additional NEPA compliance as required for projects outside the parameters of the PEA.</P>
                <P>The proposed action supports burial requests for eligible individuals and provides sufficient infrastructure to support the needs of Veterans, spouses, dependents, and staff at existing National Cemeteries. The proposed action is needed to provide burial benefits and services to Veterans, spouses, and dependents.</P>
                <P>The PEA will evaluate the potential direct and indirect impacts on the human environment from the proposed action and alternatives. VA will make the draft PEA available for a public comment period following its completion.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>Denis McDonough, Secretary of Veterans Affairs, approved and signed this document on December 11, 2023, and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs.</P>
                <SIG>
                    <NAME>Luvenia Potts,</NAME>
                    <TITLE>Regulation Development Coordinator, Office of Regulation Policy &amp; Management, Office of General Counsel, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27713 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <SUBJECT>Funding Opportunity: Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness Grant Program</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of funding opportunity.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Veterans Affairs (VA) is announcing the availability of funds for legal services grants under the Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness (LSV-H) Grant Program. This Notice of Funding Opportunity (NOFO) contains information concerning the LSV-H Grant Program, the grant application processes, and the amount of funding available. Awards made for legal services grants will fund operations beginning on August 1, 2024, for a period of 14 months.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applications for legal services grants under the LSV-H Grant Program must be received by the Legal Services for Veterans (LSV) Program Office by 4:00 p.m. Eastern Standard Time (EST) on February 23, 2024. In the interest of fairness to all eligible applicants, as described in this NOFO, this deadline is firm as to date and hour, and VA will treat any application that is received after the deadline as ineligible for consideration. Applicants should take this practice into account and make early submissions of their materials to avoid any risk of loss of eligibility brought about by unanticipated delays, computer service outages, or other submission-related problems.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        For a copy of the application package: Copies of the application can be downloaded from the LSV website at 
                        <E T="03">www.va.gov/homeless/lsv.asp.</E>
                         Questions may be referred to the LSV Program Office via email at 
                        <E T="03">LSVGrants@va.gov.</E>
                         For detailed LSV-H Grant Program information and requirements, see part 79 of title 38, Code of Federal Regulations (38 CFR part 79).
                    </P>
                    <P>
                        <E T="03">Application Submission:</E>
                         Applicants must submit applications electronically following instructions found at 
                        <E T="03">www.va.gov/homeless/lsv.asp.</E>
                         Applications may not be mailed, hand carried, or sent by facsimile. Applications must be received by the LSV Grant Program Office by 4:00 p.m. EST on the application deadline date. Applications must arrive as a complete package. Materials arriving separately will not be included in the application package for consideration and may result in the application being rejected.
                    </P>
                    <P>
                        In the event of certain errors, such as duplicate applications or multiple applications per Employer Identification Number, per VA Veterans Integrated Service Network catchment area, VA reserves the right to select which application to consider based on the submission dates and times or based on other factors.
                        <PRTPAGE P="87495"/>
                    </P>
                    <P>
                        <E T="03">Technical Assistance:</E>
                         Information regarding how to obtain technical assistance with preparing a legal service grant application is available on the LSV Program website at 
                        <E T="03">www.va.gov/homeless/lsv.asp.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Madolyn Gingell, National Coordinator, Legal Services for Veterans, by email at 
                        <E T="03">LSVGrants@va.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Funding Opportunity Title:</E>
                     Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness Grant Program.
                </P>
                <P>
                    <E T="03">Announcement Type:</E>
                     Initial.
                </P>
                <P>
                    <E T="03">Funding Opportunity Number:</E>
                     VA-VJP-LSV-H-1023.
                </P>
                <P>
                    <E T="03">Assistance Instrument:</E>
                     Grant.
                </P>
                <P>
                    <E T="03">Assistance Listing:</E>
                     64.056, Legal Services for Veterans Grant.
                </P>
                <EXTRACT>
                    <HD SOURCE="HD1">Table of Contents</HD>
                    <FP SOURCE="FP-1">Funding Opportunity Description 4</FP>
                    <FP SOURCE="FP-1">Purpose 4</FP>
                    <FP SOURCE="FP-1">Background 4</FP>
                    <FP SOURCE="FP-1">Definitions 5</FP>
                    <FP SOURCE="FP-1">Approach 5</FP>
                    <FP SOURCE="FP-1">Authority 5</FP>
                    <FP SOURCE="FP-1">Guidance for the Use of Funds 5</FP>
                    <FP SOURCE="FP-1">Award Information 7</FP>
                    <FP SOURCE="FP-1">Allocation of Funds 7</FP>
                    <FP SOURCE="FP-1">Funding Priorities 9</FP>
                    <FP SOURCE="FP-1">Funding Restrictions 9</FP>
                    <FP SOURCE="FP-1">Award Period 9</FP>
                    <FP SOURCE="FP-1">Eligibility Information 10</FP>
                    <FP SOURCE="FP-1">Eligible Applicants 10</FP>
                    <FP SOURCE="FP-1">Cost Sharing or Matching 10</FP>
                    <FP SOURCE="FP-1">Application and Scoring Information 11</FP>
                    <FP SOURCE="FP-1">Content and Form of Application 11</FP>
                    <FP SOURCE="FP-1">Review and Selection Process 19</FP>
                    <FP SOURCE="FP-1">Application Selection 19</FP>
                    <FP SOURCE="FP-1">Tie Score 21</FP>
                    <FP SOURCE="FP-1">Funding Actions 21</FP>
                    <FP SOURCE="FP-1">Award Administration Information 22</FP>
                    <FP SOURCE="FP-1">Award Notice 22</FP>
                    <FP SOURCE="FP-1">Administrative and National Policy 23</FP>
                    <FP SOURCE="FP-1">Payment 23</FP>
                    <FP SOURCE="FP-1">Reporting and Monitoring 24</FP>
                    <FP SOURCE="FP-1">Program Evaluation 25</FP>
                </EXTRACT>
                <HD SOURCE="HD1">Funding Opportunity Description</HD>
                <HD SOURCE="HD2">Purpose</HD>
                <P>Ending and preventing homelessness among Veterans is a priority for VA. VA's Homeless Programs constitute the Nation's largest integrated network of homeless treatment and assistance services for Veterans. The LSV-H Grant Program's purpose is to award legal services grants to eligible public or non-profit private entities who will provide legal services to eligible Veterans who are homeless or at risk for homelessness.</P>
                <HD SOURCE="HD2">Background</HD>
                <P>
                    This NOFO will provide awards designed to address the needs identified in 38 CFR part 79.20, including legal services related to housing; family law; income support; criminal defense; protective orders and other matters related to domestic or intimate partner violence; access to health care; requests to upgrade military discharge or dismissal of a former member of the Armed Forces under 10 U.S.C. 1553; consumer law, such as financial services, debt collection, garnishments, usury, fraud, and financial exploitation; employment law; and the top 10 unmet legal needs as enumerated on VA's annual Community Homelessness Assessment, Local Education and Networking Groups (CHALENG) survey for the grant award year. CHALENG survey results can be found at 
                    <E T="03">https://www.va.gov/homeless/chaleng.asp.</E>
                     Funds provided through this NOFO must not duplicate or replace funds provided from any Federal, state, or local government agency or program to assist homeless Veterans.
                </P>
                <HD SOURCE="HD2">Definitions</HD>
                <P>38 CFR part 79.5 contains definitions of terms used in the LSV-H Grant Program.</P>
                <HD SOURCE="HD2">Approach</HD>
                <P>The goal of the LSV-H Grant Program is to assist Veterans who are homeless or at risk for homelessness who have unaddressed needs for legal services, which may create barriers to housing stability. Services provided to Veterans under this NOFO are designed to help Veterans increase housing stability by providing legal services, including eviction defense, that will help Veterans avoid homelessness or help them return to permanent housing in the community.</P>
                <HD SOURCE="HD2">Authority</HD>
                <P>Funding available under this NOFO is authorized by 38 U.S.C. 2022A. VA implements the LSV-H Grant Program through regulations in 38 CFR part 79. Funds made available under this NOFO are subject to the requirements of these regulations.</P>
                <HD SOURCE="HD2">Guidance for the Use of Funds</HD>
                <P>As noted above, the LSV-H Grant Program's purpose is to provide legal services grants to public or non-profit private entities that will directly provide legal services to eligible Veterans who are homeless or at risk for homelessness. The LSV-H Grant is not a Case Management Grant nor a Transitional Housing Grant. The applicant's request for funding must be consistent with the limitation and uses of legal services grant funds outlined in 38 CFR part 79 and this NOFO. Per the regulations and this NOFO, the following requirements apply to legal services grants awarded under this NOFO:</P>
                <P>Grantees may use a maximum of 10% of legal services grant funds for administrative costs as identified in 38 CFR part 79.90. Administrative costs consist of all costs, including all direct and indirect costs, associated with the management of the program. These costs may include professional training for attorneys to provide legal services for Veterans or other activities that are not direct services. These costs also include the administrative costs of subcontractors.</P>
                <P>Grantees must use at least 90% of legal services grant funds to provide legal services which are consistent with 38 CFR part 79.90. Grantees are expected to provide legal services relevant to issues that interfere with the participant's ability to obtain or retain permanent housing. (NOTE: Specific details of the legal services provided may be protected from being released to the grantee from a sub-grantee or VA under attorney-client privilege; however, the grantee must provide sufficient information to demonstrate the eligibility of the Veteran client as well as the frequency and type of legal services delivered.) Support for legal services can include paying for court filing fees to assist a participant with issues that interfere with the participant's ability to obtain or retain permanent housing or legal services, including issues that affect the participant's employability and financial security.</P>
                <P>Grantees are expected to use at least 10% of grant funds to provide legal services to women Veterans.</P>
                <HD SOURCE="HD1">Award Information</HD>
                <HD SOURCE="HD2">Allocation of Funds</HD>
                <P>Under this NOFO, approximately $26.8 million is available for grants to provide legal services to homeless Veterans or Veterans at risk for homelessness. The LSV-H Grant Program aims to provide grant funding up to a maximum of $300,000 to eligible applicants in a 14-month grant cycle. The funding amount and number of awards will be determined based on the number of applications received by VA. Funding will only be awarded to applicants who demonstrate sufficient capacity to provide legal services to homeless Veterans or Veterans at risk for homelessness.</P>
                <P>
                    Grants governed by this NOFO are expected to begin August 1, 2024. Future renewal funding is dependent on such factors as need, geographical dispersion, funding availability, the recipient meeting performance goals 
                    <PRTPAGE P="87496"/>
                    and statutory and regulatory requirements, as well as results of VA performance measurement and monitoring.
                </P>
                <P>If VA determines that grantee spending is not meeting the minimum percentage milestones identified below, VA may elect to recoup projected unused funds and reallocate funds among other grantees who are able to fully use the funds to provide legal services during the grant period. Should VA elect to recoup unspent funds, reductions in available grant funds would take effect the first business day following the end of the quarter. VA may elect to recoup funds in the following circumstances:</P>
                <P>• The grantee's requests to VA for grant funds are less than 10% of the total grant award by the end of the first quarter of the grant cycle, no later than October 31, 2024.</P>
                <P>• The grantee's requests to VA for grant funds are less than 30% of the total grant award by the end of the second quarter of the grant cycle, no later than January 31, 2025.</P>
                <P>• The grantee's requests to VA for grant funds are less than 55% of the total grant award by the end of the third quarter of the grant cycle, no later than April 30, 2025.</P>
                <P>Reductions will be calculated based on the total amount of payment requests submitted in the U.S. Department of Health and Human Services' (HHS) Payment Management System (PMS) by 5:00 p.m. EST on the last business day of the quarter. Should VA elect to recoup unspent funds, reductions in available grant funds would take place the first business day following the end of the quarter. If additional funds become available from funds recouped under the Award Information section of this NOFO, funds that are voluntarily returned by grantees, funds that become available due to a grant termination, or other funds that are still available for grant awards, VA may elect to offer these funds to other grantees. Additional funds may be provided to grantees who are in compliance with their grant agreement and have the capacity to use the additional funds, with priority given in descending order based on grantees' original application's ranking/score.</P>
                <HD SOURCE="HD2">Funding Priorities</HD>
                <P>
                    <E T="03">* Priority 1:</E>
                     VA will place in the first funding priority those applications from organizations that have demonstrated the ability to directly provide three or more allowable legal services covered under the LSV-H Grant Program (38 CFR part 79.20) to eligible Veterans.
                </P>
                <P>
                    <E T="03">* Priority 2:</E>
                     VA will place in the second funding priority those applications from organizations that are equitably distributed across geographic regions including (i) areas not being served by existing LSV-H awards, (ii) rural communities, (iii) tribal lands, and (iv) areas with a high number or percentage of Native Veterans.
                </P>
                <P>
                    <E T="03">* Priority 3:</E>
                     VA will place in the third funding priority those applications from organizations with a demonstrated focus on providing legal services to women Veterans.
                </P>
                <P>Applications will be ranked in score order within the funding priority.</P>
                <HD SOURCE="HD2">Funding Restrictions</HD>
                <P>Applicants may not receive funding to replace funds provided by any other Federal, state, or local government agency or program to assist homeless Veterans. VA will not fund projects or activities deemed outside the scope of those enumerated in 38 CFR part 79.20 and this NOFO.</P>
                <HD SOURCE="HD2">Award Period</HD>
                <P>Grants awarded will be for a 14-month period starting August 1, 2024.</P>
                <HD SOURCE="HD1">Eligibility Information</HD>
                <HD SOURCE="HD2">Eligible Applicants</HD>
                <P>For purposes of this NOFO, an eligible applicant is a public or non-profit private entity as defined in 38 CFR part 79.10. Applicants must have the necessary technical and administrative abilities and resources to execute the program successfully. Applicants must provide sufficient eligibility information to allow VA to evaluate their application for scoring purposes. Only eligible entities can apply in response to this NOFO.</P>
                <P>Applicants with 501(c)(3) Internal Revenue status must provide a copy of their status determination letter received from the Internal Revenue Service. Award recipients must maintain their status as a 501(c)(3) or 501(c)(19) non-profit, state or local government, or recognized Indian tribal government as defined by General Services Administration regulations, 41 CFR part 105-71.102, for the entire award cycle. Faith-based organizations may apply for the LSV-H Grant Program. Faith-based organizations are eligible, on the same basis as any other organization, to participate in the LSV-H Grant Program as described in 38 CFR part 79.80.</P>
                <P>
                    Applicants are required to register in the System for Award Management (SAM) located at 
                    <E T="03">https://sam.gov</E>
                     before submitting a Federal award application. Federal award recipients must continue to maintain an active 
                    <E T="03">SAM.gov</E>
                     registration with current information through the life of their Federal award.
                </P>
                <P>As described in 38 CFR part 79.10, this program prohibits issuing awards to entities that do not meet criteria for an eligible entity.</P>
                <HD SOURCE="HD2">Cost Sharing or Matching</HD>
                <P>Cost-sharing or matching is not required for this funding opportunity.</P>
                <HD SOURCE="HD1">Application and Scoring Information</HD>
                <HD SOURCE="HD2">Content and Form of Application</HD>
                <P>
                    Applicants must submit applications electronically following instructions found at 
                    <E T="03">www.va.gov/homeless/lsv.asp.</E>
                     Applicants must include all required documents in their application submission. Submission of an incorrect, incomplete, inconsistent, unclear, or incorrectly formatted application package may result in the application being rejected.
                </P>
                <P>The application is organized into the following sections:</P>
                <HD SOURCE="HD3">Section I: Administrative Information</HD>
                <FP SOURCE="FP-1">A. Application Information</FP>
                <FP SOURCE="FP1-2">a. Organization's Legal Name;</FP>
                <FP SOURCE="FP1-2">b. Other Names under Which Organization Does Business;</FP>
                <FP SOURCE="FP1-2">c. Organization's Address;</FP>
                <FP SOURCE="FP1-2">d. Contact Person Name and Title;</FP>
                <FP SOURCE="FP1-2">e. Telephone number for Contact Person;</FP>
                <FP SOURCE="FP1-2">f. Email for Contact Person;</FP>
                <FP SOURCE="FP1-2">g. Unique Entity Identifier (UEI);</FP>
                <FP SOURCE="FP1-2">h. Employer Identification Number; and</FP>
                <FP SOURCE="FP1-2">i. SAM expiration date.</FP>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P> Applicants are required to be registered in SAM before submitting an application and must maintain an active SAM registration with current information at all times during which they have an active Federal award or an application under consideration by a Federal awarding agency.</P>
                </NOTE>
                <FP SOURCE="FP-1">B. Legal Services Proposed</FP>
                <FP SOURCE="FP1-2">a. Amount of Legal Services Grant Funds Requested;</FP>
                <FP SOURCE="FP1-2">b. Types of Legal Services that will be provided; and</FP>
                <FP SOURCE="FP1-2">c. Projected Number of Eligible Veterans to be Served.</FP>
                <FP SOURCE="FP-1">C. Geographic Region Served</FP>
                <FP SOURCE="FP1-2">a. State(s) to be served;</FP>
                <FP SOURCE="FP1-2">b. Counties to be served;</FP>
                <FP SOURCE="FP1-2">c. Veterans Integrated Service Network(s) to be served; and</FP>
                <FP SOURCE="FP1-2">d. Specific types of geographic regions to be served.</FP>
                <HD SOURCE="HD3">Section II: Background, Qualifications, Experience and Past Performance of Applicant, and any Identified Subcontractor (30 Maximum Points)</HD>
                <P>
                    VA will award points based on the background, qualifications, experience 
                    <PRTPAGE P="87497"/>
                    and past performance of the applicant, and any subcontractors identified by the applicant in the legal services grant application, as demonstrated by the following:
                </P>
                <P>
                    (1) 
                    <E T="03">Background and Organizational History.</E>
                </P>
                <P>(i) Applicant's and any identified subcontractors' background and organizational history are relevant to providing legal services.</P>
                <P>(ii) Applicant and any identified subcontractors maintain organizational structures with clear lines of reporting and defined responsibilities.</P>
                <P>(iii) Applicant and any identified subcontractors have a history of complying with agreements and not defaulting on financial obligations.</P>
                <P>
                    (2) 
                    <E T="03">Staff qualifications.</E>
                </P>
                <P>(i) Applicant's staff, and any identified subcontractors' staff, have experience working with Veterans or individuals who are homeless, at risk for homelessness or who have very low income, as defined under 38 CFR part 79.</P>
                <P>(ii) Applicant's staff, and any identified subcontractors' staff, have experience administering programs similar to the Grant Program under 38 CFR part 79.</P>
                <P>
                    (3) 
                    <E T="03">Organizational qualifications and past performance.</E>
                </P>
                <P>(i) Applicant, and any identified subcontractors, have organizational experience providing legal services to Veterans or individuals who are homeless, at risk for homelessness, or who have very low income as defined under 38 CFR part 79.</P>
                <P>(ii) Applicant and any identified subcontractors have or plan to hire staff, who are qualified to administer legal services, and as applicable, are in good standing as a member of the applicable State bar.</P>
                <P>
                    (4) 
                    <E T="03">Experience working with Veterans, including Women Veterans.</E>
                </P>
                <P>(i) Applicant's staff, and any identified subcontractors' staff, have experience working with Veterans, including women Veterans.</P>
                <P>(ii) Applicant and any identified subcontractors have organizational experience providing legal services to Veterans, including women Veterans.</P>
                <HD SOURCE="HD3">Section III: Program Concept and Legal Services Plan (Maximum 30 Points)</HD>
                <P>VA will award points based on the applicant's program concept and legal services plan, as demonstrated by the following:</P>
                <P>
                    (1) 
                    <E T="03">Need for program.</E>
                </P>
                <P>(i) Applicant has shown a need among eligible Veterans in the area or community where the program will be based.</P>
                <P>(ii) Applicant understands the legal services needs unique to eligible Veterans in the area or community where the program will be based.</P>
                <P>
                    (2) 
                    <E T="03">Outreach and screening plan.</E>
                </P>
                <P>(i) Applicant has a feasible outreach and referral plan to identify and assist eligible Veterans in need of legal services. This plan should include a description of how the applicant will ensure that services are provided to eligible Veterans, including women Veterans, and how the applicant will use at least 10% of the grant funds to serve eligible women Veterans.</P>
                <P>(ii) Applicant has a plan to process and receive referrals from eligible Veterans.</P>
                <P>(iii) Applicant has a plan to assess and accommodate the needs of incoming eligible Veterans.</P>
                <P>
                    (3) 
                    <E T="03">Program concept and design.</E>
                </P>
                <P>(i) Applicant's program concept, size, scope, and staffing plan are feasible.</P>
                <P>(ii) Applicant's program is designed to meet the legal needs of eligible Veterans in the area or community where the program will be based.</P>
                <P>(iii) Applicant's program design detailing the specific types of legal services provided.</P>
                <P>
                    (4) 
                    <E T="03">Program implementation timeline.</E>
                </P>
                <P>(i) Applicant's program will be implemented in a timely manner, and legal services will be delivered to eligible Veterans as quickly as possible and within a specified timeline.</P>
                <P>(ii) Applicant has a hiring plan in place to meet the applicant's program timeline or has existing staff to meet such timeline.</P>
                <P>
                    (5) 
                    <E T="03">Collaboration and communication with VA.</E>
                     Applicant has a plan to coordinate outreach and services with local VA facilities.
                </P>
                <P>
                    (6) 
                    <E T="03">Ability to meet VA's requirements, goals, and objectives for the grant program.</E>
                     Applicant is committed to ensuring that its program meets VA's requirements, goals, and objectives for the grant program as identified in 38 CFR part 79 and the Purpose Section of the NOFO (
                    <E T="03">https://www.federalregister.gov/documents/2022/06/01/2022-10930/legal-services-for-homeless-veterans-and-veterans-at-risk-for-homelessness-grant-program#sectno-reference-79.40</E>
                    ).
                </P>
                <P>
                    (7) 
                    <E T="03">Capacity to undertake program.</E>
                     Applicant has sufficient capacity, including staff resources, to undertake the program.
                </P>
                <HD SOURCE="HD3">Section IV: Quality Assurance and Evaluation Plan (Maximum 15 Points) </HD>
                <P>VA will award points based on the applicant's quality assurance and evaluation plan, as demonstrated by the following:</P>
                <P>
                    (1) 
                    <E T="03">Program evaluation.</E>
                </P>
                <P>(i) Applicant has created clear, realistic, and measurable metrics that align with the grant program's aim of addressing the legal needs of eligible Veterans for which the applicant's program performance can be continually evaluated.</P>
                <P>
                    (2) 
                    <E T="03">Monitoring.</E>
                </P>
                <P>(i) Applicant has adequate controls in place to regularly monitor the program, including any subcontractors, for compliance with all applicable laws, regulations, and guidelines.</P>
                <P>(ii) Applicant has adequate financial and operational controls in place to ensure the proper use of legal services grant funds.</P>
                <P>(iii) Applicant has a plan for ensuring that the applicant's staff and any subcontractors are appropriately trained and comply with the requirements of 38 CFR part 79.</P>
                <P>
                    (3) 
                    <E T="03">Remediation.</E>
                     Applicant has a plan or establishes a system to remediate non-compliant aspects of the program if and when they are identified.
                </P>
                <P>
                    (4) 
                    <E T="03">Management and reporting.</E>
                     Applicant's program management team has the capability and a system in place to provide to VA timely and accurate reports, no less than quarterly.
                </P>
                <HD SOURCE="HD3">Section V: Financial Capability and Plan (Maximum 15 Points)</HD>
                <P>VA will award points based on the applicant's financial capability and plan, as demonstrated by the following:</P>
                <P>
                    (1) 
                    <E T="03">Organizational finances.</E>
                     Applicant and any identified subcontractors are financially stable.
                </P>
                <P>
                    (2) 
                    <E T="03">Financial feasibility of program.</E>
                </P>
                <P>(i) Applicant has a realistic plan for obtaining all funding required to operate the program for the period of the legal services grant.</P>
                <P>(ii) Applicant's program is cost-effective and can be effectively implemented on budget.</P>
                <HD SOURCE="HD3">Section VI: Area Linkages and Relations (Maximum 10 Points)</HD>
                <P>VA will award points based on the applicant's area or community linkages and relations, as demonstrated by the following:</P>
                <P>
                    (1) 
                    <E T="03">Area or community linkages.</E>
                     Applicant has a plan for developing or has existing linkages with Federal (including VA), state, local, and tribal governments, agencies, and private entities for the purposes of providing additional legal services to eligible Veterans.
                </P>
                <P>
                    (2) 
                    <E T="03">Past working relationships.</E>
                     Applicant (or applicant's staff) and any identified subcontractors (or subcontractors' staff) have fostered successful working relationships and 
                    <PRTPAGE P="87498"/>
                    linkages with public and private organizations providing legal and non-legal supportive services to Veterans in need of services similar to those covered under the Grant Program.
                </P>
                <P>
                    (3) 
                    <E T="03">Local presence and knowledge.</E>
                </P>
                <P>(i) Applicant has a presence in the area or community to be served by the applicant.</P>
                <P>(ii) Applicant understands the dynamics of the area or community to be served by the applicant.</P>
                <P>
                    (4) 
                    <E T="03">Integration of linkages and program concept.</E>
                     Applicant's linkages to the area or community to be served by the applicant enhance the effectiveness of the applicant's program.
                </P>
                <HD SOURCE="HD3">Section VII: Applicant Certifications and Assurances</HD>
                <P>Applicants must sign and submit the grant application agreeing to the following:</P>
                <P>(1) Project Budget Template. Applicants must attach an itemized detailed budget using the approved SF 424A form and corresponding to the narrative provided in the financial capability and plan. The categories and costs included in the detailed budget must indicate the plan and demonstrate compliance with cost principles. See the Attachments section at the end of the application. Successful applicants must follow all applicable budget requirements, including the Federal cost principles in subpart E of 2 CFR part 200, LSV regulations at 38 CFR part 79, and budget requirements of this NOFO.</P>
                <P>(2) Additional Eligibility Documentation. Applicants will provide other required or optional materials as attachments, including the following:</P>
                <P>(i) Budget Template (required);</P>
                <P>(ii) Letters of coordination (optional); and</P>
                <P>(iii) Resumes or position descriptions of key staff (required).</P>
                <HD SOURCE="HD3">Section VIII: Criteria for Threshold Review</HD>
                <P>Submission of an incorrect, incomplete, inconsistent, unclear, or incorrectly formatted application package may result in the application being rejected and not considered for award. Only applications that meet threshold requirements in 38 CFR part 79.30 will be scored consistent with criteria in 38 CFR part 79.35.</P>
                <HD SOURCE="HD2">Review and Selection Process</HD>
                <P>Applications will be ranked in score order by funding priority as described in this NOFO Award Information, Funding Priorities, and 38 CFR part 79.40. VA will rank those applicants who score at least 60 cumulative points and receive at least one point under each of the following categories: (a) Background, Qualifications, Experience, and Past Performance of Applicant and Any Identified Subcontractor; (b) Program Concept and Legal Services Plan; (c) Quality Assurance and Evaluation Plan; (d) Financial Capability and Plan; and (e) Area Linkages and Relations The applicants will be ranked in order from highest to lowest.</P>
                <HD SOURCE="HD2">Application Selection</HD>
                <P>VA will only score applications that meet the following threshold requirements in 38 CFR part 79.30: the application is filed within the time period established in the NOFO, and any additional information or documentation requested by VA under 38 CFR part 79.25(c) is provided within the timeframe established by VA; the application is completed in all parts; the activities for which the legal services grant is requested are eligible for funding under 38 CFR part 79; the applicant's proposed participants are eligible to receive legal services under 38 CFR part 79; the applicant agrees to comply with the requirements of 38 CFR part 79; the applicant does not have an outstanding obligation to the Federal Government that is in arrears and does not have an overdue or unsatisfactory response to an audit; and the applicant is not in default by failing to meet the requirements for any previous Federal assistance.</P>
                <P>Applications that meet threshold will be scored. Applications will be assigned to the highest priority group for which they are eligible. Applications will be ranked in score order by funding priority as described in this NOFO Award Information, Funding Priorities, and 38 CFR part 79.40. Applications in priority 1 that receive the minimum score to be eligible for selection will be considered in score order before applications in priority 2 are considered, etc.</P>
                <P>VA will use an application's rank as the primary basis for selection for funding; however, VA will also use the considerations listed in 38 CFR part 79.40(d) to select applicants for funding. For example, pursuant to 38 CFR part 79.40(d)(1), reviewers will give preference to applications that demonstrate an ability to directly provide legal services to eligible individuals.</P>
                <P>Review and selection process may be found at 38 CFR part 79.40. In case of a discrepancy between information provided by the applicant and other information available to VA, VA reserves the right to make funding decisions based on all available information or to not select an application. Additional selections may be considered, at VA's discretion, until available funding is exhausted.</P>
                <P>Depending on factors such as the quantity and quality of applications received and the availability of funding, VA reserves the right to make additional rounds of conditional selections from this NOFO to the eligible pool of applicants, or to take other actions as appropriate. VA reserves the right to negotiate with applicants, as needed, to accomplish the overall goals and objective.</P>
                <P>Consistent with 2 CFR part 200.206(b), VA evaluates risk posed by applicants at any time pre-award or post-award. Special conditions, adjustments, or remedies corresponding to the degree of risk may be applied to an award (2 CFR parts 200.206, 200.208, 200.339). Risk evaluations may include but are not limited to an evaluation of the applicant's eligibility, the quality of its application, the needs of the community, the organization's financial stability, management systems and standards, the history of performance, the status of Single Audit reports, an ability to effectively implement requirements, the status of any VA or other Federal debt, and the findings of any VA fiscal reviews.</P>
                <HD SOURCE="HD2">Tie Score</HD>
                <P>In the event of a tie score between applications, VA will determine at its discretion how to handle selection decisions (for example, selecting multiple applications for award or awarding for less than requested). VA will consider the intent of this NOFO to fund legal services to assist vulnerable Veterans in retaining their permanent housing. VA's discretionary funding decisions are final.</P>
                <HD SOURCE="HD2">Funding Actions</HD>
                <P>
                    VA will provide funding to all eligible applicants in the Priority Group score order described in this NOFO until funding is exhausted. Funding is not guaranteed. Before awarding a grant agreement, VA reserves the right to make adjustments (
                    <E T="03">e.g.,</E>
                     to funding levels) as needed within the intent of this NOFO based on a variety of factors, including the quantity and quality of applications, geographic dispersion, as well as the availability of funding.
                </P>
                <P>
                    VA will consider any information that comes to its attention, including information in the designated integrity and performance system, in making a judgment about the applicant's integrity, business ethics, and performance under Federal awards. VA may not make a Federal award to an applicant if the applicant has not complied with all 
                    <PRTPAGE P="87499"/>
                    applicable UEI and 
                    <E T="03">SAM.gov</E>
                     requirements. Applicants may refer to 2 CFR part 25 and 
                    <E T="03">SAM.gov</E>
                     for more information.
                </P>
                <P>If an applicant has not fully complied by the time the Federal awarding agency is ready to make a Federal award, the Federal awarding agency may determine that the applicant is not qualified to receive a Federal award and use that determination as a basis for making a Federal award to another applicant. VA may elect to award additional applications based on the availability of funds and quality of applications. Upon signature of the grant agreement by the Secretary, or designated representative, final selection will be completed, and the grant funds will be obligated for the funding period.</P>
                <HD SOURCE="HD1">Award Administration Information</HD>
                <HD SOURCE="HD2">Award Notices</HD>
                <P>
                    Although subject to change, the LSV Grant Program expects to announce grant awards on or around July 1, 2024. VA reserves the right to make adjustments (
                    <E T="03">e.g.,</E>
                     to funding levels), as needed, within the intent of the NOFO based on a variety of factors, including the availability of funding. The initial announcement will be made through a news release posted on the VA's LSV website at 
                    <E T="03">www.va.gov./homeless/lsv.asp.</E>
                </P>
                <P>The LSV Grant Program will notify successful and unsuccessful applicants. Only a grant agreement with a VA signature is evidence of an award and is an authorizing document allowing costs to be incurred against a grant award. Other notices, letters, or announcements are not authorizing documents. The grant agreement includes the terms and conditions of the award and must be signed by the entity and VA to be legally binding.</P>
                <HD SOURCE="HD2">Administrative and National Policy Requirements</HD>
                <P>VA places great emphasis on responsibility and accountability. VA has procedures in place to monitor grants provided under the LSV Grant Program. All applicants selected in response to this NOFO must agree to meet applicable inspection standards outlined in the grant agreement.</P>
                <P>Grantees are responsible for complying with all requirements of the Federal award. Federal awards must also comply with the provisions of the Federal Funding Accountability and Transparency Act, which includes requirements on executive compensation, and other requirements found at 2 CFR parts 25 and 170. Grantees and their employees also are subject to the whistleblower rights and remedies established in 41 U.S.C. 4712.</P>
                <HD SOURCE="HD2">Payment of Grant Funds</HD>
                <P>Grantees will receive payments electronically through the HHS PMS. Grantees will have the ability to request payments as frequently as they choose subject to the following limitations:</P>
                <P>1. During the first quarter of the grantee's legal services annualized grant award period, the grantee's cumulative requests for legal services grant funds may not exceed 35% of the total legal services grant award without written approval by VA.</P>
                <P>2. By the end of the second quarter of the grantee's legal services annualized grant award period, the grantee's cumulative requests for legal services grant funds may not exceed 60% of the total legal services grant award without written approval by VA.</P>
                <P>3. By the end of the third quarter of the grantee's legal services annualized grant award period, the grantee's cumulative requests for legal services grant funds may not exceed 80% of the total legal services grant award without written approval by VA.</P>
                <P>4. By the end of the fourth quarter of the grantee's annualized legal services grant award period, the grantee's cumulative requests for legal services grant funds may not exceed 100% of the total legal services grant award.</P>
                <HD SOURCE="HD2">Reporting and Monitoring</HD>
                <P>VA places great emphasis on the responsibility and accountability of grantees. As described in 38 CFR part 79.95, VA has procedures to monitor legal services provided to participants and outcomes associated with the legal services provided under the LSV Grant Program. Applicants should be aware of the following:</P>
                <P>1. Grantees will be required to track data that will consist of information on the participants served and the types of legal services provided by grantees and subsequent outcomes. Information regarding legal services provided may be protected from being released to VA under attorney-client privilege; however, the grantee must provide sufficient information to demonstrate the frequency and type of services delivered to meet performance measurement outcomes, as defined in 2 CFR part 200.301.</P>
                <P>2. VA will complete annual monitoring evaluations of each grantee. Monitoring also will include the submission of quarterly and yearly financial and performance reports by the grantee in accordance with 2 CFR part 200. The grantee will be expected to demonstrate adherence to the grantee's proposed program concept, as described in the grantee's application. All grantees are also subject to audits conducted by VA or its representative.</P>
                <P>3. Grantees will be assessed based on their ability to meet critical reporting requirements that are defined by the regulations.</P>
                <HD SOURCE="HD2">Program Evaluation</HD>
                <P>The purpose of program evaluation is to evaluate the program's success.</P>
                <P>1. Grantees will participate in VA's national project monitoring and evaluation to determine successful outcomes. Each grantee's performance will be measured against established performance targets.</P>
                <P>2. Grantees who do not meet the performance measures or who otherwise perform or appear to perform less than satisfactorily may be subject to additional conditions of award. Additional conditions may include, but are not limited to, increased reporting or monitoring, reductions, withholding, suspension, termination, or other remedies for non-compliance at VA's discretion.</P>
                <P>3. VA reserves the right to add, remove, or change at any time prior to or during the award period the performance measures, targets, services, caseload requirements, grant payment amounts, payment schedule, or other grant requirements.</P>
                <P>4. VA's overall performance for all grants funded from this NOFO will be measured against the same criteria and targets used for each grant.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>Denis McDonough, Secretary of Veterans Affairs, approved and signed this document on December 12, 2023, and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs.</P>
                <SIG>
                    <NAME>Jeffrey M. Martin,</NAME>
                    <TITLE>Assistant Director, Office of Regulation Policy &amp; Management, Office of General Counsel, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27691 Filed 12-15-23; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="87500"/>
                <AGENCY TYPE="S">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <DEPDOC>[OMB Control No. 2900-0556]</DEPDOC>
                <SUBJECT>Agency Information Collection Activity: VA Advance Directive: Durable Power of Attorney for Health Care and Living Will</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Veterans Health Administration, Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Veterans Health Administration (VHA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act (PRA) of 1995, Federal agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P> Written comments and recommendations on the proposed collection of information should be received on or before February 16, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit written comments on the collection of information through Federal Docket Management System (FDMS) at 
                        <E T="03">www.Regulations.gov</E>
                         or to Grant Bennett, Office of Regulations, Appeals, and Policy (10BRAP), Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420 or email to 
                        <E T="03">Grant.Bennett@va.gov.</E>
                         Please refer to “OMB Control No. 2900-0556” in any correspondence. During the comment period, comments may be viewed online through FDMS.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Maribel Aponte, Office of Enterprise and Integration, Data Governance Analytics (008), 810 Vermont Avenue NW, Washington, DC 20420, (202) 266-4688 or email 
                        <E T="03">maribel.aponte@va.gov.</E>
                         Please refer to “OMB Control No. 2900-0556” in any correspondence.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Under the PRA of 1995, Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA.</P>
                <P>With respect to the following collection of information, VHA invites comments on: (1) whether the proposed collection of information is necessary for the proper performance of VHA's functions, including whether the information will have practical utility; (2) the accuracy of VHA's estimate of the burden of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology.</P>
                <P>
                    <E T="03">Authority:</E>
                     Public Law 104-13; 44 U.S.C. 3501-3521.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Advance Directive: Durable Power of Attorney for Health Care and Living Will, VA Form 10-0137.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2900-0556.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Section 7331 of title 38, United States Code (U.S.C.), requires, in relevant part, that the Secretary of Veterans Affairs, upon the recommendation of the Under Secretary for Health, prescribe regulations to ensure, to the maximum extent practicable, that all Department of Veterans Affairs (VA) patient care be carried out only with the full and informed consent of the patient, or in appropriate cases, a representative thereof. Based on VA's interpretation of this statute and our mandate in 38 U.S.C. 7301(b) to provide a complete medical and hospital service, we recognize that patients with decision-making capacity have the right to state their treatment preferences in a VA or other valid advance directive.
                </P>
                <P>
                    VA Form 10-0137, 
                    <E T="03">VA Advance Directive: Durable Power of Attorney for Health Care and Living Will,</E>
                     is the VA recognized legal document that permits VA patients to designate a health care agent and/or specify preferences for future health care. The VA Advance Directive is invoked if a patient becomes unable to make health care decisions for himself or herself. Use of the VA Advance Directive is specified in VHA Handbook 1004.02, Advance Care Planning and Management of Advance Directives. Veterans' rights to designate a health care agent and specify health care preferences in advance are codified in 38 CFR 17.32. This regulation also obligates VA to recognize advance directives and to use the information contained therein when health care decisions must be made for a patient that has lost decision making capacity.
                </P>
                <P>VA Form 10-0137 (both English and Spanish-English language versions) has a current OMB Paperwork Reduction Act (PRA) clearance under OMB Control Number 2900-0556. In addition, 2900-0556 now includes the collection of a “Close Personal Friend Statement” for incapacitated Veterans who have not completed an Advance Directive and are in need of health care. When a Veteran is incapacitated and does not have an Advance Directive, the VA regulations allow a statement to be submitted from a “Close Personal Friend” who will be responsible for making health care decisions on behalf of the Veteran. It is estimated that 300 such statements will be collected annually. VA seeks to renew the PRA clearance for the information collection under OMB Control Number 2900-0556.</P>
                <HD SOURCE="HD1">VA Form 10-0137</HD>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals and households.
                </P>
                <P>
                    <E T="03">Estimated Annual Burden:</E>
                     171,811 hours.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Respondent:</E>
                     30 minutes.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Once annually.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     343,622.
                </P>
                <HD SOURCE="HD1">Close Personal Friend Statement</HD>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals and households.
                </P>
                <P>
                    <E T="03">Estimated Annual Burden:</E>
                     50 hours.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Respondent:</E>
                     10 minutes.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Once annually.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     300.
                </P>
                <SIG>
                    <P>By direction of the Secretary.</P>
                    <NAME>Maribel Aponte,</NAME>
                    <TITLE>VA PRA Clearance Officer, Office of Enterprise and Integration/Data Governance Analytics, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2023-27656 Filed 12-15-23; 8:45 am]</FRDOC>
        </NOTICE>
    </NOTICES>
    <VOL>88</VOL>
    <NO>241</NO>
    <DATE>Monday, December 18, 2023</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="87501"/>
            <PARTNO>Part II</PARTNO>
            <AGENCY TYPE="P">Department of Energy</AGENCY>
            <CFR>10 CFR Part 63</CFR>
            <TITLE>Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces; Final Rule</TITLE>
        </PTITLE>
        <RULES>
            <RULE>
                <PREAMB>
                    <PRTPAGE P="87502"/>
                    <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                    <CFR>10 CFR Part 430</CFR>
                    <DEPDOC>[EERE-2014-BT-STD-0031]</DEPDOC>
                    <RIN>RIN 1904-AD20</RIN>
                    <SUBJECT>Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces</SUBJECT>
                    <AGY>
                        <HD SOURCE="HED">AGENCY:</HD>
                        <P>Office of Energy Efficiency and Renewable Energy, Department of Energy.</P>
                    </AGY>
                    <ACT>
                        <HD SOURCE="HED">ACTION:</HD>
                        <P>Final rule.</P>
                    </ACT>
                    <SUM>
                        <HD SOURCE="HED">SUMMARY:</HD>
                        <P>The Energy Policy and Conservation Act, as amended (“EPCA”), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including consumer furnaces. EPCA also requires the U.S. Department of Energy (“DOE” or “the Department”) to determine periodically whether more stringent standards would be technologically feasible and economically justified, and would result in significant energy savings. In this final rule, DOE is adopting amended energy conservation standards for consumer furnaces, specifically non-weatherized gas furnaces and mobile home gas furnaces. The Department has determined that the amended energy conservation standards for the subject products would result in significant conservation of energy, and are technologically feasible and economically justified.</P>
                    </SUM>
                    <EFFDATE>
                        <HD SOURCE="HED">DATES:</HD>
                        <P/>
                        <P>
                            <E T="03">Effective date:</E>
                             The effective date of this rule is February 16, 2024.
                        </P>
                        <P>
                            <E T="03">Compliance date:</E>
                             Compliance with the amended standards established for the subject consumer furnaces in this final rule is required on and after December 18, 2028.
                        </P>
                    </EFFDATE>
                    <ADD>
                        <HD SOURCE="HED">ADDRESSES:</HD>
                        <P>
                            The docket for this rulemaking, which includes 
                            <E T="04">Federal Register</E>
                             notices, public meeting attendee lists and transcripts, comments, and other supporting documents/materials, is available for review at 
                            <E T="03">www.regulations.gov.</E>
                             All documents in the docket are listed in the 
                            <E T="03">www.regulations.gov</E>
                             index. However, not all documents listed in the index may be publicly available, such as information that is exempt from public disclosure.
                        </P>
                        <P>
                            The docket web page can be found at 
                            <E T="03">www.regulations.gov/docket/EERE-2014-BT-STD-0031.</E>
                             The docket web page contains instructions on how to access all documents, including public comments, in the docket.
                        </P>
                    </ADD>
                    <FURINF>
                        <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                        <P>
                             Ms. Julia Hegarty, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (240) 597-6737. Email: 
                            <E T="03">ApplianceStandardsQuestions@ee.doe.gov.</E>
                        </P>
                        <P>
                            Mr. Eric Stas, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC, 20585-0121. Telephone: (202) 586-5827. Email: 
                            <E T="03">Eric.Stas@hq.doe.gov.</E>
                        </P>
                        <P>
                            For further information on how to review the docket, contact the Appliance and Equipment Standards Program staff at (202) 287-1445 or by email: 
                            <E T="03">ApplianceStandardsQuestions@ee.doe.gov.</E>
                        </P>
                    </FURINF>
                </PREAMB>
                <SUPLINF>
                    <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                    <P/>
                    <HD SOURCE="HD1">Table of Contents</HD>
                    <EXTRACT>
                        <FP SOURCE="FP-2">I. Synopsis of the Final Rule</FP>
                        <FP SOURCE="FP1-2">A. Benefits and Costs to Consumers</FP>
                        <FP SOURCE="FP1-2">B. Impact on Manufacturers</FP>
                        <FP SOURCE="FP1-2">C. National Benefits and Costs</FP>
                        <FP SOURCE="FP1-2">D. Conclusion</FP>
                        <FP SOURCE="FP-2">II. Introduction</FP>
                        <FP SOURCE="FP1-2">A. Authority</FP>
                        <FP SOURCE="FP1-2">B. Background</FP>
                        <FP SOURCE="FP1-2">1. Current Standards</FP>
                        <FP SOURCE="FP1-2">2. History of Standards Rulemaking for Consumer Furnaces</FP>
                        <FP SOURCE="FP1-2">3. Current Standards in Canada</FP>
                        <FP SOURCE="FP-2">III. General Discussion</FP>
                        <FP SOURCE="FP1-2">A. General Comments</FP>
                        <FP SOURCE="FP1-2">1. Comments Regarding Authority</FP>
                        <FP SOURCE="FP1-2">2. Comments Opposing the July 2022 Proposal</FP>
                        <FP SOURCE="FP1-2">3. Comments Expressing Support for the July 2022 Proposal</FP>
                        <FP SOURCE="FP1-2">4. Regional Standards</FP>
                        <FP SOURCE="FP1-2">5. Recommendations for Analytical Changes</FP>
                        <FP SOURCE="FP1-2">6. Opportunity for Public Input</FP>
                        <FP SOURCE="FP1-2">7. Federal Financial Assistance</FP>
                        <FP SOURCE="FP1-2">8. Standby Mode and Off Mode Power Consumption Standards</FP>
                        <FP SOURCE="FP1-2">B. Product Classes and Scope of Coverage</FP>
                        <FP SOURCE="FP1-2">C. Test Procedure</FP>
                        <FP SOURCE="FP1-2">D. Technological Feasibility</FP>
                        <FP SOURCE="FP1-2">1. General</FP>
                        <FP SOURCE="FP1-2">2. Maximum Technologically Feasible Levels</FP>
                        <FP SOURCE="FP1-2">E. Energy Savings</FP>
                        <FP SOURCE="FP1-2">1. Determination of Savings</FP>
                        <FP SOURCE="FP1-2">2. Significance of Savings</FP>
                        <FP SOURCE="FP1-2">F. Economic Justification</FP>
                        <FP SOURCE="FP1-2">1. Specific Criteria</FP>
                        <FP SOURCE="FP1-2">a. Economic Impact on Manufacturers and Consumers</FP>
                        <FP SOURCE="FP1-2">b. Savings in Operating Costs Compared to Increase in Price (LCC and PBP)</FP>
                        <FP SOURCE="FP1-2">c. Energy Savings</FP>
                        <FP SOURCE="FP1-2">d. Lessening of Utility or Performance of Products</FP>
                        <FP SOURCE="FP1-2">e. Impact of Any Lessening of Competition</FP>
                        <FP SOURCE="FP1-2">f. Need for National Energy Conservation</FP>
                        <FP SOURCE="FP1-2">g. Other Factors</FP>
                        <FP SOURCE="FP1-2">2. Rebuttable Presumption</FP>
                        <FP SOURCE="FP1-2">G. Compliance Date</FP>
                        <FP SOURCE="FP1-2">H. Impact From Other Rulemakings</FP>
                        <FP SOURCE="FP-2">IV. Methodology and Discussion of Related Comments</FP>
                        <FP SOURCE="FP1-2">A. Market and Technology Assessment</FP>
                        <FP SOURCE="FP1-2">1. Scope of Coverage and Product Classes</FP>
                        <FP SOURCE="FP1-2">a. General Approach</FP>
                        <FP SOURCE="FP1-2">b. Through-the-Wall Units</FP>
                        <FP SOURCE="FP1-2">c. Condensing and Non-Condensing Furnaces</FP>
                        <FP SOURCE="FP1-2">d. Mobile Home Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">2. Technology Options</FP>
                        <FP SOURCE="FP1-2">B. Screening Analysis</FP>
                        <FP SOURCE="FP1-2">1. Screened-Out Technologies</FP>
                        <FP SOURCE="FP1-2">2. Remaining Technologies</FP>
                        <FP SOURCE="FP1-2">C. Engineering Analysis</FP>
                        <FP SOURCE="FP1-2">1. Efficiency Analysis</FP>
                        <FP SOURCE="FP1-2">a. Baseline Efficiency Level and Product Characteristics</FP>
                        <FP SOURCE="FP1-2">b. Higher Efficiency Levels</FP>
                        <FP SOURCE="FP1-2">2. Cost Analysis</FP>
                        <FP SOURCE="FP1-2">a. Teardown Analysis</FP>
                        <FP SOURCE="FP1-2">b. Cost Estimation Method</FP>
                        <FP SOURCE="FP1-2">c. Manufacturing Production Costs</FP>
                        <FP SOURCE="FP1-2">d. Cost-Efficiency Relationship</FP>
                        <FP SOURCE="FP1-2">e. Manufacturer Markup</FP>
                        <FP SOURCE="FP1-2">f. Manufacturer Interviews</FP>
                        <FP SOURCE="FP1-2">g. Electric Furnaces</FP>
                        <FP SOURCE="FP1-2">D. Markups Analysis</FP>
                        <FP SOURCE="FP1-2">E. Energy Use Analysis</FP>
                        <FP SOURCE="FP1-2">1. Building Sample</FP>
                        <FP SOURCE="FP1-2">2. Furnace Sizing</FP>
                        <FP SOURCE="FP1-2">3. Furnace Active Mode Energy Use</FP>
                        <FP SOURCE="FP1-2">a. Adjustments to Energy Use Estimates</FP>
                        <FP SOURCE="FP1-2">4. Furnace Electricity Use</FP>
                        <FP SOURCE="FP1-2">F. Life-Cycle Cost and Payback Period Analysis</FP>
                        <FP SOURCE="FP1-2">1. Product Cost</FP>
                        <FP SOURCE="FP1-2">2. Installation Cost</FP>
                        <FP SOURCE="FP1-2">a. Basic Installation Costs</FP>
                        <FP SOURCE="FP1-2">b. Additional Installation Costs for Non-Weatherized Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">c. Additional Installation Costs for Mobile Home Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">d. Contractor Survey and DOE's Sources</FP>
                        <FP SOURCE="FP1-2">e. Summary of Installation Costs</FP>
                        <FP SOURCE="FP1-2">3. Annual Energy Consumption</FP>
                        <FP SOURCE="FP1-2">4. Energy Prices</FP>
                        <FP SOURCE="FP1-2">5. Maintenance and Repair Costs</FP>
                        <FP SOURCE="FP1-2">6. Product Lifetime</FP>
                        <FP SOURCE="FP1-2">7. Discount Rates</FP>
                        <FP SOURCE="FP1-2">8. Energy Efficiency Distribution in the No-New-Standards Case</FP>
                        <FP SOURCE="FP1-2">a. Condensing Furnace Market Share in Compliance Year</FP>
                        <FP SOURCE="FP1-2">b. Market Shares of Different Condensing Furnace Efficiency Levels</FP>
                        <FP SOURCE="FP1-2">c. Assignment of Furnace Efficiency to Sampled Households</FP>
                        <FP SOURCE="FP1-2">9. Alternative Size Thresholds for Small Consumer Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">a. Accounting for Impacts of Downsized Equipment</FP>
                        <FP SOURCE="FP1-2">10. Accounting for Product Switching Under Potential Standards</FP>
                        <FP SOURCE="FP1-2">a. Product Switching Resulting From Amended Standards for Non-Weatherized Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">b. Product Switching Resulting From Amended Standards for Mobile Home Gas Furnaces</FP>
                        <FP SOURCE="FP1-2">11. Accounting for Furnace Repair as an Alternative to Replacement Under Potential Standards</FP>
                        <FP SOURCE="FP1-2">12. Payback Period Analysis</FP>
                        <FP SOURCE="FP1-2">
                            G. Shipments Analysis
                            <PRTPAGE P="87503"/>
                        </FP>
                        <FP SOURCE="FP1-2">1. Shipments Model and Inputs</FP>
                        <FP SOURCE="FP1-2">a. Historical Shipments Data</FP>
                        <FP SOURCE="FP1-2">b. Shipment Projections in No-New-Standards Case</FP>
                        <FP SOURCE="FP1-2">2. Impact of Potential Standards on Shipments</FP>
                        <FP SOURCE="FP1-2">a. Impact of Equipment Switching</FP>
                        <FP SOURCE="FP1-2">b. Impact of Repair vs. Replace</FP>
                        <FP SOURCE="FP1-2">H. National Impact Analysis</FP>
                        <FP SOURCE="FP1-2">1. Product Efficiency Trends</FP>
                        <FP SOURCE="FP1-2">2. National Energy Savings</FP>
                        <FP SOURCE="FP1-2">3. Net Present Value Analysis</FP>
                        <FP SOURCE="FP1-2">I. Consumer Subgroup Analysis</FP>
                        <FP SOURCE="FP1-2">1. Low-Income Households</FP>
                        <FP SOURCE="FP1-2">J. Manufacturer Impact Analysis</FP>
                        <FP SOURCE="FP1-2">1. Overview</FP>
                        <FP SOURCE="FP1-2">2. Government Regulatory Impact Model and Key Inputs</FP>
                        <FP SOURCE="FP1-2">a. Manufacturer Production Costs</FP>
                        <FP SOURCE="FP1-2">b. Shipments Projections</FP>
                        <FP SOURCE="FP1-2">c. Capital and Product Conversion Costs</FP>
                        <FP SOURCE="FP1-2">d. Manufacturer Markup Scenarios</FP>
                        <FP SOURCE="FP1-2">K. Emissions Analysis</FP>
                        <FP SOURCE="FP1-2">1. Air Quality Regulations Incorporated in DOE's Analysis</FP>
                        <FP SOURCE="FP1-2">L. Monetizing Emissions Impacts</FP>
                        <FP SOURCE="FP1-2">1. Monetization of Greenhouse Gas Emissions</FP>
                        <FP SOURCE="FP1-2">a. Social Cost of Carbon</FP>
                        <FP SOURCE="FP1-2">b. Social Cost of Methane and Nitrous Oxide</FP>
                        <FP SOURCE="FP1-2">2. Monetization of Other Emissions Impacts</FP>
                        <FP SOURCE="FP1-2">M. Utility Impact Analysis</FP>
                        <FP SOURCE="FP1-2">N. Employment Impact Analysis</FP>
                        <FP SOURCE="FP-2">V. Analytical Results and Conclusions</FP>
                        <FP SOURCE="FP1-2">A. Trial Standard Levels</FP>
                        <FP SOURCE="FP1-2">B. Economic Justification and Energy Savings</FP>
                        <FP SOURCE="FP1-2">1. Economic Impacts on Individual Consumers</FP>
                        <FP SOURCE="FP1-2">a. Life-Cycle Cost and Payback Period</FP>
                        <FP SOURCE="FP1-2">b. Consumer Subgroup Analysis</FP>
                        <FP SOURCE="FP1-2">c. Rebuttable Presumption Payback</FP>
                        <FP SOURCE="FP1-2">2. Economic Impacts on Manufacturers</FP>
                        <FP SOURCE="FP1-2">a. Industry Cash-Flow Analysis Results</FP>
                        <FP SOURCE="FP1-2">b. Direct Impacts on Employment</FP>
                        <FP SOURCE="FP1-2">c. Impacts on Manufacturing Capacity</FP>
                        <FP SOURCE="FP1-2">d. Impacts on Subgroups of Manufacturers</FP>
                        <FP SOURCE="FP1-2">e. Cumulative Regulatory Burden</FP>
                        <FP SOURCE="FP1-2">3. National Impact Analysis</FP>
                        <FP SOURCE="FP1-2">a. Significance of Energy Savings</FP>
                        <FP SOURCE="FP1-2">b. Net Present Value of Consumer Costs and Benefits</FP>
                        <FP SOURCE="FP1-2">c. Indirect Impacts on Employment</FP>
                        <FP SOURCE="FP1-2">4. Impact on Utility or Performance of Products</FP>
                        <FP SOURCE="FP1-2">5. Impact of Any Lessening of Competition</FP>
                        <FP SOURCE="FP1-2">6. Need of the Nation to Conserve Energy</FP>
                        <FP SOURCE="FP1-2">7. Other Factors</FP>
                        <FP SOURCE="FP1-2">8. Summary of National Economic Impacts</FP>
                        <FP SOURCE="FP1-2">C. Conclusion</FP>
                        <FP SOURCE="FP1-2">1. Benefits and Burdens of TSLs Considered for Non-Weatherized Gas Furnace and Mobile Home Gas Furnace AFUE Standards</FP>
                        <FP SOURCE="FP1-2">2. Annualized Benefits and Costs of the Adopted Standards</FP>
                        <FP SOURCE="FP-2">VI. Procedural Issues and Regulatory Review</FP>
                        <FP SOURCE="FP1-2">A. Review Under Executive Orders 12866, 13563, and 14094</FP>
                        <FP SOURCE="FP1-2">B. Review Under the Regulatory Flexibility Act</FP>
                        <FP SOURCE="FP1-2">C. Review Under the Paperwork Reduction Act</FP>
                        <FP SOURCE="FP1-2">D. Review Under the National Environmental Policy Act of 1969</FP>
                        <FP SOURCE="FP1-2">E. Review Under Executive Order 13132</FP>
                        <FP SOURCE="FP1-2">F. Review Under Executive Order 12988</FP>
                        <FP SOURCE="FP1-2">G. Review Under the Unfunded Mandates Reform Act of 1995</FP>
                        <FP SOURCE="FP1-2">H. Review Under the Treasury and General Government Appropriations Act, 1999</FP>
                        <FP SOURCE="FP1-2">I. Review Under Executive Order 12630</FP>
                        <FP SOURCE="FP1-2">J. Review Under the Treasury and General Government Appropriations Act, 2001</FP>
                        <FP SOURCE="FP1-2">K. Review Under Executive Order 13211</FP>
                        <FP SOURCE="FP1-2">L. Review Under the Information Quality Bulletin for Peer Review</FP>
                        <FP SOURCE="FP1-2">M. Congressional Notification</FP>
                        <FP SOURCE="FP-2">VII. Approval of the Office of the Secretary</FP>
                    </EXTRACT>
                    <HD SOURCE="HD1">I. Synopsis of the Final Rule</HD>
                    <P>
                        The Energy Policy and Conservation Act, Public Law 94-163, (42 U.S.C. 6291-6317, as codified) as amended (“EPCA”),
                        <SU>1</SU>
                        <FTREF/>
                         authorizes DOE to regulate the energy efficiency of a number of consumer products and certain industrial equipment. Title III, Part B 
                        <SU>2</SU>
                        <FTREF/>
                         of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles. (42 U.S.C. 6291-6309) These products include non-weatherized gas furnaces (NWGFs) and mobile home gas furnaces (MHGFs), the subject of this rulemaking. (42 U.S.C. 6292(a)(5))
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             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.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A.
                        </P>
                    </FTNT>
                    <P>Pursuant to 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 significant conservation of energy. (42 U.S.C. 6295(o)(3)(B)) EPCA specifically provides that DOE must conduct two rounds of energy conservation standard rulemakings for NWGFs and MHGFs. (42 U.S.C. 6295(f)(4)(B) and (C)) EPCA also provides that not later than six years after issuance of any final rule establishing or amending a standard, DOE must publish either a notice 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)) This rulemaking is being undertaken pursuant to the statutorily-required second round of rulemaking for NWGFs and MHGFs, and it also satisfies the statutorily-required 6-year-lookback review.</P>
                    <P>
                        In accordance with these and other relevant statutory provisions discussed in this document, DOE is adopting amended energy conservation standards for the subject consumer furnaces (
                        <E T="03">i.e.,</E>
                         NWGFs and MHGFs). The adopted standards, which are expressed in terms of minimum annual fuel utilization efficiency (“AFUE”), are shown in Table I.1. These standards apply to all products listed in Table I.1 and manufactured in, or imported into, the United States starting on December 18, 2028. For the reasons discussed in section III.A of this document, DOE is not adopting standby mode or off mode power consumption standards for NWGFs and MHGFs in this final rule.
                    </P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s50,12">
                        <TTITLE>Table I.1—AFUE Energy Conservation Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <TDESC>[Compliance Starting December 18, 2028]</TDESC>
                        <BOXHD>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">AFUE (%)</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Non-Weatherized Gas Furnaces</ENT>
                            <ENT>95.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Gas Furnaces</ENT>
                            <ENT>95.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD2">A. Benefits and Costs to Consumers</HD>
                    <P>
                        Table I.2 summarizes DOE's evaluation of the economic impacts of the adopted standards on consumers of NWGFs and MHGFs, as measured by the average life-cycle cost (“LCC”) savings and the simple payback period (“PBP”).
                        <SU>3</SU>
                        <FTREF/>
                         The average LCC savings are positive for all product classes, and the PBP is less than the average lifetime of both NWGFs and MHGFs, which is estimated to be 21.5 years (
                        <E T="03">see</E>
                         section IV.F of this document).
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             The average LCC savings refer to consumers that are affected by a standard and are measured relative to the efficiency distribution in the no-new-standards case, which depicts the market in the compliance year in the absence of new or amended standards (
                            <E T="03">see</E>
                             section IV.F of this document). The simple PBP, which is designed to compare specific efficiency levels, is measured relative to the baseline product (
                            <E T="03">see</E>
                             section IV.F of this document).
                        </P>
                    </FTNT>
                    <PRTPAGE P="87504"/>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s50,12,12">
                        <TTITLE>Table I.2—Impacts of Adopted Energy Conservation Standards on Consumers of Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">Furnace class</CHED>
                            <CHED H="1">
                                Average LCC savings
                                <LI>
                                    <E T="03">(2022$)</E>
                                </LI>
                            </CHED>
                            <CHED H="1">
                                Simple payback period
                                <LI>
                                    (
                                    <E T="03">years</E>
                                    )
                                </LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Non-Weatherized Gas Furnaces</ENT>
                            <ENT>350</ENT>
                            <ENT>7.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Gas Furnaces</ENT>
                            <ENT>616</ENT>
                            <ENT>3.2</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>DOE's analysis of the impacts of the adopted standards on consumers is described in section IV.F of this document.</P>
                    <HD SOURCE="HD2">
                        B. Impact on Manufacturers 
                        <E T="51">4</E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             All monetary values in this document are expressed in 2022 dollars (2022$).
                        </P>
                    </FTNT>
                    <P>The industry net present value (INPV) is the sum of the discounted cash flows to the industry from the base year through the end of the analysis period (2023-2058). The change in INPV is the present value of all changes in industry cash flow, including changes in production costs, conversion costs, and manufacturer profit margins. Using a real discount rate of 6.4 percent, DOE estimates that the INPV for manufacturers of NWGFs and MHGFs in the case without amended standards is $1,371.8 million in 2022$. Under the adopted standards, DOE estimates the change in INPV to range from −26.8 percent to −2.5 percent, which is a reduction of approximately −$367.3 million to −$33.8 million. In order to bring products into compliance with amended standards, it is estimated that industry will incur total conversion costs of $162.0 million (which are incorporated into the calculation of INPV).</P>
                    <P>DOE's analysis of the impacts of the adopted energy conservation standards on manufacturers is described in sections IV.J and V.B.2 of this document.</P>
                    <HD SOURCE="HD2">C. National Benefits and Costs</HD>
                    <P>
                        DOE's analyses indicate that the adopted AFUE energy conservation standards for NWGFs and MHGFs would save a significant amount of energy. Relative to the case without amended standards, the lifetime energy savings for NWGFs and MHGFs purchased in the 30-year period that begins in the anticipated year of compliance with the amended standards (2029-2058), are estimated to amount to 4.77 quadrillion British thermal units (“Btu”), or quads.
                        <SU>5</SU>
                        <FTREF/>
                         This represents a savings of 3.2 percent relative to the energy use of these products in the case without amended standards (referred to as the “no-new-standards case”).
                    </P>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The quantity refers to full-fuel-cycle (FFC) energy savings. FFC energy savings include the energy consumed in extracting, processing, and transporting primary fuels (
                            <E T="03">i.e.,</E>
                             coal, natural gas, petroleum fuels), and, thus, presents a more complete picture of the impacts of energy efficiency standards. For more information on the FFC metric, see section IV.H.2 of this document.
                        </P>
                    </FTNT>
                    <P>The cumulative net present value (“NPV”) of total consumer benefits of the amended standards for NWGFs and MHGFs ranges from $4.8 billion (at a 7-percent discount rate) to $16.3 billion (at a 3-percent discount rate). This NPV expresses the estimated total value of future operating-cost savings minus the estimated increased product and installation costs for NWGFs and MHGFs purchased in years 2029 through 2058.</P>
                    <P>
                        In addition, the adopted standards for NWGFs and MHGFs are projected to yield significant environmental benefits. DOE estimates that the amended standards will result in cumulative emission reductions (over the same period as for energy savings) of 332 million metric tons (Mt) 
                        <SU>6</SU>
                        <FTREF/>
                         of carbon dioxide (CO
                        <E T="52">2</E>
                        ), 4.3 million tons of methane (CH
                        <E T="52">4</E>
                        ), 0.38 thousand tons of nitrous oxide (N
                        <E T="52">2</E>
                        O), and 0.9 million tons of nitrogen oxides (NO
                        <E T="52">X</E>
                        ). The amended standards will result in cumulative emission increases of 10.0 thousand tons of sulfur dioxide (SO
                        <E T="52">2</E>
                        ) and 0.08 tons of mercury (Hg).
                        <SU>7</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             A metric ton is equivalent to 1.1 short tons. Results for emissions other than CO
                            <E T="52">2</E>
                             are presented in short tons.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             DOE calculated emissions reductions relative to the no-new-standards-case, which reflects key assumptions in the 
                            <E T="03">Annual Energy Outlook 2023</E>
                             (
                            <E T="03">AEO2023</E>
                            ). 
                            <E T="03">AEO2023</E>
                             represents current Federal and State legislation and final implementation of regulations as of the time of its preparation. 
                            <E T="03">See</E>
                             section IV.K of this document for further discussion of 
                            <E T="03">AEO2023</E>
                             assumptions that effect air pollutant emissions. The increase in emissions of some pollutants is due to an increase in electricity consumption.
                        </P>
                    </FTNT>
                    <P>
                        DOE estimates the value of climate benefits from a reduction in greenhouse gases (GHG) using four different estimates of the social cost of CO
                        <E T="52">2</E>
                         (SC-CO
                        <E T="52">2</E>
                        ), the social cost of methane (SC-CH
                        <E T="52">4</E>
                        ), and the social cost of nitrous oxide (SC-N
                        <E T="52">2</E>
                        O). Together these represent the social cost of GHG (SC-GHG). DOE used interim SC-GHG values developed by an Interagency Working Group on the Social Cost of Greenhouse Gases (IWG).
                        <SU>8</SU>
                        <FTREF/>
                         The derivation of these values is discussed in section IV.L.1 of this document. For presentational purposes, the climate benefits associated with the average SC-GHG at a 3-percent discount rate are estimated to be $17.3 billion. DOE does not have a single central SC-GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four sets of SC-GHG estimates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             To monetize the benefits of reducing GHG emissions this analysis uses the interim estimates presented in the 
                            <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                             published in February 2021 by the IWG. (February 2021 SC-GHG TSD) (Available at: 
                            <E T="03">www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE estimated the monetized net health benefits of NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions changes, using benefit per ton estimates from the scientific literature, as discussed in section IV.L of this document.
                        <SU>9</SU>
                        <FTREF/>
                         DOE estimated the present value of the health benefits would be $8.7 billion using a 7-percent discount rate, and $26.6 billion using a 3-percent discount rate.
                        <SU>10</SU>
                        <FTREF/>
                         DOE is currently only monetizing (for SO
                        <E T="52">2</E>
                         and NO
                        <E T="52">X</E>
                        ) particulate matter (PM
                        <E T="52">2.5</E>
                        ) precursor health benefits and (for NO
                        <E T="52">X</E>
                        ) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM
                        <E T="52">2.5</E>
                         emissions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             DOE did not monetize mercury emissions because the quantity is very small.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             DOE estimates the economic value of these emissions reductions resulting from the considered TSLs for the purpose of complying with the requirements of Executive Order 12866.
                        </P>
                    </FTNT>
                    <P>
                        Table I.3 summarizes the monetized benefits and costs expected to result from the amended standards for NWGFs and MHGFs. There are other important unquantified effects, including certain unquantified climate benefits, unquantified public health benefits from the reduction of toxic air pollutants and other emissions, unquantified energy security benefits, and distributional effects, among others.
                        <PRTPAGE P="87505"/>
                    </P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s100,20">
                        <TTITLE>Table I.3—Summary of Monetized Benefits and Costs of Adopted AFUE Energy Conservation Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <TDESC>[Trial Standard Level (TSL) 8]</TDESC>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Billion 2022$</CHED>
                        </BOXHD>
                        <ROW EXPSTB="01" RUL="s">
                            <ENT I="21">
                                <E T="02">3% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>24.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits *</ENT>
                            <ENT>17.3</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Net Health Benefits **</ENT>
                            <ENT>26.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Monetized Benefits †</ENT>
                            <ENT>68.7</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>8.5</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Net Monetized Benefits</ENT>
                            <ENT>60.2</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(0.37)—(0.03)</ENT>
                        </ROW>
                        <ROW EXPSTB="01" RUL="s">
                            <ENT I="21">
                                <E T="02">7% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>9.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits * (3% discount rate)</ENT>
                            <ENT>17.3</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Net Health Benefits **</ENT>
                            <ENT>8.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Monetized Benefits †</ENT>
                            <ENT>35.3</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>4.5</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="03">Net Monetized Benefits</ENT>
                            <ENT>30.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(0.37)—(0.03)</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             This table presents the costs and benefits associated with the subject consumer furnaces shipped in 2029-2058. These results include benefits to consumers which accrue after 2058 from the products shipped in 2029-2058.
                        </TNOTE>
                        <TNOTE>
                            * Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO
                            <E T="0732">2</E>
                            ), methane (SC-CH
                            <E T="0732">4</E>
                            ), and nitrous oxide (SC-N
                            <E T="0732">2</E>
                            O) (model average at 2.5-percent, 3-percent, and 5-percent discount rates; 95th percentile at 3-percent discount rate) (
                            <E T="03">see</E>
                             section IV.L of this document). Together these represent the global SC-GHG. For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3-percent discount rate are shown; however, DOE emphasizes the importance and value of considering the benefits calculated using all four sets of SC-GHG estimates. To monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the 
                            <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                             published in February 2021 by the IWG.
                        </TNOTE>
                        <TNOTE>
                            ** Health benefits are calculated using benefit-per-ton values for NO
                            <E T="0732">X</E>
                             and SO
                            <E T="0732">2</E>
                            . DOE is currently only monetizing (for SO
                            <E T="0732">2</E>
                             and NO
                            <E T="0732">X</E>
                            ) PM
                            <E T="0732">2.5</E>
                             precursor health benefits and (for NO
                            <E T="0732">X</E>
                            ) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM
                            <E T="0732">2.5</E>
                             emissions. 
                            <E T="03">See</E>
                             section IV.L of this document for more details.
                        </TNOTE>
                        <TNOTE>† Total and net benefits include those consumer, climate, and health benefits that can be quantified and monetized. For presentation purposes, total and net benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate.</TNOTE>
                        <TNOTE>‡ Costs include incremental equipment costs as well as installation costs.</TNOTE>
                        <TNOTE>
                            ‡‡ Operating Cost Savings are calculated based on the LCC analysis and national impact analysis as discussed in detail below. 
                            <E T="03">See</E>
                             sections IV.F and IV.H of this document. DOE's national impact analysis includes all impacts (both costs and benefits) along the distribution chain beginning with the increased costs to the manufacturer to manufacture the product and ending with the increase in price experienced by the consumer. DOE also separately conducts a detailed analysis on the impacts on manufacturers (the MIA). 
                            <E T="03">See</E>
                             section IV.J of this document. In the detailed MIA, DOE models manufacturers' pricing decisions based on assumptions regarding investments, conversion costs, cashflow, and margins. The MIA produces a range of impacts, which is the rule's expected impact on the INPV. The change in INPV is the present value of all changes in industry cash flow, including changes in production costs, capital expenditures, and manufacturer profit margins. Change in INPV is calculated using the industry weighted average cost of capital value of 6.4 percent that is estimated in the MIA (
                            <E T="03">see</E>
                             chapter 12 of the final rule technical support document (“TSD”) for a complete description of the industry weighted average cost of capital). For NWGFs and MHGFs, those values are −$367 million to −$34 million. DOE accounts for that range of likely impacts in analyzing whether a TSL is economically justified. 
                            <E T="03">See</E>
                             section V.C of this document. DOE is presenting the range of impacts to the INPV under two manufacturer markup scenarios: the Preservation of Gross Margin scenario, which is the manufacturer markup scenario used in the calculation of Consumer Operating Cost Savings in this table, and the Tiered scenario, which models a reduction of manufacturer markups due to reduced product differentiation as a result of amended standards. DOE includes the range of estimated INPV in the above table, drawing on the MIA explained further in section IV.J of this document, to provide additional context for assessing the estimated impacts of this final rule to society, including potential changes in production and consumption, which is consistent with the Office of Management and Budget's (OMB) Circular A-4 and E.O. 12866. If DOE were to include the INPV into the net benefit calculation for this final rule, the net benefits would range from $59.83 billion to $60.17 billion at 3-percent discount rate and would range from $30.43 billion to $30.77 billion at 7-percent discount rate. Parentheses ( ) indicate negative values.
                        </TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="87506"/>
                    <P>
                        The benefits and costs of the adopted standards can also be expressed in terms of annualized values. The monetary values for the total annualized net benefits are: (1) the reduced consumer operating costs, minus (2) the increase in product purchase prices and installation costs, plus (3) the value of climate and health benefits of emission reductions, all annualized.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             To convert the time-series of costs and benefits into annualized values, DOE calculated a present value in 2029, the year used for discounting the NPV of total consumer costs and savings. For the benefits, DOE calculated a present value associated with each year's shipments in the year in which the shipments occur (
                            <E T="03">e.g.,</E>
                             2030), and then discounted the present value from each year to 2029. Using the present value, DOE then calculated the fixed annual payment over a 30-year period, starting in the compliance year, that yields the same present value.
                        </P>
                    </FTNT>
                    <P>
                        The national operating cost savings are domestic private U.S. consumer monetary savings that occur as a result of purchasing the covered products and are measured for the lifetime of NWGFs and MHGFs shipped in 2029-2058. The health benefits associated with reduced emissions achieved as a result of the adopted standards are also calculated based on the lifetime of NWGFs and MHGFs shipped in 2029-2058. Total benefits for both the 3-percent and 7-percent cases are presented using the average GHG social costs with 3-percent discount rate.
                        <SU>12</SU>
                        <FTREF/>
                         Estimates of total benefits are presented for all four SC-GHG discount rates in section V.B of this document.
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             As discussed in section IV.L.1 of this document, DOE agrees with the IWG that using consumption-based discount rates (
                            <E T="03">e.g.,</E>
                             3 percent) is appropriate when discounting the value of climate impacts. Combining climate effects discounted at an appropriate consumption-based discount rate with other costs and benefits discounted at a capital-based rate (
                            <E T="03">i.e.,</E>
                             7 percent) is reasonable because of the different nature of the types of benefits being measured.
                        </P>
                    </FTNT>
                    <P>Table I.4 presents the total estimated monetized benefits and costs associated with the adopted standard, expressed in terms of annualized values. The results under the primary estimate are as follows.</P>
                    <P>
                        Using a 7-percent discount rate for consumer benefits and costs and health effects from changes in NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions, and the 3-percent discount rate case for climate benefits from reduced GHG emissions, the estimated cost of the standards adopted in this rule is $511 million per year in increased equipment costs, while the estimated annual benefits are $1,054 million in reduced equipment operating costs, $1,021 million in climate benefits, and $987 million in net health benefits. In this case, the net benefit amounts to $2,551 million per year.
                    </P>
                    <P>Using a 3-percent discount rate for all benefits and costs, the estimated cost of the adopted standards is $500 million per year in increased equipment costs, while the estimated annual benefits are $1,467 million in reduced operating costs, $1,021 million in climate benefits, and $1,574 million in net health benefits. In this case, the net benefit amounts to $3,561 million per year.</P>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s50,12,12,12">
                        <TTITLE>Table I.4—Annualized Monetized Benefits and Costs of Adopted Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <TDESC>[TSL 8]</TDESC>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Million 2022$/year</CHED>
                            <CHED H="2">
                                Primary
                                <LI>estimate</LI>
                            </CHED>
                            <CHED H="2">
                                Low-net-
                                <LI>benefits</LI>
                                <LI>estimate</LI>
                            </CHED>
                            <CHED H="2">
                                High-net-
                                <LI>benefits</LI>
                                <LI>estimate</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="03" RUL="s">
                            <ENT I="21">
                                <E T="02">3% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>1,467</ENT>
                            <ENT>1,528</ENT>
                            <ENT>1,440</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits *</ENT>
                            <ENT>1,021</ENT>
                            <ENT>1,003</ENT>
                            <ENT>1,028</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Net Health Benefits **</ENT>
                            <ENT>1,574</ENT>
                            <ENT>1,546</ENT>
                            <ENT>1,585</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total Monetized Benefits †</ENT>
                            <ENT>4,061</ENT>
                            <ENT>4,077</ENT>
                            <ENT>4,053</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>500</ENT>
                            <ENT>520</ENT>
                            <ENT>489</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Net Monetized Benefits</ENT>
                            <ENT>3,561</ENT>
                            <ENT>3,557</ENT>
                            <ENT>3,564</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                        </ROW>
                        <ROW EXPSTB="03" RUL="s">
                            <ENT I="21">
                                <E T="02">7% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>1,054</ENT>
                            <ENT>1,094</ENT>
                            <ENT>1,051</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits * (3% discount rate)</ENT>
                            <ENT>1,021</ENT>
                            <ENT>1,003</ENT>
                            <ENT>1,028</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Health Benefits **</ENT>
                            <ENT>987</ENT>
                            <ENT>972</ENT>
                            <ENT>994</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Monetized Benefits †</ENT>
                            <ENT>3,062</ENT>
                            <ENT>3,069</ENT>
                            <ENT>3,073</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>511</ENT>
                            <ENT>528</ENT>
                            <ENT>501</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Net Monetized Benefits</ENT>
                            <ENT>2,551</ENT>
                            <ENT>2,541</ENT>
                            <ENT>2,572</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             This table presents the costs and benefits associated with the subject consumer furnaces shipped in 2029-2058. These results include consumer, health, and climate benefits which accrue after 2058 from the products shipped in 2029-2058.
                        </TNOTE>
                        <TNOTE>
                            * Climate benefits are calculated using four different estimates of the global SC-GHG (
                            <E T="03">see</E>
                             section IV.L of this document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3-percent discount rate are shown; however, DOE emphasizes the importance and value of considering the benefits calculated using all four sets of SC-GHG estimates. To monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the 
                            <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                             published in February 2021 by the IWG.
                        </TNOTE>
                        <TNOTE>
                            **Health benefits are calculated using benefit-per-ton values for NO
                            <E T="0732">X</E>
                             and SO
                            <E T="0732">2</E>
                            . DOE is currently only monetizing (for SO
                            <E T="52">2</E>
                             and NO
                            <E T="0732">X</E>
                            ) PM
                            <E T="0732">2.5</E>
                             precursor health benefits and disbenefits and (for NO
                            <E T="0732">X</E>
                            ) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM
                            <E T="0732">2.5</E>
                             emissions. 
                            <E T="03">See</E>
                             section IV.L of this document for more details.
                        </TNOTE>
                        <TNOTE>† Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate.</TNOTE>
                        <TNOTE>
                            ‡ Costs include incremental equipment costs as well as installation costs.
                            <PRTPAGE P="87507"/>
                        </TNOTE>
                        <TNOTE>
                            ‡‡ Operating Cost Savings are calculated based on the LCC analysis and national impact analysis as discussed in detail below. 
                            <E T="03">See</E>
                             sections IV.F and IV.H of this document. DOE's national impact analysis includes all impacts (both costs and benefits) along the distribution chain beginning with the increased costs to the manufacturer to manufacture the product and ending with the increase in price experienced by the consumer. DOE also separately conducts a detailed analysis on the impacts on manufacturers (the MIA). 
                            <E T="03">See</E>
                             section IV.J of this document. In the detailed MIA, DOE models manufacturers' pricing decisions based on assumptions regarding investments, conversion costs, cashflow, and margins. The MIA produces a range of impacts, which is the rule's expected impact on the INPV. The change in INPV is the present value of all changes in industry cash flow, including changes in production costs, capital expenditures, and manufacturer profit margins. The annualized change in INPV is calculated using the industry weighted average cost of capital value of 6.4 percent that is estimated in the manufacturer impact analysis (
                            <E T="03">see</E>
                             chapter 12 of the final rule TSD for a complete description of the industry weighted average cost of capital). For NWGFs and MHGFs, those values are −$27 million to −$2 million. DOE accounts for that range of likely impacts in analyzing whether a TSL is economically justified. 
                            <E T="03">See</E>
                             section V.C of this document. DOE is presenting the range of impacts to the INPV under two manufacturer markup scenarios: the Preservation of Gross Margin scenario, which is the manufacturer markup scenario used in the calculation of Consumer Operating Cost Savings in this table, and the Tiered scenario, where DOE assumed amended standards would result in a reduction of product differentiation and a compression of the markup tiers. DOE includes the range of estimated annualized change in INPV in the above table, drawing on the MIA explained further in section IV.J of this document, to provide additional context for assessing the estimated impacts of this final rule to society, including potential changes in production and consumption, which is consistent with OMB's Circular A-4 and E.O. 12866. If DOE were to include the INPV into the annualized net benefit calculation for this final rule, the annualized net benefits would range from $3,534 million to $3,559 million at 3-percent discount rate and would range from $2,524 million to $2,549 million at 7-percent discount rate. Parentheses ( ) indicate negative values.
                        </TNOTE>
                    </GPOTABLE>
                    <P>DOE's analysis of the national impacts of the adopted standards is described in sections IV.H, IV.K, and IV.L of this document.</P>
                    <HD SOURCE="HD2">D. Conclusion</HD>
                    <P>DOE concludes that the standards adopted in this final rule represent the maximum improvement in energy efficiency that is technologically feasible and economically justified, and would result in the significant conservation of energy. Specifically, with regards to technological feasibility, products achieving these standard levels are already commercially available for all product classes covered by this final rule. As for economic justification, DOE's analysis shows that the benefits of the standards exceed, to a great extent, the burdens of the standards.</P>
                    <P>
                        Using a 7-percent discount rate for consumer benefits and costs and NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions reduction benefits, and a 3-percent discount rate case for GHG social costs, the estimated cost of the standards for NWGFs and MHGFs is $511 million per year in increased product costs, while the estimated annual benefits are $1,054 million in reduced product operating costs, $1,021 million in climate benefits, and $987 million in health benefits. The net benefit amounts to $2,551 million per year. DOE notes that the net benefits are substantial even in the absence of the climate benefits,
                        <SU>13</SU>
                        <FTREF/>
                         and DOE would adopt the same standards in the absence of such benefits.
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             The information on climate benefits is provided in compliance with Executive Order 12866.
                        </P>
                    </FTNT>
                    <P>
                        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.
                        <SU>14</SU>
                        <FTREF/>
                         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.
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             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).
                        </P>
                    </FTNT>
                    <P>As previously mentioned, the standards are projected to result in estimated national energy savings of 4.77 quad (full-fuel-cycle (“FFC”)), the equivalent of the primary annual energy use of 51 million homes. Based on these findings, DOE has determined that the energy savings from the standard levels adopted in this final rule are “significant” within the meaning of 42 U.S.C. 6295(o)(3)(B). A more detailed discussion of the basis for these conclusions is contained in the remainder of this document and the accompanying technical support document (“TSD”).</P>
                    <HD SOURCE="HD1">II. Introduction</HD>
                    <P>The following section briefly discusses the statutory authority underlying this final rule, as well as some of the relevant historical background related to the amended standards for consumer NWGFs and MHGFs.</P>
                    <HD SOURCE="HD2">A. Authority</HD>
                    <P>EPCA authorizes DOE to regulate the energy efficiency of a number of consumer products and certain industrial equipment. Title III, Part B of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles. (42 U.S.C. 6291-6309) These products include the consumer furnaces that are the subject of this document. (42 U.S.C. 6292(a)(5)) EPCA prescribed energy conservation standards for these products (42 U.S.C. 6295(f)(1) and (2)), and directs DOE to conduct future rulemakings to determine whether to amend these standards. (42 U.S.C. 6295(f)(4)) EPCA further provides that, not later than six years after the issuance of any final rule establishing or amending a standard, 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)(1))</P>
                    <P>The energy conservation program under EPCA consists essentially of four parts: (1) testing, (2) labeling, (3) the establishment of Federal energy conservation standards, and (4) certification and enforcement procedures. Relevant provisions of the EPCA specifically include definitions (42 U.S.C. 6291), coverage (42 U.S.C. 6292), test procedures (42 U.S.C. 6293), labeling provisions (42 U.S.C. 6294), energy conservation standards (42 U.S.C. 6295), and the authority to require information and reports from manufacturers (42 U.S.C. 6296).</P>
                    <P>Federal energy efficiency requirements for covered products established under EPCA generally supersede State laws and regulations concerning energy conservation testing, labeling, and standards. (42 U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of Federal preemption in limited instances for particular State laws or regulations, in accordance with the procedures and other provisions set forth under EPCA. (42 U.S.C. 6297(d))</P>
                    <P>
                        Subject to certain statutory criteria and conditions, DOE is required to develop test procedures that are reasonably designed to produce test results that measure the energy efficiency, energy use, or estimated annual operating cost of each covered product during a representative average use cycle and that are not unduly burdensome to conduct. (42 U.S.C. 6293(b)(3), 6295(o)(3)(A), and 6295(r)) Manufacturers of covered products must use the prescribed Federal test procedure as the basis for: (1) certifying to DOE that their products comply with 
                        <PRTPAGE P="87508"/>
                        the applicable energy conservation standards adopted pursuant to EPCA and (2) making representations regarding the energy use or efficiency of those products. (42 U.S.C. 6293(c) and 6295(s)) Similarly, DOE must use these test procedures to determine whether the products comply with the relevant energy conservation standards promulgated under EPCA. (42 U.S.C. 6295(s)) The DOE test procedures for consumer furnaces appear at title 10 of the Code of Federal Regulations (CFR), part 430, subpart B, appendix N.
                    </P>
                    <P>DOE must follow specific statutory criteria for prescribing new or amended energy conservation standards for covered products, including consumer furnaces. Any new or amended standard for a covered product must be designed to achieve the maximum improvement in energy efficiency that the Secretary of Energy determines is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A) and 6295(o)(3)(B)) Furthermore, DOE may not adopt any standard that would not result in the significant conservation of energy. (42 U.S.C. 6295(o)(3))</P>
                    <P>Moreover, DOE may not prescribe a standard: (1) for certain products, including NWGFs and MHGFs, if no test procedure has been established for the product, or (2) if DOE determines by rule that the standard is not technologically feasible or economically justified. (42 U.S.C. 6295(o)(3)(A)-(B)) In deciding whether a proposed standard is economically justified, DOE must determine whether the benefits of the standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must make this determination after receiving comments on the proposed standard, and by considering, to the greatest extent practicable, the following seven statutory factors:</P>
                    <P>(1) The economic impact of the standard on manufacturers and on consumers of the products subject to the standard;</P>
                    <P>(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 of, initial charges for, or maintenance expenses of, the covered products which are likely to result from the imposition of the standard;</P>
                    <P>(3) The total projected amount of energy (or as applicable, water) savings likely to result directly from the imposition of the standard;</P>
                    <P>(4) Any lessening of the utility or the performance of the covered products likely to result from the imposition of the standard;</P>
                    <P>(5) The impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard;</P>
                    <P>(6) The need for national energy and water conservation; and</P>
                    <P>(7) Other factors the Secretary of Energy (Secretary) considers relevant.</P>
                    <P>(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))</P>
                    <P>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))</P>
                    <P>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 the Secretary finds (and publishes such finding) that 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 at the time of the Secretary's finding. (42 U.S.C. 6295(o)(4))</P>
                    <P>
                        Additionally, EPCA specifies requirements when promulgating an energy conservation standard for a covered product that has two or more subcategories that warrant separate product classes and energy conservation standards with a different level of energy efficiency or energy use than that which would apply for such group of covered products which have the same function or intended use. DOE must specify a different standard level for a type or class of products 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 such a feature and other factors DOE deems appropriate. 
                        <E T="03">Id.</E>
                         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))
                    </P>
                    <P>
                        Pursuant to amendments contained in the Energy Independence and Security Act of 2007 (EISA 2007), Public Law 110-140, DOE may consider the establishment of a regional energy conservation standard for furnaces (except boilers). (42 U.S.C. 6295(o)(6)) Specifically, in addition to a base national standard for a product, DOE may establish for furnaces a single more-restrictive regional standard. (42 U.S.C. 6295(o)(6)(B)) The region must include only contiguous States (with the exception of Alaska and Hawaii, which may be included in a region with which they are not contiguous), and each State may be placed in only one region (
                        <E T="03">i.e.,</E>
                         an entire State cannot simultaneously be placed in two regions, nor can it be divided between two regions).
                        <SU>15</SU>
                        <FTREF/>
                         (42 U.S.C. 6295(o)(6)(C)) Further, DOE can establish the additional regional standard for furnaces only: (1) where doing so would produce significant energy savings in comparison to a single national standard; (2) if the regional standard is economically justified; and (3) after considering the impact of such standard on consumers, manufacturers, and other market participants, including product distributors, dealers, contractors, and installers. (42 U.S.C. 6295(o)(6)(D))
                    </P>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             DOE notes that the regional standards provision at 42 U.S.C. 6295(o)(6) also applies to central air conditioners and heat pumps, products for which the statute permits either one or two regional standards. This is in contrast to furnaces, for which EPCA permits only one regional standard. As a result, the statute frequently employs plural language in these provisions.
                        </P>
                    </FTNT>
                    <P>
                        Finally, pursuant to the amendments contained in EISA 2007, 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 if doing so would be consistent with section 6295(o). (42 U.S.C. 6295(gg)(3)(A)-(B)) DOE's current test procedures for consumer furnaces address standby mode and off mode 
                        <PRTPAGE P="87509"/>
                        energy use for all covered consumer furnaces. DOE's energy conservation standards address standby mode and off mode energy use only for non-weatherized oil-fired and electric furnaces. 10 CFR 430.32(e)(1)(iii). In the NOPR published in the 
                        <E T="04">Federal Register</E>
                         on July 7, 2022 (“the July 2022 NOPR”), DOE proposed to specify new energy conservation standards to address the standby mode and off mode energy use of NWGFs and MHGFs. 87 FR 40590, 40706. However, for the reasons discussed in section III.A.8 of this document, DOE has concluded that it would not be consistent with section 6295(o) to adopt standby mode and off mode energy standards for NWGFs and MHGFs in this final rule. DOE will continue to investigate and analyze appropriate standby mode and off mode energy consumption standards for these products in a future rulemaking.
                    </P>
                    <HD SOURCE="HD2">B. Background</HD>
                    <HD SOURCE="HD3">1. Current Standards</HD>
                    <P>
                        The most recent energy conservation standards for NWGFs and MHGFs were adopted in a final rule published in the 
                        <E T="04">Federal Register</E>
                         on November 19, 2007 (“November 2007 Final Rule”), in which 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 NWGFs, to 81-percent AFUE for weatherized gas furnaces, to 80-percent AFUE for MHGFs, and to 82-percent AFUE for non-weatherized oil-fired furnaces.
                        <SU>16</SU>
                        <FTREF/>
                         72 FR 65136, 65169. Based on market assessment and the standard levels under consideration (and that were ultimately adopted), the November 2007 Final Rule established standards without regard to the certified input capacity of a furnace. 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             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 (Oct. 6, 2006). Thus, the proposed standards that were ultimately adopted in the November 2007 Final Rule only applied to non-weatherized oil-fired furnaces.
                        </P>
                    </FTNT>
                    <P>
                        Following a series of publications described in section II.B.2 of this document and discussed in further detail in the July 2022 NOPR (
                        <E T="03">see</E>
                         87 FR 40590, 40601-40602 (July 7, 2022)), required compliance with the standards established in the November 2007 Final Rule for these products began on November 19, 2015. The standards currently applicable to all consumer furnaces, including the two product classes for which DOE is amending standards in this final rule, are set forth in DOE's regulations at 10 CFR 430.32(e)(1)(ii). Table II.1 presents the currently applicable standards for NWGFs and MHGFs and the date on which compliance with that standard was required.
                    </P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s50,12,12">
                        <TTITLE>Table II.1—Current Federal Energy Conservation Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">
                                Minimum
                                <LI>annual fuel</LI>
                                <LI>utilization</LI>
                                <LI>efficiency </LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Compliance date</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Non-weatherized Gas</ENT>
                            <ENT>80</ENT>
                            <ENT>11/19/2015</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Gas</ENT>
                            <ENT>80</ENT>
                            <ENT>11/19/2015</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">2. History of Standards Rulemaking for Consumer Furnaces</HD>
                    <P>
                        Given the somewhat complicated interplay of recent DOE rulemakings and statutory provisions related to consumer furnaces, DOE provides the following regulatory history as background leading to this document. Amendments to EPCA in the National Appliance Energy Conservation Act of 1987 (“NAECA”), Public Law 100-12, established EPCA's original energy conservation standards for furnaces, consisting of the minimum AFUE levels for mobile home furnaces 
                        <SU>17</SU>
                        <FTREF/>
                         and for all other furnaces except “small” gas furnaces. (42 U.S.C. 6295(f)(1)-(2)) The original standards established a minimum AFUE of 75 percent for mobile home furnaces and 78 percent for all other furnaces. Pursuant to 42 U.S.C. 6295(f)(1)(B), in a final rule published in the 
                        <E T="04">Federal Register</E>
                         on November 17, 1989 (“the November 1989 Final Rule”), DOE adopted a mandatory minimum AFUE level for “small” furnaces. 54 FR 47916. The standards established by NAECA and the November 1989 Final Rule for “small” gas furnaces are still in effect for mobile home oil-fired furnaces, weatherized oil-fired furnaces, and electric furnaces.
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             DOE notes that prior to June 15, 1976, prefabricated homes that were built in a factory were commonly referred to as “mobile homes,” as reflected in the terminology used in EPCA. However, such dwellings built after that date came to be known as “manufactured homes” and have to meet specific construction standards required by the U.S. Department of Housing and Urban Development (HUD) Code. (24 CFR part 3280) DOE's mobile home furnace standards apply to furnaces designed for and intended to be used in both mobile and manufactured homes that meet DOE's “mobile home furnace” definition at 10 CFR 430.2.
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to EPCA, DOE was required to conduct two rounds of rulemaking to consider amended energy conservation standards for furnaces. (42 U.S.C. 6295(f)(4)(B) and (C)) In satisfaction of this first round of amended standards rulemaking under 42 U.S.C. 6295(f)(4)(B), as noted previously, DOE published the November 2007 Final Rule that revised these standards for most furnaces, but left them in place for two product classes (
                        <E T="03">i.e.,</E>
                         mobile home oil-fired furnaces and weatherized oil-fired furnaces).
                        <SU>18</SU>
                        <FTREF/>
                         The standards amended in the November 2007 Final Rule were to apply to furnaces manufactured or imported on and after November 19, 2015; this compliance date was consistent with the 8-year statutory lead time provided under 42 U.S.C. 6295(f)(4)(B). 72 FR 65136 (Nov. 19, 2007). The energy conservation standards in the November 2007 Final Rule consist of a minimum AFUE level for each of the six classes of furnaces. 
                        <E T="03">Id.</E>
                         at 72 FR 65169. As previously noted, based on the market analysis for the November 2007 Final Rule and the standards established under that rule, the November 2007 Final Rule 
                        <PRTPAGE P="87510"/>
                        eliminated the distinction between furnaces based on their certified input capacity (
                        <E T="03">i.e.,</E>
                         the standards applicable to “small” furnaces were established at the same level and as part of their appropriate class of furnace generally). 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             The November 2007 Final Rule adopted amended standards for “oil-fired furnaces” generally. However, on July 28, 2008, DOE published a final rule technical amendment in the 
                            <E T="04">Federal Register</E>
                             that clarified that the amended standards adopted in the November 2007 Final Rule for oil-fired furnaces did not apply to mobile home oil-fired furnaces and weatherized oil-fired furnaces; rather they were only applicable for non-weatherized oil-fired furnaces. 73 FR 43611, 43613.
                        </P>
                    </FTNT>
                    <P>
                        On June 27, 2011, DOE published a direct final rule (“DFR”) in the 
                        <E T="04">Federal Register</E>
                         (“June 2011 DFR”) revising the energy conservation standards for residential furnaces pursuant to the voluntary remand in 
                        <E T="03">State of New York, et al.</E>
                         v. 
                        <E T="03">Department of Energy, et al.</E>
                         76 FR 37408 (June 27, 2011). In the June 2011 DFR, DOE considered the amendment of the same six product classes considered in the November 2007 Final Rule analysis plus electric furnaces. 
                        <E T="03">Id. at</E>
                         76 FR 37445. The June 2011 DFR amended the existing AFUE energy conservation standards for NWGFs, MHGFs, and non-weatherized oil furnaces, and amended the compliance date (but left the existing standards in place) for weatherized gas furnaces.
                        <SU>19</SU>
                        <FTREF/>
                          
                        <E T="03">Id.</E>
                         at 76 FR 37410. The existing AFUE standards were left in place for three classes of consumer furnaces (
                        <E T="03">i.e.,</E>
                         weatherized oil-fired furnaces, mobile home oil-fired furnaces, and electric furnaces). The June 2011 DFR also established electrical standby mode and off mode energy conservation standards for NWGFs (including mobile home furnaces), non-weatherized oil furnaces (including mobile home furnaces), and electric furnaces. DOE confirmed the standards and compliance dates promulgated in the June 2011 DFR in a notice of effective date and compliance dates published in the 
                        <E T="04">Federal Register</E>
                         on October 31, 2011. 76 FR 67037.
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             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).
                        </P>
                    </FTNT>
                    <P>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 non-weatherized oil furnaces. Similarly, the amended compliance date for weatherized gas furnaces in the June 2011 DFR superseded the compliance date in the November 2007 Final Rule.</P>
                    <P>
                        Following DOE's adoption of the June 2011 DFR, the American Public Gas Association (“APGA”) filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) to invalidate the DOE rule as it pertained to NWGFs. Petition for Review, 
                        <E T="03">American Public Gas Ass'n, et al.</E>
                         v. 
                        <E T="03">U.S. Dep't of Energy, et al.,</E>
                         No. 11-1485 (D.C. Cir. filed Dec. 23, 2011).
                        <SU>20</SU>
                        <FTREF/>
                         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 a motion that approved a settlement agreement that was reached between DOE and APGA, in which DOE agreed to a partial vacatur and remand of the NWGFs and MHGFs portions of the June 2011 DFR in order to conduct further notice-and-comment rulemaking. Accordingly, the Court's order vacated the June 2011 DFR in part (
                        <E T="03">i.e.,</E>
                         those portions relating to NWGFs and MHGFs) and remanded to the agency for further rulemaking.
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             After APGA filed its petition for review on December 23, 2011, various entities subsequently intervened.
                        </P>
                    </FTNT>
                    <P>
                        As part of the settlement, DOE agreed to use best efforts to issue a notice of proposed rulemaking within one year of the remand, and to issue a final rule within the later of two years of the issuance of remand, or one year of the issuance of the proposed rule, including at least a 90-day public comment period. Due to the extensive and recent rulemaking history for residential furnaces, as well as the associated opportunities for notice and comment described previously, DOE forwent the typical earlier rulemaking stages (
                        <E T="03">e.g.,</E>
                         framework document, preliminary analysis) and instead published a NOPR in the 
                        <E T="04">Federal Register</E>
                         on March 12, 2015 (“March 2015 NOPR”). 80 FR 13120. DOE concluded that there was a sufficient recent exchange of information between interested parties and DOE regarding the energy conservation standards for residential furnaces such as to allow for this proceeding to move directly to the NOPR stage. Moreover, under 42 U.S.C. 6295(p) and 5 U.S.C. 553(b) and (c), EPCA requires that DOE publish only a notice of proposed rulemaking and accept public comments before amending energy conservation standards in a final rule (
                        <E T="03">i.e.,</E>
                         DOE is not required by statute to conduct any earlier rulemaking stages).
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             This aligns with the direction provided in the final rule published in the 
                            <E T="04">Federal Register</E>
                             on December 13, 2021, regarding the procedures, interpretations, and policies for consideration in new or revised energy conservation standards and test procedures for consumer products and commercial/industrial equipment (December 2021 Final Rule). 86 FR 70892, 70922.
                        </P>
                    </FTNT>
                    <P>In the March 2015 NOPR, DOE proposed adopting a national standard of 92-percent AFUE for all NWGFs and MHGFs. 80 FR 13120, 13198 (March 12, 2015). In response, while some stakeholders supported the national 92-percent AFUE standard, others opposed the proposed standards and encouraged DOE to withdraw the March 2015 NOPR.</P>
                    <P>
                        Multiple parties suggested that DOE should create a separate product class for furnaces based on input capacity and set lower standards for “small furnaces” in order to mitigate some of the negative impacts of the proposed standards. Among other reasons, commenters suggested that such an approach would reduce the number of low-income consumers switching to electric heat due to higher installation costs, because those consumers typically have smaller homes in which a furnace with a lower input capacity would be installed and, therefore, would not be impacted if a condensing standard were adopted only for higher-input-capacity furnaces. To explore the potential impacts of such an approach, DOE published a notice of data availability (“NODA”) in the 
                        <E T="04">Federal Register</E>
                         on September 14, 2015 (“September 2015 NODA”). 80 FR 55038. The September 2015 NODA contained analysis that considered thresholds for defining the small NWGF product class from 45 thousand British thermal units per hour (“kBtu/h”) to 65 kBtu/h certified input capacity and maintaining a non-condensing 80-percent AFUE standard for that product class, while increasing the standard to a condensing level (
                        <E T="03">i.e.,</E>
                         either 90-percent, 92-percent, 95-percent, or 98-percent AFUE) for large NWGFs. 
                        <E T="03">Id.</E>
                         at 80 FR 55042. The results indicated that life-cycle cost savings increased and that the share of consumers with net costs decreased as a result of an 80-percent AFUE standard for a small NWGF product class. 
                        <E T="03">Id.</E>
                         at 80 FR 55042-55044. It also showed that national energy savings increased because fewer consumers switched to electric heat.
                        <SU>22</SU>
                        <FTREF/>
                          
                        <E T="03">Id.</E>
                         at 80 FR 55038, 55044.
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             In terms of full-fuel-cycle energy, switching from gas to electricity increases energy use because of the losses in thermal electricity generation.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, DOE published a supplemental notice of proposed rulemaking (“SNOPR”) in the 
                        <E T="04">
                            Federal 
                            <PRTPAGE P="87511"/>
                            Register
                        </E>
                         on September 23, 2016 (“September 2016 SNOPR”) that proposed separate standards for small and large NWGFs.
                        <SU>23</SU>
                        <FTREF/>
                         81 FR 65720. For NWGFs with input capacities of 55 kBtu/h or less, DOE proposed to maintain the standard at 80-percent AFUE. 
                        <E T="03">Id.</E>
                         at 81 FR 65852. For all other NWGFs and for all MHGFs, DOE proposed a standard of 92-percent AFUE. 
                        <E T="03">Id.</E>
                         As was the case in the September 2015 NODA, a small NWGF product class was shown to reduce the number of consumers experiencing net costs due to higher installation costs for condensing furnaces or switching to electric heat. In the September 2016 SNOPR, DOE initially determined that the combination of a 55 kBtu/h product class threshold and a 92-percent AFUE standard for all NWGFs above that size appropriately balanced the costs and benefits. DOE also noted in that SNOPR that a 60 kBtu/h threshold may also be economically justified based on the analysis, and sought further comment regarding the particular size threshold proposed. 81 FR 65720, 65755 (Sept. 23, 2016).
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             DOE initially provided 60 days for comment on the SNOPR, and subsequently reopened the comment period an additional 30 days. 81 FR 87493 (Dec. 5, 2016).
                        </P>
                    </FTNT>
                    <P>In addition, for the March 2015 NOPR and September 2016 SNOPR, DOE analyzed energy conservation standards for the standby mode and off mode energy use of NWGFs and MHGFs, as required by EPCA. (42 U.S.C. 6295(gg)(3); 80 FR 13120, 13198; 81 FR 65720, 65759-65760) In both the March 2015 NOPR and the September 2016 SNOPR, DOE proposed a maximum energy use of 8.5 watts (“W”) in both standby mode and off mode for NWGFs and MHGFs. 80 FR 13120, 13198 (March 12, 2015) and 81 FR 65720, 65852 (Sept. 23, 2016).</P>
                    <P>
                        On January 15, 2021, in response to a petition for rulemaking 
                        <SU>24</SU>
                        <FTREF/>
                         submitted by the American Public Gas Association, Spire, Inc., the Natural Gas Supply Association, the American Gas Association, and the National Propane Gas Association (the “Gas Industry Petition”), DOE published a final interpretive rule (“January 2021 Final Interpretive Rule”) 
                        <SU>25</SU>
                        <FTREF/>
                         in the 
                        <E T="04">Federal Register</E>
                        , determining that, in the context of residential furnaces, commercial water heaters, and similarly situated products/equipment, use of non-condensing technology (and associated venting) constitutes a performance-related “feature” under EPCA that cannot be eliminated through adoption of an energy conservation standard. 86 FR 4776. Correspondingly, on the same day, DOE published in the 
                        <E T="04">Federal Register</E>
                         a notification withdrawing the March 2015 NOPR and the September 2016 SNOPR for NWGFs and MHGFs, because DOE determined that those rulemaking documents were inconsistent with its revised interpretation. 86 FR 3873 (Jan. 15, 2021).
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             DOE published the Gas Industry Petition in the 
                            <E T="04">Federal Register</E>
                             for comment on November 1, 2018. 83 FR 54838.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             DOE published a proposed interpretive rule (“July 2019 Proposed Interpretive Rule”) in the 
                            <E T="04">Federal Register</E>
                             for comment on July 11, 2019. 84 FR 22011. DOE also published a supplemental proposed interpretive rule (“September 2020 Supplemental Proposed Interpretive Rule”) in the 
                            <E T="04">Federal Register</E>
                             for comment on September 24, 2020. 85 FR 60090.
                        </P>
                    </FTNT>
                    <P>
                        The interpretation adopted by the January 2021 Final Interpretive Rule reflected a significant departure from DOE's previous and long-standing interpretation (reflected in practice through decades of rulemaking and explicitly discussed in the December 2021 Final Interpretive Rule, with examples) that the type of technology (
                        <E T="03">e.g.,</E>
                         non-condensing technology (and associated venting)) used to generate a furnace's heat did not provide a distinct consumer utility as would constitute a performance-related “feature” pursuant to 42 U.S.C. 6295(o)(4) that DOE may not eliminate by way of an energy conservation standard. The January 2021 Final Interpretive Rule justified this change by focusing on: (1) the potential space constraints arising from switching from non-condensing furnaces (and associated venting) to condensing furnaces (and associated venting) in replacement applications, including certain situations where such changes may not be possible; (2) the potential need for significant and unwelcome physical modifications to a home or business (
                        <E T="03">e.g.,</E>
                         by adding new venting into the living/commercial space or decreasing closet or other storage/retail space), thereby impacting consumer utility, and (3) a policy decision to remain neutral regarding competing energy sources in the marketplace and maintaining a broader range of consumer choice for the relevant appliances across fuel types. 86 FR 4776, 4816 (Jan. 15, 2021). (See the January 2021 Final Interpretive Rule for a more complete discussion of DOE's rationale for its changed interpretation.) The anticipated result of DOE's change in interpretation was that the Department would set separate product classes and standards for condensing and non-condensing furnaces in its ongoing furnaces energy conservation standards rulemaking.
                    </P>
                    <P>
                        On January 20, 2021, the President issued Executive Order 13990, “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.” 86 FR 7037 (Jan. 25, 2021). Section 1 of that order lists several policies related to the protection of public health and the environment, including reducing greenhouse gas emissions and bolstering the Nation's resilience to climate change. 
                        <E T="03">Id.</E>
                         at 86 FR 7037. Section 2 of the order also asks all agencies to review “existing regulations, orders, guidance documents, policies, and any other similar agency actions (“agency actions”) promulgated, issued, or adopted between January 20, 2017, and January 20, 2021, that are or may be inconsistent with, or present obstacles to, [these policies].” 
                        <E T="03">Id.</E>
                         Agencies are then directed, as appropriate and consistent with applicable law, to consider suspending, revising, or rescinding these agency actions and to immediately commence work to confront the climate crisis. 
                        <E T="03">Id.</E>
                         In light of the requirements under the EPCA, and in a manner consistent with E.O. 13990, DOE undertook a re-evaluation of the final interpretation and withdrawal of proposed rulemakings published in the 
                        <E T="04">Federal Register</E>
                         on January 15, 2021, and DOE published a proposed interpretive rule in the 
                        <E T="04">Federal Register</E>
                         on August 27, 2021, to once again address this matter. 86 FR 48049.
                    </P>
                    <P>
                        Following the re-evaluation of the January 2021 Final Interpretive Rule and consideration of public comments, DOE published a final interpretive rule in the 
                        <E T="04">Federal Register</E>
                         on December 29, 2021 (“December 2021 Final Interpretive Rule”),
                        <SU>26</SU>
                        <FTREF/>
                         that returns to DOE's previous and long-standing interpretation (in effect prior to the January 2021 Final Interpretive Rule).
                        <SU>27</SU>
                        <FTREF/>
                         86 FR 73947. Residential furnaces were one of the two primary focuses of the December 2021 Final Interpretive Rule (along with commercial water heaters), and in that document, DOE offered an extensive explanation for why it does not view non-condensing technology and associated venting to be a performance-related feature warranting 
                        <PRTPAGE P="87512"/>
                        a separate product class for such furnaces. As noted previously, in the December 2021 Final Interpretive Rule, DOE also included examples in other rules that are consistent with DOE's previous and long-standing interpretation. As DOE explained, non-condensing technology is not a performance-related feature because it does not affect the consumer utility of the product (
                        <E T="03">i.e.,</E>
                         providing heat, irrespective of venting type). DOE noted the availability of technological alternatives for difficult installation situations and explained that it would properly account for the costs of such installations when considering a standard's economic justification. DOE has considered concerns regarding specific installation circumstances in the context of this product-specific rulemaking. 
                        <E T="03">See</E>
                         86 FR 73947 (Dec. 29, 2021).
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             DOE published a proposed interpretive rule (“August 2021 Proposed Interpretive Rule”) in the 
                            <E T="04">Federal Register</E>
                             for comment on August 27, 2021. 86 FR 48049.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             Prior to the January 2021 Final Interpretive Rule, DOE had not had a formal interpretation of EPCA's “features” provision at 42 U.S.C. 6295(o)(4), but instead, it had examined the consumer utility of potential appliance features in the context of individual energy conservation standards rulemakings. These rulemakings, which outline relevant DOE precedent prior to the January 2021 Final Interpretive Rule, are presented in some detail in the December 2021 Final Interpretive Rule (
                            <E T="03">see</E>
                             86 FR 73947, 73952-73958 (Dec. 29, 2021)).
                        </P>
                    </FTNT>
                    <P>
                        In conducting its review of the January 2021 Final Interpretive Rule under the requirements of EPCA and in a manner consistent with E.O. 13990, DOE ultimately arrived at a different determination in the December 2021 Final Interpretive Rule, based on a policy that emphasizes furtherance of the congressional purpose of improving the energy efficiency of covered products and equipment. DOE reasoned that maintaining less-efficient technologies which do not provide distinct consumer utility is contrary to the purposes of EPCA “to conserve energy supplies through energy conservation programs, and, where necessary, the regulation of certain energy uses” (42 U.S.C. 6201(4)) and “to provide for improved energy efficiency of . . . major appliances, and certain other consumer products” (42 U.S.C. 6201(5)). Such purposes are further reflected in the specific provisions of EPCA granting DOE authority to prescribe energy conservation standards designed to achieve the maximum improvement in energy efficiency, which are technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)). As discussed more fully in the December 2021 Final Interpretive Rule, DOE concluded that the concerns motivating its changed interpretation reflected in the January 2021 Final Interpretive Rule (
                        <E T="03">i.e.,</E>
                         space constraints/difficult installation situations, the potential for unwanted physical modifications, and maintaining consumer choice of appliances across fuel types) could be addressed by other means. DOE found that these issues could be resolved through available technological solutions or by switching to an appliance using alternative technologies (
                        <E T="03">e.g.,</E>
                         a heat pump). 86 FR 73947, 73960 (Dec. 29, 2021). DOE further concluded that the potential for fuel switching is likely to be limited and that there will continue to be a range of product availability across fuel types. 
                        <E T="03">Id.</E>
                         at 86 FR 73964.
                    </P>
                    <P>
                        Given the binary nature of the question at hand—whether non-condensing technology (and associated venting) is or is not a “feature” under 42 U.S.C. 6295(o)(4)—DOE did not identify any other policy alternatives on this matter. DOE further notes that it does not anticipate any strong reliance interests associated with the rescinded January 2021 Final Interpretive Rule, given that it was rescinded less than a year after its issuance and the fact that it was never applied in the context of any energy conservation standards rulemaking for a specific appliance.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             A number of States and municipalities filed a legal challenge to the January 2021 Final Interpretive Rule in the U.S. Circuit Court of Appeals for the Second Circuit on March 16, 2021. 
                            <E T="03">State of New York, et al.</E>
                             v. 
                            <E T="03">U.S. Dep't of Energy,</E>
                             No. 21-602 (2d Cir. filed March 16, 2021).
                        </P>
                    </FTNT>
                    <P>
                        On July 7, 2022, DOE published the July 2022 NOPR in the 
                        <E T="04">Federal Register</E>
                        . 87 FR 40590. Consistent with the December 2021 Final Interpretive Rule, in conducting the analysis for the July 2022 NOPR, DOE did not consider identifying separate product classes based on condensing technologies and associated venting systems when analyzing potential energy conservation standards. Based on the results of the NOPR analysis, DOE proposed amended AFUE standards at 95-percent AFUE for both NWGFs and MHGFs, as well as an 8.5 W energy use standard for standby mode and off mode energy consumption. 87 FR 40590, 40706 (July 7, 2022). Additionally, on August 30, 2022, DOE published in the 
                        <E T="04">Federal Register</E>
                         a Notice of Data Availability (NODA) (August 2022 NODA) announcing an extension of the comment period, making available a revised version of the LCC spreadsheet supporting the July 2022 NOPR, and announcing a public meeting webinar on September 6, 2022, to assist stakeholders with operation of the LCC spreadsheet. 87 FR 52861.
                    </P>
                    <P>
                        DOE received 3,636 comments in response to the July 2022 NOPR and August 2022 NODA from the interested parties listed in Table II.2. (Note that of these total comments, 3,552 comments were “form letter” email submissions contained in docket entry EERE-2014-BT-STD-0031-0348. Additionally, several commenters submitted more than one comment to the docket.)
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Although the stakeholders who authored the comments EERE-2014-BT-STD-0031-0330, EERE-2014-BT-STD-0031-0345, EERE-2014-BT-STD-0031-0356, and EERE-2014-BT-STD-0031-0362 refer to themselves as the “Joint Requestors,” Atmos Energy was not listed as a contributor to EERE-2014-BT-STD-0031-0330. Therefore, to distinguish the groups of authors, the authors of EERE-2014-BT-STD-0031-0330 are herein referred to as the “Joint Gas Commenters.”
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s100,r50,15,r50">
                        <TTITLE>Table II.2—July 2022 NOPR Comments</TTITLE>
                        <BOXHD>
                            <CHED H="1">Commenter(s)</CHED>
                            <CHED H="1">Abbreviation</CHED>
                            <CHED H="1">Comment number in the Docket</CHED>
                            <CHED H="1">Commenter type</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Eduardo Veiga</ENT>
                            <ENT>Veiga</ENT>
                            <ENT>326</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Scott Willis</ENT>
                            <ENT>Willis</ENT>
                            <ENT>327</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Johanna E. Neumann</ENT>
                            <ENT>Neumann</ENT>
                            <ENT>328</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Anonymous 1</ENT>
                            <ENT>Anonymous 1</ENT>
                            <ENT>329</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Public Gas Association; American Gas Association; Spire Inc.; Spire Missouri Inc.; Spire Alabama Inc.; National Propane Gas Association</ENT>
                            <ENT>
                                Joint Gas Commenters 
                                <SU>29</SU>
                            </ENT>
                            <ENT>330</ENT>
                            <ENT>Utilities and Utility Trade Associations.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">A. Kessler Consulting, LLC</ENT>
                            <ENT>A. Kessler Consulting</ENT>
                            <ENT>331</ENT>
                            <ENT>Industry Representative.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Natalie Guarin</ENT>
                            <ENT>Guarin</ENT>
                            <ENT>332</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Hayes Arnold</ENT>
                            <ENT>Arnold</ENT>
                            <ENT>333</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Christina Haag</ENT>
                            <ENT>Haag</ENT>
                            <ENT>334</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Adelita G. Cantu</ENT>
                            <ENT>Cantu</ENT>
                            <ENT>335</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Kim Marcellini</ENT>
                            <ENT>Marcellini</ENT>
                            <ENT>336</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Kaitlynn Liset</ENT>
                            <ENT>Liset</ENT>
                            <ENT>338</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Raelene Shippee-Rice</ENT>
                            <ENT>Shippee-Rice</ENT>
                            <ENT>339</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87513"/>
                            <ENT I="01">Lee's Air, Plumbing, &amp; Heating</ENT>
                            <ENT>Lee's Air, Plumbing, &amp; Heating</ENT>
                            <ENT>342</ENT>
                            <ENT>Industry Representative.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Natural Gas Supply Association</ENT>
                            <ENT>NGSA</ENT>
                            <ENT>343</ENT>
                            <ENT>Utility Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Manufactured Housing Institute</ENT>
                            <ENT>MHI</ENT>
                            <ENT>344; 363; 365</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Public Gas Association; American Gas Association; Spire Inc.; Spire Missouri Inc.; Spire Alabama Inc.; National Propane Gas Association; Atmos Energy</ENT>
                            <ENT>Joint Requesters</ENT>
                            <ENT>345; 356; 362</ENT>
                            <ENT>Utilities and Utility Trade Associations.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Anonymous 2</ENT>
                            <ENT>Anonymous 2</ENT>
                            <ENT>346</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Ohio Partners for Affordable Energy</ENT>
                            <ENT>OPAE</ENT>
                            <ENT>347</ENT>
                            <ENT>Efficiency Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Individual Commenters</ENT>
                            <ENT>Individual Commenters</ENT>
                            <ENT>348</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Todd Snyder</ENT>
                            <ENT>Snyder</ENT>
                            <ENT>349</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Middle Tennessee Natural Gas Utility District</ENT>
                            <ENT>MTNGUD</ENT>
                            <ENT>350</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Watertown Municipal Utilities</ENT>
                            <ENT>WMU</ENT>
                            <ENT>351</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Southwest Gas Corporation</ENT>
                            <ENT>Southwest Gas Corporation</ENT>
                            <ENT>353</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Energy Alliance</ENT>
                            <ENT>Consumer Energy Alliance</ENT>
                            <ENT>354</ENT>
                            <ENT>Efficiency Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Lake Apopka Natural Gas District</ENT>
                            <ENT>LANGD</ENT>
                            <ENT>355</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Christopher Lish</ENT>
                            <ENT>Lish</ENT>
                            <ENT>358</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">National Caucus of Environmental Legislators</ENT>
                            <ENT>National Caucus of Environmental Legislators</ENT>
                            <ENT>359</ENT>
                            <ENT>State/Local Government Officials.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Theodore Trampe</ENT>
                            <ENT>Trampe</ENT>
                            <ENT>361</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Federation of America</ENT>
                            <ENT>CFA</ENT>
                            <ENT>363</ENT>
                            <ENT>Consumer Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Edison Electric Institute</ENT>
                            <ENT>Edison Electric Institute</ENT>
                            <ENT>363; 4099</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Environment America</ENT>
                            <ENT>Environment America</ENT>
                            <ENT>363</ENT>
                            <ENT>Efficiency/Environmental Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">National Consumer Law Center</ENT>
                            <ENT>NCLC</ENT>
                            <ENT>363</ENT>
                            <ENT>Consumer Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Natural Resources Defense Council</ENT>
                            <ENT>NRDC</ENT>
                            <ENT>363</ENT>
                            <ENT>Efficiency/Environmental Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Philadelphia Solar Energy Association</ENT>
                            <ENT>PSEA</ENT>
                            <ENT>363</ENT>
                            <ENT>Efficiency/Environmental Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Physicians for Social Responsibility</ENT>
                            <ENT>Physicians for Social Responsibility</ENT>
                            <ENT>363</ENT>
                            <ENT>Consumer Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Evergreen Action</ENT>
                            <ENT>Evergreen Action</ENT>
                            <ENT>364</ENT>
                            <ENT>Environmental Advocate.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mark Strauch</ENT>
                            <ENT>Mark Strauch</ENT>
                            <ENT>366</ENT>
                            <ENT>Individual.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Municipal Gas Authority of Georgia</ENT>
                            <ENT>Georgia Gas Authority</ENT>
                            <ENT>367</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Northwest Energy Efficiency Alliance</ENT>
                            <ENT>NEEA</ENT>
                            <ENT>368</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                Competitive Enterprise Institute, Consumers' Research, Center for the American Experiment, 
                                <E T="03">JunkScience.com,</E>
                                 Project 21, Caesar Rodney Institute, Rio Grande Foundation, Committee for a Constructive Tomorrow, FreedomWorks Foundation, Heartland Institute, Thomas Jefferson Institute, Independent Women's Forum, Independent Women's Voice, and Institute for Energy Research
                            </ENT>
                            <ENT>Joint Market and Consumer Organizations</ENT>
                            <ENT>369, 373</ENT>
                            <ENT>Other Stakeholders.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">National Comfort Products</ENT>
                            <ENT>NCP</ENT>
                            <ENT>370</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Green &amp; Healthy Homes Initiative</ENT>
                            <ENT>GHHI</ENT>
                            <ENT>363; 371</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Distribution Contractors Association</ENT>
                            <ENT>DCA</ENT>
                            <ENT>372</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Napoleon (aka Wolf Steel Limited)</ENT>
                            <ENT>Napoleon</ENT>
                            <ENT>374</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Pennsylvania Department of Environmental Protection; State of Nevada; New Jersey Board of Public Utilities; New York State Energy Research and Development Authority; Washington State Department of Commerce; Colorado Energy Office; New Mexico Energy, Minerals, and Natural Resources Department; California Energy Commission; Vermont Department of Public Service; Hawai'i State Energy Office</ENT>
                            <ENT>State Agencies</ENT>
                            <ENT>375</ENT>
                            <ENT>State Agencies.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">The Heartland Institute</ENT>
                            <ENT>The Heartland Institute</ENT>
                            <ENT>376</ENT>
                            <ENT>Other Stakeholder.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Carrier Global Corporation</ENT>
                            <ENT>Carrier</ENT>
                            <ENT>377</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">The Manufactured Housing Institute; National Apartment Association; National Association of Home Builders; National Leased Housing Association; National Multifamily Housing Council</ENT>
                            <ENT>The Coalition</ENT>
                            <ENT>378</ENT>
                            <ENT>Trade Associations.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">New York State Energy Research and Development Authority</ENT>
                            <ENT>NYSERDA</ENT>
                            <ENT>379</ENT>
                            <ENT>State Agency.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">The Natural Gas Association of Georgia</ENT>
                            <ENT>NGA of Georgia</ENT>
                            <ENT>380</ENT>
                            <ENT>Utility Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87514"/>
                            <ENT I="01">The Appliance Standards Awareness Project; American Council for Energy-Efficient Economy, CLASP, Consumer Federation of America, Government of the District of Columbia—Department of Energy &amp; Environment, National Consumer Law Center; Natural Resources Defense Council; Northeast Energy Efficiency Partnerships; Southwest Energy Efficiency Project</ENT>
                            <ENT>Joint Efficiency Commenters</ENT>
                            <ENT>381</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">California Energy Commission</ENT>
                            <ENT>CEC</ENT>
                            <ENT>382</ENT>
                            <ENT>State Agency.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">The National Consumer Law Center on behalf of its low-income clients: Alliance for Affordable Energy; Pennsylvania Utility Law Project; Consumer Federation of America; Southface; Massachusetts Energy Directors' Association; Green Energy Consumers Alliance; Georgia Watch; North Carolina Justice Center; Texas Legal Services Center; Consumers Council of Missouri; Wildfire; Renew Missouri; Virginia Citizens Consumer Council</ENT>
                            <ENT>
                                NCLC 
                                <E T="03">et al.</E>
                            </ENT>
                            <ENT>383</ENT>
                            <ENT>Consumer Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Heating, Air-conditioning &amp; Refrigeration Distributors International</ENT>
                            <ENT>HARDI</ENT>
                            <ENT>384</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Gas Analytic &amp; Advocacy Services</ENT>
                            <ENT>GAS</ENT>
                            <ENT>385</ENT>
                            <ENT>Other Stakeholder.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Weil-McLain; Williamson-Thermoflo; Marley Engineered Products, LLC; Patterson-Kelley, LLC</ENT>
                            <ENT>The Marley Companies</ENT>
                            <ENT>386</ENT>
                            <ENT>Manufacturers.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Public Gas Association</ENT>
                            <ENT>APGA</ENT>
                            <ENT>387</ENT>
                            <ENT>Utility Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Center for Climate and Energy Solutions; Institute for Policy Integrity, New York University School of Law; Montana Environmental Information Center; Natural Resources Defense Council; Sierra Club; Union of Concerned Scientists</ENT>
                            <ENT>Climate Commenters</ENT>
                            <ENT>388</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Lennox International Inc.</ENT>
                            <ENT>Lennox</ENT>
                            <ENT>389</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Jack Spencer and Kevin Dayaratna, Ph.D.</ENT>
                            <ENT>Spencer and Dayaratna</ENT>
                            <ENT>390</ENT>
                            <ENT>Other Stakeholder.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Gas Association American; Pipeline Contractors Association; American Public Gas Association; American Society of Gas Engineers; American Supply Association; Arkansas Gas Association; Consumer Energy Alliance; Distribution Contractors Association; Hearth, Patio &amp; Barbecue Association; Hispanics in Energy; Louisiana Gas Association; Manufactured Housing Institute; National Apartment Association; National Association of Home Builders; National Leased Housing Association; National Multifamily Housing Council; National Propane Gas Association; National Utility Contractors Association; Natural Gas Supply Association; Northeast Gas Association; Plastics Pipe Institute; Plumbing-Heating-Cooling Contractors Association; Rinnai America Corporation; Thermo Products LLC; U.S. Chamber of Commerce; Utility Workers Union of America, AFL-CIO; Williams Furnace Co. dba Williams Comfort Products or Williams</ENT>
                            <ENT>
                                AGA 
                                <E T="03">et al.</E>
                            </ENT>
                            <ENT>391</ENT>
                            <ENT>Manufacturers, Trade Associations, and Other Stakeholders.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Coke and Coal Chemicals Institute; American Gas Association; American Public Gas Association; Independent Petroleum Association of America; National Mining Association; Plumbing-Heating-Cooling Contractors—National Association; U.S. Chamber of Commerce</ENT>
                            <ENT>The Associations</ENT>
                            <ENT>392</ENT>
                            <ENT>Trade Associations.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Smart Missoula; Environmental Defense Fund; Elevate Energy; Energy Efficiency Alliance of New Jersey; Campaign for 100% Renewable Energy; Evergreen Action; Green Energy Consumers Alliance; Green &amp; Healthy Homes Initiative; Keystone Energy Efficiency Alliance; Montana Environmental Info Center; New Buildings Institute; New York Geothermal Energy Organization; Climate &amp; Clean Energy Program; Rewiring America; RMI; Sealed; Sierra Club; Union of Concerned Scientists; Urban Green Council; Utah Clean Energy</ENT>
                            <ENT O="xl">
                                Climate Smart Missoula 
                                <E T="03">et al.</E>
                            </ENT>
                            <ENT>393</ENT>
                            <ENT O="xl">Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Rheem Manufacturing Company</ENT>
                            <ENT>Rheem</ENT>
                            <ENT>394</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">National Propane Gas Association</ENT>
                            <ENT>NPGA</ENT>
                            <ENT>395</ENT>
                            <ENT>Utility Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87515"/>
                            <ENT I="01">ACTION-Housing Inc.; Audubon Mid-Atlantic; Clean Air Council; Community Action Association of Pennsylvania; Conservation Voters of Pennsylvania; Energy Coordinating Agency; Environmental Justice Center of Chestnut Hill United Church; Evangelical Environmental Network; Green Building United; Green &amp; Healthy Homes Initiative; Housing Alliance of Pennsylvania; Keystone Energy Efficiency Alliance; National Housing Trust; PA Jewish Earth Alliance; PennEnvironment; Pennsylvania Council of Churches; Pennsylvania Interfaith Power and Light; Pennsylvania Utility Law Project; Performance Systems Development; Philadelphia Energy Authority; Philadelphia Solar Energy Association; Physicians for Social Responsibility Pennsylvania; Schuylkill Community Action; Vote Solar; Working for Justice Ministry</ENT>
                            <ENT O="xl">
                                ACTION-Housing Inc. 
                                <E T="03">et al.</E>
                            </ENT>
                            <ENT>396</ENT>
                            <ENT O="xl">Other Stakeholders.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Black Hills Energy</ENT>
                            <ENT>Black Hills Energy</ENT>
                            <ENT>397</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Air Condition Contractors of America</ENT>
                            <ENT>ACCA</ENT>
                            <ENT>398</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Allergy &amp; Asthma Network; Alliance of Nurses for Healthy Environments; American Geophysical Union; American Lung Association; American Public Health Association; American Thoracic Society; Asthma and Allergy Foundation of America; Children's Environmental Health Network; Climate for Health/ecoAmerica; National Carbon Monoxide Awareness Association; Oregon Physicians for Social Responsibility; Physicians for Social Responsibility; Physicians for Social Responsibility Florida; Physicians for Social Responsibility Pennsylvania; Texas Physicians for Social Responsibility; Washington Physicians for Social Responsibility</ENT>
                            <ENT>Climate and Health Coalition</ENT>
                            <ENT>399</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Pacific Gas and Electric Company, San Diego Gas and Electric, and Southern California Edison; collectively referred to as “the California Investor-Owned Utilities”</ENT>
                            <ENT>The CA IOUs</ENT>
                            <ENT>400</ENT>
                            <ENT>Utilities.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Sierra Club and Earthjustice</ENT>
                            <ENT>
                                Sierra Club 
                                <E T="03">et al.</E>
                            </ENT>
                            <ENT>401</ENT>
                            <ENT>Efficiency/Environmental Advocates.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Avangrid; Consolidated Edison; Eversource; Exelon; Liberty Utilities; National Grid; Unitil; PG&amp;E Corporation; Xcel</ENT>
                            <ENT>The Joint Utilities</ENT>
                            <ENT>402</ENT>
                            <ENT>Utilities.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Plumbing-Heating-Cooling Contractors—National Association</ENT>
                            <ENT>PHCC</ENT>
                            <ENT>403</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Plastics Pipe Institute</ENT>
                            <ENT>PPI</ENT>
                            <ENT>404</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">American Gas Association</ENT>
                            <ENT>AGA</ENT>
                            <ENT>405</ENT>
                            <ENT>Utility Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Nortek Global HVAC, LLC</ENT>
                            <ENT>Nortek</ENT>
                            <ENT>406</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">National Grid</ENT>
                            <ENT>National Grid</ENT>
                            <ENT>407</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Offices of the Attorney General for the States of Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Vermont, Washington, The Commonwealth of Massachusetts, the District of Columbia, and the City of New York</ENT>
                            <ENT>Attorneys General</ENT>
                            <ENT>408</ENT>
                            <ENT>State/Local Government Agencies.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">State of Washington, Department of Commerce</ENT>
                            <ENT>State of Washington</ENT>
                            <ENT>409</ENT>
                            <ENT>State Agency.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mortex Products, Inc.</ENT>
                            <ENT>Mortex</ENT>
                            <ENT>410</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Johnson Controls</ENT>
                            <ENT>JCI</ENT>
                            <ENT>411</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Trane Technologies</ENT>
                            <ENT>Trane</ENT>
                            <ENT>412</ENT>
                            <ENT>Manufacturer.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Spire Inc.; Spire Alabama Inc.; Spire Missouri Inc.</ENT>
                            <ENT>Spire</ENT>
                            <ENT>413; 4099</ENT>
                            <ENT>Utilities.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Air-Conditioning, Heating, &amp; Refrigeration Institute</ENT>
                            <ENT>AHRI</ENT>
                            <ENT>414</ENT>
                            <ENT>Trade Association.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Atmos Energy Corporation</ENT>
                            <ENT>Atmos Energy</ENT>
                            <ENT>415</ENT>
                            <ENT>Utility.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Daikin Comfort Technologies Manufacturing, L.P.</ENT>
                            <ENT>Daikin</ENT>
                            <ENT>416</ENT>
                            <ENT>Manufacturer</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        A parenthetical reference at the end of a comment quotation or paraphrase provides the location of the item in the public record.
                        <SU>30</SU>
                        <FTREF/>
                         To the extent that interested parties have provided written comments that are substantively consistent with any oral comments provided during the public meetings held on August 3, 2022,
                        <SU>31</SU>
                        <FTREF/>
                         or September 6, 2022,
                        <SU>32</SU>
                        <FTREF/>
                         DOE cites the written comments throughout this final rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             The parenthetical reference provides a reference for information located in the docket of DOE's rulemaking to develop energy conservation standards for NWGFs and MHGFs. (Docket No. EERE-2014-BT-STD-0031, which is maintained at 
                            <E T="03">www.regulations.gov</E>
                            ) The references are arranged as follows: (commenter name, comment docket ID number, page of that document).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             The transcript for the August 3, 2022, public meeting can be found at Docket No. EERE-2014-BT-STD-0031-0363, which is maintained at 
                            <E T="03">www.regulations.gov</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             The transcript for the September 6, 2022, public meeting can be found at Docket No. EERE-2014-BT-STD-0031-4099, which is maintained at 
                            <E T="03">www.regulations.gov</E>
                            .
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. Current Standards in Canada</HD>
                    <P>
                        Although climate and fuel prices differ between the United States and Canada and will yield different results 
                        <PRTPAGE P="87516"/>
                        in terms of costs and benefits of the standard, there are similarities in the equipment and venting materials used in both the United States and Canada with respect to NWGFs. Because the stock of buildings using NWGFs in Canada has many similarities to the stock using NWGFs in northern parts of the United States, the Canadian experience in terms of installation of condensing furnaces has relevance to the United States. As such, multiple stakeholders discussed the Canadian standards in their comments on the July 2022 NOPR, and DOE references these standards several times later in this document. Further, as discussed in section V.C.1 of this document, the standard levels adopted for NWGFs by this final rule align with the Canadian regulations.
                    </P>
                    <P>
                        Consumer furnaces are a regulated product in Canada and are subject to energy efficiency regulations. On December 24, 2008, Natural Resources Canada published regulations in the 
                        <E T="03">Canada Gazette, Part II</E>
                         amending the energy efficiency regulations for consumer furnaces, among other appliances and equipment.
                        <SU>33</SU>
                        <FTREF/>
                         The revised regulation, required on or after December 31, 2009, sets a minimum efficiency of 90-percent AFUE for gas furnaces. This standard is applicable to gas furnaces, other than those with an integrated cooling component that are outdoor or through-the-wall gas furnaces, that have an input rate no greater than 65.92 kilowatts (“kW”) (225,000 Btu/h), and that use single-phase electric current.
                    </P>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See Canada Gazette,</E>
                             Part II, Vol. 142, No. 26, pp. 2512-2570. (Available at: 
                            <E T="03">www.gazette.gc.ca/rp-pr/p2/2008/2008-12-24/pdf/g2-14226.pdf</E>
                            ) (Last accessed Feb. 15, 2022)
                        </P>
                    </FTNT>
                    <P>
                        On June 12, 2019, Natural Resources Canada published regulations in the 
                        <E T="03">Canada Gazette, Part II</E>
                         amending the energy efficiency regulations for consumer furnaces, among other appliances and equipment.
                        <SU>34</SU>
                        <FTREF/>
                         In addition to the definition of “gas furnaces,” Natural Resources Canada added a separate definition for “gas furnaces for relocatable buildings” (
                        <E T="03">e.g.,</E>
                         MHGFs). The revised regulation, which applies to covered gas furnaces (excluding gas furnaces for relocatable building, replacement gas furnaces, outdoor furnaces with an integrated cooling component, and through-the wall furnaces with an integrated cooling component) manufactured for sale or import into the Canadian market on or after July 3, 2019, sets a minimum efficiency of 95-percent AFUE. Furthermore, the revised regulation also sets a minimum efficiency of 80-percent AFUE for gas furnaces for relocatable buildings.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See Canada Gazette,</E>
                             Part II, Vol. 153, No. 12, pp. 2423-2517. (Available at 
                            <E T="03">www.gazette.gc.ca/rp-pr/p2/2019/2019-06-12/pdf/g2-15312.pdf</E>
                            ) (Last accessed Feb. 15, 2022)
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             “Gas furnace for relocatable buildings” is defined in that regulation as a gas furnace that is intended for use in a temporary modular building that can be relocated from one site to another and is marked for use in relocatable buildings.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">III. General Discussion</HD>
                    <P>DOE developed this final rule after considering comments, data, and information from interested parties that represent a variety of interests. The following discussion addresses issues raised by these commenters regarding rulemaking timing and process, product classes and scope of coverage, the test procedure, technological feasibility, significance of energy savings, economic justification, the compliance date, and impacts from other rulemakings.</P>
                    <HD SOURCE="HD2">A. General Comments</HD>
                    <P>This section summarizes general comments received from interested parties regarding rulemaking timing and process.</P>
                    <HD SOURCE="HD3">1. Comments Regarding Authority</HD>
                    <P>
                        The Marley Companies commented that the regulation of multiple levels of components (
                        <E T="03">e.g.,</E>
                         motors and furnace fans, which are themselves covered products under EPCA) internal to an appliance limits the utility of the appliance, because the specifications for such components (necessary for compliance with DOE energy conservation standards for those components as covered products) place constraints on the covered product's design and operation. (The Marley Companies, No. 386 at pp. 7-9) The Marley Companies argued that changes to the efficiency of a component, prescriptive requirements, and test procedures are all cumulatively subject to the 6-year window between standards provided to manufacturers per 42 U.S.C. 6295(m)(4)(B), so according to the commenter, any change to the standard for a covered product, to the standard for an internal component of that product, or to the test procedure should preclude further regulation of that product for six years pursuant to 42 U.S.C. 6295(m)(4)(B). (
                        <E T="03">Id.</E>
                         at p. 7) Further, Marley asserted that the cumulative impact of multiple component efficiency regulations within a regulated appliance is that the operating range of the entire product is reduced. (
                        <E T="03">Id.</E>
                        ) The Marley Companies commented that the definition of “energy conservation standard” includes a reference to 42 U.S.C. 6295(r), which discusses the inclusion in standards of test procedures and other requirements, and, therefore, the term “standard” includes test procedures used to determine the efficiency of covered products. (
                        <E T="03">Id.</E>
                         at p. 9) The Marley Companies commented that 42 U.S.C. 6293(e)(4) conveys that Congress realized and stated in EPCA that test procedures should not be altered at the same time as appliance level efficiencies, and, therefore, the Marley Companies asserted that Congress established that any change in an efficiency of any component, combination of components, or the entire covered product, as well as any required construction change through prescriptive requirements and any change in the test procedure used to determine efficiency, would reset the 6-year timeframe established by 42 U.S.C. 6295(m)(4)(B). (
                        <E T="03">Id.</E>
                         at p. 9) In contrast, Sierra Club 
                        <E T="03">et al.</E>
                         commented that DOE correctly interprets furnaces and furnaces fan as two separate products for the purposes of the “6-year lock-out” provision at 42 U.S.C. 6295(m)(4)(B). (Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401 at p. 3)
                    </P>
                    <P>
                        There are two products that can be found as a component of a consumer furnace and which are separately regulated by DOE: consumer furnace fans and certain types of electric motors. In response to comments from Marley Companies and the Sierra Club, DOE notes that consumer furnaces, consumer furnace fans, and electric motors are all separately covered products under EPCA. (42 U.S.C. 6292(a)(5); 42 U.S.C. 6295(f)(4)(D); 42 U.S.C. 6311(1)(A)) As such, DOE considers their timelines separately in the context of the requirement established by 42 U.S.C. 6295(m)(4)(B) that a manufacturer “shall not be required to apply new standards to a product with respect to which other new standards have been required during the prior 6-year period.” 
                        <SU>36</SU>
                        <FTREF/>
                         The 6-year period applies to covered products individually, and ECPA does not provide exceptions to the review requirements when related products or components have overlapping review timeframes. Furthermore, DOE notes that 42 U.S.C. 6295(m) applies to energy conservation standards, not test 
                        <PRTPAGE P="87517"/>
                        procedures. Under this provision, DOE is directed to amend energy conservation standards for a covered product if such standards would be technologically feasible, economically justified, and result in significant conservation of energy. (42 U.S.C. 6295(m)(1)(B); 42 U.S.C. 6295(o)) As such, DOE does not agree with the Marley Companies' contention that this statutory provision applies more broadly to test procedure changes, and the Department has concluded that the Marley Companies have advanced an incorrect reading of 42 U.S.C. 6295(r) to support their point. That provision of EPCA simply acknowledges that most energy conservation standards (
                        <E T="03">i.e.,</E>
                         performance-based ones) will require an accompanying test procedure and may necessitate additional ancillary requirements to facilitate compliance. Further, 42 U.S.C. 6295(r) specifically refers to test procedures prescribed in accordance with 42 U.S.C. 6293. As such, there simply is no statutory basis for applying the 6-year timeframe, which applies to standards prescribed under 42 U.S.C. 6295(m), to test procedures prescribed under 42 U.S.C. 6293.
                        <SU>37</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             DOE notes that EPCA set a deadline of December 31, 2013, for the Department to prescribe an energy conservation standard or energy use standard for electricity used for purposes of circulating air through ductwork (colloquially referred to as “furnace fans”). (42 U.S.C. 6295(f)(4)(D)) EPCA likewise set deadlines for the Department to set standards for certain motors, including a five-years lead time for compliance. (42 U.S.C. 6313(b)(4)(B)) These deadlines are independent of the standard-setting provisions for consumer furnaces at 42 U.S.C. 6295(f) and the six-year-lookback provisions at 42 U.S.C. 6295(m).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             For example, DOE previously published in the 
                            <E T="04">Federal Register</E>
                             a direct final rule establishing new energy conservation standards for consumer furnaces on June 27, 2011 (76 FR 37408), and then published in the 
                            <E T="04">Federal Register</E>
                             a final rule amending the test procedure for consumer furnaces on January 15, 2016 (81 FR 2628). DOE previously published in the 
                            <E T="04">Federal Register</E>
                             a final rule amending the test procedure for furnace fans on January 3, 2014 (79 FR 500), and then published in the 
                            <E T="04">Federal Register</E>
                             a final rule establishing new energy conservation standards for furnace fans on July 3, 2014 (79 FR 38130).
                        </P>
                    </FTNT>
                    <P>
                        NPGA stated that DOE has failed to provide a fair and transparent rulemaking process. (NPGA, No. 395 at p. 3) NPGA and AGA both commented that they believe the proposal to be unlawful because DOE is not authorized to create design standards for furnaces, but NPGA and AGA suggested that is what the proposed rule effectively does. (NPGA, No. 395 at p. 9; AGA, No. 405 at pp. 50-51) NPGA stated that the proposal sets a 
                        <E T="03">de facto</E>
                         standard for building design by requiring the alteration of building venting systems. (NPGA, No. 395 at p. 22) Additionally, NPGA and AGA stated that the necessity to include condensing technology, as well as other associated design elements, including new venting, electric fans, and a condensate drainage system, is effectively enforcing a design requirement. (NPGA, No. 395 at pp. 9-10; AGA, No. 405 at pp. 50-51) AGA further commented that Congress's decision to exclude furnaces from the list of products for which DOE can include design requirements, as outlined in 42 U.S.C. 6291(6)(B), demonstrates that DOE may not develop design requirements for furnaces. (AGA, No. 405 at pp. 50-52)
                    </P>
                    <P>
                        In response, DOE is not creating a prescriptive design requirement for consumer furnaces in this final rule. In its definition of “energy conservation standard” at 42 U.S.C. 6291(6), EPCA provides that a performance standard is one which prescribes a minimum level of energy efficiency or a maximum quantity of energy use for a covered product, determined in accordance with test procedures developed under 42 U.S.C. 6293. (42 U.S.C. 6291(6)(A)) In this case, the standards adopted in this final rule are set in terms of AFUE, which is a performance metric and is determined through testing consumer furnaces under the applicable DOE test procedure, as discussed in section III.C of this document. DOE does not mandate any specific design for achieving compliance with the amended standard, as would constitute a design requirement under 42 U.S.C. 6291(6)(B). Thus, the final rule complies with the statutory requirements for setting a performance standard under EPCA. The possibility that some technologies may not be sufficient to achieve compliance is true for any performance standard, and does not transform a performance standard into a 
                        <E T="03">de facto</E>
                         design requirement. DOE acknowledges that the NWGFs and MHGFs that currently achieve 95-percent AFUE do employ condensing technology. However, the performance-based standards adopted in this final rule do not preclude new or alternative heat exchanger designs, venting systems, or materials from being used in future furnace product designs, which may provide additional avenues (alone or in combination) for increasing furnace AFUE. In addition, this final rule provides a five-year lead time before compliance with the amended standards is required, so further innovation may be possible during that time. DOE's approach has been explained at length and in detail in both the July 2022 NOPR and this final rule, as well as the TSDs accompanying those documents.
                    </P>
                    <HD SOURCE="HD3">2. Comments Opposing the July 2022 Proposal</HD>
                    <P>This section summarizes comments opposing the July 2022 proposal.</P>
                    <P>Several commenters stated that DOE should withdraw the proposed rule. (Georgia Gas Authority, No. 367 at p. 1; MHI, No. 365 at p. 1; DCA, No. 372 at p. 2; The Heartland Institute, No. 376 at p. 1; HARDI, No. 384 at p. 2; Nortek, No. 406 at pp. 5-6) Plastics Pipe Institute commented that it opposes the proposed rule due to negative impacts on consumers (including senior and low-income households), small businesses, the overall gas furnace market, and the gas industry. (Plastics Pipe Institute, No. 404 at p. 1) Spire commented that the proposed standards place undue burden on consumers because many homes are not set up so as to be compatible with condensing gas furnaces. (Spire, No. 413 at pp. 20-21) The Heartland Institute commented that this rule is unnecessary. (The Heartland Institute, No. 376 at pp. 1-2) HARDI stated disagreement with the methodology and conclusions used to support the proposed standards. (HARDI, No. 384 at p. 2) A number of individuals urged DOE to reject the proposed rule on gas-burning residential furnaces because of considerations such as individual preferences, higher upfront costs, and higher maintenance costs. (Veiga, No. 326 at p. 1; Willis, No, 327 at p. 1; Anonymous 1, No. 329 at p. 1) PHCC commented that it does not support the proposed standards for NWGFs and MHGFs, as there are parts of the NOPR that are overly optimistic, do not reflect current market conditions, make inaccurate assumptions, minimize installation issues for condensing-type products, and would generally create negative impacts for manufacturers and consumers. (PHCC, No. 403 at p. 1) Strauch recommended that both condensing and non-condensing furnaces remain available on the market. (Strauch, No. 366 at p. 2) Spencer and Dayaratna stated that the standards proposed in the July 2022 NOPR are unnecessary because condensing furnaces are readily available in the marketplace and have already achieved significant market penetration. (Spencer and Dayaratna, No. 390 at p. 10)</P>
                    <P>
                        The Heartland Institute expressed concern that the proposed standard would negatively impact energy consumption, emissions, and the economy. (The Heartland Institute, No. 376 at p. 1) The Heartland Institute further stated that there is a lack of economic justification. (
                        <E T="03">Id.</E>
                         at p. 2) Additionally, the Heartland Institute argued that, while the highest-efficiency products may produce long-run savings for consumers under ideal laboratory settings, these gains from an increased efficiency are often not replicated in the real world. (
                        <E T="03">Id.</E>
                         at p. 1) Atmos Energy similarly commented that the technical analyses do not reasonably consider economic impacts, particularly those on affordability and the potential disruption to highly-effective energy 
                        <PRTPAGE P="87518"/>
                        conservation programs. (Atmos Energy, No. 415 at p. 2)
                    </P>
                    <P>As discussed in section II.A of this document, EPCA provides DOE with the authority to regulate the energy efficiency of a number of consumer products, including NWGFs and MHGFs, which are a subset of consumer furnaces. (42 U.S.C. 6292(a)(5)) EPCA prescribed energy conservation standards for these products (42 U.S.C. 6295(f)(1) and (2)) and directs DOE to conduct future rulemakings to determine whether to amend these standards (42 U.S.C. 6295(f)(4) and 42 U.S.C. 6295(m)(1)). Any such new standards for NWGFs and MHGFs must, under 42 U.S.C. 6295(o)(2)(A), be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. DOE's analyses supporting its conclusion that it has met these criteria for the standards adopted in this final rule are presented in section IV and section V of this document, respectively.</P>
                    <P>
                        Atmos Energy disagreed that the proposed standards would “represent the maximum improvement in energy efficiency that is technologically feasible and economically justified,” alleging that DOE's underlying technical analyses do not reasonably consider relevant economic impacts. (Atmos Energy, No. 415 at p. 2) Atmos Energy also disagreed with the July 2022 NOPR's tentative conclusion that the benefits of the proposed standards greatly exceed the burdens. (
                        <E T="03">Id.</E>
                        ) Atmos Energy commented that DOE should improve the accuracy of its analysis by tailoring its consideration of consumer behavior, life-cycle evaluations, and costs. (
                        <E T="03">Id.</E>
                         at p. 5) Atmos Energy further commented that the proposed rule uses unsupported and broad assumptions that are not reflective of actual consumer behavior and information. (
                        <E T="03">Id.</E>
                        ) Similarly, the Coalition commented that DOE has failed to adequately consider the cost impacts of the proposed standards and has failed to properly assess the balancing of benefits and burdens. (The Coalition, No. 378 at p. 5) Spencer and Dayaratna stated that the standards proposed in the July 2022 NOPR do not meet the “economically justified” criteria for prescribing new or amended standards. (Spencer and Dayaratna, No. 390 at pp. 1-2) Specifically, Spencer and Dayaratna stated that the analysis in the July 2022 NOPR is questionable regarding all seven of the factors set by EPCA. (
                        <E T="03">Id.</E>
                        ) Spencer and Dayaratna suggested that DOE did not present sufficient rationale for factors 5 (
                        <E T="03">i.e.,</E>
                         the effect of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the standard) and 6 (
                        <E T="03">i.e.,</E>
                         the need for national energy and water conservation). (
                        <E T="03">Id.</E>
                        ) AGA commented that the NOPR suffers from many evidentiary shortcomings that fail to meet the statutory requirement that energy conservation standards must be “supported by substantial evidence” on the record. (AGA, No. 405 at pp. 29-30) AGA commented that the NOPR's conclusion that the proposed standards would be economically justified and technically feasible relies on unexplained assumptions and conclusions. (
                        <E T="03">Id.</E>
                        ) AGA asserted that the NOPR fundamentally fails to adhere to the Process Rule,
                        <SU>38</SU>
                        <FTREF/>
                         and specifically found fault with DOE's LCC model and the lack of sufficient time for public comment. (
                        <E T="03">Id.</E>
                         at pp. 21-23) AGA commented that particularly in the LCC model, the qualitative and quantitative analytical methods are not fully documented for the public and do not produce results that can be explained and reproduced. (
                        <E T="03">Id.</E>
                        ) AGA commented that these issues prevent stakeholders from evaluating compliance with other aspects of EPCA's and the Process Rule's requirements, and the commenter encouraged DOE to correct these deficiencies. (
                        <E T="03">Id.</E>
                        ) Trampe commented that he does not support the proposed 95-percent AFUE standard, and that the standard should be maintained at 80-percent AFUE. (Trampe, No. 361 at p. 1)
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The “Process Rule” refers to 10 CFR part 430, subpart C, appendix A, “Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment”.
                        </P>
                    </FTNT>
                    <P>
                        Lennox suggested that DOE should reconsider whether a 92-percent AFUE standard is an appropriate minimum efficiency level for NWGFs. (Lennox, No. 389 at p. 2) Lennox also commented that, based on DOE's analysis, AFUE levels above 95 percent are not economically justified and have significant negative consumer impacts. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        In regard to the proposed MHGF standards, Nortek and JCI commented that they do not support the proposed 95-percent AFUE standard for MHGFs. (Nortek, No. 406 at p. 2; JCI, No. 411 at p. 1) Nortek commented that DOE should maintain the 80-percent AFUE requirement for MHGFs. (Nortek, No. 406 at pp. 5-6) JCI added that the 95-percent AFUE standard for MHGFs would impose costs on consumers with, on average, lower household incomes. (JCI, No. 411 at p. 1) JCI recommended that DOE should exclude MHGFs from this rulemaking and gather additional data on that product class, particularly in replacement applications. (
                        <E T="03">Id.</E>
                        ) AHRI also stated that DOE should reconsider active mode energy conservation standards for MHGFs. (AHRI, No. 414-2 at p. 2) Mortex commented that it too does not believe that DOE's proposed 95-percent AFUE standard is economically justified for MHGFs, and that DOE should retain the current standard for MHGFs. (Mortex, No. 410 at p. 1) In support of its recommendation, Mortex pointed to the two-tiered standards that Canada has developed for furnaces, with a 95-percent AFUE level for most residential gas furnaces and 80-percent AFUE level for gas furnaces in relocatable buildings and replacements in manufactured housing. (Mortex, No. 410 at p. 4) Mortex recommended this structure as a model for DOE to utilize. (
                        <E T="03">Id.</E>
                        ) MHI commented that the current MHGF AFUE standards strike a balance between energy savings and affordability, and the commenter urged DOE to withdraw the NOPR or replace the proposed 95-percent AFUE level for MHGF with a standard at 80-percent AFUE for gas furnaces used in manufactured homes. (MHI, No. 365 at pp. 2-3)
                    </P>
                    <P>
                        As discussed in section II.A of this document, EPCA provides specific statutory criteria for amending energy conservation standards. EPCA generally requires a public notice-and-comment process (
                        <E T="03">see</E>
                         42 U.S.C. 6295(p)), which affords members of the public the opportunity to comment on the rulemaking, and DOE makes all relevant documents publicly available at 
                        <E T="03">www.regulations.gov.</E>
                         As part of the process for this rulemaking, DOE convened two public meetings, including one aimed at helping stakeholders understand its analytical models, to ensure the transparency of its process. Additionally, DOE carefully considers the benefits and burdens of amended standards to determine whether the amended standards are the maximum standard levels that are technologically feasible and economically justified, and would conserve a significant amount of energy, as required by EPCA (see 42 U.S.C. 6295(o)(2)-(3)). Section IV of this document outlines DOE's approach to analyzing various potential amended standard levels, and section V of this document provides the results of those analyses, as well as a detailed explanation of DOE's weighing of the benefits and burdens and the rationale for the amended standards adopted by this final rule. As detailed in those sections, DOE has determined that its rulemaking process for the subject 
                        <PRTPAGE P="87519"/>
                        furnaces has satisfied the applicable requirements of EPCA and the Process Rule and that the adopted standards are supported by substantial evidence in the record. Further, DOE notes that the webinar held on September 6, 2022, provided further opportunity for clarification regarding the LCC model and extended the comment period to provide sufficient time to provide written comments.
                    </P>
                    <P>Plastics Pipe Institute expressed concern with the precedent that would accompany this rule change, adding that it would open the door for future restrictions on natural gas. (Plastics Pipe Institute, No. 404 at p. 3) In response, DOE notes that the amended energy conservation standards for NWGFs and MHGFs do not prohibit the sale and use of gas-fired furnaces, nor do they restrict the use of natural gas, but instead, they improve the energy efficiency of those gas-burning products.</P>
                    <HD SOURCE="HD3">3. Comments Expressing Support for the July 2022 Proposal</HD>
                    <P>This section summarizes comments expressing support for the July 2022 proposal.</P>
                    <P>
                        DOE received comments from the OPAE, NCEL, State of Washington, NEEA, the Joint Utilities, the National Grid, Climate Smart Missoula 
                        <E T="03">et al.,</E>
                         Evergreen Action, the CA IOUs, the PSEA, the NCLC 
                        <E T="03">et al.,</E>
                         and the NRDC expressing support for the proposed energy conservation standards for NWGFs and MHGFs. (OPAE, No. 347 at p. 1; NCEL, No. 359 at p. 1; State of Washington, No. 409 at pp. 1-2; NEEA, No. 368 at pp. 1-2; the Joint Utilities, No. 402 at p. 1; National Grid, No. 407 at p. 1; Climate Smart Missoula 
                        <E T="03">et al.,</E>
                         No. 393 at pp. 1-2; Evergreen Action, No. 364 at p. 1; The CA IOUs, No. 400 at p. 1; PSEA, Public Meeting Webinar Transcript, No. 363 at p. 37; NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 9; NRDC, Public Meeting Webinar Transcript, No. 363 at p. 30;) GHHI, the Attorneys General, and Sierra Club 
                        <E T="03">et al.</E>
                         further encouraged DOE to adopt the proposed efficiency standards for consumer gas furnaces. (GHHI, No. 371 at p. 1; Attorneys General, No. 408 at pp. 1-2; Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401 at p. 1) The Joint Efficiency Commenters added that they strongly support DOE's proposed standards for minimum efficiency of NWGFs and MHGFs and standby mode and off mode power consumption. (Joint Efficiency Commenters, No. 381 at p. 1) The CA IOUs further explained that the proposed rule would allow consumers to have greater access to energy-efficient products that are technologically feasible and economically justified. (The CA IOUs, No. 400 at p. 1) Daikin stated that despite some concerns regarding the accuracy of some portions of the TSD concerning costs due to the confidential nature of some manufacturer cost data, the company generally finds that DOE's analysis is reasonable in most areas based on the data that is publicly available. (Daikin, No. 416 at p. 3) The Joint Utilities stated that they support common-sense, cost-saving improvements to existing efficiency standards coupled with programs to provide the financial resources to enable customers to make the transition to higher-efficiency furnace products and minimize the impact of upfront costs. (The Joint Utilities, No. 402 at p. 1) National Grid stated that Federal energy conservation standards ensure that the benefits of efficiency gains can reach all customer segments, including renters who often do not make decisions about appliances. (National Grid, No. 407 at p. 1) The State of Washington added that it understands the cost savings and emissions benefits that more efficient standards can provide. (State of Washington, No. 409 at pp. 1-2)
                    </P>
                    <P>
                        DOE also received over 3,000 submissions of a form letter encouraging DOE to enact strong efficiency standards for furnaces that phase out the least-efficient furnace models. (Individual Commenters, No. 348 at pp. 1-3552) The commenters stated that heating homes should not produce pollution, and they stated that outdated and inefficient gas furnaces are emitting millions of tons of avoidable climate emissions and other harmful pollutants. (
                        <E T="03">Id.</E>
                        ) A number of other individual commenters expressed similar views. (Neumann, No. 328 at p. 1; Guarin, No. 332 at p. 1; Haag, No. 334 at p. 1; Cantu, No. 335 at p. 1; Marcellini, No. 336 at p. 1; Liset, No. 338 at p. 1; Snyder, No. 349 at p. 1; Lish, No. 358 at p. 1) In addition to expressing support for the standards via the form letter, Guarin, Haag, Cantu, Marcellini, NCEL, and Liset all commented that by requiring furnaces to use about 15-percent less energy, the proposed standard would cut 373 million metric tons of carbon emissions and 833 thousand tons of NO
                        <E T="52">X</E>
                         over 30 years of sales, as outlined in the July 2022 NOPR. (Guarin, No. 332 at p. 1; Haag, No. 334 at p. 1; Cantu, No. 335 at p. 1; Marcellini, No. 336 at p. 1; NCEL, No. 359 at p. 1; Liset, No. 338 at p. 1) These commenters added that the proposed standard would help with breathing since it would reduce needless greenhouse gas emissions. (Guarin, No. 332 at p. 1; Haag, No. 334 at p. 1; Cantu, No. 335 at p. 1; Marcellini, No. 336 at p. 1; Liset, No. 338 at p. 1) The CA IOUs similarly stated that this standard will significantly improve ambient and indoor air quality in the United States. (The CA IOUs, No. 400 at p. 2)
                    </P>
                    <P>
                        Other commenters similarly discussed the beneficial impacts that the proposed standards would have on health and the environment. Arnold asked DOE to help work toward a cleaner and more sustainable future by increasing the efficiency standards for furnaces. (Arnold, No. 333 at p. 1) Shippee-Rice urged DOE to enact these “long overdue” standards, stating that doing so will decrease pollutants that threaten human, animal, and plant health. Shippee-Rice also noted that this proposed standard will help to decrease the harmful effects of current climate change dangers. (Shippee-Rice, No. 339 at p. 1) Daikin agreed with DOE's initiatives to address emission reductions and set higher standards with climate change, decarbonization, and electrification in mind. (Daikin, No. 416 at pp. 2-3) Lee's Air, Plumbing &amp; Heating commented that a higher standard would eliminate pollution and wasted energy. (Lee's Air, Plumbing &amp; Heating, No. 342 at p. 1) The Physicians for Social Responsibility commented that pollutants from gas furnaces may be back-drafted into homes when indoor air pressure is reduced. Alternatively, they stated that pollutants can be vented out into the surrounding community. The commenter added that those pollutants from gas appliances can lead to the development of childhood asthma, increase susceptibility to other respiratory infections, decrease general cognitive and neurological functioning, and exacerbate cardiovascular disease. The commenter also stated that these pollutants can cause community-wide harm, particularly among low-income communities and communities of color. (The Physicians for Social Responsibility, Public Meeting Webinar Transcript, No. 363 at pp. 5-6) The commenter further argued that the proposed standards can help lower utility bills, which on its own can positively impact consumers' health. The commenter concluded that higher efficiency standards will reduce the health effects from air pollution and limit the impacts of climate change such as extreme heat, population displacement, and injuries and fatalities due to natural disasters. (
                        <E T="03">Id.</E>
                         at p. 7) Evergreen Action noted that residential heating is the biggest utility in most U.S. households. Evergreen Action stated that gas heating appliances account for two-thirds of on-site household greenhouse gas emissions, and that gas 
                        <PRTPAGE P="87520"/>
                        furnaces are a significant source of NO
                        <E T="52">X.</E>
                         (Evergreen Action, No. 364 at p. 1) Climate Smart Missoula 
                        <E T="03">et al.</E>
                         also stated that furnaces have lifespans of 20 years or more and suggested that adopting updated standards will lead to benefits for consumers' pocketbooks, as well as the planet, through emission reduction. (Climate Smart Missoula 
                        <E T="03">et al.,</E>
                         No. 393 at p. 2) Environment America commented that the proposed standards would reduce pollution that causes climate change and negatively impacts health. (Environment America, Public Meeting Webinar Transcript, No. 363 at pp. 18-19) Environment America suggested that, based on the reduced energy use and emissions, along with reduced annual home heating bills, DOE should finalize the proposed standards. (
                        <E T="03">Id.</E>
                        ) The National Caucus of Environmental Legislators recommended that DOE not to give in to industry-delaying tactics because action has been delayed and stymied numerous times in the past 30 years. They further commented in support of the proposal to increase the efficiency level of gas furnaces to 95-percent AFUE. (National Caucus of Environmental Legislators, No. 359 at p. 1)
                    </P>
                    <P>
                        NEEA supported DOE's finding in the July 2022 NOPR that implementing a 95-percent AFUE standard for NWGFs and MHGFs would lead to significant, cost-effective energy savings. (NEEA, No. 368 at pp. 1-2) NEEA stated that the consumer furnace market is ready for a furnace standard set at a condensing level, as evidenced by the market maturity and the lack of insurmountable barriers. (
                        <E T="03">Id.</E>
                         at pp. 2-3) NEEA noted that condensing furnaces make up the majority of sales in the Northwest and their market share is growing. (
                        <E T="03">Id.</E>
                        ) NEEA stated that a study commissioned by NEEA and other stakeholders demonstrated the lack of barriers as would prevent a condensing furnace installation. (
                        <E T="03">Id.</E>
                        ) Additionally, NEEA commented that a 5-year transition time would allow sufficient time for manufacturers to convert their production and close the remaining sales gap. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        Daikin commented that it believes the results of DOE's analysis would not substantially change even if DOE were provided additional data, and, therefore, it expressed support for the proposed 95-percent standard for NWGFs. (Daikin, No. 416 at p. 3) Carrier and Trane also expressed support for the 95-percent AFUE standard for NWGF, and Trane added that this level will provide significant CO
                        <E T="52">2</E>
                         savings. (Carrier, No. 377 at p. 1; Trane, No. 412 at p. 1) AHRI stated that DOE has conducted sufficient analysis to amend active mode energy conservation standards for NWGFs and recommended that DOE finalize this rulemaking to bring resolution to the process and to bring certainty to the marketplace. (AHRI, No. 414-1 at p. 1) The CEC commented that it supports DOE's proposed standard for consumer furnaces at 95-percent AFUE and 8.5 W, and that DOE should finalize these standards. (CEC, No. 382 at pp. 1-2) AHRI and Rheem agreed with DOE's conclusion that a 98-percent AFUE standard would be unreasonable and not economically justified for NWGFs. (AHRI, No. 414-1 at pp. 1-2; Rheem, No. 394 at p. 2)
                    </P>
                    <P>
                        The State Agencies supported the proposed TSL 8 standard and methodology and encouraged DOE to adopt the rule. (State Agencies, No. 375 at pp. 1-2) The State Agencies further commented that the proposed TSL 8 standard is technologically achievable, beneficial to American consumers' physical and financial health, and is an important step in reducing emissions. (
                        <E T="03">Id.</E>
                         at p. 1) NYSERDA supported DOE's proposal to adopt TSL 8 for MHGFs and NWGFs and recommended that DOE consider an even more stringent standard at 96-percent AFUE for NWGF. (NYSERDA, No. 379 at pp. 1-2) NYSERDA further commented that TSL 8 leads to significant energy and economic savings over the lifetime of the equipment. (
                        <E T="03">Id.</E>
                        ) The NCLC 
                        <E T="03">et al.</E>
                         and the Joint Efficiency Commenters also stated that the proposed TSL 8 efficiency levels promise substantial financial benefits to consumers and added that these financial benefits are especially promising for low-income consumers. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 4; Joint Efficiency Commenters, No. 381 at p. 2) The NCLC commented that low-income rental properties are more likely to have less-efficient furnaces and to pass the associated larger energy bills on to tenants. (NCLC, Public Meeting Webinar Transcript, No. 363 at pp. 8-10) NCLC noted that this could amount to $2,000 to $3,000 in incremental costs for tenants over the life of the furnace. (
                        <E T="03">Id.</E>
                         at p. 9) The commenter also stated that low-income consumers have the fewest resources to address the harms of rising temperatures and would be further adversely impacted. The NCLC commented that this presents an equity issue and accordingly concluded that DOE should adopt a strong furnace efficiency standard. (
                        <E T="03">Id.</E>
                         at p. 10)
                    </P>
                    <P>The Philadelphia Solar Energy Association commented in support of the proposed standards, stating that high-efficiency furnaces help low-income consumers in Philadelphia reduce their energy costs, as well as indoor air pollution from atmospheric furnaces. (Philadelphia Solar Energy Association, Public Meeting Webinar Transcript, No. 363 at p. 37)</P>
                    <P>The Joint Efficiency Commenters stated that DOE should not adopt TSL 7 as an alternative to TSL 8, adding that the percentage of low-income consumers benefitting from the potential standards is significantly greater at TSL 8 compared to TSL 7. (Joint Efficiency Commenters, No. 381 at p. 2)</P>
                    <P>
                        In response to the July 2022 NOPR, The NCLC 
                        <E T="03">et al.</E>
                         commented that if the standard is set too high, many consumers will be saddled with purchasing expensive products where energy savings do not outweigh initial costs. However, the NCLC 
                        <E T="03">et al.</E>
                         commented that, if the standard is set too low, then the percentage of customers who end up with higher LCC will increase. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 6) Therefore, the NCLC 
                        <E T="03">et al.</E>
                         commented that DOE should not reject a standard because some consumers will experience net costs over the life of the product. (
                        <E T="03">Id.</E>
                        ) NCLC 
                        <E T="03">et al.</E>
                         noted that, at TSL 8, the average net benefits are more significant than the average net costs for NWGFs. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>As discussed in section II.A of this document, DOE is directed by EPCA to conduct periodic rulemakings to determine whether to amend the standards for various products, including consumer furnaces. (42 U.S.C. 6295(f)(4) and 42 U.S.C. 6295(m)(1)) The standards adopted by this final rule, which include the same AFUE levels as those proposed in the July 2022 NOPR, adhere to the requirements of EPCA in that they are 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) and 42 U.S.C. 6295(o)(3)(B)) The analytical results showing both the benefits and burdens of the standards, along with DOE's rationale for adopting these amended standards, are discussed in section V of this document.</P>
                    <HD SOURCE="HD3">4. Regional Standards</HD>
                    <P>
                        Nortek, AHRI, and MHI encouraged DOE to consider regional standards that align with the U.S. Department of Housing and Urban Development (“HUD”) zones. (Nortek, No. 406 at p. 6; AHRI, No. 414-2 at pp. 3-4; MHI, No. 365 at pp. 1-2) MHI commented that the HUD code for manufactured homes prescribes energy efficiency features that are specific to the region where the home will be sited. (MHI, No. 365 at pp. 1-2) MHI suggested that consulting with 
                        <PRTPAGE P="87521"/>
                        HUD will assist DOE in understanding how furnace standards impact consumer access to affordable housing, including manufactured housing. (
                        <E T="03">Id.</E>
                        ) PHCC commented that DOE's early efforts for this consumer furnace rulemaking considered creating regional standards to establish a pathway for higher-efficiency products that could not be justified on a national scale due to differences in usage and energy consumption of different climate zones. (PHCC, No. 403 at pp. 1-2) Trampe commented that the entire United States should not have to follow the same standard and added that what applies in Minnesota may not apply in Kansas, Tennessee, Texas, or other States. (Trampe, No. 361 at p. 1) Nortek pointed to NRCan's standards, which were set at 95-percent AFUE for NWGFs and 80-percent AFUE for MHGFs in 2019. Nortek noted that the climate in Canada has more severe winters than many parts of the United States. Nortek also stated that setting standards at a condensing level disproportionately impacts southern homeowners because most manufactured homes are in the South where mild winters allow furnaces to run for only 3 months a year. (Nortek, No. 406 at pp. 3-4) Like Nortek, the Heartland Institute also discussed regional differences, stating that in Northern States, such as Minnesota or Wisconsin, most residential natural gas furnaces already meet 95-percent AFUE. In Southern States, such as Texas, Georgia, and Florida, a smaller percentage of homeowners have adopted higher-efficiency furnace models. The Heartland Institute further offered that condensing models are already installed in regions where furnaces are heavily used, which mitigates the need for this mandate. (The Heartland Institute, No. 376 at p. 2) JCI commented that it believes a regional standard with a condensing level for the Northern region and a non-condensing level for the Southern region would be more economically justified and would align with the existing central air conditioning/heat pump standards. JCI commented that, in southern installations, the additional installation cost would result in a negative LCC using the amended values JCI supplied for manufacturer production costs (“MPCs”). (JCI, No. 411 at p. 2)
                    </P>
                    <P>Conversely, Daikin commented that there are logistical and operational challenges associated with regional standards; therefore, Daikin supported a national energy conservation standard, stating that it does not support TSL 4. (Daikin, No. 416 at p. 2) Similarly, Rheem commented that DOE should maintain a single, nationwide and capacity-wide standard for NWGFs to avoid costly supply and inventory planning problems for manufacturers, distributors, and contractors. (Rheem, No. 394 at p. 3) The CFA commented that DOE should consider a uniform standard, arguing that certain furnaces no longer need to be exempted from the standard. (CFA, Public Meeting Webinar Transcript, No. 363 at p. 22)</P>
                    <P>
                        In response, DOE's analyses of each considered efficiency level accounts for regional differences (
                        <E T="03">e.g.,</E>
                         in terms of climate data, shipments) when appropriate, as discussed throughout this document. For the July 2022 NOPR and for this final rule, in addition to considering uniform national standard, DOE included consideration of a potential regional standard (
                        <E T="03">i.e.,</E>
                         TSL 4; see section V.A of this document) consisting of efficiency levels at 95-percent AFUE for the Northern region and 80-percent AFUE for the rest of the country, for both NWGFs and MHGFs. However, as discussed in section V of this document, DOE conducts a walk-down analysis to determine the TSL that represents the maximum improvement in energy efficiency that is technologically feasible and economically justified, as required under EPCA. In this final rule, DOE has found that a national standard for both NWGFs and MHGFs corresponding to 95-percent AFUE (
                        <E T="03">i.e.,</E>
                         TSL 8) meets those statutory criteria, and, therefore, DOE is adopting a national standard rather than regional standards.
                    </P>
                    <HD SOURCE="HD3">5. Recommendations for Analytical Changes</HD>
                    <P>
                        Atmos Energy commented that DOE should supplement its technical analysis in accordance with consumer welfare recommendations identified by the National Academy of Science peer review report before proceeding with a final rule, arguing that this would increase the accuracy of the technical analysis and have a material impact on the final standards. (Atmos Energy, No. 415 at p. 5) AGA commented that DOE should follow, or at a minimum respond to, the National Academies of Sciences, Engineering, and Medicine's (NAS) Recommendations (the NAS Report) on its process. (AGA, No. 405 at pp. 25-27) AGA stated that DOE should revisit the proposed rule to address NAS's recommendations and allow stakeholders an opportunity to comment on the revisions. (
                        <E T="03">Id.</E>
                        ) APGA stated that many months after the NAS Report, DOE does not reflect the NAS findings in the NOPR but merely states that DOE “is in the process of evaluating the resulting report.” (APGA, No. 387 at p. 56) APGA pointed out that the residential furnace rulemaking was one of the three rulemakings studied in depth by the NAS committee. (
                        <E T="03">Id.</E>
                        ) APGA noted that NAS came to conclusions about consumer behavior that are extremely critical to the NOPR. APGA cited the NAS Report's recommendation that “[f]or some commercial goods in particular, there should be a presumption that the market actors behave rationally unless DOE can provide evidence or argument to the contrary.” (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE notes that the rulemaking process for energy conservation standards for covered products and equipment are outlined in appendix A to subpart C of 10 CFR part 430, and DOE periodically examines and revises these provisions in separate rulemaking proceedings. DOE notes that discussion of the recommendations of the NAS report, which pertain to the processes by which DOE analyzes energy conservation standards, will be addressed as part of a separate notice-and-comment process.</P>
                    <P>
                        Rheem commented that DOE should consider a simplified analysis and reproducible model for future rulemakings. (Rheem, No. 394 at p. 2) Specifically, Rheem encouraged DOE to adopt a consistent and predictable approach to quantifying energy savings to ensure the recommendations will result in the estimated savings. (
                        <E T="03">Id.</E>
                        ) GAS argued that “Uncertainties . . . include numerous variables contained within DOE's overly complex `determination' apparatus,” and that DOE has failed to “use transparent and robust analytical methods.” (GAS, No. 385 at pp. 4-5) AHRI suggested that, for future rulemakings, DOE should modify the way that it analyzes consumer economic impact to look at the probability that individual consumers will benefit from standards rather than whether the aggregate benefit is positive and stated that these changes would be best accomplished in an open review process. (AHRI, No. 414-1 at p. 2)
                    </P>
                    <P>
                        Although DOE understands the desire for simplicity, the Department notes that its analysis is informed by the Process Rule and includes a number of modifications in response to comments from interested parties on prior notices, which recommended that DOE consider a variety of additional factors when evaluating the impacts of potential standards. These additional considerations, while adding complexity to the analysis, are responsive to commenters and increase the granularity of results. A simplified analysis would run counter to those 
                        <PRTPAGE P="87522"/>
                        recommendations,
                        <SU>39</SU>
                        <FTREF/>
                         which have proven to have merit. In response to AHRI's comment that consumer impacts should be assessed individually, DOE notes that as discussed in section IV.F of this document, the LCC includes a Monte Carlo analysis that allows DOE to assess impacts on a wide range of installations. DOE uses this information to assess and consider how consumers would likely be impacted by potential standards. DOE also conducts a consumer subgroup analysis (described in section IV.I of this document) that evaluates the economic impacts of standards on specific groups. DOE further notes that its analysis is designed to be reproducible to interested parties, and DOE provides a range of statistics, including the percentage of consumers that will be negatively and positively impacted by an amended energy conservation standard. Therefore, for this final rule, DOE continued to conduct the energy savings and economic rulemakings using largely the same methodologies used in the July 2022 NOPR of this rulemaking, which are generally consistent with those used for prior rulemakings.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             For example, sections 12 through 16 of the Process Rule outlines factors to be considered in the process for developing energy conservation standards, including delineating several factors relating to identification of candidate standard levels and other factors to be considered in the selection of proposed standards, as well as the subsequent selection of a final standard. These analyses, along with the accompanying sensitivity analyses, are necessary to ensure the robustness of the Energy Conservation Standards amendment process.
                        </P>
                    </FTNT>
                    <P>ACCA suggested that DOE should focus its attention on efficiency improvements, such as installing heating, ventilation, and air-conditioning (HVAC) systems according to the industry's recommended standards (including proper equipment sizing, duct re-design and sealing, and appropriate refrigerant charge levels), that would reduce peak electricity demand without requiring revised installation or design standards. (ACCA, No. 398 at p. 2)</P>
                    <P>
                        As discussed in section IV.F.4 of this document, DOE's analysis accounts for the electricity consumption of NWGFs and MHGFs. Although reducing peak electricity demand can be a benefit of energy conservation standards, as discussed in section II.A of this document, EPCA provides specific factors that DOE must consider when establishing or amending energy conservation standards. One of these factors is the total projected energy savings that would result from the standard (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(III)), and DOE includes impacts on electricity consumption when evaluating the projected energy savings. DOE follows the statutory obligations laid out in EPCA when evaluating the potential for energy savings, technological feasibility, and economic justification.
                    </P>
                    <HD SOURCE="HD3">6. Opportunity for Public Input</HD>
                    <P>MTNGUD, Watertown Municipal Utilities, and LANGD recommended that DOE hold a workshop to further discuss this rulemaking. (MTNGUD, No. 350 at pp. 1-2; WMU, No. 351 at p. 1; LANGD, No. 355 at p. 2) MTNGUD and LANGD specifically noted that at the workshop, DOE should further discuss its LCC analysis with stakeholders in order to achieve a common understanding, and these parties added that the LCC is a central part of the proposed standard. (MTNGUD, No. 350 at p. 1; WMU, No. 351 at p. 2; Consumer Energy Alliance, No. 354 at p. 1, LANGD, No. 355 at p. 2) MTNGUD, Watertown Municipal Utilities, and Joint Requesters stated that holding a workshop and extending the associated comment period would be in accordance with the objectives of the Process Rule. (MTNGUD, No. 350 at pp. 1-2; WMU, No. 351 at pp. 1-2; Joint Requesters, No. 356 at pp. 1-4) Joint Requesters requested another webinar to cover comments and questions related to DOE's LCC model that were not addressed during the webinar held on September 6, 2022. (Joint Requesters, No. 362 at p. 2) Additionally, the Consumer Energy Alliance urged that an extension of the comment period by DOE and hosting the requested workshop would allow for sufficient time for all stakeholders to analyze the NOPR so as to develop meaningful comments. (Consumer Energy Alliance, No. 354 at pp. 1-2)</P>
                    <P>
                        MTNGUD, Watertown Municipal Utilities, Consumer Energy Alliance, and LANGD also encouraged DOE to extend the comment period at least 45 days after the workshop to give commenters additional time to effectively comment on the July 2022 NOPR. (MTNGUD, No. 350 at p. 2; WMU, No. 351 at p. 2; Consumer Energy Alliance, No. 354 at 2; LANGD, No. 355 at p. 2) LANGD and Watertown Municipal Utilities stated that more time is needed to evaluate the impacts on low-income households, seniors, and energy insecure consumers. (LANGD, No. 355 at p. 1; WMU, No. 351 at p. 1) Consumer Energy Alliance commented that the proposal and supporting documents are highly technical and voluminous, so it will take additional time to sufficiently analyze everything DOE has issued, adding that DOE's proposal will impact millions of consumers while also raising complex legal, regulatory, economic, and technical issues. (Consumer Energy Alliance, No. 354 at p. 1) Consumer Energy Alliance further commented that stakeholders should have a sufficient opportunity to evaluate the various issues raised in the NOPR, including how such issues may impact the stakeholders' members/customers. (
                        <E T="03">Id.</E>
                        ) Consumer Energy Alliance requested that an extension of the comment period be granted by DOE, and the commenter argued that hosting the requested workshop would allow for sufficient time for all stakeholders to analyze the NOPR and develop meaningful comments. (
                        <E T="03">Id.</E>
                         at p. 2)
                    </P>
                    <P>Several parties requested an extension of at least 60 days to sufficiently analyze the NOPR and the related documents. (Joint Commenters, No. 330 at p. 1; NGSA, No. 343, at p. 1; MHI, No. 344, at p. 1). They stated that DOE did not follow the Process Rule, and that the 60-day comment period made meaningful comment impossible. (Joint Commenters, No. 330 at p. 1; NPGA, No. 395 at pp. 26-27) Similarly, LANGD and the Consumer Energy Alliance commented that the 60-day comment period does not allow for a meaningful opportunity to verify DOE's analysis and provide substantive comments to aid in a productive rulemaking process. (LANGD, No. 355 at p. 1; Consumer Energy Alliance, No. 354 at p. 1) APGA and AGA noted that the Administrative Procedure Act (APA) requires that agencies provide a “meaningful” opportunity for comment. (APGA, No. 387 at p. 65; AGA, No. 405 at p. 24) APGA commented that DOE has violated the APA due to the deviation from past public comment periods and the complexities of the models in this rulemaking. (APGA, No. 387 at p. 65) APGA stated that DOE's justifications for fewer days to comment are unavailing, and that it appears DOE is rushing to judgment by denying APGA and other stakeholders a reasonable process to comment. (APGA, No. 387 at p. 67) AGA also commented that stakeholders have been denied a meaningful opportunity to evaluate the NOPR. (AGA, No. 405 at pp. 24-25)</P>
                    <P>
                        Conversely, AHRI stated that by holding the webinar focused on the LCC model on September 6, 2022 and extending the comment period for the July 2022 NOPR, DOE provided all commenters with sufficient opportunity to review its models and make thoughtful comments. (AHRI, No. 414-1 at p. 1) Sierra Club 
                        <E T="03">et al.</E>
                         commented that the deviations from the Process Rule are justified in light of the long 
                        <PRTPAGE P="87523"/>
                        delay on these standards, which is in violation of the statutory deadline for this action and the schedule to which DOE agreed as part of a settlement agreement. (Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401 at p. 1)
                    </P>
                    <P>
                        In response, DOE conducts all appliance standards rulemakings in accordance with its authority under EPCA, which involves making its analyses publicly available and providing the public an opportunity to comment on the rulemaking. (42 U.S.C. 6295(m)(2)) As explained in the July 2022 NOPR, DOE initially found it necessary and appropriate to provide a 60-day comment period given the overdue statutory deadline and because the analytical methods used for the NOPR were similar to those used in previous rulemaking notices regarding the subject furnaces. 87 FR 40590, 40607 (July 7, 2022). DOE held a public meeting webinar to discuss the July 2022 NOPR on August 3, 2022. Subsequently, as stakeholders requested, DOE held a second public meeting webinar on September 6, 2022 focused on helping stakeholders understand and operate the Department's analytical models. DOE also extended the comment period by 30 days, which totaled 90 days for stakeholders to provide input. 87 FR 52861 (August 30, 2022). As mentioned, interested parties such as AHRI and Sierra Club, 
                        <E T="03">et al.</E>
                         attested to the adequacy of the comment opportunity which DOE provided. (AHRI, No. 414-1, at p. 1; Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401, at p. 1) As a result, DOE concludes that stakeholders have had ample time and opportunity to provide input on the rulemaking analyses and process related to the amended energy conservation standards for NWGFs and MHGFs.
                    </P>
                    <HD SOURCE="HD3">7. Federal Financial Assistance</HD>
                    <P>
                        The Attorneys General commented that with new Federal funding available under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, the transition to more-efficient space heating will be cost-effective and affordable. (Attorneys General, No. 408 at p. 2) The Attorneys General added that the multibillion-dollar Congressional investment in weatherization, energy efficiency, and beneficial electrification programs will help alleviate equipment cost concerns for low- to moderate-income households and small businesses. (
                        <E T="03">Id.</E>
                        ) Similarly, Trane commented that aid should be provided through the Inflation Reduction Act to homeowners to offset any costs incurred from this standard due to increased purchase and installation costs. (Trane, No. 412 at pp. 1-2) Trane further stated that this assistance could help with the necessary advancements in venting technology that will accompany the standard. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>The Joint Utilities commented that they believe DOE can help Americans achieve meaningful cost savings while benefitting the environment by establishing rebates and incentive programs that could be used to support State-regulated efficiency and rebate programs. Furthermore, the Joint Utilities stated that this would assist electric and natural gas customers by reducing the upfront costs of achieving greater home heating efficiency. (The Joint Utilities, No. 402 at p. 1)</P>
                    <P>DOE agrees that Federal funding, specifically funding available through the Inflation Reduction Act, may be able to assist in the transition to more-efficient space heating. However, DOE also notes that such funding is separate from this rulemaking process and has yet to be fully implemented. Consequently, while DOE agrees that the costs of more-efficient furnaces could be reduced for certain consumers, DOE did not include impacts of any Federal funding in its reference case analysis. However, as discussed in section IV.F.10 of this document, DOE performed a sensitivity analysis in which tax credits significantly reduce the cost of a heat pump system as an alternative space-heating option, thereby incentivizing some consumers to switch from gas furnaces to heat pumps. The results of this sensitivity analysis are available in appendices 8J and 10E of the final rule TSD. Additionally, any potential incentives for more-efficient gas furnaces would only improve the consumer benefits as determined in the final rule analysis. Therefore, as discussed in section V of this document, DOE concludes that the amended standards are justified, and this decision is not dependent on whether additional Federal subsidies or investments are available.</P>
                    <HD SOURCE="HD3">8. Standby Mode and Off Mode Power Consumption Standards</HD>
                    <P>As discussed in section II.A of this document, EPCA requires any final rule for new or amended energy conservation standards promulgated after July 1, 2010, to address standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3))</P>
                    <P>
                        “Standby mode” and “off mode” energy use are defined in the DOE test procedure for residential furnaces and boilers (
                        <E T="03">i.e.,</E>
                         “Uniform Test Method for Measuring the Energy Consumption of Consumer Furnaces Other Than Boilers,” 10 CFR part 430, subpart B, appendix N). In that test procedure, DOE defines “standby mode” as any mode in which the furnace is connected to a mains power source and offers one or more of the following space heating functions that may persist: (a) To facilitate the activation of other modes (including activation or deactivation of active mode) by remote switch (including thermostat or remote control), internal or external sensors, and/or timer; and (b) Continuous functions, including information or status displays or sensor based functions. 10 CFR part 430, subpart B, appendix N, section 2. “Off mode” for consumer furnaces is defined as a mode in which the furnace is connected to a mains power source and is not providing any active mode or standby mode function, and where the mode may persist for an indefinite time. The existence of an off switch in off position (a disconnected circuit) is included within the classification of off mode. 10 CFR part 430, subpart B, appendix N, section 2. An “off switch” is defined as the switch on the furnace that, when activated, results in a measurable change in energy consumption between the standby and off modes. 10 CFR part 430, subpart B, appendix N, section 2. As discussed previously, DOE does not currently prescribe standby mode or off mode standards for NWGFs and MHGFs.
                    </P>
                    <P>In the July 2022 NOPR, DOE analyzed new standby mode and off mode power standards for NWGFs and MHGFs and proposed that the maximum allowable standby mode and off mode power consumption should be 8.5 W for NWGFs and MHGFs. 87 FR 40590, 40592 (July 7, 2022). Table IV.5 of the July 2022 NOPR shows the standby mode and off mode efficiency levels that DOE analyzed, along with a description of the design options anticipated to be used to achieve each efficiency level above baseline. The baseline efficiency level was determined to be 11 W, and it corresponds to the use of a linear power supply and a 40VA linear transformer (LTX). Other technology options that were analyzed to achieve efficiency levels above baseline include a low-loss LTX (“LL-LTX”) and two types of switching mode power supply (SMPS). 87 FR 40590, 40619 (July 7, 2022).</P>
                    <P>
                        In response to DOE's proposed technology options and watt levels associated with each efficiency level for standby mode and off mode standards, Carrier commented that it agreed with DOE's statement that most furnaces use 40VA transformers, and further described that 40VA transformers provide power to sensors and components in the furnace, as well as a 
                        <PRTPAGE P="87524"/>
                        variety of external devices. (Carrier, No. 377 at p. 2) Carrier also commented that it does not believe the use of an SMPS will lower the transformer size without limiting the external devices and sensors that can be powered by the furnace, which would impact consumer experience and product performance. The commenter stated that DOE only considered thermostats, but noted that there are other devices that could be powered by the transformer. (Carrier, No. 377 at pp. 2-3) Carrier encouraged DOE to defer the standby mode and off mode power standards, asserting that the 8.5W level has the potential to reduce the utility of consumer furnaces, and therefore would not meet the requirements of 42 U.S.C. 6295(o)(2)(B)(iv). (Carrier, No. 377 at pp. 1-2) Carrier asserted that its analysis found that a maximum standby watt limit of 8.5 is achievable in only their furnaces with the lowest AFUE efficiency and least features. (Carriers, No. 377 at p. 2) Carrier argued that products that incorporate a 20VA transformer do not meet DOE's screening criteria of product utility or availability, nor will they have the ability to support the safety sensors that will or could be required in the future such as those that may be needed due to the Consumer Protection Safety Commission's stated intention to establish a requirement for carbon monoxide sensors on furnaces. (Carrier, No. 377 at p. 3) Carrier explained that efficiency level (EL) 1 is the only feasible technology option to support the safety sensors that will be required in the future. (Carrier, No. 377 at pp. 3-4) Carrier explained that potential requirements for new safety sensors would mean that a standard lower than 11 W could create an adverse impact on product utility. (Carrier, No. 377 at pp. 3-4) Carrier asserted that contractors would need to install larger transformers to maintain utility, which defeats the purpose of having a standby power limit and adds additional installation complexity. (Carrier, No. 377 at pp. 2-3) Therefore, Carrier commented that it opposed DOE's proposed 8.5W standby mode and off mode power standard for NWGFs. (Carrier, No. 377 at pp. 1-2) Carrier explained that it conducted an analysis of standby mode and off mode power on their furnaces and found that the limit of 8.5W is achievable for their lower-efficiency furnaces, but not for their mid-tier and deluxe furnaces without lessening the utility. (Carrier, No. 377 at p. 2) Overall, Carrier recommended that DOE defer standby mode and off mode power standards until further testing and analysis is conducted. (Carrier, No. 377 at pp. 3-4)
                    </P>
                    <P>
                        Trane also commented that DOE's assumption that furnaces would transition to a 20VA transformer at standby mode and off mode ELs 2 and 3 is inaccurate, because the transformer supplies power not only to the furnace but also to the attached air conditioner or heat pump, as well as the thermostat and other accessories. (Trane, No. 412 at p. 2) Trane commented that setting the standard at 8.5W would result in manufacturers adding transformers to supply power to the needed features; therefore, Trane recommended maintaining a standard of 11W. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        Lennox stated that 40VA transformers are utilized to provide adequate low voltage power for components and accessory items. (Lennox, No. 389 at pp. 4-5) Lennox commented that it offers transformers ranging up to 70VA to accommodate situations where several accessories are included in the HVAC system. (Lennox, No. 389 at p. 4) Lennox argued that DOE's assumption of a unit with SMPS having a transformer sized at 20VA is incorrect, since a 20VA transformer often does not provide sufficient power capability to drive the internal components necessary for all furnace/air conditioner/heat pump functions and a thermostat. (Lennox, No. 389 at p. 4) Lennox explained that SMPS are currently used in Lennox products controls, and the company is not aware of ways to further reduce standby mode and off mode power consumption. (
                        <E T="03">Id.</E>
                        ) Lennox also stated that the proposed standby mode and off mode standard level would inhibit implementation of additional safety features. (Lennox, No. 389 at pp. 3-4)
                    </P>
                    <P>
                        Lennox commented that the 8.5W limit for consumer furnaces will prevent advances in communicating controls, installation and diagnostic features, and zoning. (Lennox, No. 389 at p. 4) Lennox further stated that programs, including ENERGY STAR, are considering measures that would require these monitoring, diagnostic, and prognostic features that would require additional standby power, but would save more energy overall. (
                        <E T="03">Id.</E>
                        ) The commenter argued that future innovations and safety requirements (
                        <E T="03">e.g.,</E>
                         thermostats, WiFi controls, extra power supplies) may force the power usage to rise above the 11W limit. (Lennox, No. 389 at p. 6) Lennox commented that DOE should not mandate standby mode and off mode power levels with 
                        <E T="03">de minimis</E>
                         energy savings that prevent the integration of controls and other features that enable significantly larger energy savings at the furnace and HVAC systems level. (Lennox, No. 389 at pp. 4-5) Lennox commented that DOE should not only reconsider the proposed standby mode and off mode standard of 8.5W but should also consider whether an 11W baseline would be sufficient. (Lennox, No. 389 at p. 6) Lennox further commented that the analysis for DOE's proposed standard for standby mode and off mode also does not consider system level impacts. (Lennox, No. 389 at p. 5)
                    </P>
                    <P>Nortek commented that DOE should not implement a standby mode and off mode standard lower than 11W. (Nortek, No. 406 at pp. 1-2) Nortek commented that they do not support DOE's proposed standard of 8.5 W for standby mode and off mode, as it would limit necessary innovation in furnace controls, programming and usage displays, thermostats, and other devices. (Nortek, No. 406 at p. 1)</P>
                    <P>Rheem commented that DOE should adjust its proposed standby mode and off mode energy standards for NWGF. Rheem asserted that 8.5W may be overly limiting due to the previously mentioned shift toward smart products, and the shift to low global warming potential (GWP) refrigerants that require additional power for supporting communication and safety controls. The commenter warned that reductions in standby wattage limits potential diagnostic and installation functionality, advancements which could also result in energy savings. (Rheem, No. 394 at p. 1) Rheem commented that DOE should maintain a baseline standby mode and off mode power level of 11W, as would allow future improvements such as safety and communicating controls to be incorporated into future furnace designs. (Rheem, No. 394 at p. 2)</P>
                    <P>
                        Daikin commented that it does not support DOE's proposed 8.5W standard for standby mode and off mode. (Daikin, No. 416 at p. 1) Daikin also stated that DOE has significantly underestimated the incremental MPCs for each of the standby mode and off mode efficiency levels, and that the cost increase for a Low-Loss Linear Transformer is more likely to be five to ten times higher than DOE's estimate. (
                        <E T="03">Id.</E>
                         at p. 4) Daikin noted that many manufacturers offer a 70VA transformer as an accessory or service part to provide adequate low voltage power to all system components, and that manufacturers would likely need to limit accessory items to meet the proposed standby mode/off mode standards. (
                        <E T="03">Id.</E>
                         at p. 5) Daikin recommended that DOE establish a standby mode and off mode criteria of 15W for condensing NWGFs with 
                        <PRTPAGE P="87525"/>
                        communicating features, multiple heating stages, ultra-low NO
                        <E T="52">X,</E>
                         an electrically commutated (ECM) motor, and controls associated with alternate refrigerants. (Daikin, No. 416 at p. 6)
                    </P>
                    <P>AHRI explained that a maximum level of 8.5W of standby power would limit necessary innovation in furnaces and related connected devices powered through the furnace and could possibly prohibit significant energy-saving features. (AHRI, No. 414-1 at p. 2) AHRI stated that DOE should reconsider the standby mode and off mode energy standards proposed for NWGFs, as well as the max-tech level based upon the use of a 20VA low-loss linear transformer (“LL-LTX”) and SMPS. (AHRI, No. 414-1 at p. 3)</P>
                    <P>
                        AHRI also noted that the NAS Peer Review Report 
                        <SU>40</SU>
                        <FTREF/>
                         mentions the need to not stifle innovation, particularly regarding connected products. (AHRI, No. 414-1 at p. 2) AHRI stated that if the standby mode and off mode standards for furnaces are set too low, then connected products such as thermostats and Wi-Fi controls will use add-on power supplies, mentioning that such auxiliary power supplies are already available on the market. (AHRI, No. 414-1 at p. 3) AHRI expressed concern that the current baseline value of 11W may need to be adjusted in the future to remove the effects of safety and other control measures. (AHRI, No. 414-1 at p. 3)
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             National Academies of Sciences, Engineering, and Medicine, Review of Methods Used by the U.S. Department of Energy in Setting Appliance and Equipment Standards. (2021) Washington, DC: The National Academies Press. pp. 2-3; 111-113. 
                            <E T="03">doi.org/10.17226/25992.</E>
                        </P>
                    </FTNT>
                    <P>AHRI likewise stated that DOE should reconsider the standby mode and off mode energy standards proposed for MHGFs, referencing the comments it submitted for NWGFs. Specifically, AHRI stated that the proposed maximum of 8.5 watts would stifle innovation and could reduce energy savings from connected products, and is inadequate to power safety and communication controls necessary for consumer utility. (AHRI, No. 414-2 at p. 3) Mortex commented that DOE's proposed 8.5W limit for standby mode and off mode would not be adequate to power safety and communicating controls necessary for consumer utility and that 11W should be retained. (Mortex, No. 410 at p. 4)</P>
                    <P>JCI commented that the 8.5W limit for standby mode and off mode power of NWGFs and MHGFs is too restrictive due to the additional requirements associated with the new A2L refrigerant requirement and other future communication and monitoring advancements. (JCI, No. 411 at p. 3)</P>
                    <P>Several commenters argued that furnaces will need to incorporate safety sensors for controlling components such as carbon monoxide, carbon dioxide, refrigerant leak detectors and/or low GWP along with other changes in the future, and they noted that such functionalities must be accounted for in meeting the currently proposed limit for standby mode and off mode power. (Lennox, No. 389 at pp. 4-5; Rheem, No. 394 at pp. 1-2; Carrier, No. 377 at pp. 3-4; Daikin, No. 416 at pp. 5-6; AHRI, No. 414-1 at pp. 2-3)</P>
                    <P>
                        Daikin, Lennox, Trane and AHRI listed numerous components that are powered by transformers in consumer furnaces. The combined list of components includes: integrated furnace control board, indoor and outdoor air conditioning/heat pump (AC/HP) fan motors, gas valves, combustion air inducers, thermostats, ultraviolet (UV) germicidal lights, humidifiers, AC/HP outdoor control board, AC/HP defrost controls, AC/HP heat pump reversing valve, indoor air circulating blowers, indoor and outdoor electronic expansion valves, condensate pumps, communicating controls that aid in proper commissioning, AC/HP IoT devices, system performance monitoring and reporting, identification of faults, zoning systems consumer interface, temperature sensors, air pressure sensors, refrigerant pressure sensors, gas pressure sensors, proprietary diagnostic sensors, refrigerant leak detection systems for A2L refrigerants, carbon monoxide (CO) sensors, CO
                        <E T="52">2</E>
                         sensors, and dual fuel HPs that require more power. (Daikin, No. 416 at p. 6; Lennox, No. 389 at pp. 4-5; Trane, No. 412 at p. 2; AHRI, No. 414-1 at pp. 2-3) AHRI stated that it is impossible at this time to determine the power draw from these components that may be added to furnaces in the future and suggested that DOE reevaluate these proposed standards for NWGFs in the next round of standards. (AHRI, No. 414-1 at p. 3) Trane argued that a 20VA transformer is inadequate to power all these items. (Trane, No. 412 at p. 2) Daikin recommended taking these future requirements into account, as these standards will not come into effect until after the new A2L refrigerant is required. (Daikin, No. 416 at pp. 5-6)
                    </P>
                    <P>The CA IOUs commented that they analyzed the dataset of ten consumer furnaces shared by AHRI in which they found that 50 percent of the furnaces with AFUEs of 97 or higher would not meet the proposed standby mode and off mode requirement. They further stated that 70 percent would meet a standard of 9 W and that 100 percent would meet a standard of 10 W. (The CA IOUs, No. 400 at p. 3)</P>
                    <P>The CA IOUs requested that DOE confirm that the proposed standby mode and off mode energy conservation standard would not significantly reduce the market availability of the most efficient consumer furnaces and would preserve design flexibility for future products. The CA IOUs suggested that these design flexibilities could include diagnostic features to verify installation and monitor ongoing performance or additional safety features or reduce consumer costs through higher operational energy savings. The CA IOUs suggested that DOE should consider a separate standby mode and off mode adder for furnaces with higher energy efficiency than baseline furnaces. (The CA IOUs, No. 400 at p. 3)</P>
                    <P>
                        The CA IOUs commented in support of a standby mode and off mode energy conservation standard; however, they stated that, in their experience, products with higher operational efficiencies sometimes have higher standby mode and off mode energy requirements. (The CA IOUs, No. 400 at pp. 2-3) They commented that, as an example, furnace fans with ECMs have higher standby mode energy consumption compared with furnaces fans outfitted with lower efficiency motors. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>CEC commented that consumer products in the marketplace already meet the proposed DOE standard of 8.5W in standby mode. The commenter conducted an analysis on AHRI's condensing data set, which showed 74 percent of condensing furnaces as using an ECM motor, and only 8 percent of those furnaces were shown to have a standby energy consumption greater than 8.5W. CEC stated that the average of this data was 6.1W and that the median was 5.7W for condensing furnaces with ECM motors. Therefore, CEC claimed that the 8.5W limit is both realistic and leaves room for additional functionality to be added. (CEC, No. 382 at p. 3)</P>
                    <P>
                        NYSERDA expressed support for DOE's proposed standards for standby mode and off mode power consumption and agreed with DOE's findings that more-efficient transformers are realistic and attainable. (NYSERDA, No. 379 at pp. 7-8) NYSERDA also noted that the sample of condensing furnaces from the data set provided by AHRI to DOE in 2018 
                        <SU>41</SU>
                        <FTREF/>
                         supports DOE's proposed standby mode and off mode power 
                        <PRTPAGE P="87526"/>
                        standards. (NYSERDA, No. 379 at p. 8) According to NYSERDA, the majority of models tested at the time had standby mode and off mode power efficiencies at or below the proposed standard levels, thereby demonstrating the proposed standards to be technologically feasible and readily available. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The comment submitted by AHRI was in response to a separate proceeding, and can be found at: 
                            <E T="03">www.regulations.gov/document/EERE-2018-BT-PET-0017-0002.</E>
                        </P>
                    </FTNT>
                    <P>
                        After considering this feedback, DOE understands that typical and baseline levels of power consumption of NWGFs and MHGFs in standby mode or off mode are likely to increase in the future as manufacturers continue to build increasingly complex controls into consumer furnaces, and that many of the likely changes are related to features such as safety sensors or to other improvements in functionality that would provide utility for the consumer. In addition, DOE understands that manufacturers may be introducing more sophisticated controls for furnaces that are intended to get paired with central heat pumps in the field, whose operation can be optimized for efficient performance. DOE takes Carrier's point that such innovations could contribute to the overall utility or performance of the covered product, an important consideration when assessing the economic justification of a potential standard (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(IV)). However, DOE further notes that this one EPCA factor in isolation is not dispositive of a potential standard's economic justification or lack thereof, but instead, the Department must weigh all seven factors under 42 U.S.C. 6295(o)(2)(B)(i) before setting any standby mode and off mode power standards.
                    </P>
                    <P>Based on the totality of these comments, DOE has found that there is some degree of uncertainty that exists with respect to the appropriateness of the standby mode/off mode efficiency levels analyzed in the July 2022 NOPR—particularly for products that are in development but also possibly in some products already on the market. Consequently, DOE has determined that it lacks the necessary information to set appropriate standby mode and off mode standards pursuant to 42 U.S.C. 6295(gg)(3) at this time. Particularly since some of the functionalities at issue could have significant safety or energy-savings benefits, DOE does not wish to stymie such developments through well-intentioned but ultimately counterproductive standby mode/off mode standards. Instead, DOE needs to have a better understanding of the legitimate power consumption needs of the subject furnaces when operating in these modes. The Department has concluded that it does not currently have the requisite evidence to support standby mode and off mode standards under the applicable statutory criteria in 42 U.S.C. 6295(o)(2)(B)(i). Therefore, DOE is not adopting the standby mode/off mode power standards for NWGFs/MHGFs proposed in the July 2022 NOPR at this time, but instead, the Department will continue to investigate these issues and may consider such standards in a future rulemaking. In summary, based on the stakeholder feedback received, DOE concludes that more data is necessary to determine the appropriate baseline level for standby mode and off mode energy usage to allow for safety features, features that reduce active mode energy use, or other features that would provide additional functionality for consumers.</P>
                    <P>
                        In response to the July 2022 NOPR, Daikin commented that it does not support DOE's proposed standby mode and off mode standard because the consumer life-cycle savings are negligible, the energy savings potential is extremely small, the burden on manufacturers is high, and there is a need to address low-voltage power supply for components in the future. (Daikin, No. 416 at p. 4) Similarly, PHCC commented that standby mode and off mode energy use cannot be considered in comparison to the overall energy consumption of the equipment because those potential savings are 
                        <E T="03">de minimis.</E>
                         (PHCC, No. 403 at p. 2)
                    </P>
                    <P>
                        Daikin disagreed with DOE's statement that current mounting brackets are sufficient to support the slight increase in size and weight of an LL-LTX. The commenter asserted that, according to ASTM D4728 (
                        <E T="03">Standard Test Method for Random Vibration Testing of Shipping Containers and Systems</E>
                        ), even small increases in mass can cause breaks, cracks, and deformation that mandate strengthening supports and brackets. Finally, Daikin stated that such modifications would lead to significant cost increases. (Daikin, No. 416 at p. 4)
                    </P>
                    <P>As discussed previously in this section, DOE is not finalizing its previous proposal to set new standby mode and off mode power standards for NWGFs and MHGFs in this final rule. However, DOE will continue to monitor the standby mode and off mode power consumption of the subject consumer furnaces and may address such standards in a future rulemaking. The Department may consider these comments further at that time, as appropriate.</P>
                    <HD SOURCE="HD2">B. Product Classes and Scope of Coverage</HD>
                    <P>When evaluating and establishing energy conservation standards for a type (or class) of covered products, DOE divides covered products into product classes by the type of energy used, or by capacity or other performance-related features which other products within such type (or class) do not have and that justify differing standards. In making a determination whether a performance-related feature justifies a different standard, DOE must consider such factors as the utility of the feature to the consumer and other factors DOE determines are appropriate. (42 U.S.C. 6295(q))</P>
                    <P>
                        In this rule, DOE is only analyzing a subset of consumer furnace classes. DOE agreed to the partial vacatur and remand of the June 2011 direct final rule (DFR), specifically as it related to energy conservation standards for NWGFs and MHGFs in the settlement agreement to resolve the litigation in 
                        <E T="03">American Public Gas Ass'n</E>
                         v. 
                        <E T="03">U.S. Dept. of Energy</E>
                         (No. 11-1485, D.C. Cir. Filed Dec. 23, 2011). 80 FR 13120, 13130-13132 (March 12, 2015). Therefore, in this rule, DOE is only amending the energy conservation standards for NWGFs and for MHGFs. See section IV.A.1 of this document for a more detailed discussion of the product classes analyzed in this final rule.
                    </P>
                    <HD SOURCE="HD2">C. Test Procedure</HD>
                    <P>
                        EPCA sets forth generally applicable criteria and procedures for DOE's adoption and amendment of test procedures. (42 U.S.C. 6293) Manufacturers of covered products must use these test procedures to certify to DOE that their product complies with energy conservation standards and to quantify the efficiency of their product. (42 U.S.C. 6295(s)) DOE's current energy conservation standards for consumer furnaces are expressed in terms of AFUE. (
                        <E T="03">See</E>
                         10 CFR 430.32(e)(1)) AFUE is an annualized fuel efficiency metric that accounts for fossil fuel consumption in active, standby, and off modes. The existing DOE test procedure for determining the AFUE of consumer furnaces is located at 10 CFR part 430, subpart B, appendix N. The DOE test procedure for consumer furnaces was originally established by a May 12, 1997, final rule, which incorporates by reference the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)/American National Standards Institute (ANSI) Standard 103-1993, 
                        <E T="03">Method of Testing for Annual Fuel Utilization Efficiency of Residential Central Furnaces and Boilers</E>
                         (1993). 62 FR 26140, 26157.
                    </P>
                    <P>
                        Since the initial adoption of the consumer furnaces test procedure, DOE has undertaken a number of additional 
                        <PRTPAGE P="87527"/>
                        rulemakings related to that test procedure, including ones to account for measurement of standby mode and off mode energy use (
                        <E T="03">see</E>
                         75 FR 64621 (Oct. 20, 2010); 77 FR 76831 (Dec. 31, 2012)) and to supply necessary equations related to optional heat-up and cool-down tests (
                        <E T="03">see</E>
                         78 FR 41265 (July 10, 2013)).
                    </P>
                    <P>
                        Most recently, DOE published a final rule in the 
                        <E T="04">Federal Register</E>
                         on January 15, 2016, that further amended the test procedure (TP) for consumer furnaces (January 2016 TP Final Rule). 81 FR 2628. The revisions included:
                    </P>
                    <P>1. Clarification of the electrical power term “PE”;</P>
                    <P>2. Adoption of a smoke stick test for determining use of minimum default draft factors;</P>
                    <P>3. Allowance for the measurement of condensate under steady-state conditions;</P>
                    <P>4. Reference to manufacturer's installation and operation manual and clarifications for when that manual does not specify test set-up;</P>
                    <P>5. Specification of duct-work requirements for units that are installed without a return duct; and</P>
                    <P>6. Revision of the requirements regarding AFUE reporting precision.</P>
                    <FP>81 FR 2628, 2629-2630.</FP>
                    <P>As such, the most current version of the test procedure (published in January 2016) has now been in place for several years.</P>
                    <P>Daikin commented that the test procedure should add clarity for the terms “electrical auxiliaries” and “single auxiliary.” (Daikin, No. 416 at p. 6) In response, DOE notes that amendments to the test procedure, including associated terminology, are not in scope for this analysis of amended energy conservation standards. However, DOE may consider this issue further in its next review of the consumer furnaces test procedure, which would occur in a separate test procedure rulemaking proceeding.</P>
                    <HD SOURCE="HD2">D. Technological Feasibility</HD>
                    <HD SOURCE="HD3">1. General</HD>
                    <P>
                        In each energy conservation standards rulemaking, DOE conducts a screening analysis based on information gathered on all current technology options and prototype designs that could improve the efficiency of the products or equipment that are the subject of the rulemaking. As the first step in such an analysis, DOE develops a list of technology options for consideration in consultation with manufacturers, design engineers, and other interested parties. DOE then determines which of those means for improving efficiency are technologically feasible. DOE considers technologies incorporated in commercially-available products or in working prototypes to be technologically feasible. 
                        <E T="03">See</E>
                         10 CFR part 430, subpart C, appendix A (Process Rule), sections 6(b)(3)(i) and 7(b)(1).
                    </P>
                    <P>After DOE has determined that particular technology options are technologically feasible, it further evaluates each technology option in light of the following additional screening criteria: (1) practicability to manufacture, install, and service; (2) adverse impacts on product utility or availability; (3) adverse impacts on health or safety, and (4) unique-pathway proprietary technologies. Sections 6(b)(3)(ii)-(v) and 7(b)(2)-(5) of the Process Rule. Section IV.B of this document discusses the results of the screening analysis for NWGFs and MHGFs, particularly the designs DOE considered, those it screened out, and those that are the basis for the standards considered in this rulemaking. For further details on the screening analysis for this rulemaking, see chapter 4 of the final rule TSD.</P>
                    <HD SOURCE="HD3">2. Maximum Technologically Feasible Levels</HD>
                    <P>When DOE proposes to adopt an amended standard for a type or class of covered product, it must determine the maximum improvement in energy efficiency or maximum reduction in energy use that is technologically feasible for such product. (42 U.S.C. 6295(p)(1)) Accordingly, in the engineering analysis, DOE determined the maximum technologically feasible (“max-tech”) improvements in energy efficiency for NWGFs and MHGFs, using the design parameters for the most efficient products available on the market or in working prototypes. The max-tech levels that DOE determined for this rulemaking are described in section IV.C of this final rule and in chapter 5 of the final rule TSD.</P>
                    <HD SOURCE="HD2">E. Energy Savings</HD>
                    <HD SOURCE="HD3">1. Determination of Savings</HD>
                    <P>
                        For each trial standard level (TSL), DOE projected energy savings from application of the TSL to NWGFs and MHGFs purchased in the 30-year period that begins in the expected first year of compliance with the amended standards (2029-2058).
                        <SU>42</SU>
                        <FTREF/>
                         The savings are measured over the entire lifetime of products purchased in the 30-year analysis period. DOE quantified the energy savings attributable to each TSL as the difference in energy consumption between each standards case and the no-new-standards case. The no-new-standards case represents a projection of energy consumption that reflects how the market for a product would likely evolve in the absence of amended energy conservation standards.
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             DOE also presents a sensitivity analysis that considers impacts for products shipped in a 9-year period.
                        </P>
                    </FTNT>
                    <P>
                        DOE used its national impact analysis (NIA) spreadsheet models to estimate national energy savings (NES) from potential amended standards for NWGFs and MHGFs. The NIA spreadsheet model (described in section IV.H of this document) calculates energy savings in terms of site energy, which is the energy directly consumed by products at the locations where they are used. For electricity, DOE reports national energy savings in terms of primary (source) energy savings, which is the savings in the energy that is used to generate and transmit the site electricity. For natural gas, the primary energy savings are considered to be equal to the site energy savings. To calculate the primary energy impacts, DOE derives annual conversion factors from the model used to prepare the Energy Information Administration's (EIA) most recent 
                        <E T="03">Annual Energy Outlook</E>
                         (
                        <E T="03">AEO</E>
                        ) currently 
                        <E T="03">AEO2023.</E>
                         DOE also calculates NES in terms of FFC energy savings. The FFC metric includes the energy consumed in extracting, processing, and transporting primary fuels (
                        <E T="03">i.e.,</E>
                         coal, natural gas, petroleum), and, thus, presents a more complete picture of the impacts of energy conservation standards.
                        <SU>43</SU>
                        <FTREF/>
                         DOE's approach is based on the calculation of an FFC multiplier for each of the energy types used by covered products or equipment. For more information on FFC energy savings, see section IV.H.2 of this document.
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             The FFC metric is discussed in DOE's statement of policy and notice of policy amendment. 76 FR 51282 (August 18, 2011), as amended at 77 FR 49701 (August 17, 2012).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Significance of Savings</HD>
                    <P>To adopt any new or amended standards for a covered product, DOE must determine that such action would result in significant energy savings. (42 U.S.C. 6295(o)(3)(B))</P>
                    <P>
                        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. 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 
                        <PRTPAGE P="87528"/>
                        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.
                    </P>
                    <P>
                        The standard levels adopted in this final rule are projected to result in national energy savings of 4.77 quad (FFC) over 30 years of shipments, with GHG emissions savings equivalent to the energy use of 42 million homes in one year.
                        <SU>44</SU>
                        <FTREF/>
                         Based on the amount of FFC savings, the corresponding reduction in emissions, and need to confront the global climate crisis, DOE has determined (based on the methodology described in section IV.E of this document and the analytical results presented in section V.B.3.a of this document) that there is substantial evidence that the energy savings from the standard levels adopted in this final rule are “significant” within the meaning of 42 U.S.C. 6295(o)(3)(B).
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Equivalencies based on: 
                            <E T="03">www.epa.gov/energy/greenhouse-gas-equivalencies-calculator</E>
                             (last accessed Sept. 15, 2023).
                        </P>
                    </FTNT>
                    <P>APGA commented that the purpose of EPCA is to reduce energy consumption. APGA stated that the energy savings for the proposed TSL 8 (of 5.48 quad) was significantly higher than all other TSLs except TSL 9. APGA stated that the analysis is extremely complex, but even with that complexity, the estimated savings represents just 3.5 percent relative to the energy use of these products in the no-new-standards case. APGA also added that DOE's estimates of energy savings are tainted based on flawed modeling in the LCC analysis. (APGA, No. 387 at p. 28)</P>
                    <P>DOE addresses APGA's comments with regard to the modeling assumptions in the LCC analysis in section IV.F of this document. With regard to the significance of savings, DOE is not required to consider the percentage of savings when considering significance. In particular, 42 U.S.C. 6295(o)(2)(B)(i)(III) refers to the total projected amount of energy savings, not the percentage savings. While those percentage savings have previously been considered as a test when overall energy savings are small, in this case, overall energy savings are quite large, particularly when aggregated over the 30-year analysis period. Therefore, DOE continues to maintain that the energy savings estimated for this final rule of 4.77 quads are significant.</P>
                    <P>
                        The DCA commented that the unpredictable nature of renewable energy sources, such as solar and wind, demonstrate that these energy sources alone will not meet current and future demand. (DCA, No. 372 at pp. 1-2) The DCA commented that the United States will not be able to achieve its clean energy ambitions without substantial growth of natural gas production and a large expansion of natural gas distribution pipelines. (
                        <E T="03">Id.</E>
                        ) The DCA commented that natural gas enables the use of renewable energy sources. (
                        <E T="03">Id.</E>
                         at p. 2)
                    </P>
                    <P>
                        With respect to DCA's comment regarding the mix of fuels needed to meet future energy demand, DOE notes that the EIA's 
                        <E T="03">AEO2023</E>
                         projects natural gas to account for 35 percent of all domestic energy production in 2050.
                        <SU>45</SU>
                        <FTREF/>
                          
                        <E T="03">AEO's</E>
                         projections of future energy systems in the U.S. are based on a robust and comprehensive macroeconomic model, taking into account a wealth of factors and data, and those projections are the best available to DOE.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Energy Information Administration, 
                            <E T="03">Annual Energy Outlook 2023,</E>
                             Table 1 (available at: 
                            <E T="03">www.eia.gov/outlooks/aeo/tables_ref.php</E>
                            ).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">F. Economic Justification</HD>
                    <HD SOURCE="HD3">1. Specific Criteria</HD>
                    <P>As noted previously, EPCA provides seven factors to be evaluated in determining whether a potential energy conservation standard is economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) The following sections discuss how DOE has addressed each of those seven factors in this rulemaking.</P>
                    <HD SOURCE="HD3">a. Economic Impact on Manufacturers and Consumers</HD>
                    <P>In determining the impacts of potential amended standards on manufacturers, DOE conducts a manufacturer impact analysis (“MIA”), as discussed in section IV.J of this document. DOE first uses an annual cash-flow approach to determine the quantitative impacts. This step includes both a short-term assessment—based on the cost and capital requirements during the period between when a regulation is issued and when entities must comply with the regulation—and a long-term assessment over a 30-year period. The industry-wide impacts analyzed include: (1) INPV, which values the industry on the basis of expected future cash flows; (2) cash flows by year; (3) changes in revenue and income; and (4) other measures of impact, as appropriate. Second, DOE analyzes and reports the impacts on different types of manufacturers, including impacts on small manufacturers. Third, DOE considers the impact of standards on domestic manufacturer employment and manufacturing capacity, as well as the potential for standards to result in plant closures and loss of capital investment. Finally, DOE takes into account cumulative impacts of various DOE regulations and other regulatory requirements on manufacturers.</P>
                    <P>For individual consumers, measures of economic impact include the changes in LCC and PBP associated with new or amended standards. These measures are discussed further in the following section. For consumers in the aggregate, DOE also calculates the national net present value of the consumer costs and benefits expected to result from particular standards. DOE also evaluates the LCC impacts of potential standards on identifiable subgroups of consumers that may be affected disproportionately by a standard.</P>
                    <HD SOURCE="HD3">b. Savings in Operating Costs Compared To Increase in Price (LCC and PBP)</HD>
                    <P>EPCA requires DOE to consider the savings in operating costs throughout the estimated average life of the covered product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered product that are likely to result from a standard. (42 U.S.C. 6295(o)(2)(B)(i)(II)) DOE conducts this comparison in its LCC and PBP analysis.</P>
                    <P>The LCC is the sum of the purchase price of a product (including its installation) and the operating cost (including energy, maintenance, and repair expenditures) discounted over the lifetime of the product. The LCC analysis requires a variety of inputs, such as product prices, product energy consumption, energy prices, maintenance and repair costs, product lifetime, and discount rates appropriate for consumers. To account for uncertainty and variability in specific inputs, such as product lifetime and discount rate, DOE uses a distribution of values, with probabilities attached to each value.</P>
                    <P>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 due to a more-stringent standard by the change in annual operating cost for the year that standards are assumed to take effect.</P>
                    <P>
                        The LCC and PBP analyses focus on consumers who will purchase the covered products in the first year of 
                        <PRTPAGE P="87529"/>
                        compliance with new or amended standards. The LCC savings for the considered efficiency levels are calculated relative to the case that reflects projected market trends in the absence of new or amended standards. DOE's LCC and PBP analysis is discussed in further detail in section IV.F of this document.
                    </P>
                    <HD SOURCE="HD3">c. Energy Savings</HD>
                    <P>Although significant conservation of energy is a separate statutory requirement for adopting an energy conservation standard, EPCA requires DOE, in determining the economic justification of a standard, to consider the total projected energy savings that are expected to result directly from the standard. (42 U.S.C. 6295(o)(2)(B)(i)(III)) As discussed in section IV.H of this document, DOE uses the NIA spreadsheet models to project national energy savings.</P>
                    <HD SOURCE="HD3">d. Lessening of Utility or Performance of Products</HD>
                    <P>In establishing product classes, and in evaluating design options and the impact of potential standard levels, DOE evaluates potential standards that would not lessen the utility or performance of the considered products. (42 U.S.C. 6295(o)(2)(B)(i)(IV)) Based on data available to DOE, the standards adopted in this document would not reduce the utility or performance of the products under consideration in this rulemaking.</P>
                    <HD SOURCE="HD3">e. Impact of Any Lessening of Competition</HD>
                    <P>EPCA directs DOE to consider the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from a standard. (42 U.S.C. 6295(o)(2)(B)(i)(V)) It also directs the Attorney General to determine the impact, if any, of any lessening of competition likely to result from a standard and to transmit such determination to the Secretary within 60 days of the publication of a proposed rule, together with an analysis of the nature and extent of the impact. (42 U.S.C. 6295(o)(2)(B)(ii)) To assist the Department of Justice (DOJ) in making such a determination, DOE transmitted copies of its proposed rule and the NOPR TSD to the Attorney General for review, with a request that the DOJ provide its determination on this issue. In its assessment letter responding to DOE, DOJ concluded that the proposed energy conservation standards for NWGFs and MHGFs are unlikely to substantially lessen competition in any particular product or geographic market. DOJ added that in the course of its review, it was told that the MHGF market may be more highly concentrated than DOE's analysis suggests. DOJ stated that given the necessarily short time-frame for its review, it is not in a position to confirm the level of concentration increase that may be caused by the rule, but it encouraged DOE to closely examine and consider potential competitive issues that commenters may raise with respect to this rulemaking. The Department is publishing the Attorney General's assessment at the end of this final rule. DOE notes that it has carefully considered the issues mentioned by DOJ in arriving at the standards adopted in this final rule.</P>
                    <P>
                        NGA of Georgia stated that the NOPR analysis indicated that nearly 32 percent of current furnaces in Georgia would be converted to an alternate fuel source under the proposed standard, which would have implications for the competitive balance of natural gas utilities, contractors that specialize in gas piping and appliances, and manufacturers that only make gas equipment or venting. (NGA of Georgia, No. 380 at p. 3) GAS asserted that DOE has ignored anti-competitive effects of its energy conservation standards rulemakings. (GAS, No. 385 at p. 6) APGA commented that the rulemaking record created by DOE does not do a good job of quantifying the impact on competition, and noted that APGA addressed the competition issue in comments to the Department of Justice dated August 19, 2022. (APGA, No. 387 at pp. 64-65) APGA asserted that establishing a 95-percent AFUE standard could have a profound impact on competition, as consumers may shift to alternative methods of home heating equipment due to the higher up-front cost of a 95-percent AFUE furnace (compared to a 90-percent AFUE furnace). (APGA, No. 387 at p. 65) Spencer and Dayaratna asserted that the proposed standard “would effectively remove a technology from the marketplace and reduce competition.” (Spencer and Dayaratna, No. 390 at p. 2) They claim that the proposed standard will remove an entire technology from the market, limiting the incentive for condensing furnace manufacturers to lower prices or to increase efficiency further. (
                        <E T="03">Id.</E>
                         at 3) Mortex submitted written comments specific to competition in the MHGF marketplace, asserting that one MHGF manufacturer is dominant and sells both to mobile home manufacturers and into the replacement market. Additionally, Mortex raised concerns about the availability of 20″ wide and 24″ deep MHGFs if DOE adopts a condensing standard and the financial impacts that lessened competition in the MHGF market could have on low-income consumers. (Mortex, No. 410 at pp. 3-4) In addition to dimensional differences between MHGFs and NWGFs, JCI stated that there are product configuration differences (
                        <E T="03">i.e.,</E>
                         MHGFs typically utilize a downflow configuration and NWGFs typically utilize an upflow configuration). JCI raised concerns about the availability of downflow condensing MHGFs. JCI questioned the feasibility of retrofitting an upflow MHGF into a manufactured home constructed to make use of a downflow furnace. Specifically, JCI asserted that the costs of reconfiguring ductwork, filling voids, and making other necessary structural changes would prevent such a change. (JCI, No. 411 at pp. 2-3)
                    </P>
                    <P>
                        In response to stakeholders' comments and DOJ's comment regarding the MHGF industry, DOE reviewed the manufacturer landscape of NWGFs and the manufacturer landscape of MHGFs separately. In the NWGF market, DOE notes that the 10 original equipment manufacturers (OEMs) of non-condensing NWGFs also manufacture condensing NWGFs that meet or exceed the adopted level (95-percent AFUE). Additionally, DOE identified three OEMs that only manufacture condensing NWGFs. These three NWGF OEMs also all offer models that meet or exceed the adopted level. Thus, a variety of companies already participate in the condensing NWGF market. Given that the number of competitors is not decreased at the adopted levels, DOE does not anticipate lessening of competition in the NWGF market. Compared to the NWGF market, the MHGF market is smaller (
                        <E T="03">i.e.,</E>
                         lower annual shipments) and is served by fewer OEMs. DOE estimates that NWGFs account for approximately 97 percent of shipments covered by this rulemaking (around 3.1 million units in 2029) and that MHGFs account for the remaining 3 percent of shipments (around 0.1 million units in 2029). In the July 2022 NOPR, DOE identified seven OEMs of MHGFs. For this final rule, DOE further researched the furnace market and refreshed its database of model listings to include the most up-to-date information on NWGF and MHGF models currently available on the market. Through its review of the updated product database and other public sources, DOE determined that one MHGF OEM no longer offers products covered by this rulemaking. At the time of the July 2022 NOPR, this 
                        <PRTPAGE P="87530"/>
                        OEM offered one condensing MHGF model, which has since been discontinued. Therefore, through its careful review of the MHGF market, DOE has determined that six OEMs manufacture MHGFs for the U.S. market. Of these six OEMs, one OEM only manufactures non-condensing MHGFs, two OEMs only manufacture condensing MHGFs, and the remaining three OEMs manufacture both non-condensing and condensing MHGFs. All five OEMs of condensing MHGFs offer models that meet or exceed the adopted level (95-percent AFUE). Furthermore, all OEMs of condensing MHGFs offer downflow condensing models. Given the existing availability of downflow condensing models, DOE finds that a market shift to condensing furnaces would not eliminate downflow configurations from the market. Similarly, DOE found a range of condensing MHGF models that fit into compact footprints. The availability of such models from Burnham Holdings (Thermo Pride) and Madison Industries (Nortek) suggest there is no technical constraint to offering condensing MHGFs that fit a compact footprint. DOE recognizes that one manufacturer dominates the MHGF space in sales volume, and the remaining competitors have small market shares. As a result, the MHGF market is concentrated. However, DOE does not expect the adopted standard would significantly alter the level of concentration. DOE notes that consumers have access to a range of alternate heating solutions and that those alternatives limit price increases in a market where one manufacturer already dominates the space. As discussed earlier in this section, in a September 6, 2022, letter written in response to the NOPR, DOJ stated that “[b]ased on our review of the information currently available, we do not believe that the proposed energy conservation standards for consumer furnaces are likely to substantially lessen competition in any particular product or geographic market.”
                    </P>
                    <HD SOURCE="HD3">f. Need for National Energy Conservation</HD>
                    <P>DOE also considers the need for national energy and water conservation in determining whether a new or amended standard is economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(VI))</P>
                    <P>Spencer and Dayaratna asserted that DOE's NOPR fails to establish the need for national energy conservation as would justify the proposed standard under 42 U.S.C. 6295(o)(2)(B)(i)(VI). These commenters argued that there is not a current and pressing problem concerning conservation, as the United States is in a time of energy abundance (citing EIA estimates of U.S. oil and gas reserves equating to nearly 100 years of supply, uranium reserves, as well as the potential for new energy discoveries such as oil shale). Spencer and Dayaratna also challenged the proposed standards' anticipated reductions in toxic air emissions as a weak reason for showing the need for national energy conservation; the commenters argued that air pollutant concentration levels have declined significantly since 1990, so with the air clean and getting cleaner, they asserted that the costs and benefits of the regulation are outweighed by its impacts on consumer choice, family finances, and broad inconvenience. (Spencer and Dayaratna, No. 390 at pp. 4-6)</P>
                    <P>DOE disagrees with this comment from Spencer and Dayaratna. DOE finds this comment to start from the flawed premise that further improvements in energy efficiency and reduced emissions are unnecessary or would not provide substantial benefits to consumers and the Nation. As discussed in section I.C of this final rule, the amended standards for the subject consumer furnaces are expected to save 4.77 quad of energy over 30 years and the cumulative NPV of total consumer benefits of the amended standards for NWGFs and MHGFs ranges from $4.8 billion (at a 7-percent discount rate) to $16.3 billion (at a 3-percent discount rate) over the same time period. In DOE's view, the presence of an abundant energy supply neither precludes DOE's approach nor justifies the approach suggested by the commenters, which would result in waste of significant amounts of energy when more-efficient options are technologically feasible and economically justified.</P>
                    <P>Likewise, DOE does not agree that the Nation and its citizens (particularly children) would not benefit from the reduction in toxic air emissions associated with the amended energy conservation standards for the subject consumer furnaces. Despite the Nation's substantial progress in reducing emissions in recent years, DOE does not believe that further efforts in terms of environmental and human health protection are unnecessary. DOE maintains that environmental and public health benefits associated with the more efficient use of energy are important to take into account when considering the need for national energy conservation. The adopted standards are likely to result in environmental benefits in the form of reduced emissions of air pollutants and greenhouse gases (GHGs) associated with energy production and use. DOE conducts an emissions analysis to estimate how potential standards may affect these emissions, as discussed in section IV.K of this document; the estimated emissions impacts are reported in section V.B.6 of this document. DOE also estimates the economic value of emissions reductions resulting from the considered TSLs, as discussed in section IV.L of this document. These positive economic and health benefits are set forth in detail in section V.B.6 of this document.</P>
                    <P>Furthermore, DOE notes that the energy savings from the adopted standards are likely to provide improvements to the security and reliability of the Nation's energy system. Reductions in the demand for electricity also may result in reduced costs for maintaining the reliability of the Nation's electricity system. DOE conducts a utility impact analysis to estimate how standards may affect the Nation's needed power generation capacity, as discussed in section IV.M of this document.</P>
                    <HD SOURCE="HD3">g. Other Factors</HD>
                    <P>In determining whether an energy conservation standard is economically justified, DOE may consider any other factors that the Secretary deems to be relevant. (42 U.S.C. 6295(o)(2)(B)(i)(VII)) To the extent DOE identifies any relevant information regarding economic justification that does not fit into the other categories described previously, DOE could consider such information under “other factors.”</P>
                    <P>
                        Spencer and Dayaratna stated that one other factor to consider is how the proposed standard meaningfully advances EPCA's intent, given the abundant energy sources that the United States enjoys today that were not contemplated in 1975. (Spencer and Dayaratna, No. 390 at p. 11) They add that given the change in the value proposition for energy efficiency since 1975, setting efficiency standards no longer has the same impact on energy availability as it did during times of perceived energy scarcity, concluding that the proposed standards do not meaningfully advance the intent of EPCA and do not justify the restrictions that they state the proposed rule will impose on consumer choice. (
                        <E T="03">Id.</E>
                         at p. 11-12)
                    </P>
                    <P>
                        DOE's response here is similar to that made in the preceding section in response to Spencer and Dayaratna's argument regarding establishing the need for national energy conservation. Again, DOE disagrees with the commenters' assertion that an abundant energy supply somehow ends DOE's statutory mandate to pursue further 
                        <PRTPAGE P="87531"/>
                        improvements in energy efficiency and reduced emissions, despite the fact that such actions would provide substantial benefits to consumers and the Nation. Additionally, the consideration of total projected energy savings is only one of the seven factors enumerated in EPCA. (42 U.S.C. 6295(o)(2)(B)(i)). Energy savings have value both in times of scarcity and abundance, and particularly in light of the EPCA amendments in recent years mandating review of existing conservation standards on a six-year cycle,
                        <SU>46</SU>
                        <FTREF/>
                         it is apparent that Congress intends for DOE to continue to pursue energy efficiency gains that meet the applicable statutory criteria—even in times of energy abundance. As discussed in section I.C of this final rule, the amended standards for the subject consumer furnaces are expected to save 4.77 quad of energy over 30 years and the cumulative NPV of total consumer benefits of the amended standards for NWGFs and MHGFs ranges from $4.8 billion (at a 7-percent discount rate) to $16.3 billion (at a 3-percent discount rate) over the same period. DOE has determined that the full measure of anticipated energy and cost savings from amended energy conservation standards for the subject furnaces are unlikely to be realized in the absence of amended standards. Furthermore, as discussed in section III.F.1.f of this document, DOE maintains that environmental and public health benefits associated with the more efficient use of energy are important to take into account. Again, in DOE's view, the presence of an abundant energy supply neither precludes DOE's approach nor justifies the approach suggested by the commenters, which would result in waste of significant amounts of energy when more-efficient options are technologically feasible and economically justified.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             See amendments to EPCA contained in the Energy Independence and Security Act of 2007 (EISA 2007), Public Law 110-140 (enacted Dec. 19, 2007), and in the American Energy Manufacturing Technical Corrections Act (AEMTCA), Public Law 112-210 (enacted Dec. 18, 2012).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Rebuttable Presumption</HD>
                    <P>As set forth in 42 U.S.C. 6295(o)(2)(B)(iii), EPCA creates a rebuttable presumption that an energy conservation standard is economically justified if the additional cost to the consumer of a product that meets the standard is less than three times the value of the first year's energy savings resulting from the standard, as calculated under the applicable DOE test procedure. DOE's LCC and PBP analyses generate values used to calculate the effect potential amended energy conservation standards would have on the payback period for consumers. These analyses include, but are not limited to, the three-year payback period contemplated under the rebuttable-presumption test. In addition, DOE routinely conducts an economic analysis that considers the full range of impacts to consumers, manufacturers, the Nation, and the environment, as required under 42 U.S.C. 6295(o)(2)(B)(i). The results of this analysis serve as the basis for DOE's evaluation of the economic justification for a potential standard level (thereby supporting or rebutting the results of any preliminary determination of economic justification). The rebuttable presumption payback calculation is discussed in section IV.F of this final rule.</P>
                    <HD SOURCE="HD2">G. Compliance Date</HD>
                    <P>
                        In the July 2022 NOPR, DOE discussed in some detail the relevant provisions of EPCA related to calculation of the requisite lead time between publication of a final rule and compliance with amended standards, and the Department ultimately proposed a five-year lead time for compliance with any amended energy conservation standards for NWGFs and MHGFs. 87 FR 40590, 40611 (July 7, 2022). Additionally, as explained in the July 2022 NOPR, furnaces and furnace fans are separate products under EPCA, and, therefore, the required six-year period under 42 U.S.C. 6295(m)(4)(B) is not relevant because it applies only in the context of standards directly pertinent to the product in question. As such, the energy conservation standards for furnace fans are not a consideration when applying the six-year spacing period to new or amended standards for furnaces. 
                        <E T="03">Id.</E>
                         at 87 FR 40611-40612. DOE did not receive any comments related to the proposed five-year lead time for compliance presented in the July 2022 NOPR and is adopting a five-year lead time in this final rule.
                    </P>
                    <HD SOURCE="HD2">H. Impact From Other Rulemakings</HD>
                    <P>
                        Veiga commented that home appliances have energy-efficiency standards that collectively make homes more expensive. (Veiga, No. 326 at p. 1) Lennox commented that DOE needs to consider the total cumulative regulatory burden for consumer furnaces, as there are multiple concurrent DOE, Environmental Protection Agency (EPA), and other regulatory actions undergoing updates. (Lennox, No. 389 at p. 8) Lennox stated that the NOPR's cumulative regulatory burden analysis was inadequate and did not include all relevant regulations. The commenter provided the following list of relevant regulations: “2023 DOE Energy Conservation Standards (“ECS”) change for central air conditioners; 2023 DOE Energy Conservation Standard change for commercial air conditioners; 2023 DOE ECS change for commercial warm air furnaces (“CWAFs”); EPA phase-down to lower GWP refrigerants to meet the American Innovation and Manufacturing (“AIM”) Act objectives; National and Regional Cold Climate Heat Pump Specifications; 2025 DOE ECS change for Three-Phase, Below 65,000 Btu/h; DOE Test procedure for VRF [Variable Refrigerant Flow] Systems; EPA Energy Star 6.0+ for Residential HVAC; EPA Energy Star 4.0 for Light Commercial HVAC, and DOE ECS changes for electric motors, commercial fans and blowers, furnace fans, oil and weatherized gas furnaces, and walk-in coolers and freezers”. (
                        <E T="03">Id.</E>
                        ) Lennox stated that the significant cumulative regulatory burdens are stressing technical and laboratory resources within the industry. (
                        <E T="03">Id.</E>
                         at p. 9)
                    </P>
                    <P>
                        Many of the rules listed by Lennox are not finalized. Regulations that are not yet finalized are not considered in cumulative regulatory burden, as the timing, cost, and impacts of unfinalized rules are speculative. However, to aid stakeholders in identifying potential cumulative regulatory burden, DOE does list rulemakings that have proposed rules, which have tentative compliance dates, compliance levels, and compliance cost estimates. In addition, the commercial fans and blowers, furnace fans, and oil and weatherized gas furnaces, and air-cooled unitary air conditioners rulemakings identified by Lennox have not yet been proposed. The walk-in coolers and freezer (“WICF”) rulemaking was not proposed at the time of the July 2022 NOPR. A proposed rule for WICFs has since been published, and DOE added the WICF ECS NOPR rulemaking to its list of appliance standards that could contribute to cumulative regulatory burden in section V.B.2.e of this document. 88 FR 60746 (Sept. 5, 2023). The expanded scope electric motors (ESEMs) rulemaking was also still in development at the time of the July 2022 NOPR.
                        <SU>47</SU>
                        <FTREF/>
                         In the ESEM rulemaking, DOE is considering including expanded scope electric motors including certain permanent split capacitor (PSC) motors that exceed 0.25 horsepower and are single-speed. DOE understands that the 
                        <PRTPAGE P="87532"/>
                        vast majority of furnace fans used in MHGFs use either electrically commutated motors (
                        <E T="03">i.e.,</E>
                         “ECMs” which are also referred to as BPM motors in this rulemaking) or are multiple-speed PSC motors, both of which are out of the preliminary scope of the ESEM rulemaking. Thus, furnace fans used in MHGFs are not likely to be impacted by the ESEM rulemaking. In addition, DOE does not expect that any potential efficiency standard for ESEMs would impact NWGFs because the furnace fans used in those products use BPM motors, for which standards were not analyzed in the ESEMs rulemaking.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             
                            <E T="03">See</E>
                             Docket EERE-2020-BT-STD-0007. DOE initially used the term small, non-small electric motors (SNEMs) to designate ESEMs.
                        </P>
                    </FTNT>
                    <P>
                        As discussed in section IV.C.2.c. of this document, the MHGF MPCs that were developed for this analysis were normalized to represent the cost of the furnace units with furnace fans that include improved PSC motors 
                        <SU>48</SU>
                        <FTREF/>
                         at all ELs. Using the same furnace fan motor at all ELs ensures that the incremental costs between ELs are proportional only to the addition of the specific technologies associated with achieving each next-higher EL. Thus, should a baseline technology for SNEMs be finalized that is higher than the assumed improved PSC motors, this new technology would be implemented at each efficiency level. Any changes in furnace fan motor costs would impact the cost of each efficiency level for MHGFs equally. Therefore, while DOE acknowledges the potential for a small increase in MPCs for MHGFs as a result of the SNEMs rulemaking (if finalized), DOE expects that the incremental costs of MHGFs between ELs would not be impacted. Similarly, installed costs for consumers would likely increase slightly due to the increased motor cost, but an equivalent impact would be expected across all efficiency levels. Additionally, an increase in furnace fan motor efficiency would decrease the total electrical energy consumption of each MHGF in the field, but it is not expected to impact the performance of the overall furnace as measured by AFUE, and, therefore, the efficiency levels included in this analysis would not be impacted. Therefore, the conclusion of economic justification for the amended standards adopted in this final rule would be unchanged by a potential new standard for SNEMs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             In this analysis, DOE uses “improved PSC motors” to refer to PSC motors with at least three airflow-control settings.
                        </P>
                    </FTNT>
                    <P>In the analysis of cumulative regulatory burden, DOE considers Federal, product-specific regulations that have compliance dates within three years of one another. The compliance date for this final rule is in 2029. The compliance dates for the central air conditioners in 2023, commercial unitary air conditioners standards in 2023, commercial warm air furnace standards in 2023, VRF system test procedures in 2024, and the “air-cooled, three-phase equipment with cooling capacity less than 65,000 Btu/h” in 2025 occur outside the cumulative regulatory burden timeframe and are not explicitly considered in the selection of the adopted standard. The EPA ENERGY STAR programs for residential HVAC and light commercial HVAC, as well as the ENERGY STAR Cold Climate Heat Pump Controls Verification Procedure, are voluntary programs and are not considered in DOE's analysis of cumulative regulatory burden. See section V.B.2.e of this document or chapter 12 of the final rule TSD for additional information on cumulative regulatory burden.</P>
                    <P>HARDI commented that the proposed standards also do not meet the requirements under the Regulatory Flexibility Act, as DOE only assessed the impact on four small manufacturers, but not on distributors, contractors, or manufacturers of furnace supplies. HARDI stated that there are a number of small businesses that serve as furnace suppliers. (HARDI, No. 384 at pp. 3-4) NGA of Georgia similarly stated that the proposal fails to capture the negative effects on small businesses that manufacture venting and accessories for non-condensing furnaces. (NGA of Georgia, No. 380 at p. 2)</P>
                    <P>
                        In response, DOE conducted an initial regulatory flexibility analysis in support of the July 2022 NOPR. 
                        <E T="03">See</E>
                         87 FR 40590, 40698-40701 (July 7, 2022). However, NGA of Georgia and HARDI have misinterpreted the requirements of the Regulatory Flexibility Act, which requires an agency to perform a regulatory flexibility analysis of small entity impacts when a rule directly regulates the small entities, rather than a broader array of entities which may be indirectly impacted. This final rule regulates manufacturers of consumer furnaces, not the other types of businesses to which NGA of Georgia and HARDI refer. The impacts on small manufacturers of the subject consumer furnaces are presented in the final regulatory flexibility analysis, found in section VI.B of this document.
                    </P>
                    <HD SOURCE="HD1">IV. Methodology and Discussion of Related Comments</HD>
                    <P>This section addresses the analyses DOE has performed for this rulemaking with regard to NWGFs and MHGFs. Separate subsections address each component of DOE's analyses. Comments on the methodology and DOE's responses are presented in each section.</P>
                    <P>
                        DOE used several analytical tools to estimate the impact of the standards considered in this document on consumers and manufacturers. The first tool is a spreadsheet that calculates the LCC savings and PBP of potential amended or new energy conservation standards. The national impacts analysis uses a second spreadsheet set that provides shipments projections and calculates national energy savings and net present value of total consumer costs and savings expected to result from potential energy conservation standards. DOE uses the third spreadsheet tool, the Government Regulatory Impact Model (GRIM), to assess manufacturer impacts of potential standards. These three spreadsheet tools are available on the DOE website for this rulemaking: 
                        <E T="03">www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=59&amp;action=viewlive.</E>
                         Additionally, DOE used output from the latest version of the EIA's 
                        <E T="03">Annual Energy Outlook</E>
                         for the emissions and utility impact analyses.
                    </P>
                    <HD SOURCE="HD2">A. Market and Technology Assessment</HD>
                    <P>
                        DOE develops information in the market and technology assessment that provides an overall picture of the market for the products concerned, including the purpose 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 for this rulemaking 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 NWGFs and MHGFs. The key findings of DOE's market assessment are summarized in the following sections. 
                        <E T="03">See</E>
                         chapter 3 of the final rule TSD for further discussion of the market and technology assessment.
                    </P>
                    <HD SOURCE="HD3">1. Scope of Coverage and Product Classes</HD>
                    <HD SOURCE="HD3">a. General Approach</HD>
                    <P>
                        EPCA defines a “furnace” as a product which utilizes only single-phase electric current, or single-phase electric current or DC current in conjunction with natural gas, propane, or home heating oil, and which:
                        <PRTPAGE P="87533"/>
                    </P>
                    <P>(1) Is designed to be the principal heating source for the living space of a residence;</P>
                    <P>(2) Is not contained within the same cabinet with a central air conditioner whose rated cooling capacity is above 65,000 Btu per hour;</P>
                    <P>(3) Is an electric central furnace, electric boiler, forced-air central furnace, gravity central furnace, or low pressure steam or hot water boiler; and</P>
                    <P>(4) Has a heat input rate of less than 300,000 Btu per hour for electric boilers and low pressure steam or hot water boilers and less than 225,000 Btu per hour for forced-air central furnaces, gravity central furnaces, and electric central furnaces.</P>
                    <FP>(42 U.S.C. 6291(23))</FP>
                    <P>DOE has incorporated this definition into its regulations in the Code of Federal Regulations (CFR) at 10 CFR 430.2.</P>
                    <P>
                        EPCA's definition of a “furnace” covers the following types of products: (1) gas furnaces (non-weatherized and weatherized); (2) oil-fired furnaces (non-weatherized and weatherized); (3) mobile home furnaces (gas and oil-fired); (4) electric resistance furnaces; (5) hot water boilers (gas and oil-fired); (6) steam boilers (gas and oil-fired), and (7) combination space/water heating appliances (water-heater/fancoil combination units and boiler/tankless coil combination units). As discussed in section II.B.2 of this document, DOE agreed to the partial vacatur and remand of the June 2011 DFR, specifically as it related to energy conservation standards for NWGFs and MHGFs in the settlement agreement to resolve the litigation in 
                        <E T="03">American Public Gas Ass'n</E>
                         v. 
                        <E T="03">U.S. Dept. of Energy</E>
                         (No. 11-1485, D.C. Cir. Filed Dec. 23, 2011). For a more complete discussion of the history of this litigation and its impacts on this rulemaking, see 80 FR 13120, 13130-13132 (March 12, 2015). Therefore, in this rulemaking, DOE is only amending the energy conservation standards for these two product classes of residential furnaces (
                        <E T="03">i.e.,</E>
                         NWGFs and MHGFs).
                    </P>
                    <P>When evaluating and establishing energy conservation standards, DOE divides covered products into product classes by the type of energy used. DOE will also establish separate product classes if a group of products has a capacity or other performance-related feature that other products within such type do not have and such feature justifies a different standard. (42 U.S.C. 6295(q)) In determining whether a performance-related feature justifies a different standard, DOE considers such factors as the utility to the consumers of the feature and other factors DOE determines are appropriate.</P>
                    <P>At various rulemaking stages, interested parties have raised concerns pertaining to potential impacts of a nation-wide standard corresponding to condensing efficiency levels for NWGFs and MHGFs on certain consumers as a result of either increased installation costs (due to the increased cost of the condensing furnace itself and/or related venting modifications) or switching to electric heat (potentially resulting in higher monthly bills). In response to these concerns, DOE first published the September 2015 NODA, which contained analyses examining the potential impacts of a separate product class for furnaces with a lower input capacity, one of the statutory bases for establishing a separate product class. Such an approach was suggested by stakeholders as a potential way to reduce negative impacts on some furnace consumers while maintaining the overall economic and environmental benefits of amended standards for consumer furnaces. 80 FR 55038, 55038-55039 (Sept. 14, 2015). In response to the September 2015 NODA, DOE received further comments from several stakeholders recommending that DOE establish separate product classes based on furnace capacity in order to preserve the availability of non-condensing NWGFs for buildings with lower heating loads, thereby helping to alleviate the negative impacts of the proposed standards. DOE responded to these comments in the since withdrawn September 2016 SNOPR, in which DOE tentatively concluded that the establishment of a small furnace class would have merit. Accordingly, after considering the energy savings and economic benefits of several potential input capacity thresholds, DOE proposed to establish a separate product class for small NWGFs, defined as those furnaces with a certified input capacity of less than or equal to 55 kBtu/h, and DOE proposed to retain a minimum standard of 80-percent AFUE for this class. 81 FR 65720, 65752 and 65837 (Sept. 23, 2016).</P>
                    <P>For the July 2022 NOPR analysis, DOE again considered whether a “small furnace” product class would be justified for NWGFs and MHGFs and evaluated several input capacity thresholds, including the 55 kBtu/h threshold that was proposed in the withdrawn September 2016 SNOPR, along with several others. However, DOE did not propose to divide furnace product classes by capacity. 87 FR 40590, 40665 and 40706 (July 7, 2022).</P>
                    <P>
                        NCP commented that 95-percent AFUE standards for large NWGFs and 80-percent AFUE for small NWGFs will lead to significant energy savings while reducing the number of consumers that would experience net costs. NCP pointed to the withdrawn September 2016 SNOPR as rationale for splitting NWGFs into these two groups, where large NWGFs with input capacities greater than 55 kBtu/h have a 95-percent AFUE standard and small NWGFs with input capacities less than 55 kBtu/h have a standard of 80 percent. (NCP, No. 370 at pp. 2-3) PHCC commented that after the litigation against these regional standards, several stakeholders came to the consensus that there should be a category of small capacity non-condensing furnaces, as well as a category of larger-capacity condensing furnaces. PHCC commented that the industry submitted a proposal regarding this issue, but that the NOPR does not place much value on this proposal. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>For the current final rule analysis, DOE again considered whether a “small furnace” product class is justified for NWGFs and MHGFs and evaluated several input capacity thresholds, including at 55 kBtu/h. DOE analyzed a range of potential input capacity cut-offs and considered the benefits and burdens of each. As discussed in section V.C.1 of this document, after considering the benefits and burdens of the various approaches, DOE is finalizing its proposal to adopt a single standard level for NWGFs and a single standard level MHGFs that cover all capacities within the scope of each class.</P>
                    <HD SOURCE="HD3">b. Through-the-Wall Units</HD>
                    <P>
                        In response to the July 2022 NOPR, NCP commented that if DOE concludes that the separate levels for large and small NWGFs are not justified, there should be a separate class for space-constrained through-the-wall units to accommodate unique conditions for multi-family buildings. (NCP, No. 370 at p. 3) NCP noted that space-constrained through-the-wall systems are often 55 kBtu/h or less, and are installed in unique, often more expensive ways. NCP asserted that multi-family buildings with space-constrained through-the-wall HVAC systems have their condensate stacks plumbed to grade for drainage of the air conditioning portion of the unit in cooling mode and are not set up for condensate removal during heating in cold ambient conditions. NCP commented that the modifications necessary for condensing furnaces would not be feasible in new or existing multi-family constructions. (
                        <E T="03">Id.</E>
                         at pp. 2-3) Additionally, NCP stated that while it makes space-constrained through-the-wall HVAC systems at 95-percent 
                        <PRTPAGE P="87534"/>
                        AFUE, such systems are relatively early in their commercialization phase and cannot be used in all applications. Also, NCP commented that these systems are a relatively new technology that originated in 2015-2016. Since 2016, NCP noted that it has encountered several challenges with this technology, including freezing in low temperatures and high wind conditions. (
                        <E T="03">Id.</E>
                         at p. 3)
                    </P>
                    <P>
                        Napoleon commented that DOE should align its standards for new installations with NRCAN's standards and create a separate category for “through the wall” furnaces. Napoleon suggested that DOE should require a minimum efficiency of 90-percent AFUE for these products because of their cabinet size limitations. (Napoleon, No. 374 at p. 2) Napoleon stated that it is not reasonable to require the same efficiency from “through the wall furnaces with integrated cooling module” products as other products that have larger cabinets because these products would likely not have the ability to produce the higher airflows that are necessary for higher efficiencies. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        In response, DOE notes that through-the-wall furnaces are currently included within the broader consumer furnace product classes to the extent that they meet the definitions for consumer furnaces discussed in section IV.A.1.a of this document. As discussed in section III.B of this document, when evaluating and establishing energy conservation standards, DOE may establish separate standards for a group of covered products (
                        <E T="03">i.e.,</E>
                         establish a separate product class) if DOE determines that separate standards are justified based on the type of energy used, or if DOE determines that a product has a capacity or other performance-related feature that other products within such type (or class) do not have and such feature justifies a different standard. In making a determination of whether a performance-related feature justifies a different standard, DOE must consider factors such as the utility to the consumer of the feature and other factors DOE determines are appropriate. (42 U.S.C. 6295(q)(1)) Historically, DOE has viewed utility as an aspect of the product that is accessible to the layperson and is based on user operation and interaction with the product.
                    </P>
                    <P>
                        DOE has identified through-the-wall furnaces rated above 96 percent AFUE that have the same dimensions as comparable non-condensing (
                        <E T="03">i.e.,</E>
                         80 percent AFUE) through-the-wall furnaces and that are marketed for the same applications.
                        <SU>49</SU>
                        <FTREF/>
                         Therefore, DOE concludes that 80-percent AFUE units could be readily replaced with 95-percent AFUE units (
                        <E T="03">i.e.,</E>
                         the minimum efficiency level adopted in this final rule) because substitutes are available on the market having the same cabinet size. Regarding NCP's concerns about the technical challenges associated with condensate drainage and freezing, DOE notes that while certain multi-family applications may be difficult, there are installation methods to avoid freezing such as using heat tape. As discussed in section IV.F.2.b of this document, DOE accounted for additional costs for condensate drainage in these difficult installations. Consequently, DOE is not creating a separate product class for through-the-wall furnaces.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             See 
                            <E T="03">app.salsify.com/catalogs/73d44623-0667-454c-a453-3b3faaf8d4d1/products/P-S26A-F12A-A</E>
                             and 
                            <E T="03">app.salsify.com/catalogs/73d44623-0667-454c-a453-3b3faaf8d4d1/products/P-C50A-F18A-A</E>
                             (last accessed May 31, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">c. Condensing and Non-Condensing Furnaces</HD>
                    <P>
                        In response to the July 2022 NOPR, APGA, AGA, and NPGA all stated that DOE's failure to establish a separate product class for non-condensing residential natural gas furnaces is a violation of EPCA. (APGA, No. 387 at pp. 42-45; AGA, No. 405 at pp. 46-49; NPGA, No. 395 at p. 19) APGA expressed that it disagreed with the NOPR's conclusion to set standards at condensing levels because the legal interpretation upon which the NOPR relies to avoid EPCA's Unavailability Provisions is unreasonable and contrary to law. APGA instead argued that, if standards specific to condensing products are justified, DOE should recognize that the compatibility of a NWGF with existing atmospheric venting systems is a “performance-related feature” that requires separate standards for condensing and non‐condensing furnaces. (APGA, No. 387 at pp. 42-45) APGA further cited EPCA provisions requiring that the standards not deprive purchasers of “product choices and characteristics, features, sizes, etc.,” and that energy savings are achieved “without sacrificing the utility or convenience of appliances to consumers.” (APGA, No. 387 at p. 42-45) AGA commented that the new proposed rule wrongfully asserts that the differing constraints and functionality between condensing and non-condensing appliances do not constitute performance-related features. AGA further urged DOE to correct its “flawed interpretation” of EPCA to treat condensing and non-condensing products as being in the same class. (AGA, No. 405 at pp. 32-38) AGA encouraged DOE to follow its past practices by continuing to recognize non-condensing furnaces that function in homes constrained by existing exhaust and plumbing systems as a separate class from condensing products. (AGA, No. 405 at pp. 46-49) NPGA stated that there have been other instances of DOE creating separate product classes where standards would otherwise deprive purchasers of products that could not be installed without the need to change the space provided for an appliance and cited these as precedent for separate non-condensing and condensing product classes (
                        <E T="03">e.g.,</E>
                         “space-constrained” central air conditioners, package terminal air conditioners (PTACs), and ventless clothes dryers). (NPGA, No. 395 at pp. 21-22) NPGA stated that the NOPR sets a 
                        <E T="03">de facto</E>
                         standard for building design by requiring the alteration of building venting systems, which is beyond the scope of DOE's statutory authority. (NPGA, No. 395 at p. 22) NPGA suggested that the proposed standard will make furnaces incompatible with millions of homes without substantial renovations. (NPGA, No. 395 at pp. 9-10)
                    </P>
                    <P>Spire commented that DOE should recognize that the compatibility of a product with existing atmospheric venting systems is a “performance-related feature,” which would require separate standards for condensing and non-condensing products if standards specific to condensing products are justified. (Spire, No. 413 at p. 21) Spire and AGA formally requested that any final rule in this proceeding include a written finding that interested persons have established that the proposed standards are likely to result in the unavailability in the United States of residential furnaces with “performance characteristics (including reliability, features, sizes, capacities, and volumes) that are substantially the same as those generally available in the United States.” (Spire, No. 413 at p. 20; AGA, No. 405 at pp. 49-50)</P>
                    <P>
                        HARDI commented that the proposed standards will have an adverse impact on consumers in terms of utility. (HARDI, No. 384 at p. 4) HARDI stated its opposition to DOE's decision to revert to its prior interpretation related to non-condensing technology (and associated venting), as expressed in the December 2021 Final Interpretive Rule. (
                        <E T="03">Id.</E>
                        ) HARDI commented that, for many existing homes and some new construction applications, condensing furnaces provide negative utility for consumers because the venting system will need to be changed, which, in turn, 
                        <PRTPAGE P="87535"/>
                        changes the living spaces; HARDI stated that this could negatively impact consumers. HARDI also commented that non-condensing furnaces prevent the consumer from needing heat tape and other freeze-mitigation equipment, and added that the need to constantly heat the venting system would be impractical for consumers who only use heating equipment part-time. (HARDI, No. 384 at pp. 4-5)
                    </P>
                    <P>
                        The Joint Market and Consumer Organizations also commented that they oppose the elimination of non-condensing products and stated that EPCA prohibits any new or amended standard if the Secretary finds, by a preponderance of evidence, that it is “likely to result in the unavailability in the United States. . . of performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as those generally available in the United States at the time of the Secretary Finding.” 
                        <SU>50</SU>
                        <FTREF/>
                         (Joint Market and Consumer Organizations, No. 373 at p. 3) The Joint Market and Consumer Organizations stated that this provision can be interpreted to disallow natural gas furnace standards so stringent that they effectively force non-condensing versions off the market in favor of condensing furnaces with very different characteristics that make them incompatible with some homes. (
                        <E T="03">Id.</E>
                         at p. 3) AGA, Spire, and the Marley Companies also stated a belief that EPCA 42 U.S.C. 6295(o)(4) prohibits the elimination of non-condensing fuel-fired appliances. (AGA No. 405 at pp. 49-50; Spire, No. 413 at pp. 2-5; The Marley Companies, No. 386 at p. 5) Spire commented that the proposed standards would ultimately require efficiencies that only condensing furnaces can achieve and claimed that the proposed rulemaking would also violate EPCA 42 U.S.C. 6295(o)(2). (Spire, No. 413 at pp. 2-5) Spire also noted that the Unavailability Provision of EPCA cannot be avoided by simply adjusting installation costs within the economic analysis. (Spire, No. 413 at pp. 20-21) The Marley Companies commented that non-condensing products utilizing natural draft venting provide advantages and must remain available for several reasons related to product continuity, utility, and availability. (The Marley Companies, No. 386 at p. 5)
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             The commenter included a citation to 42 U.S.C. 6295(o)(4) for the referenced provision.
                        </P>
                    </FTNT>
                    <P>
                        With respect to product availability, the Marley Companies commented that many residential applications cannot support upgrading the existing venting system as would be required for non-natural draft venting or higher-efficiency products. (The Marley Companies, No. 386 at p. 5) PHCC commented that it opposes the elimination of non-condensing products due to venting issues, difficult installations, and some questions PHCC has regarding the accuracy of DOE's analysis. (PHCC, No. 403 at p. 6) The Coalition commented that the need to use condensing furnaces will require physical design changes of some housing types that can become more problematic in multifamily and entry-level homes. (The Coalition, No. 378 at p. 4) The Coalition added that condensing furnaces typically require larger cabinets, different and larger venting/combustion air intake systems, and condensate drain systems. (
                        <E T="03">Id.</E>
                        ) APGA and Spire commented they have demonstrated that condensing products are incompatible with many existing buildings in which non-condensing natural gas furnaces are installed. (APGA, No. 387 at p. 43-45; Spire, No. 413 at p. 3)
                    </P>
                    <P>In response, when evaluating and establishing energy conservation standards, DOE is required to establish product classes based on: (1) the type of energy used; and (2) capacity or other performance-related feature which other products within such type (or class) do not have and that DOE determines justify a different standard. In making a determination of whether a performance-related feature justifies a different standard, the Department must consider factors such as the utility to the consumer of the feature and other factors DOE determines are appropriate. (42 U.S.C. 6295(q))</P>
                    <P>
                        With respect to commenters' statements that category I venting itself is a performance-related feature that justifies a separate product class, DOE first notes that venting, like a gas burner or heat exchanger, is one of the basic components found in every gas-fired furnace (condensing or noncondensing). As such, assuming venting is a performance-related feature, it's a feature that all gas-fired furnaces possess. As a result, it cannot be the basis for a product class. 
                        <E T="03">See</E>
                         42 U.S.C. 6295(q)(1)(B). Thus, in order to meet the product class requirements in 42 U.S.C. 6295(q)(1)(B), APGA and other commenters are requesting DOE determine that a specific type of venting is a performance-related feature.
                    </P>
                    <P>
                        In response, DOE first notes that almost every component of a covered product could be broken down further by any of a number of factors. For example, heat exchangers, which are used in a variety of covered products, could be divided further by geometry or material; refrigerator compressors could be further divided by single-speed or variable-speed, and air-conditioning refrigerants could be further divided by global warming potential. As a general matter, energy conservation standards save energy by removing the least-efficient technologies and designs from the market. For example, DOE set energy conservation standards for furnace fans at a level that effectively eliminated permanent split capacitor (PSC) motors from several product classes, but which could be met by brushless permanent magnet (BPM) motors, which are more efficient. 79 FR 38130 (July 3, 2014). As another example, DOE set energy conservation standards for microwave oven standby mode and off mode at a level that effectively eliminated the use of linear power supplies, but which could be met by switch-mode power supplies, which exhibit significantly lower standby mode and off mode power consumption. 78 FR 36316 (June 17, 2013). The energy-saving purposes of EPCA would be completely frustrated if DOE were required to set standards that maintain less-efficient covered products and equipment in the market based simply on the fact that they use a specific type of (less efficient) heat exchanger, motor, power supply, 
                        <E T="03">etc.</E>
                    </P>
                    <P>
                        As discussed in the December 2021 final interpretive rule, DOE believes that a consumer would be aware of performance-related features of a covered product or equipment and would recognize such features as providing additional benefits during operation of the covered product or equipment. 86 FR 73955. Using the previous example of furnace fan motors, if an interested person had wanted to preserve furnace fans with PSC motors in the market, they would have had to show that furnace fans with PSC motors offered some additional benefit during operation as compared to furnace fans with BPM motors. Refrigerator-freezers, on the other hand, are an example of where DOE determined that a specific type of performance-related feature offered additional benefit during operation. Some refrigerator-freezers have automatic icemakers. Additionally, some automatic icemakers offer through-the-door ice service, which provides consumers with an additional benefit during operation. As such, DOE further divided refrigerator-freezers into product classes based on the specific type of automatic icemaker (
                        <E T="03">i.e.,</E>
                         whether the automatic icemaker offers through-the-door ice service). 
                        <E T="03">See</E>
                         10 CFR 430.32(a).
                        <PRTPAGE P="87536"/>
                    </P>
                    <P>Commenters have not pointed to any additional benefits during operation offered by furnaces that use category I venting as compared to furnaces that use other types of venting. Instead, these commenters generally cite compatibility with existing venting and other economic considerations as reasons why category I venting should be considered a performance-related feature for the purposes of EPCA's product class provision. unavailability provision.</P>
                    <P>
                        As stated previously, DOE's performance-related feature analysis is not based on considerations (including design parameters) that do not provide the consumer additional benefit during operation. Nor does it account for costs that anyone, including the consumer, manufacturer, installer, or utility companies, may bear. DOE has reasoned that this approach is consistent with EPCA's requirement for a separate and extensive analysis of economic justification for the adoption of any new or amended energy conservation standard (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)(A)-(B) and (3)). Specifically with regard to venting, DOE has determined that differences in cost or complexity of installation between different methods of venting (
                        <E T="03">e.g.,</E>
                         a condensing furnace versus a non-condensing furnace) do not make specific methods of venting a performance-related feature under 42 U.S.C. 6295(o)(4), as would justify separating the products/equipment into different product/equipment classes under 42 U.S.C. 6295(q)(1). 86 FR 73947, 73951 (Dec. 29, 2021). Accordingly, because DOE views the issues related to condensing vs. noncondensing technology (and associated methods of venting) to be matters of cost, the Department finds it appropriate under the statute to address these issues through the rulemaking's economic analysis. 86 FR 73947, 73951 (Dec. 29, 2021). This interpretation is consistent with EPCA's requirement for a separate and extensive analysis of economic justification for the adoption of any new or amended energy conservation standard (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)-(3); 42 U.S.C. 6313(a)(6)(A)-(C); 42 U.S.C. 6316(a)). Comments on the July 2022 Furnaces NOPR have provided no new arguments or other information that were not already considered as part of the December 2021 Final Interpretive Rule. As such, DOE continues to find that there is no basis for altering the Department's approach regarding the establishment of product classes for this rulemaking.
                    </P>
                    <P>DOE has found in its analysis of installation costs (as discussed in further detail in section IV.F.2 of this document) that thanks to various technological solutions, virtually all homes can accommodate a condensing furnace, although some small percentage may face significant installation costs. DOE accounts for these costs in its economic analysis. In all cases, consumers have a variety of choices to meet their space-heating needs, and the standards promulgated in this final rule do not eliminate any “performance-related features.”</P>
                    <P>
                        Thus, for the reasons previously explained, DOE declines the requests of AGA and Spire that in this final rule the agency include a written finding that interested persons have established by a preponderance of the evidence that the proposed standards are likely to result in the unavailability in the U.S. of residential furnaces with performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as those generally available in the United States on the date any such rule issues, because that burden of proof has not been met in the present case. 
                        <E T="03">See</E>
                         42 U.S.C. 6295(o)(4). For similar reasons, DOE declines Spire's request that DOE recognize that the compatibility of a product with existing atmospheric venting systems is a “performance-related feature” that would require separate standards for condensing and non-condensing products. Because DOE has determined that non-condensing technology (and associated venting) does not constitute a performance-related feature for consumer furnaces, such actions would not be appropriate pursuant to EPCA.
                    </P>
                    <P>
                        As DOE has stated previously, EPCA directs DOE to regulate the energy efficiency of a multitude of disparate covered products and equipment that are not always directly comparable. Consequently, consideration of class-setting and performance-related features tends to be product-specific. NPGA's assertion that DOE's proposed furnace standards would amount to a 
                        <E T="03">de facto</E>
                         building design standard is incorrect and a mischaracterization of DOE's rulemaking, as is its contention that furnace installation costs are different in nature from those of other appliances. Installation costs are always unique to location, and DOE has a well-developed methodology for estimation of installation costs that has been used for many years (
                        <E T="03">see</E>
                         chapter 8 and appendix 8D of the final rule TSD). DOE has concluded that in most cases, a condensing furnace may be installed with reasonable installation costs, and there would almost always be a technological solution to accomplish that (
                        <E T="03">e.g.,</E>
                         such as through use of DuraVent FasNSeal or a draft inducer paired with a chimney liner). In cases where the consumer perceives such costs to be too high, the consumer may opt to convert to another type of space-heating appliance (
                        <E T="03">e.g.,</E>
                         a heat pump or electric resistance heating).
                    </P>
                    <P>
                        As mentioned, NPGA has pointed to other DOE rulemakings involving space-constrained products and equipment (
                        <E T="03">e.g.,</E>
                         central air conditioners, package terminal air conditioners (PTACs), and ventless clothes dryers) as analogous to consumer furnaces. AGA similarly mentioned DOE's prior furnace fans rulemaking as analogous. However, the present case of non-condensing gas-fired residential furnaces is distinguishable from these other products cited by these commenters for the reasons that follow.
                    </P>
                    <P>Regarding ventless clothes dryers, DOE established separate product classes because some clothes dryers had a performance-related feature (ventless operation) that other clothes dryers (vented) did not, and such feature justified a different standard. As stated previously, condensing and non-condensing gas furnaces both require venting. As such, establishing separate product classes for vented and ventless clothes dryers is simply not analogous to establishing separate product classes for gas furnaces based on specific types of venting.</P>
                    <P>
                        With regard to compact clothes dryers, the “compact” delineation relates directly to the size and capacity of the product—two attributes explicitly listed in the “features” provision. (
                        <E T="03">See</E>
                         42 U.S.C. 6295(o)(4)) This difference in size and capacity is recognized by the consumer in operation of the product (
                        <E T="03">i.e.,</E>
                         by limiting the amount of wet clothes which can be processed per cycle). Moreover, DOE determined that compact-size clothes dryers have inherently different energy consumption than standard-size clothes dryers. 76 FR 22454, 22485 (April 21, 2011). Consistent with the specific recognition that size and capacity are relevant features, DOE has routinely set product classes based on size or capacity, including standards for consumer water heaters, 10 CFR 430.32(d), which separate standards by storage volume and input capacity; standards for room air conditioners, 10 CFR 430.32(b), which distinguish several product classes by cooling capacity; and standards for dishwashers and clothes washers, 10 CFR 430.32(f) and (g), respectively, which both distinguish between standard and compact products.
                    </P>
                    <P>
                        In establishing a separate product class for space-constrained central air conditioners, DOE recognized the space constraints faced by these products and 
                        <PRTPAGE P="87537"/>
                        that the efficiency of such products is limited by physical dimensions that are rigidly constrained by the intended application. 76 FR 37408, 37446 (June 27, 2011). Space-constrained central air conditioners have an indoor or outdoor unit that is limited in size due to the location in which the unit operates. As a result, space-constrained central air conditioners lack the flexibility of other central air conditioners to increase the physical size of the unit, thereby limiting the ability of space-constrained units to achieve improved efficiency through use of a larger coil. 
                        <E T="03">Id.</E>
                         In establishing standards for space-constrained central air conditioners, DOE discussed the expense of modifying an exterior opening to accommodate a larger unit, but such discussion did not abrogate DOE's determination that space-constrained central air conditioners provide centralized air conditioning in locations with space constraints that would preclude the use of other types of central air conditioners. 
                        <E T="03">Id.</E>
                         In contrast, the subject non-condensing residential furnaces are not significantly different in overall footprint, size, or heating capacity from their condensing counterparts 
                        <SU>51</SU>
                        <FTREF/>
                         (although the composition of the venting used may be different), and the energy efficiency differences are a result of the technology used, a design parameter that is dictated by considerations other than size.
                    </P>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             DOE surveyed the dimensions of consumer furnaces and found the height and diameter dimensions comparable. See chapter 5 of the TSD.
                        </P>
                    </FTNT>
                    <P>
                        With regard to the equipment classes for PTACs, in its prior rulemaking, DOE found that the size of the heat exchanger directly affects the energy efficiency of the equipment. 73 FR 58772, 58782 (Oct. 7, 2008). Like space-constrained central air conditioners, the location of operation of a PTAC directly influences the size of the equipment, which impacts the size of the heat exchanger and has a corresponding direct effect on the energy efficiency of the equipment. 
                        <E T="03">Id.</E>
                         DOE acknowledged the potentially high costs that would be associated with installing a non-standard sized PTAC in an existing building due to the need to increase the wall opening (
                        <E T="03">i.e.,</E>
                         the wall sleeve) in which a replacement PTAC is installed. 
                        <E T="03">Id.</E>
                         As explained in a subsequent rulemaking for PTACs, DOE further clarified that it accounts for installation costs in the life-cycle cost (LCC) and payback period (PBP) analyses used to evaluate increased standard levels, which is a separate and distinct consideration from whether separate product classes are justified. 80 FR 43162, 43167 (July 21, 2015). Consideration of installation costs in the LCC and PBP analysis used for evaluating an increased energy conservation standard level is consistent with the application of 42 U.S.C. 6295(o)(4) and 6295(q)(1) adopted in the December 2021 Final Interpretive Rule.
                    </P>
                    <P>
                        The furnace fan product classes also are not analogous to residential furnaces that rely on non-condensing technology. Furnace fans are electrically powered devices used in consumer products for the purpose of circulating air through ductwork. 10 CFR 430.2. A furnace fan operates to allow the furnace in which it is installed to function. The references to condensing and non-condensing in the furnace fan product classes do not reflect a difference in utility between condensing and non-condensing furnaces, but rather reflect the differences between the operation of a furnace fan installed in a condensing furnace as compared to a furnace fan installed in a non-condensing furnace. In establishing the energy conservation standards for furnace fans, DOE differentiated between furnace fan product classes based on internal structure and application-specific design differences that impact furnace fan energy consumption. 79 FR 38130, 38142 (July 3, 2014). The internal structures differ for a furnace fan installed in a condensing furnace, as compared to a furnace fan installed in a non-condensing furnace. The presence of an evaporator coil or secondary heat exchanger, as in a condensing furnace, significantly impacts the internal structure of an HVAC product, and in turn, the energy performance of the furnace fan integrated in that HVAC product. 
                        <E T="03">Id.</E>
                         These differences result in different energy use profiles for furnace fans suitable for installation in condensing furnaces, as compared to furnace fans suitable for installation in non-condensing furnace, which justifies the separate product classes.
                    </P>
                    <P>Overall, the examples of ventless dryers, space-constrained air conditioners, PTACs, and furnace fans involved subsets of the product or equipment type in question that had different physical and energy-consumption characteristics and that were designed to address specific applications. DOE determined that these situations met the applicable statutory requirements and, accordingly, warranted separate product/equipment classes. In contrast, the consumer furnaces rulemaking involves products of essentially the same size that could operate in any space-heating application. Maintaining a separate product class for non-condensing furnaces would allow the less-efficient furnaces to remain available not only to consumers facing difficult installation situations, but to all consumers. Establishment of a separate product class for non-condensing furnaces would run counter to EPCA's purposes to “conserve energy supplies” and for “improved energy efficiency of . . . major appliances.” (42 U.S.C. 6201(4) and (5))</P>
                    <P>NPGA, PHCC, the Coalition, Marley Companies, Spire, HARDI, and AGA have not provided estimates as to the number of installation situations they would consider to be problematic, instead choosing to focus on the qualitative impact of what DOE assesses to be a relatively small number of cases. DOE disagrees with AGA's assertion that the Department has not properly accounted for the necessary changes related to venting of consumer furnaces or common venting of multiples appliances, including consumer water heaters. Further details regarding DOE's estimates of total installation costs are provided in section IV.F.2 of this document and in chapter 8 and appendix 8D of the final rule TSD.</P>
                    <HD SOURCE="HD3">d. Mobile Home Gas Furnaces</HD>
                    <P>In response to the July 2022 NOPR, AHRI commented that several design differences between MHGFs and NWGFs make it possible for DOE to establish different AFUE standards for MHGFs and NWGFs without meaningful risk that MHGFs would be used outside of mobile homes or create a “loophole” for NWGFs. (AHRI, No. 414-2 at pp. 2-3) AHRI stated that MHGFs are specialized products meant to be operated only in mobile home applications under the U.S. Department of Housing and Urban Development (“HUD”) code, adding that no interior air is used for the combustion process and that non-condensing MHGFs are mostly all downflow. (AHRI, No. 414-2 at p. 2)</P>
                    <P>
                        Nortek encouraged DOE to withdraw the NOPR and consult with HUD, MHI, and the Manufactured Housing Consensus Committee (MHCC) in setting standards for MHGFs. (Nortek, No. 406 at p. 6) Nortek commented that it does not find a problem with different standard levels for manufactured housing and NWGFs because physical size differences prevent MHGFs from being installed in NWGF applications. Additionally, Nortek mentioned that the new M1 
                        <SU>52</SU>
                        <FTREF/>
                         labeling requirements state that equipment designed for 
                        <PRTPAGE P="87538"/>
                        manufactured housings must be labelled “for installation only in HUD manufactured home[s]. . . .” Nortek also stated that there are application differences between MHGFs and NWGFs (
                        <E T="03">e.g.,</E>
                         downflow versus upflow); therefore, Nortek is not concerned that manufactured home gas furnaces will be utilized in other residential applications if the minimum efficiency levels differ. (Nortek, No. 406 at pp. 4-5) JCI similarly commented that there are dimensional and configuration differences between MHGFs and NWGFs (upflow airflow versus downflow airflow). JCI provided an example, where the MHGF is 23 inches (in.) deep by 76 in. high by 19.5 in. wide and has a downflow configuration, but the NWGF is 29 in. deep by 33 in. high and between 14.5 in. and 24.5 in. wide for various configurations. JCI asserted that NWGFs could not reasonably be applied in mobile home applications without overcoming significant structural barriers and voiding the warranty. (JCI, No. 411 at pp. 2-3) Mortex added that the typical downflow furnace footprint for MHGFs is 24 in. deep by 20 in. wide, which is very different from standard residential furnaces that tend to be 29 in. deep by 17, 21, or 24 in. wide. (Mortex, No. 410 at p. 2)
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             The commenter was referring to DOE's test method for measuring the energy consumption of central air conditioners and heat pumps, located at 10 CFR part 430, subpart B, appendix M1.
                        </P>
                    </FTNT>
                    <P>
                        The CA IOUs commented that a review of manufacturer literature on MHGFs suggests that the proposed standard level will not increase product size or adversely affect the range of available input capacities. (The CA IOUs, No. 400 at p. 2) Additionally, Sierra Club 
                        <E T="03">et al.</E>
                         commented that nothing in EPCA obligates DOE to seek input or approval from the Department of Housing and Urban Development or the Manufactured Housing Consensus Committee. Sierra Club 
                        <E T="03">et al.</E>
                         commented that any assertions to the contrary ignore DOE's obligation under EPCA to review and update its existing standards for mobile home gas furnaces. (Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401 at p. 3)
                    </P>
                    <P>
                        DOE is aware of the different applications served by MHGFs and NWGFs and agrees with stakeholders that there are specific requirements that must be met for classification as an MHGF and that some MHGFs have a different footprint than is typical of NWGFs.
                        <SU>53</SU>
                        <FTREF/>
                         Because NWGFs and MHGFs are separate product classes, they have been analyzed separately for this final rule. However, as discussed in section V.A DOE groups products into TSLs because use of TSLs allows DOE to identify and consider manufacturer cost interactions between the product classes, to the extent that there are such interactions, and national-level market cross-elasticity from consumer purchasing decisions that may change when different standard levels are set. In the present case, DOE evaluated similar levels in each TSL for NWGFs and MHGFs and considered the TSL as a whole, but also weighed the merits of the adopted 95-percent AFUE levels for each class separately. Therefore, while DOE is cognizant of interactions between the classes, the primary motivation for adopting 95-percent AFUE for MHGFs was not to avoid a “loophole” whereby NWGF consumers would choose to install MHGFs if they were available at lower efficiencies and costs. Rather, it was because the 95-percent AFUE level is technologically feasible and economically justified for both NWGFs and MHGFs. See section V of this document for further discussion on the selection of the final standard levels for this final rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             However, DOE has also identified MHGFs that are essentially identical to a corresponding NWGF model and require only a conversion kit to be installed as an MHGF.
                        </P>
                    </FTNT>
                    <P>In response to comments regarding consultation with HUD, MHI, and MHCC, DOE notes that all stakeholders, including trade associations, have the opportunity to provide DOE with comments, data, and other input through both the public webinars and written comment periods throughout the duration of the rulemaking. DOE takes all input received into consideration in the analysis for amending standards, and therefore does not consult with individual groups in its rulemaking process.</P>
                    <HD SOURCE="HD3">2. Technology Options</HD>
                    <P>In the market analysis and technology assessment for the July 2022 NOPR, DOE identified 12 technology options that would be expected to improve the AFUE efficiency of NWGFs and MHGFs, as measured by the DOE test procedure: (1) using a condensing secondary heat exchanger; (2) increasing the heat exchanger surface area; (3) heat exchanger baffles; (4) heat exchanger surface feature improvements; (5) two-stage combustion; (6) step-modulating combustion; (7) pulse combustion; (8) premix burners; (9) burner de-rating; (10) insulation improvements; (11) off-cycle dampers; and (12) direct venting. (In the July 2022 NOPR, DOE also considered three technology options that could potentially reduce the standby mode and off mode energy consumption of NWGFs and MHGFs. However, for the reasons explained in section III.A.8 of this document, DOE has determined that it cannot establish standby mode and off mode standards that meet the criteria of EPCA at this time, so such technologies and standards are not considered further in this final rule.) 87 FR 40590, 40615 (July 7, 2022). DOE did not identify any additional technology options between the publication of the July 2022 NOPR and this final rule. A detailed discussion of each technology option identified is contained in chapter 3 of the final rule TSD.</P>
                    <P>
                        DOE considered each technology further in the screening analysis (
                        <E T="03">see</E>
                         section IV.B of this document or chapter 4 of the final rule TSD) to determine which could be considered further in the analysis and which should be eliminated.
                    </P>
                    <HD SOURCE="HD2">B. Screening Analysis</HD>
                    <P>DOE uses the following five screening criteria to determine which technology options are suitable for further consideration in an energy conservation standards rulemaking:</P>
                    <P>
                        (1) 
                        <E T="03">Technological feasibility.</E>
                         Technologies that are not incorporated in commercial products or in commercially viable, existing prototypes will not be considered further.
                    </P>
                    <P>
                        (2) 
                        <E T="03">Practicability to manufacture, install, and service.</E>
                         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.
                    </P>
                    <P>
                        (3) 
                        <E T="03">Impacts on product utility.</E>
                         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.
                    </P>
                    <P>
                        (4) 
                        <E T="03">Safety of technologies.</E>
                         If it is determined that a technology would have significant adverse impacts on health or safety, it will not be considered further.
                    </P>
                    <P>
                        (5) 
                        <E T="03">Unique-pathway proprietary technologies.</E>
                         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.
                    </P>
                    <FP>
                        10 CFR part 430, subpart C, appendix A, sections 6(b)(3) and 7(b).
                        <PRTPAGE P="87539"/>
                    </FP>
                    <P>In sum, 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. The reasons for eliminating any technology are discussed in the following sections.</P>
                    <P>The subsequent sections include DOE's evaluation of each technology option against the screening analysis criteria, and whether DOE determined that a technology option should be excluded (“screened out”) based on the screening criteria. DOE did not receive any comments pertaining to the screening analysis in response to the July 2022 NOPR.</P>
                    <HD SOURCE="HD3">1. Screened-Out Technologies</HD>
                    <P>For this analysis of amended AFUE standards, DOE has screened out the following technologies: pulse combustion and burner de-rating. Each of these will be discussed in turn.</P>
                    <P>Pulse combustion furnaces use self-sustaining pressure waves to draw a fresh fuel-air mixture into the combustion chamber, heat it by way of compression, and then ignite it using a spark. This technology option was screened out due to past reliability and safety issues, which have resulted in manufacturers generally not considering pulse combustion as a viable option to improve efficiency. In addition, furnace manufacturers can achieve similar or greater efficiencies through the use of other technologies that do not operate with positive pressure in the heat exchanger, such as those relying on induced draft.</P>
                    <P>DOE also screened out burner de-rating. Burner de-rating reduces the burner firing rate while maintaining the same heat exchanger geometry/surface area and fuel-air ratio, which increases the ratio of heat transfer surface area to energy input, which increases efficiency. This technology option was screened out because it reduces the burner firing rate while maintaining the same heat exchanger geometry/surface area and fuel-air ratio, resulting in less heat being provided to the user than is provided using conventional burner firing rates.</P>
                    <P>
                        It is noted that in earlier rulemaking analyses (
                        <E T="03">e.g.,</E>
                         for the since withdrawn September 2016 SNOPR), DOE had screened out premix burners from further analysis because premix burners had not yet been successfully incorporated into a consumer furnace design, raising concerns about the technological feasibility of premix burners in furnaces. Incorporating this technology into furnaces on a large scale at that time would have required further research and development due to the technical constraints imposed by current furnace burner and heat exchanger design. However, in conducting the market and technology assessment and screening analysis for the July 2022 NOPR, DOE identified NWGF furnaces with premix burners on the market and, therefore, did not screen this technology option out of its analysis, because the technological feasibility and practicability to manufacture such designs has been demonstrated. However, DOE notes that the premix burner designs observed on the market were implemented in ultra low NO
                        <E T="52">X</E>
                         
                        <SU>54</SU>
                        <FTREF/>
                         models, indicating that the development of premix burner designs has been primarily driven by NO
                        <E T="52">X</E>
                         requirements. The efficiencies of these models are the same as those achieved by more conventional non-premix burner designs used in furnaces. Therefore, while the use of premix burners was not screened out, it was not considered a primary driver for improving efficiency.
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             “Ultra low NO
                            <E T="52">X</E>
                            ” furnaces produce no more than 14 nanograms of NO
                            <E T="52">X</E>
                             per Joule.
                        </P>
                    </FTNT>
                    <P>The technology options assumed to be implemented to achieve each efficiency level are discussed further in section IV.C.1 of this finale rule. Chapter 4 of the TSD includes additional information on the screening analysis.</P>
                    <HD SOURCE="HD3">2. Remaining Technologies</HD>
                    <P>Through a review of each technology, DOE concludes that all of the other identified technologies listed in section IV.A.2 met all five screening criteria to be examined further as design options in DOE's final rule analysis. In summary, DOE did not screen out the following technology options to improve AFUE: (1) condensing secondary heat exchanger; (2) increased heat exchanger face area; (3) heat exchanger baffles; (4) heat exchanger surface feature improvements; (5) two-stage combustion; (6) step-modulating combustion; (7) insulation improvements; (8) off-cycle dampers; (9) direct venting; and (10) premix burners.</P>
                    <P>
                        DOE has determined that these technology options are technologically feasible because they are being used or have previously been used in commercially-available products or working prototypes. DOE also finds that all of the remaining technology options meet the other screening criteria (
                        <E T="03">i.e.,</E>
                         practicable to manufacture, install, and service and do not result in adverse impacts on consumer utility, product availability, health, or safety, and do not involve a proprietary technology that is a unique pathway to meeting a given efficiency level). For additional details, see chapter 4 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD2">C. Engineering Analysis</HD>
                    <P>
                        The purpose of the engineering analysis is to establish the relationship between the efficiency and cost of NWGFs and MHGFs. There are two elements to consider in the engineering analysis: (1) the selection of efficiency levels to analyze (
                        <E T="03">i.e.,</E>
                         the “efficiency analysis”) and (2) the determination of product cost at each efficiency level (
                        <E T="03">i.e.,</E>
                         the “cost analysis”). In determining the performance of higher-efficiency products, DOE considers technologies and design option combinations not eliminated by the screening analysis. For each product class, DOE estimates the baseline cost,
                        <SU>55</SU>
                        <FTREF/>
                         as well as the incremental cost for the product at efficiency levels above the baseline efficiency. The output of the engineering analysis is a set of cost-efficiency “curves” that are used in downstream analyses (
                        <E T="03">i.e.,</E>
                         the LCC and PBP analyses and the NIA).
                    </P>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             The baseline cost reflects the expenses associated with a baseline model. DOE defines a “baseline model” as a model in each product class that represents the characteristics of products typical of that class (
                            <E T="03">e.g.,</E>
                             capacity, physical size) and that has an efficiency equal to the current Federal energy conservation standard.
                        </P>
                    </FTNT>
                    <P>
                        The methodology for the efficiency analysis and the cost analysis is described in detail in the sections that immediately follow (sections IV.C.1 and IV.C.2, respectively, of this document). DOE uses its methodology, which consists of the engineering analysis and mark-ups analysis (
                        <E T="03">see</E>
                         section IV.D of this document), to determine the final price of the furnace to the consumer for several reasons. The sales prices of furnaces currently seen in the marketplace, which include both an MPC and various mark-ups applied through the distribution chain, are not necessarily indicative of what the sales prices of those furnaces would be following the implementation of a more-stringent energy conservation standard. At a given efficiency level, MPC depends in part on the production volume. In general, for efficiency levels above the current baseline efficiency, the price to the consumer at that level may be high relative to what it would be under a more-stringent standard, due to the increase in production volume (and, thus, improved economies of scale and purchasing power for furnace components), which would occur at that level if a Federal standard made it the new baseline efficiency.
                    </P>
                    <P>
                        DOE notes that the engineering analysis incorporated both condensing furnaces without “premium” features 
                        <PRTPAGE P="87540"/>
                        and condensing furnaces are more likely to be equipped with “premium” features in today's market. One would expect increased designs (and/or sales) with minimal “premium” features to cater to cost-sensitive consumers, as compared to the current market, and perhaps redesigns where possible, to minimize costs. In its analysis of AFUE levels, DOE sought to minimize or normalize the presence of additional designs or features that do not affect AFUE, as additional designs or features can increase costs while not affecting the measured AFUE efficiency. In other words, DOE's analysis of the cost-efficiency relationship is for a product that provides only the basic utility (
                        <E T="03">i.e.,</E>
                         heat) without other special features that consumers may find beneficial (
                        <E T="03">e.g.,</E>
                         sound reduction or humidity control). Although it may be possible to identify prices for products without premium features, simply aggregating a collection of current furnace sales price information could lead to a higher consumer price than would be expected under an amended-standards scenario, as many condensing products available on the market today are bundled with “premium” features, but under an amended-standards scenario, condensing products without as many “premium” features may become more common so to provide consumers with a lowest-cost option with only essential functionality. This approach aligns with feedback received during manufacturer interviews that manufacturers would continue to differentiate between premium and value units to best serve all segments of the market, and would invest in optimizing the cost of certain product offerings for consumers that are highly sensitive to the upfront cost. Therefore, DOE concluded that increasing AFUE energy conservation standards would not necessarily increase the presence of “premium” features on furnaces in the market.
                    </P>
                    <P>DOE's analysis and decision are based, in part, on the aggregated data generated during the engineering analysis. The process by which the aggregated data have been generated is discussed in this document and is the result of the engineering analyses described in chapter 5 of the final rule TSD. The primary inputs to the engineering analysis are data from the market and technology assessment, input from manufacturers, furnace specifications, and production cost estimates developed based on teardown analysis and consultation with manufacturers. DOE's treatment of confidential business information is governed by the Freedom of Information Act (FOIA) and 10 CFR 1004.11 (5 U.S.C. 552(b)(4)) Accordingly, bills of materials (BOMs) are generated by a DOE contractor using the manufacturer-specific and product-specific data to estimate the industry-aggregate MPCs. DOE's contractor conducts interviews with manufacturers under non-disclosure agreements (“NDAs”) to determine whether the MPCs developed by the analysis reflect the industry average manufacturing costs. In addition, because the cost estimation methodology uses data supplied by manufacturers under the NDAs (such as raw material and purchased part prices), the resulting individual model cost estimates themselves cannot be published and are not released outside the aggregated form to DOE or its National Labs. This approach allows manufacturers to provide candid and detailed feedback under NDA, thereby improving the quality of the analysis. DOE notes that manufacturers that participated in manufacturer interviews had access to the raw material and purchased-part price data underlying the MPC estimates for those models at the time the interviews were conducted. The data resulting from the engineering analysis and which DOE has used as inputs to its modeling were published in the July 2022 NOPR and available to the public for review and comment. 87 FR 40590, 40621 (July 7, 2022).</P>
                    <HD SOURCE="HD3">1. Efficiency Analysis</HD>
                    <P>
                        DOE typically uses one of two approaches to develop energy efficiency levels for the engineering analysis: (1) relying on observed efficiency levels in the market (
                        <E T="03">i.e.,</E>
                         the efficiency-level approach), or (2) determining the incremental efficiency improvements associated with incorporating specific design options to a baseline model (
                        <E T="03">i.e.,</E>
                         the design-option approach). Using the efficiency-level approach, the efficiency levels established for the analysis are determined based on the market distribution of existing products (in other words, based on the range of efficiencies and efficiency level “clusters” that already exist on the market). Using the design option approach, the efficiency levels established for the analysis are determined through detailed engineering calculations and/or computer simulations of the efficiency improvements from implementing specific design options that have been identified in the technology assessment. DOE may also rely on a combination of these two approaches. For example, the efficiency-level approach (based on actual products on the market) may be extended using the design option approach to interpolate to define “gap fill” levels (
                        <E T="03">i.e.,</E>
                         to bridge large gaps between other identified efficiency levels) and/or to extrapolate to the “max-tech” level (particularly in cases where the “max-tech” level exceeds the maximum efficiency level currently available on the market).
                    </P>
                    <P>
                        For the AFUE engineering analysis, DOE generally employed an efficiency level approach, which identified the intermediate efficiency levels (
                        <E T="03">i.e.,</E>
                         levels between baseline and max-tech) for analysis based on the most common efficiency levels on the market. One exception is that DOE analyzed a 90-percent AFUE level for NWGFs and MHGFs despite relatively few models at that level, as it would serve as a minimum condensing level.
                    </P>
                    <HD SOURCE="HD3">a. Baseline Efficiency Level and Product Characteristics</HD>
                    <P>
                        For each product/equipment class, DOE generally selects a baseline model as a reference point for each class, and measures anticipated changes to the product resulting from potential energy conservation standards against the baseline model. The baseline model in each product/equipment class represents the characteristics of a product/equipment typical of that class (
                        <E T="03">e.g.,</E>
                         capacity, physical size). Generally, a baseline model is one that just meets current energy conservation standards, or, if no standards are in place, the baseline is typically the most common or least-efficient unit on the market.
                    </P>
                    <P>DOE selected baseline units for the NWGF and MHGF product classes that include characteristics typical of the least-efficient commercially-available consumer furnaces. The baseline unit in each product class represents the basic characteristics of products in that class. Baseline units serve as reference points, against which DOE measures changes resulting from potential amended energy conservation standards. Additional details on the selection of baseline units are in chapter 5 of the final rule TSD.</P>
                    <P>
                        Table IV.1 presents the baseline AFUE levels identified for each product class of furnaces addressed by this rulemaking. The baseline AFUE levels are the same as the current Federal minimum AFUE standards for the subject furnaces, as established by the November 2007 Final Rule. 10 CFR 430.32(e)(1)(ii); 72 FR 65136, 65169 (Nov. 19, 2007).
                        <PRTPAGE P="87541"/>
                    </P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s50,12">
                        <TTITLE>Table IV.1—Baseline Residential Furnace AFUE Efficiency Levels</TTITLE>
                        <BOXHD>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(percent)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Non-Weatherized Gas Furnaces</ENT>
                            <ENT>80</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Gas Furnaces</ENT>
                            <ENT>80</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">b. Higher Efficiency Levels</HD>
                    <P>
                        As part of DOE's analysis, the maximum available efficiency level is the highest efficiency unit currently available on the market. DOE also defines a “max-tech” efficiency level to represent the maximum possible efficiency for a given product. Tables IV.2 and IV.3 show the efficiency levels DOE selected for analysis of amended AFUE standards for NWGFs and MHGFs, respectively, up to the maximum available efficiency level, along with a description of the typical technological change at each level. Since the July 2022 NOPR, DOE has identified new models of NWGFs certified in DOE's Compliance Certification Database (CCD) 
                        <SU>56</SU>
                        <FTREF/>
                         with efficiencies up to 99-percent AFUE and of MHGFs certified with efficiencies up to 97-percent AFUE. However, there is only one model of NWGF at 99-percent AFUE, at only one input size. Several other models from the same model family do not achieve 99-percent AFUE. Therefore, at the time of this final rule analysis, it is unclear whether 99 percent would be an appropriate max-tech level for all NWGFs that is achievable across a range of input capacities, and, as a result, DOE maintained the same maximum efficiency level for NWGFs as in the July 2022 NOPR (
                        <E T="03">i.e.,</E>
                         98-percent AFUE). Similarly, there are only two input capacities of MHGFs that would exceed a 97-percent efficiency level, and these models are from the same model line, but several other models at other input capacities within that same model line do not achieve 97-percent AFUE. Therefore, it is at present uncertain as to whether 97-percent AFUE would be an appropriate max-tech level for all MHGFs, so DOE maintained the same maximum efficiency level for MHGFs as in the July 2022 NOPR (
                        <E T="03">i.e.,</E>
                         96-percent AFUE). Therefore, the maximum efficiency level analyzed for both NWGFs and MHGFs has been maintained at a level representing the highest-efficiency models available on the market when DOE began this analysis as outlined in chapter 3 of the final rule TSD.
                    </P>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             U.S. Department of Energy Compliance Certification Management System (“CCMS”) (available at 
                            <E T="03">www.regulations.doe.gov/certification-data/</E>
                            ) (last accessed March 22, 2023).
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s20,6,r125">
                        <TTITLE>Table IV.2—AFUE Efficiency Levels for Non-Weatherized Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Efficiency level
                                <LI>(EL)</LI>
                            </CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Technology options</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">0—Baseline</ENT>
                            <ENT>80</ENT>
                            <ENT>Baseline.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>90</ENT>
                            <ENT>EL 0 + Secondary condensing heat exchanger.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92</ENT>
                            <ENT>EL 1 + Increased heat exchanger area.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>95</ENT>
                            <ENT>EL 2 + Increased heat exchanger area.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4—Max-Tech</ENT>
                            <ENT>98</ENT>
                            <ENT>EL 3 + Increased heat exchanger area + Step-modulating combustion + Constant-airflow BPM blower motor.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s20,6,r125">
                        <TTITLE>Table IV.3—AFUE Efficiency Levels for Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Efficiency level
                                <LI>(EL)</LI>
                            </CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Technology options</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">0—Baseline</ENT>
                            <ENT>80</ENT>
                            <ENT>Baseline.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>90</ENT>
                            <ENT>EL 0 + Secondary condensing heat exchanger.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92</ENT>
                            <ENT>EL 1 + Increased heat exchanger area.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>95</ENT>
                            <ENT>EL 2 + Increased heat exchanger area.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4—Max-Tech</ENT>
                            <ENT>96</ENT>
                            <ENT>EL 3 + Increased heat exchanger area.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">2. Cost Analysis</HD>
                    <P>The cost analysis portion of the engineering analysis is conducted using one or a combination of cost approaches. The selection of cost approach depends on a suite of factors, including the availability and reliability of public information, characteristics of the regulated product, and the availability and timeliness of purchasing the product on the market. The cost approaches are summarized as follows:</P>
                    <P>
                        • 
                        <E T="03">Physical teardowns:</E>
                         Under this approach, DOE physically dismantles a commercially available product, component-by-component, to develop a detailed bill of materials for the product.
                    </P>
                    <P>
                        • 
                        <E T="03">Catalog teardowns:</E>
                         In lieu of physically deconstructing a product, DOE identifies each component using parts diagrams (available from manufacturer websites or appliance repair websites, for example) to develop the bill of materials for the product.
                    </P>
                    <P>
                        • 
                        <E T="03">Price surveys:</E>
                         If neither a physical nor catalog teardown is feasible (
                        <E T="03">e.g.,</E>
                         for tightly integrated products such as fluorescent lamps, which are infeasible to disassemble and for which parts diagrams are unavailable), cost-prohibitive, or otherwise impractical (
                        <E T="03">e.g.,</E>
                         large commercial boilers), DOE conducts price surveys using publicly-available pricing data published on major online retailer websites and/or by soliciting prices from distributors and other commercial channels.
                    </P>
                    <P>
                        In the present case, DOE conducted its cost analysis using a combination of physical and catalog teardowns to assess how manufacturing costs change with increased product efficiency. Products were selected for physical teardown analysis that have characteristics of typical products on the market at a representative input capacity of 80,000 Btu/h (determined based on market data and discussions with manufacturers). Selections spanned the range of efficiency levels analyzed and included most manufacturers. The teardown analysis allowed the creation of detailed BOMs for each product torn down, which included all components and processes used to manufacture the products. DOE used the BOMs from the teardowns as inputs to calculate the MPCs for products at various efficiency levels spanning the full range of 
                        <PRTPAGE P="87542"/>
                        efficiencies from the baseline to the maximum technology achievable level.
                    </P>
                    <P>
                        During the development of the since-withdrawn March 2015 NOPR, interviews were held with NWGF and MHGF manufacturers to gain insight into the residential furnace industry, and to request feedback on the engineering analysis. In advance of the July 2022 NOPR, a second round of interviews was held in 2021, in part to gain additional insight for updating the cost analysis to reflect current conditions. DOE used the information gathered from these interviews, along with the information obtained through the teardown analysis, to develop its updated MPC estimates. For this final rule, DOE updated its analysis to incorporate the most recent input data (
                        <E T="03">e.g.,</E>
                         raw materials, purchased components, labor) in its BOMs (and, correspondingly, in the MPC estimates derived from those BOMs). DOE performed an additional 23 physical teardowns for the July 2022 NOPR. DOE also incorporated additional physical teardowns from previous analyses into the analysis for this rulemaking when the designs and components of those units reflect those observed in products currently available on the market. For additional detail about the models used for teardowns, see chapter 5 of the final rule TSD.
                    </P>
                    <P>
                        To account for manufacturers' non-production costs and profit margin, DOE applies a non-production cost multiplier (the manufacturer mark-up) to the MPC. The resulting manufacturer selling price (“MSP”) is the price at which the manufacturer distributes a unit into commerce. DOE initially developed an average manufacturer mark-up by examining the annual Securities and Exchange Commission (“SEC”) 10-K 
                        <SU>57</SU>
                        <FTREF/>
                         reports filed by publicly-traded manufacturers primarily engaged in consumer furnace manufacturing and whose product range includes NWGFs and MHGFs. DOE refined its understanding of manufacturer mark-ups by using information obtained during manufacturer interviews. The manufacturer mark-ups were used to convert the MPCs into MSPs. Further information on this analytical methodology is presented in the following subsections.
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             U.S. Securities and Exchange Commission's Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) database. (Available at: 
                            <E T="03">www.sec.gov/edgar/search/</E>
                            ) (Last accessed Feb. 4, 2022).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">a. Teardown Analysis</HD>
                    <P>To assemble BOMs and to calculate manufacturing costs for the different components in residential furnaces, multiple units were disassembled into their base components, and DOE estimated the materials, processes, and labor required to manufacture each individual component, a process referred to as a “physical teardown.” Using the data gathered from the physical teardowns, each component was characterized according to its weight, dimensions, material, quantity, and the manufacturing processes used to fabricate and assemble it.</P>
                    <P>For supplementary catalog teardowns, product data were gathered, such as dimensions, weight, and design features from publicly-available information, such as manufacturer catalogs. Such “virtual teardowns” allowed DOE to estimate the major physical differences between a product that was physically disassembled and a similar product that was not. For this final rule, data from physical and virtual teardowns of residential furnaces were used to calculate industry MPCs in the engineering analysis.</P>
                    <P>The teardown analysis allowed DOE to identify the technologies that manufacturers typically incorporate into their products, along with the efficiency levels associated with each technology or combination of technologies. The end result of each teardown is a structured BOM that incorporates all materials, components, and fasteners (classified as either raw materials or purchased parts and assemblies), and characterizes the materials and components by weight, manufacturing processes used, dimensions, material, and quantity. The BOMs from the teardown analysis were then used as inputs to calculate the MPC for each product that was torn down. The MPCs resulting from the teardowns were then used to develop an industry average MPC for each efficiency level of each product class analyzed.</P>
                    <P>
                        As discussed in section IV.C.2.c of this document, DOE also performed several physical and catalog teardowns of units at input capacities other than the representative input capacity (
                        <E T="03">i.e.,</E>
                         40, 60, 100, and 120 kBtu/h in addition to 80 kBtu/h). These teardowns allowed DOE to develop cost-efficiency curves for NWGFs and MHGFs at different input capacities. For more detailed information on the teardown analysis, see chapter 5 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD3">b. Cost Estimation Method</HD>
                    <P>
                        The costs of individual models are estimated using the content of the BOMs (
                        <E T="03">i.e.,</E>
                         relating to materials, fabrication, labor, and all other aspects that make up a production facility) to generate MPCs. The resulting MPCs include costs such as overhead and depreciation, in addition to materials and labor costs. DOE collected information on labor rates, tooling costs, raw material prices, and other factors to use as inputs into the cost estimates. For purchased parts, DOE estimates the purchase price based on volume-variable price quotations and detailed discussions with manufacturers and component suppliers.
                    </P>
                    <P>
                        For parts fabricated in-house, the prices of the underlying “raw” metals (
                        <E T="03">e.g.,</E>
                         tube, sheet metal) are estimated on the basis of five-year averages to smooth out spikes in demand. Other raw materials, such as plastic resins and insulation materials, are estimated on a current-market basis. The costs of raw materials are determined 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.,
                        <SU>58</SU>
                        <FTREF/>
                         PolymerUpdate,
                        <SU>59</SU>
                        <FTREF/>
                         the U.S. geologic survey (“USGS”),
                        <SU>60</SU>
                        <FTREF/>
                         and the Bureau of Labor Statistics (“BLS”).
                        <SU>61</SU>
                        <FTREF/>
                         The cost of transforming the intermediate materials into finished parts is estimated based on current industry pricing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             For more information on MEPS Intl, please visit 
                            <E T="03">www.mepsinternational.com/gb/en</E>
                             (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             For more information on PolymerUpdate, please visit 
                            <E T="03">www.polymerupdate.com</E>
                             (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             For more information on USGS metal price statistics, please visit 
                            <E T="03">www.usgs.gov/centers/national-minerals-information-center/commodity-statistics-and-information</E>
                             (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>61</SU>
                             For more information on the BLS producer price indices, please visit 
                            <E T="03">www.bls.gov/ppi/</E>
                             (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">c. Manufacturing Production Costs</HD>
                    <P>
                        DOE estimated the MPC at each efficiency level considered for each product class, from the baseline through the max-tech, and then calculated the fractions of the MPC (in percentages) attributable to each cost component (
                        <E T="03">i.e.,</E>
                         materials, labor, depreciation, and overhead). These percentages were used to validate analytical inputs by comparing them to manufacturers' actual financial data published in annual reports, along with feedback obtained from manufacturers during interviews. DOE uses these production cost percentages in the MIA (
                        <E T="03">see</E>
                         section IV.J of this document).
                    </P>
                    <P>
                        Tables IV.4 and IV.5 present DOE's estimates of the MPCs by AFUE efficiency level at the representative input capacity (80 kBtu/h) for both NWGFs and MHGFs. The MPCs at each efficiency level incorporate the design characteristics of NWGFs and MHGFs shown in Tables IV.2 and IV.3. DOE 
                        <PRTPAGE P="87543"/>
                        observed in its market analysis that products are available on the market with a mix of blower motor technologies, including constant torque brushless permanent magnet (“BPM”) motors, constant airflow BPM motors, and (for MHGFs), PSC motors. To account for the variety of blower motors available on the market, DOE developed cost adjustment factors (“adders”) for each type of blower motor and at each input capacity analyzed (
                        <E T="03">i.e.,</E>
                         40, 60, 80, 100, and 120 kBtu/h) to normalize the blower costs between the individual units torn down and across efficiency levels and allow for estimation of the cost differences between models with different blower technologies. DOE normalized the costs of the blower assemblies in its teardown models, and then used these adders in its LCC analysis to account for the distribution of blower motor technologies expected to be sold on the market (
                        <E T="03">see</E>
                         section IV.F of this document). For NWGFs, DOE used constant-torque BPM motors as the baseline design option for all efficiency levels except the max-tech level, which was always assumed to use a constant airflow BPM motor. All MHGFs were modeled with improved PSC motors as the normalized design option. These adders are discussed in more detail in chapter 5 of the TSD accompanying this rule.
                    </P>
                    <P>Similarly, in its market analysis and teardown analysis, DOE observed models with single-stage, two-stage, and modulating operation. Therefore, DOE normalized its engineering analysis costs to reflect single-stage designs (with the exception of max-tech NWGFs, which were all assumed to use modulating designs) but also developed a cost adder for two-stage and modulating combustion systems (as compared to single-stage models) that was used in the LCC analysis to account for the distribution of models with two-stage and modulating combustion. The cost to change from a single-stage to a two-stage combustion system includes the cost of a two-stage gas valve, a two-speed inducer assembly, upgraded pressure switch/tubing assembly, and additional controls and wiring. Similarly, the cost to change from a single-stage to a modulating combustion system includes the cost of a modulating gas valve, an upgraded inducer assembly, upgraded pressure switch/tubing assembly, and additional controls and wiring. These cost adders are discussed in more detail in chapter 5 of the TSD. DOE similarly normalized the costs, when necessary, to account for the presence any premium controls or features that would increase cost but are not needed for improving efficiency.</P>
                    <P>For MHGFs, DOE performed physical teardowns of several MHGF models and compared them to NWGF teardowns from a common manufacturer and similar design, in order to determine the typical design differences between the two product classes. (A detailed description of the typical differences between MHGF and NWGF is provided in chapter 5 of the final rule TSD.) Using this information, DOE then developed cost adders to reflect the cost difference between NWGF and MHGF models, and applied this cost adder to the NWGF MPCs in order to estimate the MPCs of MHGFs at each of the MHGF efficiency levels.</P>
                    <P>Table IV.4 presents the MPCs for NWGFs with a constant-torque BPM and single-stage combustion (except for the max-tech level which, as previously noted, includes a constant airflow BPM and modulating combustion). Table IV.5 presents the MPCs for MHGFs with an improved PSC and single-stage combustion. DOE has determined that these designs are likely the most representative of furnaces on the current market, although DOE recognizes there are some exceptions. As discussed in this section, DOE has observed that a variety of blower motor technologies and burner system stages exist on the market, so DOE developed adders to translate MPCs across various technologies.</P>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s50,12,12,12">
                        <TTITLE>
                            Table IV.4—Manufacturer Production Cost for Non-Weatherized Gas Furnaces at the Representative Input Capacity of 80 
                            <E T="01">kBtu/h</E>
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">Efficiency level</CHED>
                            <CHED H="1">
                                Efficiency level
                                <LI>(AFUE) (%)</LI>
                            </CHED>
                            <CHED H="1">
                                MPC
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="1">
                                Incremental cost above baseline
                                <LI>(2022$)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Baseline</ENT>
                            <ENT>80</ENT>
                            <ENT>335</ENT>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL1</ENT>
                            <ENT>90</ENT>
                            <ENT>420</ENT>
                            <ENT>85</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL2</ENT>
                            <ENT>92</ENT>
                            <ENT>428</ENT>
                            <ENT>93</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL3</ENT>
                            <ENT>95</ENT>
                            <ENT>444</ENT>
                            <ENT>109</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL4</ENT>
                            <ENT>98</ENT>
                            <ENT>572</ENT>
                            <ENT>216</ENT>
                        </ROW>
                    </GPOTABLE>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s50,12,12,12">
                        <TTITLE>
                            Table IV.5—Manufacturer Production Cost for Mobile Home Gas Furnaces at the Representative Input Capacity of 80 
                            <E T="01">kBtu/h</E>
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">Efficiency level</CHED>
                            <CHED H="1">
                                Efficiency level
                                <LI>(AFUE) (%)</LI>
                            </CHED>
                            <CHED H="1">
                                MPC
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="1">
                                Incremental cost above baseline
                                <LI>(2022$)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Baseline</ENT>
                            <ENT>80</ENT>
                            <ENT>360</ENT>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL1</ENT>
                            <ENT>90</ENT>
                            <ENT>441</ENT>
                            <ENT>81</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL2</ENT>
                            <ENT>92</ENT>
                            <ENT>450</ENT>
                            <ENT>90</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL3</ENT>
                            <ENT>95</ENT>
                            <ENT>466</ENT>
                            <ENT>106</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">EL4</ENT>
                            <ENT>96</ENT>
                            <ENT>471</ENT>
                            <ENT>111</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>JCI commented that DOE should work with MHI and HUD to get cost and buyer data for MHGF replacements and reevaluate whether a 95-percent AFUE standard is appropriate based on those findings. (JCI, No. 411 at p. 2)</P>
                    <P>
                        In response, DOE notes that it conducted the engineering analysis for this final rule using a combination of physical and catalog teardowns. As discussed in section IV.C.2 of this document, DOE only relies on price 
                        <PRTPAGE P="87544"/>
                        surveys as the basis for the engineering analysis if neither physical nor catalog teardowns are feasible, or if these options are cost-prohibitive and otherwise impractical. The resulting MPCs do not include manufacturer mark-ups and will not reflect prices seen by consumers. DOE estimates and applies additional markups to its MPCs, as discussed in sections IV.C.2.e and IV.D of this document. Additionally, as described in section IV.D of this document, under a more-stringent standard, the mark-ups incorporated into the sales price may also change relative to current mark-ups. Therefore, DOE has concluded that using prices of furnaces as currently seen in the marketplace, as JCI suggested, would not be an accurate method of estimating future furnace prices following an amended standard and, in turn, validating DOE's approach of conducting an engineering analysis and mark-ups analysis for this final rule.
                    </P>
                    <P>Daikin commented that there is a higher burden on manufacturers than DOE estimated because DOE does not consider that NWGFs with higher AFUE take more time to assemble due to: (1) more components, (2) higher complexity, (3) tighter assembly requirements, and (4) more end-of-line testing. (Daikin, No. 416 at p. 3)</P>
                    <P>JCI commented that the DOE fan energy rating (FER) rule and recent supply chain issues have increased MHGF MPCs by more than 42 percent between 2018 and 2021, and by 36 percent for NWGFs. (JCI, No. 411 at p. 2)</P>
                    <P>
                        Lennox commented that it found that DOE's MPCs generally reflect the correct costs in 2020, except for the difference between EL 2 at 92-percent AFUE and EL 3 at 95-percent AFUE, which it believes to be too low. (Lennox, No. 389 at p. 7) Lennox stated that this cost difference should be increased by 50 to 70 percent. (
                        <E T="03">Id.</E>
                        ) Lennox further commented that inflation has increased these costs more than 15 percent since 2020. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response to Daikin, DOE notes that its estimates for labor costs associated with higher-efficiency NWGFs are based on available industry data, as well as manufacturer feedback received during confidential interviews. Increased assembly and fabrication time, different components and processes, and all other change associated with higher efficiency levels for NWGFs are accounted for and reflected in the cost estimates for labor and, in turn, the overall MPC estimates. In addition, DOE agrees with JCI and Lennox that furnace MPCs have increased in recent years, and notes that the MPCs developed for this NOPR are higher than those in the NOPR, primarily due to changes in component and raw material prices.</P>
                    <P>In the July 2022 NOPR, DOE requested comment on the designs of the secondary heat exchanger (including any recent design changes), as well as the cost of AL29-4C stainless steel. 87 FR 40590, 40705 (July 7, 2022). In response, Lennox stated that it regards AL29-4C stainless steel, which is used in Lennox condensing furnaces, as the standard for secondary heat exchangers due to its corrosive-resistant properties. (Lennox, No. 389 at p. 7) As discussed in chapter 5 of the TSD accompanying this final rule, DOE did assume AL29-4C is used in the construction of secondary heat exchangers for condensing furnaces. Because no additional comments were received, DOE did not make any changes to its cost models for condensing furnace heat exchangers compared to what was used for the July 2022 NOPR analysis, other than updating prices to reflect the most recent five-year average materials prices available.</P>
                    <P>Chapter 5 of the final rule TSD presents more information regarding the development of DOE's estimates of the MPCs.</P>
                    <HD SOURCE="HD3">d. Cost-Efficiency Relationship</HD>
                    <P>
                        DOE created cost-efficiency curves representing the cost-efficiency relationships for the product classes that it examined (
                        <E T="03">i.e.,</E>
                         NWGFs and MHGFs). To develop the cost-efficiency relationships for NWGFs at the representative capacity (80 kBtu/h), DOE calculated a market-share weighted average MPC for each efficiency level analyzed, based on the units torn down at that efficiency level. As discussed in section IV.C.2.a of this document, DOE performed several physical and catalog teardowns across a range of input capacities in order to develop cost-efficiency curves for NWGFs and MHGFs that are representative of the various input capacities available on the market. These cost-efficiency curves were then used in the downstream analyses. The cost-efficiency curves developed for input capacities other than the representative input capacity are presented in chapter 5 of the final rule TSD. As discussed in section IV.C.2.c of this document, DOE used information from teardowns of MHGF and NWGF to developed cost adders for MHGF as compared to NWGF, which were applied to the NWGF MPCs to estimate the MPCs of MHGFs at each of the MHGF efficiency levels. Additional details on how DOE developed the cost-efficiency relationships and related results are available in chapter 5 of the final rule TSD.
                    </P>
                    <P>As displayed in Tables IV.4 and IV.5 of this document, the results show that the cost-efficiency relationships for NWGFs and MHGFs are nonlinear. For both product classes, the cost increase between the non-condensing (80-percent AFUE) and condensing (90-percent AFUE) efficiency levels is due to the addition of a secondary heat exchanger, so there is a large step in both AFUE and MPC. For NWGFs, a significant cost increase also occurs between the 95-percent and 98-percent AFUE levels due to the addition of modulating combustion components paired with a constant airflow BPM indoor blower motor at 98-percent AFUE.</P>
                    <HD SOURCE="HD3">e. Manufacturer Markup</HD>
                    <P>
                        DOE calculates the manufacturer selling price (MSP) by multiplying the MPC and the manufacturer markup. The MSP is the price the manufacturer charges its direct customer (
                        <E T="03">e.g.,</E>
                         a wholesaler). The MPC is the cost for the manufacturer to produce a single unit of product, accounting for material, labor, depreciation and overhead costs associated with the manufacturing facility. The manufacturer markup is a multiplier that accounts for manufacturers' production costs and revenue attributable to the product.
                    </P>
                    <P>DOE initially developed an average manufacturer mark-up by examining the annual Securities and Exchange Commission (“SEC”) 10-K reports filed by publicly-traded manufacturers primarily engaged in consumer furnace manufacturing and whose product range includes NWGFs and MHGFs. DOE refined its understanding of manufacturer mark-ups by using information obtained during manufacturer interviews. For additional detail on DOE's methodology to determine the no-new-standards case manufacturer markup, see chapter 5 and chapter 12 of the final rule TSD.</P>
                    <HD SOURCE="HD3">f. Manufacturer Interviews</HD>
                    <P>
                        Throughout the rulemaking process, DOE sought feedback and insight from interested parties that would improve the information used in its analyses. DOE first interviewed NWGF and MHGF manufacturers as a part of the manufacturer impact analysis for the since-withdrawn March 2015 NOPR. During these interviews, DOE sought feedback on all aspects of its analyses for residential furnaces. DOE discussed the analytical assumptions and estimates, cost estimation method, and cost-efficiency curves with consumer furnace manufacturers. Subsequently, in 
                        <PRTPAGE P="87545"/>
                        2021, DOE conducted a second series of interviews to obtain feedback on the updates to the cost analyses from the additional teardowns performed for the July 2022 NOPR. DOE considered all the information manufacturers provided while refining its cost estimates (and underlying data) and analytical assumptions. In order to avoid disclosing sensitive information about individual manufacturers' products or manufacturing processes, DOE incorporated equipment and manufacturing process figures into the analyses as averages. Additional information on manufacturer interviews can be found in chapter 12 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD3">g. Electric Furnaces</HD>
                    <P>
                        In addition to NWGFs and MHGFs, DOE also estimated the MPCs of electric furnaces. This analysis was performed to develop accurate electric furnace cost data as an input to the product switching analysis (
                        <E T="03">see</E>
                         section IV.F.10 of this document for additional information). To estimate the MPCs of electric furnaces, DOE used information obtained from the teardowns of three modular blower units, as well as a teardown of an electric heat kit assembly, which were all originally used as inputs to the engineering analysis performed for the 2014 furnace fans rulemaking.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Modular blower units with electric heat kits are also referred to as “electric furnaces.”
                        </P>
                    </FTNT>
                    <P>The MPCs of electric furnaces were developed by calculating a market share-weighted MPC of the three modular blower units that were torn down, and then adding the MPC of the electric heat kit to the market share-weighted modular blower MPC. The MPC of the electric heat kit was scaled appropriately in order to approximate the MPCs of different input capacity electric furnaces. Similar to the engineering analysis performed for NWGFs, DOE estimated the MPCs of electric furnaces at input capacities of 40, 60, 80, 100, and 120 kBtu/h. All material prices have been updated since the July 2022 NOPR to reflect recent changes in the market. These MPCs are presented in Table IV.6.</P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s25,12">
                        <TTITLE>Table IV.6—Electric Furnace MPCs</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Input capacity
                                <LI>(kBtu/h)</LI>
                            </CHED>
                            <CHED H="1">
                                MPC
                                <LI>(2022$)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">40</ENT>
                            <ENT>324</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">60</ENT>
                            <ENT>358</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">80</ENT>
                            <ENT>391</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">100</ENT>
                            <ENT>405</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">120</ENT>
                            <ENT>439</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>Further details regarding the methodology used to estimate electric furnace MPCs are provided in chapter 5 of the final rule TSD.</P>
                    <HD SOURCE="HD2">D. Markups Analysis</HD>
                    <P>
                        The markups analysis develops appropriate markups (
                        <E T="03">e.g.,</E>
                         manufacturer markups, retailer markups, distributor markups, contractor markups) in the distribution chain and sales taxes to convert the MPC/MSP estimates derived in the engineering analysis to consumer prices, which are then used in the LCC and PBP analysis. The markups are multiplicative factors applied to MPCs and MSPs. At each step in the distribution channel, companies mark up the price of the product to cover business costs and generate a profit margin. Before developing markups, DOE defines key market participants and identifies distribution channels.
                    </P>
                    <P>For consumer furnaces, the main parties in the distribution chain are: (1) manufacturers; (2) wholesalers or distributors; (3) retailers; (4) mechanical contractors; (5) builders; (6) manufactured home manufacturers, and (7) manufactured home dealers/retailers. See chapter 6 and appendix 6A of the final rule TSD for a more detailed discussion about parties in the distribution chain.</P>
                    <P>
                        For the final rule, DOE maintained the same approach as in the NOPR. DOE characterized two distribution channel market segments to describe how NWGF and MHGF products pass from the manufacturer to residential and commercial consumers: 
                        <SU>63</SU>
                        <FTREF/>
                         (1) replacements and new owners 
                        <SU>64</SU>
                        <FTREF/>
                         and (2) new construction.
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             DOE estimates that five percent of NWGFs are installed in commercial buildings. 
                            <E T="03">See</E>
                             section IV.G of this document for further discussion.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             New owners are new furnace installations in buildings that did not previously have a NWGF or MHGF or existing NWGF or MHGF owners that are adding an additional consumer furnace. They primarily consist of households that add or switch to NWGFs or MHGFs during a major remodel.
                        </P>
                    </FTNT>
                    <P>The NWGF and MHGF replacement/new owners market distribution channel is primarily characterized as follows:</P>
                    <FP SOURCE="FP-2">Manufacturer → Wholesaler → Mechanical Contractor → Consumer</FP>
                    <P>
                        Based on a 2023 BRG report,
                        <SU>65</SU>
                        <FTREF/>
                         2019 Clear Seas Research HVAC contractor survey,
                        <SU>66</SU>
                        <FTREF/>
                         and Decision Analyst's 2022 American Home Comfort Study,
                        <SU>67</SU>
                        <FTREF/>
                         DOE determined that the retail distribution channel (including internet sales) has been growing significantly in the last five years (previously it was negligible). Based on these sources, DOE estimated that 15 percent of the replacement market distribution channel for NWGF and 20 percent for MHGF (including mobile home specialty retailer/dealer) will be going through this market channel as follows (including some consumers that purchase directly and then have contractors install it): 
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             BRG Building Solutions, The North American Heating &amp; Cooling Product Markets (2023 Edition). (Available at 
                            <E T="03">www.brgbuildingsolutions.com/reports-insights</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             Clear Seas Research, 2019 Unitary Trends. (Available at 
                            <E T="03">clearseasresearch.com/?attachment_id=2311</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             Decision Analyst, 2022 American Home Comfort Studies. (Available at 
                            <E T="03">www.decisionanalyst.com/syndicated/homecomfort/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The Do-It-Yourself (DIY) market is very small (only represents about 1-2 percent of the whole gas furnace market) and is not analyzed by DOE in this analysis.
                        </P>
                    </FTNT>
                    <FP SOURCE="FP-2">Manufacturer → Retailer → Mechanical Contractor → Consumer</FP>
                    <FP SOURCE="FP-2">Manufacturer → Mobile Home Specialty Retailer/Dealer → Consumer</FP>
                    <P>The NWGF new construction distribution channel is characterized as follows, where DOE assumes that for 50 percent of installations, a larger builder has an in-house mechanical contractor:</P>
                    <FP SOURCE="FP-2">Manufacturer → Wholesaler → Mechanical Contractor → Builder → Consumer</FP>
                    <FP SOURCE="FP-2">Manufacturer → Wholesaler → Builder → Consumer</FP>
                    <P>The MHGF new construction distribution channel is characterized as follows:</P>
                    <FP SOURCE="FP-2">Manufacturer → Mobile Home Manufacturer → Mobile Home Dealer → Consumer</FP>
                    <P>
                        For replacements, new owners, and new construction, DOE also considered the national accounts or direct-from-manufacturer distribution channel, where the manufacturer, through a wholesaler, sells directly to a consumer.
                        <SU>69</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             The national accounts channel where the buyer is the same as the consumer is mostly applicable to NWGFs installed in small to mid-size commercial buildings, where on-site contractors purchase equipment directly from wholesalers at lower prices due to the large volume of equipment purchased, and perform the installation themselves. Overall, DOE's analysis assumes that approximately 7 percent of NWGFs installed in the residential and commercial sector use national accounts, based on the fraction of small to mid-sized commercial buildings with NWGFs relative to residential buildings with NWGFs in the 2023 BRG report.
                        </P>
                    </FTNT>
                    <FP SOURCE="FP-2">Manufacturer → Wholesaler (National Account) → Consumer</FP>
                    <PRTPAGE P="87546"/>
                    <P>
                        At each step in the distribution channel, companies mark up the price of the product to cover costs. DOE developed baseline and incremental mark-ups for each participant in the distribution chain to ultimately determine the consumer purchase cost. Baseline mark-ups are applied to the price of products with baseline efficiency, while incremental mark-ups are applied to the difference in price between baseline and higher-efficiency models (the incremental cost increase). The incremental mark-up is typically less than the baseline mark-up and is designed to maintain similar per-unit operating profit before and after new or amended standards.
                        <SU>70</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Because the projected price of standards-compliant products is typically higher than the price of baseline products, using the same mark-up 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.
                        </P>
                    </FTNT>
                    <P>
                        To estimate average baseline and incremental mark-ups, DOE relied on several sources, including: (1) the 2017 Annual Wholesale Trade Survey 
                        <SU>71</SU>
                        <FTREF/>
                         (for wholesalers and distributors); (2) U.S. Census Bureau 2017 Economic Census data 
                        <SU>72</SU>
                        <FTREF/>
                         on the residential and commercial building construction industry (for builders, mechanical contractors, and mobile home manufacturers); (3) SEC 10-K reports 
                        <SU>73</SU>
                        <FTREF/>
                         from Home Depot and Lowe's and 2017 Annual Retail Trade Survey 
                        <SU>74</SU>
                        <FTREF/>
                         (for retailers); (4) 2017 Economic Census and other sources (for mobile home dealers and retailers). In addition, DOE used the 2005 Air Conditioning Contractors of America's (“ACCA”) Financial Analysis on the Heating, Ventilation, Air-Conditioning, and Refrigeration (“HVACR”) contracting industry 
                        <SU>75</SU>
                        <FTREF/>
                         to disaggregate the mechanical contractor mark-ups into replacement and new construction markets and the HARDI 2013 Profit Report 
                        <SU>76</SU>
                        <FTREF/>
                         to derive regional-to-national wholesaler markup ratio. DOE also used various sources for the derivation of the mobile home dealer mark-ups (see chapter 6 of the final rule TSD).
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             U.S. Census Bureau, 2017 Annual Wholesale Trade Survey. (Available at 
                            <E T="03">www.census.gov/data/tables/2017/econ/awts/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             U.S. Census Bureau, 
                            <E T="03">2017 Economic Census Data.</E>
                             (Available at 
                            <E T="03">www.census.gov/econ/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             U.S. Securities and Exchange Commission, 
                            <E T="03">SEC 10-K Reports</E>
                             (available at 
                            <E T="03">www.sec.gov/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             U.S. Census Bureau, 2017 Annual Retail Trade Survey Data (available at 
                            <E T="03">www.census.gov/programs-surveys/arts.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Air Conditioning Contractors of America (ACCA), 
                            <E T="03">Financial Analysis for the HVACR Contracting Industry (2005).</E>
                             (Available at 
                            <E T="03">www.acca.org/store</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             Heating, Air Conditioning &amp; Refrigeration Distributors International (HARDI), 
                            <E T="03">2013 HARDI Profit Report.</E>
                             (Available at 
                            <E T="03">www.hardinet.org/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Typically, contractors will mark up equipment and labor differently, with the labor mark-up being greater than the equipment mark-up. For the purposes of the analysis, DOE is treating the furnace installation work, including the equipment and labor components, as one job, and assumes that the mechanical contractors use the same mark-up to account for overhead and profit of the entire job. However, the determination of that overall markup accounts for the different components of the job. After reviewing the available 2017 economic census data,
                        <SU>77</SU>
                        <FTREF/>
                         DOE adjusted the mechanical contractor mark-up to take into account that a fraction of the fringe costs related to the direct construction labor are part of the labor cost. This better matches the approach used in RS Means 
                        <SU>78</SU>
                        <FTREF/>
                         and other cost books 
                        <SU>79</SU>
                        <FTREF/>
                         on how the overall contractor mark-up is determined. Based on this methodology, the average baseline mark-up for mechanical contractors is 1.47 for replacements and 1.39 for new construction, while the incremental mark-up for mechanical contractors is 1.27 for replacements and 1.20 for new construction. The overall baseline mark-up is 2.85 for NWGFs and 2.49 for MHGFs, while the incremental mark-up is 2.09 for NWGFs and 1.91 for MHGFs. See chapter 6 and appendix 6A of the final rule TSD for more details.
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             U.S. Census Bureau, 
                            <E T="03">2017 Economic Census Data.</E>
                             (Available at 
                            <E T="03">www.census.gov/econ/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             RS Means Company Inc., 
                            <E T="03">2023 RS Means Mechanical Cost Data. Kingston,</E>
                             MA (2023). (Available at 
                            <E T="03">www.rsmeans.com/products/books/</E>
                            ) (Last accessed August 1, 2022).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Craftsman Book Company, 2023 National Construction Estimator, CA (2023). (Available at 
                            <E T="03">craftsman-book.com/books-and-software/shop-by-type/shop-estimating-books</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        In addition to the mark-ups, DOE obtained State and local taxes from data provided by the Sales Tax Clearinghouse.
                        <SU>80</SU>
                        <FTREF/>
                         These data represent weighted average taxes that include county and city rates. DOE derived shipment-weighted average tax values for each region considered in the analysis.
                    </P>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Sales Tax Clearinghouse Inc., State Sales Tax Rates Along with Combined Average City and County Rates (June 14, 2023). (Available at 
                            <E T="03">www.thestc.com/STrates.stm</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>DOE acknowledges that there is uncertainty regarding the appropriate mark-ups to use, so the Department conducted a sensitivity analysis in which the same average mark-up is applied to baseline and higher-efficiency products. Appendix 8N of the final rule TSD describes this analysis and how the associated LCC results differ from the results using the incremental mark-up approach. The relative comparison of the different efficiency levels remains similar, however, and the proposed energy conservation standard level remains economically justified regardless of which mark-up scenario is utilized.</P>
                    <P>
                        Lennox commented that the assumption that the incremental markup would be lower for condensing than for non-condensing furnace standard levels is incorrect, as the installed cost difference between EL 2 and EL 3 is less than the difference between the MPC and MSP for these two levels. (Lennox, No. 389 at p. 2) Lennox further asserted that the incremental markup should be consistent for condensing and non-condensing levels. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>DOE clarifies that the incremental mark-up is used for efficiency levels above the baseline, applied to those costs above the baseline cost. In the case of consumer furnaces, all condensing furnaces have an efficiency above the baseline, and, therefore, they all share the same incremental mark-up factor (absolute mark-up will vary based on the incremental cost). Baseline, non-condensing furnaces are characterized with a baseline mark-up only. Chapter 6 of the final rule TSD provides details on DOE's development of markups for NWGFs and MHGFs.</P>
                    <HD SOURCE="HD2">E. Energy Use Analysis</HD>
                    <P>
                        The purpose of the energy use analysis is to determine the annual energy consumption of NWGFs and MHGFs at different efficiencies in representative U.S. single-family homes, multi-family residences, mobile homes, and commercial buildings, and to assess the energy savings potential of increased furnace efficiency. The energy use analysis estimates the range of energy use of NWGFs and MHGFs in the field (
                        <E T="03">i.e.,</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.
                    </P>
                    <P>
                        DOE estimated the annual energy consumption of NWGFs and MHGFs at specific energy efficiency levels across a range of climate zones, building characteristics, and heating applications. The annual energy consumption includes the natural gas, 
                        <PRTPAGE P="87547"/>
                        liquid petroleum gas (LPG), and electricity used by the furnace.
                    </P>
                    <P>Chapter 7 of the final rule TSD provides details on DOE's energy use analysis for NWGFs and MHGFs.</P>
                    <HD SOURCE="HD3">1. Building Sample</HD>
                    <P>
                        To determine the field energy use of NWGFs and MHGFs used in residential housing units and commercial buildings, DOE established a sample of households using EIA's 2020 Residential Energy Consumption Survey (RECS 2020) 
                        <SU>81</SU>
                        <FTREF/>
                         and sample of commercial buildings using EIA's 2018 Commercial Building Energy Consumption Survey (CBECS 2018), which were the most recent such surveys that were available at that time.
                        <SU>82</SU>
                        <FTREF/>
                         The RECS and CBECS data provide information on the vintage of the home or building, as well as heating energy use in each housing unit or building. DOE used the housing and building samples not only to determine existing furnace's annual energy consumption, but also as the basis for conducting the LCC and PBP analyses. RECS and CBECS includes weights for each housing unit or commercial building in order to produce housing and commercial building population estimates to represent all housing units and commercial buildings, including those not in the survey sample. DOE used these RECS and CBECS weights along with furnace shipments data and furnace sample criteria to develop the projected furnace sample shipment weights in 2029, the first year of compliance with any amended or new energy conservation standards for NWGFs and MHGFs, used in the analysis. To characterize future new homes and buildings, DOE used a subset of housing units and commercial buildings in RECS and CBECS that were built after 2000.
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             Energy Information Administration (EIA), 2020 Residential Energy Consumption Survey (RECS). (Available at: 
                            <E T="03">www.eia.gov/consumption/residential/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             U.S. Department of Energy: Energy Information Administration, Commercial Buildings Energy Consumption Survey (2018). (Available at: 
                            <E T="03">www.eia.gov/consumption/commercial/</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>APGA argued that with DOE's usage of EIA's RECS 2015, DOE is imputing to over 120 million households characteristics based upon a survey of a few hundred. APGA further argued that RECS surveys are suspect because they rely on respondents knowing precisely the appliance that heats their house and for how long that has been. (APGA, No. 387 at p.11) DOE notes that this characterization is incorrect. RECS 2015 is based on a nationally representative sample of 5,686 households, not a few hundred. RECS 2020 had 18,496 respondents complete the survey. Furthermore, EIA employs a number of different data collection modes, including in-person interviews with detailed measurements of the housing unit, as well as collecting fuel billing and delivery data from energy suppliers. There are a number of cross-checks and quality control steps to ensure the robustness of the survey, as detailed in the RECS technical documentation.</P>
                    <P>APGA claimed that DOE relied on stale data from EIA's RECS 2015 in the NOPR. APGA argued that DOE should incorporate RECS 2020 data and run its analysis again, allowing public comment in a supplemental NOPR. (APGA, No. 387 at p. 61)</P>
                    <P>In response, DOE notes that the energy use analysis relies on the energy consumption and expenditures microdata from RECS, which at the time of the NOPR analysis were not yet published for RECS 2020. Only the preliminary housing characteristics statistics tables from RECS 2020 were available at the time of the NOPR analysis. However, it is common practice for DOE to include updated data in its analyses when they become available. The RECS 2020 final version of the microdata (including energy consumption and expenditures data) have since been published, and DOE has updated its analysis for the final rule to include the latest RECS 2020 data. DOE has also updated its analysis for the final rule to include the latest CBECS 2018 data. See appendix 7A of the final rule TSD for details regarding the sample.</P>
                    <P>JCI commented that manufactured home applications are not specifically addressed in RECS data after 1974. The commenter asserted that manufactured home applications are instead categorized in single-family homes. JCI argued that replacements in manufactured homes are, therefore, not accurately represented in DOE's analysis, and that manufactured homes would be disproportionately negatively impacted by a 95-percent AFUE standard. (JCI, No. 411 at p. 2)</P>
                    <P>In response, DOE clarifies that RECS does include survey responses from households in manufactured homes. They are labeled as “mobile homes” and are included in DOE's analysis. These are the households that would be representative of MHGF installations and energy consumption.</P>
                    <P>The CA IOUs cited the U.S. Energy Information Administration's 2015 Residential Energy Consumption Survey to report that only 26 percent of mobile homes use natural gas and propane MHGFs for space heating, while 55 percent of mobile homes use electricity for space heating. (The CA IOUs, No. 400 at p. 2) In response, DOE notes that in the NOPR, it used 2015 RECS data directly, and, therefore, this breakdown of energy usage was reflected in DOE's NOPR analysis, and the current breakdown of energy use from 2020 RECS data is reflected in DOE's final rule analysis.</P>
                    <HD SOURCE="HD3">2. Furnace Sizing</HD>
                    <P>
                        DOE assigned an input capacity for the existing NWGF or MHGF of each housing unit or building based on an algorithm that correlates the calculated design heating load served by the furnace with furnace shipments data by input capacity. DOE used ACCA's Manual J 
                        <SU>83</SU>
                        <FTREF/>
                         and Manual N 
                        <SU>84</SU>
                        <FTREF/>
                         calculation methods to more accurately determine the design heating load requirements for each sampled housing unit or building based primarily on RECS 2020 and CBECS 2018 building characteristics (including heated square footage, the outdoor design temperature for heating,
                        <SU>85</SU>
                        <FTREF/>
                         wall type, insulation type, year built, roof type, number of floors, availability of an attic, basement, or crawlspace, 
                        <E T="03">etc.</E>
                        ). The ACCA Manual J and Manual N process is the most widely accepted method to calculate heating and cooling requirements for a house by using well-documented values and building codes, based on experimental data and extreme conditions (worst-case assumptions). DOE distributed the input capacities based on shipments data by input capacity bins provided by AHRI from 1995-2014,
                        <SU>86</SU>
                        <FTREF/>
                         HARDI shipments data by capacity and region from 2013-2022,
                        <SU>87</SU>
                        <FTREF/>
                         BRG report shipments data by capacity from 2014-2022,
                        <SU>88</SU>
                        <FTREF/>
                         and manufacturer 
                        <PRTPAGE P="87548"/>
                        input from manufacturer interviews. The shipments data by input capacity were further disaggregated into 5-kBtu/h bins based on a set of non-repetitive or unique models from DOE's 2023 Compliance Certification Management System database for furnaces 
                        <SU>89</SU>
                        <FTREF/>
                         and from AHRI's 2023 residential furnace certification directory.
                        <SU>90</SU>
                        <FTREF/>
                         The households' calculated design heating load values are then rank ordered to match actual shipments distributions to determine the assigned furnace input capacity. DOE assumed that for the new furnace installation, the output capacity would remain similar to the output capacity for the existing furnace.
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             Air Conditioning Contractors of America Association (ACCA). Manual J—Residential Load Calculation (available at: 
                            <E T="03">www.acca.org/standards/technical-manuals/manual-j</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Air Conditioning Contractors of America Association (ACCA). Manual N—Commercial Load Calculation (available at: 
                            <E T="03">www.acca.org/standards/technical-manuals/manual-n</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             This is the dry-bulb design temperature that is expected to be exceeded ninety-nine percent of the time.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             AHRI, Attachment A: Percentage of Residential Gas Furnace Shipments by Input Ranges, 20 Year Average (1995-2014) (October 14, 2015) (available at: 
                            <E T="03">www.regulations.gov/comment/EERE-2014-BT-STD-0031-0181</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             Heating, Air-conditioning and Refrigeration Distributors International (HARDI), DRIVE portal (HARDI Visualization Tool managed by D+R International until 2022), proprietary Gas Furnace Shipments Data from 2013-2022 provided to Lawrence Berkeley National Laboratory (LBNL).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             BRG Building Solutions, The North American Heating &amp; Cooling Product Markets (2023 Edition) 
                            <PRTPAGE/>
                            (available at: 
                            <E T="03">www.brgbuildingsolutions.com/reports-insights</E>
                            ) (last accessed August 3, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             U.S. Department of Energy, Compliance Certification Management System (available at: 
                            <E T="03">www.regulations.doe.gov/certification-data/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             AHRI, Directory of Certified Product Performance: Residential Furnaces (available at: 
                            <E T="03">www.ahridirectory.org/Search/QuickSearch?category=8&amp;searchTypeId=3&amp;producttype=</E>
                            32) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>This sizing methodology takes into account the actual field conditions where some households have a greater oversizing factor than recommended by ACCA, which could occur due to old furnaces being replaced by a much more efficient furnace and/or improvements to the building shell since the last furnace installation. For example, this methodology, applied to both NWGFs and MHGFs, allows for older, less-insulated homes to be assigned larger furnaces compared to similar newly-built homes. This methodology also accounts for regional differences in building shells, which show that, on average, southern homes are not as well insulated as northern homes. Regional differences in design heating load are also captured in the sizing methodology by using the outdoor design temperature that best matches the household location and climate characteristics.</P>
                    <P>
                        DOE also accounted for the air conditioning sizing when determining the input capacity size of the furnace. DOE acknowledges that currently, there are few low-input-capacity furnace models with large furnace fans. For some installations, particularly in the South, a large furnace fan is required to meet the cooling requirements. DOE accounted for the fact that some furnace installations in the South have a larger input capacity than determined by the design heating load calculations by calculating the size of the furnace fan required to meet the cooling requirements of the household by using the AHRI shipments data by input capacity 
                        <SU>91</SU>
                        <FTREF/>
                         and the HARDI furnace shipments by input capacity and region.
                        <SU>92</SU>
                        <FTREF/>
                         DOE notes that this will primarily affect furnaces located in warmer areas of the country (with higher cooling loads), which potentially leads to a higher amount of oversizing than is assumed in the analysis for these households. DOE notes that the Federal furnace fan standards that took effect in July 2019 require fan motor designs that can more efficiently adjust the amount of air depending on both heating and cooling requirements. Thus, the size of the furnace fan (and the furnace capacity) will be able to better match both the heating and cooling requirements of the house. DOE acknowledges that, in the future, there might be greater availability of small furnaces with larger furnace fans, but for this final rule, DOE made a conservative assumption that larger furnace input capacities will be necessary to satisfy these cooling requirements because smaller capacity furnaces with larger fans are not commonly available in the market. If smaller capacity furnaces with larger fans become more common, the costs to replace these furnaces would be lower, increasing the net consumer benefits. 
                        <E T="03">See</E>
                         chapter 7 and appendix 7B of the final rule TSD for further detail.
                    </P>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             AHRI, Attachment A: Percentage of Residential Gas Furnace Shipments by Input Ranges, 20 Year Average (1995-2014) (Oct. 14, 2015) (available at: 
                            <E T="03">www.regulations.gov/comment/EERE-2014-BT-STD-0031-0181</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>92</SU>
                             Heating, Air-conditioning and Refrigeration Distributors International (HARDI), DRIVE portal (HARDI Visualization Tool managed by D+R International until 2022), proprietary Gas Furnace Shipments Data from 2013-2022 provided to Lawrence Berkeley National Laboratory (LBNL).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. Furnace Active Mode Energy Use</HD>
                    <P>
                        To estimate the annual energy consumption in active mode of furnaces meeting the considered efficiency levels, DOE first calculated the annual housing unit or building heating load using the RECS 2020 and CBECS 2018 estimates of housing unit or building furnace annual energy consumption,
                        <SU>93</SU>
                        <FTREF/>
                         the existing furnace's estimated capacity and efficiency (AFUE), and the heat generated from the electrical components. The analysis assumes that some homes have two or more furnaces, with the heating load split evenly between them. DOE also took into account any secondary heating that might be present, utilizing the same fuel as the NWGF or MHGF, by reducing the heating load covered by the NWGF or MHGF. The estimation of furnace capacity is discussed in the previous section. The AFUE of the existing furnaces was estimated using the furnace vintage (the year of installation) provided by RECS or CBECS and historical data on the market share of furnaces by AFUE by region (
                        <E T="03">see</E>
                         appendix 7B of the final rule TSD). DOE then used the housing unit or building heating load to calculate the burner operating hours at each considered efficiency level, which were then used to calculate the fuel and electricity consumption based on the DOE consumer furnace test procedure.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             EIA estimated the equipment's annual energy consumption from the household's or buildings utility bills using conditional demand analysis. To learn more, see 
                            <E T="03">www.eia.gov/consumption/residential/data/2020/pdf/2020%20RECS%20CE%20Methodology_Final.pdf.</E>
                             (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">a. Adjustments to Energy Use Estimates</HD>
                    <P>
                        DOE adjusted the energy use estimates in RECS 2020 (for the year 2020) and in CBECS 2018 (for the year 2018) to “normal” weather using long-term heating degree-day (HDD) data for each geographical region.
                        <SU>94</SU>
                        <FTREF/>
                         For this final rule, DOE then applied an HDD correction factor from 
                        <E T="03">AEO2023</E>
                         
                        <SU>95</SU>
                        <FTREF/>
                         that accounts for projected population migrations across the Nation and continues any realized historical changes in HDD at the State level.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             National Oceanic and Atmospheric Administration (NOAA), NNDC Climate Data Online (available at: 
                            <E T="03">www.ncdc.noaa.gov/cdo-web/search</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             U.S. Department of Energy, Energy Information Administration, 
                            <E T="03">Annual Energy Outlook 2023</E>
                             (available at: 
                            <E T="03">www.eia.gov/outlooks/aeo/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE also accounted for changes in building shell efficiency between 2020 (for RECS 2020) or 2018 (for CBECS 2018) and the compliance year by applying the shell integrity indexes associated with 
                        <E T="03">AEO2023.</E>
                         The indexes consider projected improvements in building shell efficiency due to improvements in home insulation and other thermal efficiency practices. EIA provides separate indexes for new buildings and existing buildings for a given year, for both residential homes and commercial buildings. For the year 2029, the factor applied for homes is 0.91 for residential replacements and 0.77 for residential new construction relative to the 2022 building shell efficiency. The factor applied for commercial building replacements depend on building type and Census Division, ranging from 0.82 to 0.97 relative to the 2018 building shell efficiency. For new construction commercial buildings, the factor used ranged from 0.31 to 0.86, depending on building type and Census Division relative to the 2020 building shell 
                        <PRTPAGE P="87549"/>
                        efficiency. 
                        <E T="03">See</E>
                         chapter 7 of the final rule TSD for more details.
                    </P>
                    <P>
                        Building codes and building practices vary widely across the U.S. For example, as of August 2023, more than half of the States were still under the 2009 International Energy Conservation Code (“IECC”) or older codes instead of the 2015 IECC, 2018 IECC, or 2021 IECC.
                        <SU>96</SU>
                        <FTREF/>
                         EIA's building shell index for new construction takes into account regional differences in building codes and building practices by including both homes that meet IECC requirements and homes that are built with the most efficient shell components, as well as non-compliant homes that fail to meet IECC requirements. The building shell index also accounts for the impact of incentive programs in improving building shell efficiency. It is uncertain how these building codes and building practices will change over time, so EIA uses technical and economic factors to project change in the building shell integrity indexes. For new home construction, EIA determined the building shell efficiency by using the relative costs and energy bill savings in conjunction with the building shell attributes. For commercial buildings, the shell efficiency factors vary by building type and region, and they take into account significant improvements to the commercial building shell, particularly in new commercial buildings.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             DOE Building Energy Codes Program, Status of State Energy Code Adoption (available at: 
                            <E T="03">www.energycodes.gov/status</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>AHRI stated that DOE did not consider changes to Manufactured Housing Efficiency Standards in its analysis of proposed efficiency standards for MHGFs, adding that the new standards were promulgated by DOE in May 2022 and will take effect on May 31, 2023. AHRI commented that the new requirements will enhance the thermal efficiency of the building envelope of new manufactured homes, which will in turn reduce the heating demand for furnaces. AHRI added that the reduced heating demand for furnaces will then reduce the cost justification (in particular, LCC savings) for the proposed standards. Additionally, AHRI stated that DOE cannot double-count energy savings produced by a more-efficient building envelope and from improved furnace efficiency. (AHRI, No. 414-2 at pp. 1-3) Along these same lines, MHI commented that it does not think DOE considered the increased energy efficiency caused by the May 2022 ECS Final Rule for manufactured housing in its technical models. (MHI, No. 365 at p. 3)</P>
                    <P>Mortex similarly commented that the standards for manufactured homes will lead to less usage and average input of furnaces, which weakens the cost justification for amending the furnaces standard. The commenter stated that these standards will reduce heating season gas demand and energy usage by approximately 15 percent, which means that there will be fewer energy savings to offset the increased up-front costs if a 95-percent AFUE furnace. (Mortex, No. 410 at p. 3)</P>
                    <P>Mortex further commented that this rulemaking double-counts energy savings between this rulemaking and the manufactured housing rulemaking. The company also pointed to the manufactured housing rulemaking and the tiered approach such that requirements for single-section manufactured homes imposed less of a cost than requirements for multi-section manufactured homes in consideration of affordability of housing for mobile home residents. Mortex commented that such considerations should also be taken into account by DOE in the rulemaking for MHGFs. (Mortex, No. 410 at p. 3)</P>
                    <P>
                        In response, DOE notes that the NOPR analysis was performed using 
                        <E T="03">AEO2022,</E>
                         which was developed before promulgation of the May 2022 final rule for manufactured housing (87 FR 32728). 
                        <E T="03">AEO</E>
                         projections only include the impacts of finalized regulations and, thus, do not include DOE's May 2022 manufactured housing rule. However, it is common practice for DOE to include updated data in its analyses when they become available. For the final rule, DOE used the latest 
                        <E T="03">AEO2023</E>
                         building shell efficiency projections, which take into account all finalized rules in 2022, including the May 2022 final rule for manufactured housing, as well as other incentives to improve building shell efficiency. These projections result in a decrease in the estimated space heating energy use in the final rule. The updated analysis eliminates any potential double-counting. DOE's conclusion of economic justification for MHGFs from the NOPR remains unchanged. With respect to affordability, DOE notes that smaller-capacity furnaces, which would be used in smaller mobile homes, have lower incremental costs.
                    </P>
                    <P>
                        Sierra Club 
                        <E T="03">et al.</E>
                         mentioned that the rule for energy efficiency standards for new manufactured homes was based in part on the requirements of the 2021 IECC, though DOE declined to consider IECC requirements in setting minimum efficiency levels for heating appliances installed in such homes due to the coverage of these products under EPCA's appliance efficiency standards program. 87 FR 32728, 32774 (May 31, 2022). Sierra Club 
                        <E T="03">et al.</E>
                         stated that another stakeholder's comments on the NOPR—claiming that DOE is extending the IECC's requirements to mobile home gas furnaces—have an unclear basis. (Sierra Club 
                        <E T="03">et al.,</E>
                         No. 401 at pp. 2-3)
                    </P>
                    <P>
                        In response, DOE acknowledges that coverage under EPCA for MHGFs is under consumer furnaces provisions of EPCA and not under the manufactured housing rulemaking. DOE agrees with Sierra Club 
                        <E T="03">et al.</E>
                         that it is not extending IECC requirements. Instead, DOE is independently evaluating the technological feasibility and economic justification of amended energy conservation standards for MHGFs by conducting its own analysis.
                    </P>
                    <HD SOURCE="HD3">4. Furnace Electricity Use</HD>
                    <P>
                        DOE's analysis of furnace electricity consumption takes into account the electricity used by the furnace's electrical components (
                        <E T="03">e.g.,</E>
                         blower, draft inducer, and ignitor). DOE determined furnace fan electricity consumption using field data on static pressures of duct systems and furnace fan performance data from manufacturer literature. As noted in section IV.C of this document, the furnace designs used in DOE's analysis incorporate furnace fans that meet the energy conservation standards for those covered products that took effect in 2019.
                        <SU>97</SU>
                        <FTREF/>
                         DOE accounted for furnace fan energy use during heating mode, as well as for the difference in furnace fan electricity use between a baseline furnace (80-percent AFUE) and a more-efficient furnace during cooling and continuous fan circulation. DOE also accounted for increased furnace fan energy use in condensing furnaces to produce the equivalent airflow output compared to a similar non-condensing furnace, since condensing furnaces tend to have a more restricted airflow path than non-condensing furnaces due to the presence of a secondary heat exchanger. To calculate electricity consumption for the inducer fan, ignition device, gas valve, and controls, DOE used the calculation described in DOE's furnaces test procedure,
                        <SU>98</SU>
                        <FTREF/>
                         as well as in DOE's 2023 unique furnace model dataset and manufacturer product literature. The electricity consumption of condensing furnaces also reflects the use of condensate pumps and heat tape.
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             
                            <E T="03">See</E>
                             10 CFR 430.32(y).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             Found in 10 CFR part 430, subpart B, appendix N, section 10.
                        </P>
                    </FTNT>
                    <PRTPAGE P="87550"/>
                    <P>
                        DOE accounts for the increased electricity use of condensing furnaces in heating, cooling, and continuous fan circulation due to larger internal static pressure (a more restricted airflow path due to the presence of a secondary heat exchanger). DOE notes that the furnace fan energy conservation standards that took effect in 2019 (for both non-condensing and condensing NWGFs 
                        <SU>99</SU>
                        <FTREF/>
                        ) can be met using constant-torque BPM motors, which do not require increasing the size of an undersized duct since the speed of the motor is kept constant with increased static pressure. DOE also accounts for higher energy use for a fraction of installations that include a constant airflow BPM (variable speed motor) that can increase the speed of the motor to compensate for high static pressures. 
                        <E T="03">See</E>
                         appendix 7C of the final rule TSD for more details.
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             The furnace fan energy conservation standards relevant to condensing and non-condensing MHGFs can be met using improved PSC motors and, therefore, these considerations do not apply.
                        </P>
                    </FTNT>
                    <P>
                        As stated previously, a condensing furnace uses more electricity than an equivalent non-condensing furnace but uses significantly less natural gas or LPG. DOE accounted for the additional heat released by the furnace fan motor, which must be compensated by the central air conditioner during the cooling season, based on analysis in the October 2022 Preliminary Analysis for consumer furnace fans.
                        <SU>100</SU>
                        <FTREF/>
                         DOE also accounted for additional electricity use by the furnace fan during continuous fan operation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             U.S. Department of Energy—Office of Energy Efficiency and Renewable Energy, Energy Conservation Program for Consumer Products: Technical Support Document: Energy Efficiency Standards for Consumer Products: Consumer Furnace Fans (October 2022) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2021-BT-STD-0029-0014</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">F. Life-Cycle Cost and Payback Period Analysis</HD>
                    <P>DOE conducted LCC and PBP analyses to evaluate the economic impacts on individual consumers of potential energy conservation standards for NWGFs and MHGFs. 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:</P>
                    <P>
                        • 
                        <E T="03">Life-Cycle Cost (LCC)</E>
                         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.
                    </P>
                    <P>
                        • 
                        <E T="03">Payback Period (PBP)</E>
                         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.
                    </P>
                    <P>For any given efficiency level, DOE measures the change in LCC relative to the LCC in the no-new-standards case, which reflects the estimated efficiency distribution of NWGFs and MHGFs in the absence of new or amended energy conservation standards. In contrast, the PBP for a given efficiency level is measured relative to the baseline product.</P>
                    <P>For each considered efficiency level in each product class, DOE calculated the LCC and PBP for a nationally representative set of housing units and, for NWGFs, also commercial buildings. As stated previously, DOE developed household samples from 2020 RECS and CBECS 2018. For each sample household, DOE determined the energy consumption of the furnace and the appropriate natural gas, LPG, and electricity price. By developing a representative sample of households, the analysis captured the variability in energy consumption and energy prices associated with the use of NWGFs and MHGFs.</P>
                    <P>Inputs to the LCC calculation include the installed cost to the consumer, operating expenses, the lifetime of the product, and a discount rate. Inputs to the calculation of total installed cost include the cost of the product—which includes MPCs, manufacturer markups, product price projections, wholesaler and contractor markups, and sales taxes (where appropriate)—and installation costs. Inputs to the calculation of operating expenses include annual energy consumption, energy prices and price projections, repair and maintenance costs, product lifetimes, and discount rates. Inputs to the payback period calculation include the installed cost to the consumer and first year operating expenses. DOE created distributions of values for installation cost, repair and maintenance, product lifetime, and discount rates with probabilities attached to each value, to account for their uncertainty and variability. In addition, DOE established the efficiency in the no-new-standards case using a distribution of furnace efficiencies.</P>
                    <P>In regard to DOE's cost calculations, GAS commented that DOE is defying its own intent to use “transparent and robust analytical methods.” Instead, GAS commented, DOE games its analytical methods through undue complexity to declare some level of (usually minimal) positive LCC savings necessary to clear the low hurdle rate established by EPCA. GAS commented that DOE “grossly inflates” its LCC savings estimates by opaque methodologies that defy independent validation. (GAS, No. 385 at pp. 4-5)</P>
                    <P>Trampe commented that a long-term study is needed where total costs (initial and maintenance) of furnaces with different efficiencies are compared. The commenter added that this study should cover different States and temperatures. Trampe stated that HVAC installers, repairers, distributors, and manufacturers can provide their input on what these total costs would be. (Trampe, No. 361 at p. 1)</P>
                    <P>
                        In response, DOE conducts all appliance standards rulemakings through the public notice-and-comment process, in which all members of the public are given the opportunity to comment on the rulemaking, and all documents are made publicly available at 
                        <E T="03">www.regulations.gov.</E>
                         Additionally, all benefits and burdens of the rulemaking are carefully considered by DOE. Section IV.F of this document explains DOE's rationale regarding cost impacts and LCC models. As part of this rulemaking, DOE also hosted a number of public meetings, including one focused on its analytical models, in order to increase the transparency of its process. DOE currently works with manufacturers to determine appropriate costs, as Trampe suggested. Although predicted future and long-term costs are calculated and considered, a long-term study regarding total costs of furnaces at various efficiencies will not be conducted as part of this rulemaking because DOE has determined that its current methodology captures the elements which the commenter suggests. However, because DOE consistently strives to improve its analytical processes, the Department may consider Trampe's comment as a topic for possible continued future research.
                    </P>
                    <P>
                        The computer model DOE uses to calculate the LCC relies on a Monte Carlo simulation to incorporate uncertainty and variability into the analysis. The Monte Carlo simulations randomly sample input values from the probability distributions and NGWF and 
                        <PRTPAGE P="87551"/>
                        MHGF user samples. For this rulemaking, the Monte Carlo approach is implemented in MS Excel together with the Crystal Ball
                        <SU>TM</SU>
                         add-on.
                        <SU>101</SU>
                        <FTREF/>
                         Details regarding the various inputs to the model are discussed in the subsections below. The model calculated the LCC and PBP for products at each efficiency level for 10,000 furnace installations per simulation run. The analytical results include a distribution of 10,000 data points showing the range of LCC savings for a given efficiency level relative to the no-new-standards case efficiency distribution. In performing an iteration of the Monte Carlo simulation for a given consumer, product efficiency is chosen based on its probability. If the chosen product efficiency is greater than or equal to the efficiency of the standard level under consideration, the LCC calculation reveals that a consumer is not impacted by the standard level. By accounting for consumers who are projected to purchase more-efficient furnaces than the baseline furnace in the no-new-standards case, DOE avoids overstating the potential benefits from increasing product efficiency. DOE calculated the LCC and PBP for consumers of NWGFs and MHGFs as if each were to purchase a new product in the first year of required compliance with new or amended standards. Any amended standards apply to NWGFs and MHGFs manufactured five years after the date on which any new or amended standard is published in the 
                        <E T="04">Federal Register</E>
                        . (42 U.S.C. 6295(f)(4)(C)) Therefore, DOE used 2029 as the first year of compliance with any amended standards for NWGFs and MHGFs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Crystal Ball
                            <SU>TM</SU>
                             is a commercially-available software tool to facilitate the creation of these types of models by generating probability distributions and summarizing results within Excel (available at: 
                            <E T="03">https://www.oracle.com/middleware/technologies/crystalball.html</E>
                            ) (last accessed Aug. 3, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE recognizes the uncertainties associated with some of the parameters used in the analysis. To assess these uncertainties, DOE has performed sensitivity analyses for key parameters such as energy prices, condensing furnace market penetration, consumer discount rates, lifetime, installation costs, downsizing criteria, and product switching criteria. DOE notes that the analysis is based on a Monte Carlo simulation approach, which uses the Crystal Ball
                        <SU>TM</SU>
                         add-on as a tool to more easily apply probability distributions to various parameters in the analysis. See appendix 8B of the final rule TSD and relevant analytical sections of this document for further details about uncertainty, variability, and sensitivity analyses in the LCC analysis.
                    </P>
                    <P>DOE's LCC analysis results at a given efficiency level account for the households that will not install condensing NWGFs unless the standard is changed, based on the no-new-standards case efficiency distribution described in section IV.F.8 of this document. This approach reflects the fact that some consumers may purchase products with efficiencies greater than the baseline levels.</P>
                    <P>DOE's analysis models the expected product lifetime, not the expected period of homeownership. DOE recognizes that the lifetime of a gas furnace and the residence time of the purchaser may not always overlap. However, EPCA requires DOE to consider the savings in operating costs throughout the estimated average life of the covered product compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered product that are likely to result from a standard. (42 U.S.C. 6295(o)(2)(B)(i)(II)) In the context of this requirement, the expected product lifetime, not the expected period of homeownership, is the appropriate modeling period for the LCC, as energy cost savings will continue to accrue to the new owner/occupant of a home after its sale. If some of the price premium for a more-efficient furnace is passed on in the price of the home, there would be a reasonable matching of costs and benefits between the original purchaser and the home buyer. To the extent this does not occur, the home buyer would gain at the expense of the original purchaser.</P>
                    <P>As discussed in section IV.F.10 of this document, in its LCC analysis, DOE considered the possibility that some consumers may switch to alternative heating systems under a standard that requires condensing technology in its LCC analysis. The LCC analysis showed that some consumers who switch end up with a reduction in the LCC relative to their projected purchase in the no-new-standards case.</P>
                    <P>
                        As part of the determination of whether a potential standard is economically justified, EPCA directs DOE to consider, to the greatest extent practicable, the savings in operating costs throughout the estimated average life of the covered product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered products which are likely to result from imposition of the standard. (42 U.S.C. 6295(o)(2)(B)(i)(II)) EPCA does not expressly limit consideration of the covered product or covered products likely to result under an amended standard to the covered product type (or class) (
                        <E T="03">i.e.,</E>
                         no prohibition on consideration of the potential for product switching due to new or amended standards). EPCA indicates that the timeframe of the LCC analysis is based on the estimated average life of the covered product subject to the standard under consideration for amendment. (
                        <E T="03">Id.</E>
                        ) However, the use of “covered products” in the plural for what is to be considered as resulting from an amended standard suggests that DOE could consider covered products other than that subject to the standard. In the present case, DOE has found it unnecessary to decide whether EPCA allows DOE to consider the benefits from this standard rule on consumers of other covered products (
                        <E T="03">e.g.,</E>
                         electric heat pumps). However, in this analysis, DOE has accounted for the expected effect that these standards will have on consumers' decisions to switch from home heating via a gas-fired furnace to home heating via electric alternatives. As explained in detail below, were DOE not to consider the potential for consumers switching products in response to an amended standard, the analysis would not capture what could be expected to occur in actual practice. Given that understanding, DOE performed a sensitivity analysis with and without product switching for the LCC analysis (presented in section V.B.1.a of this document and in appendix 8J of the final rule TSD) and for the NIA as well (presented in sections V.B.3.a and V.B.3.b of this document and in appendix 10E of the final rule TSD). The economic justifications for the considered energy conservation standards for NWGFs and MHGFs are similar with either no product switching or with product switching, and the relative comparison between the TSLs remains similar.
                    </P>
                    <P>EPCA also establishes, as noted in section III.F.2 of this document, 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 (and, as applicable, water) savings during the first year that the consumer will receive as a result of the standard. (42 U.S.C. 6295(o)(2)(B)(iii)) As with the LCC analysis, accounting for the potential for switching in the PBP analysis provides a payback that is representative across consumers.</P>
                    <P>
                        Table IV.7 summarizes the approach and data DOE used to derive inputs to the LCC and PBP calculations. The 
                        <PRTPAGE P="87552"/>
                        subsections that follow provide further discussion. Details of the spreadsheet model, and of all the inputs to the LCC and PBP analyses, are contained in chapter 8 of the final rule TSD and its appendices.
                    </P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s50,r200">
                        <TTITLE>Table IV.7—Summary of Inputs and Methods for the LCC and PBP Analysis *</TTITLE>
                        <BOXHD>
                            <CHED H="1">Inputs</CHED>
                            <CHED H="1">Source/method</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Product Cost</ENT>
                            <ENT>Derived by multiplying MPCs by manufacturer, wholesaler, and contractor mark-ups and sales tax, as appropriate. Used historical data to derive a price scaling index to forecast product costs.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Installation Costs</ENT>
                            <ENT>Baseline installation cost determined with data from 2022 RS Means. Assumed variation in cost with efficiency level.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Annual Energy Use</ENT>
                            <ENT>
                                Total annual energy use based on the annual heating load, derived from the building samples. Electricity consumption based on field energy use data.
                                <LI>
                                    <E T="03">Variability:</E>
                                     Based on the RECS 2020 and CBECS 2018.
                                </LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Energy Prices</ENT>
                            <ENT>
                                <E T="03">Natural Gas:</E>
                                 Based on EIA's Natural Gas Navigator data for 2022 and RECS 2020 and CBECS 2018 billing data.
                                <LI>
                                    <E T="03">Propane:</E>
                                     Based on EIA's State Energy Data System (“SEDS”) for 2021.
                                </LI>
                                <LI>
                                    <E T="03">Electricity:</E>
                                     Based on EIA's Form 861 data for 2022 and RECS 2020 and CBECS 2018 billing data.
                                </LI>
                                <LI>
                                    <E T="03">Variability:</E>
                                     State energy prices determined for residential and commercial applications.
                                </LI>
                                <LI>Marginal prices used for natural gas, propane, and electricity prices.</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Energy Price Trends</ENT>
                            <ENT>
                                Based on 
                                <E T="03">AEO2023</E>
                                 price projections.
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Repair and Maintenance Costs</ENT>
                            <ENT>Based on 2023 RS Means data and other sources. Assumed variation in cost by efficiency.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Product Lifetime</ENT>
                            <ENT>Based on shipments data, multi-year RECS, American Housing Survey, American Home Comfort Survey data. Mean lifetime of 21.5 years.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Discount Rates</ENT>
                            <ENT>
                                <E T="03">Residential:</E>
                                 approach involves identifying all possible debt or asset classes that might be used to purchase the considered appliances, or might be affected indirectly. Primary data source was the Federal Reserve Board's Survey of Consumer Finances.
                                <LI>
                                    <E T="03">Commercial:</E>
                                     Calculated as the weighted average cost of capital for businesses purchasing NWGFs. Primary data source was Damodaran Online.
                                </LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Compliance Date</ENT>
                            <ENT>2029.</ENT>
                        </ROW>
                        <TNOTE>
                            * 
                            <E T="02">Note:</E>
                             References for the data sources mentioned in this table are provided in the sections following the table or in chapter 8 of the final rule TSD.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        A number of commenters expressed opposition to the proposed rule based on the LCC and PBP results. AGA 
                        <E T="03">et al.</E>
                         stated that under DOE's proposal in the July 2022 NOPR, approximately 40 percent of NWGFs would be eliminated from the market, and consumers would have to either upgrade existing venting systems or switch to an electric furnace, which the commenters say will have higher operating costs and require upgrades to home or business electrical systems. (AGA 
                        <E T="03">et al.,</E>
                         No. 391 at p. 1) AGA 
                        <E T="03">et al.</E>
                         also stated that consumers, where it is economically appropriate for new homes or renovations, are already installing condensing furnaces and other high-efficiency units throughout the United States, and these commenters suggested that this high level of voluntary adoption demonstrates that DOE's proposal is “redundant.” (AGA 
                        <E T="03">et al.,</E>
                         No. 391 at p. 2)
                    </P>
                    <P>LANGD and Georgia Gas Authority commented that in its current form, the proposed standard will negatively impact nearly 1 in 6 customers of non-weatherized gas furnaces, including 1 in 5 senior-only households, 1 in 7 low-income households, and 1 in 5 small business consumers. (LANGD, No. 355 at p. 1; Georgia Gas Authority, No. 367 at p. 2) LANGD further stated that there are other ways to achieve lower emissions, improved energy efficiency, and reduced bills than those proposed in the NOPR. (LANGD, No. 355 at pp. 1-2)</P>
                    <P>The Coalition commented that the added costs associated with a 95-percent AFUE unit would be more than three times the value of their first-year energy savings, adding that some homeowners may never recoup the added upfront costs. The Coalition further commented that these calculations can be even more complicated in the rental housing environment where there can be a disconnect between who pays the upfront equipment cost and who pays the expenses for utilities. (The Coalition, No. 378 at pp. 5-6)</P>
                    <P>
                        Atmos Energy commented that DOE should improve the accuracy of its analysis by tailoring its consideration of consumer behavior, life-cycle evaluations, and costs. Atmos Energy further commented that the proposed rule uses unsupported and broad assumptions that are not reflective of actual consumer behavior and information. (Atmos Energy, No. 415 at p. 5) Atmos Energy also commented that the consequences of this proposed rule would hit especially hard in their service territory. The commenter stated that in Louisiana, Mississippi, and Texas alone, more than 1.5 million households live below 150 percent of the Federal poverty line. In addition, Atmos Energy stated that Texas households that fall between 100 and 150 percent of the Federal poverty level experience an average energy burden (
                        <E T="03">i.e.,</E>
                         cost of energy as a percentage of income) of 8 percent, while Texans living below the Federal poverty level experience an average energy burden of 16 percent. In Louisiana and Mississippi, Atmos Energy stated that it serves 361,000 households that fall below the Federal poverty line, commenting that these households spend approximately $350 more on energy each year than the national average with an estimated average energy burden of 22 percent. (Atmos Energy, No. 415 at p. 4)
                    </P>
                    <P>
                        Black Hills Energy stated that approximately 40 percent of non-weatherized natural gas furnaces shipped to customers annually are non-condensing furnaces. The commenter stated that the proposed rule would eliminate non-condensing furnaces and that neither updates to venting for a condensing furnaces nor updates to electrical systems for an electric furnaces are pro-consumer. Additionally, Black Hills Energy stated, that electric furnaces may have a higher operating cost. (Black Hills Energy, No. 397 at pp. 1-2) Black Hills Energy stated that the proposed rule is unnecessary because those for whom a condensing furnace is beneficial are choosing those furnaces, but the option for a non-condensing furnace should not be taken away from those for whom a conversion 
                        <PRTPAGE P="87553"/>
                        is difficult due to issues of affordability. (Black Hills Energy, No. 397 at p. 2) Plastics Pipe Institute similarly commented that consumers are already installing higher-efficiency condensing furnaces throughout the country, and, therefore, the proposed rule is unnecessary. (Plastics Pipe Institute, No. 404 at p. 2) A. Kessler opposed the proposed rule, arguing that a condensing furnace is not economically justified for some households, such as a townhome with a commonly vented water heater or a two-story home with a poured concrete foundation with brick exterior walls. (A. Kessler, No. 331 at pp. 2-4)
                    </P>
                    <P>In response, DOE acknowledges that for certain installations, there are significant costs. This is accounted for in the full distribution of LCC results, including consumers that experience net costs, and is part of the evaluation of economic justification as discussed in section V.C of this document. DOE also considered the impacts to low-income consumers, as described in sections IV.I.1 and V.B.1.b of this document. Additionally, DOE acknowledges that some consumers are already purchasing higher-efficiency condensing furnaces, and this market share is accounted for in the analysis, resulting in a percentage of consumers who are not impacted by the amended standard. The development of the distribution of efficiency in the no-new-standards case is discussed in further detail in section IV.F.8 of this document.</P>
                    <P>AGA stated that DOE should revise its analysis to ensure that impacts are not inappropriately affected by the inclusion of buildings that are designed for condensing equipment and for which consumers already have condensing furnaces. (AGA, No. 405, pp. 86-87)</P>
                    <P>In response, DOE clarifies that consumers who are not impacted by a standard in the LCC analysis, because they are already purchasing a higher-efficiency furnace, do not factor into the average LCC savings. The average LCC savings only reflect impacted consumers. The percentage of consumers not impacted by a standard is shown separately from the percentages of consumers negatively impacted and positively impacted under the new-standards case in the LCC spreadsheet.</P>
                    <P>
                        AGA stated that even with some sensitivity analysis, establishing averages in terms of furnace costs, installation costs, annual maintenance costs, energy consumption, 
                        <E T="03">etc.,</E>
                         is not appropriate for this type of DOE consumer covered product. (AGA, No. 405 at p. 88) In response, DOE notes the commenter is mischaracterizing the analysis. DOE uses a distribution of installation costs, equipment capacity, maintenance cost, and energy consumption as part of the LCC analysis and does not really on average values for these inputs.
                    </P>
                    <P>AGA commented that DOE's modeling approach is fundamentally flawed, being shaped by random numbers producing inconsistent results and, in some cases, profoundly different economic analyses. (AGA, No. 405 at pp. 73-74) In response, DOE notes that it has conducted a number of sensitivity scenario analyses, all of which vary key input parameters, and the results of the analyses do not alter DOE's conclusion of economic justification.</P>
                    <P>In contrast, other commenters agreed with DOE's analysis that the proposed standard level for NWGFs and MHGFs is economically justified, based on the LCC and PBP results.</P>
                    <P>
                        NYSERDA offered that based on their analysis of the active models of the six major furnace manufacturers identified in chapter 3 of the NOPR TSD, a wide variety of models would continue to be available across a range of input capacities if the AFUE level were to be set at 96 percent. NYSERDA added that at this AFUE level, a broad range of residential applications would continue to be served, and consumers would not suffer from a deficit of market options. (NYSERDA, No. 379 at p. 2) NYSERDA stated that 30 percent of NWGF models would not be compliant if an AFUE level were to be set at 96 percent instead of 95 percent, but the commenter opined that manufacturers would have enough time over the five years following the initial rule to redesign and preserve many of those models. (
                        <E T="03">Id.</E>
                        ) NYSERDA commented that DOE's update to the standards for the subject consumer furnaces would result in significant consumer benefits. NYSERDA further commented that the current LLC analysis, while robust, may overstate costs and underestimate benefits. (NYSERDA, No. 379 at p. 3) More specifically, NYSERDA commented that the composite effect of low heating energy use, low burner operating hours, and short equipment lifetime could affect LCC savings significantly. (NYSERDA, No. 379 at p. 5)
                    </P>
                    <P>NYSERDA commented that there are real-world mitigating factors that are not factored into LCC analysis but are nonetheless likely to arise. As examples of some of these potential factors, the commenters pointed to limited warranties that do not completely cover an early failure, renters being responsible for equipment operation and building owners being responsible for the upfront purchase, future natural gas costs that may differ from EIA gas forecasts, and consumers opting for an alternative heating source to avoid high-cost gas furnaces. (NYSERDA, No. 379 at p. 5)</P>
                    <P>Daikin commented that DOE's proposed 95-percent AFUE standard has the shortest rebuttable payback period of the ELs considered, regardless of the standard type considered. (Daikin, No. 416 at p. 2) On this point, DOE clarifies that the 95-percent AFUE level has the shortest simple payback period, relative to the baseline model and assuming a national standard, of the condensing ELs considered.</P>
                    <P>NPGA commented that no deliberate attempts appear to have been made by DOE to address consumer choice and tradeoffs as recommended in the NAS report. (NPGA, No. 395 at p. 13)</P>
                    <P>DOE notes that discussion of the recommendations of the NAS report will be addressed as part of a separate notice-and-comment process, and not on an individual rulemaking-by-rulemaking basis.</P>
                    <P>NPGA commented that the Monte Carlo analysis as implemented in the LCC and PBP analyses do not meet the requirements of the Office of Management and Budget Circular A-4 for Regulatory Analysis. (NPGA, No. 395 at p. 14) The commenter argued that DOE does not evaluate variables in the simulation for independence and fails to use the functionality of the Crystal Ball Microsoft Excel add-in to quantify relationships among correlated variables. (NPGA, No. 395 at p. 15) NPGA commented that DOE does not implement correlation of any distributional inputs, therefore presuming that all such inputs are independent random variables. NPGA asserted that DOE's approach is not reasonable to represent actual consumers. NPGA further stated that the TSD does not suggest that DOE conducted a systematic analysis of correlated variables, as would be implied by the Circular A-4 guidance. (NPGA, No. 395 at p. 15) NPGA listed the following input variable pairs as likely correlated distributional input variables affecting LCC savings: furnace maintenance failure year and repair cost, furnace lifetime and EL design complexity, and EL design complexity and repair cost. (NPGA, No. 395 at pp. 15-16)</P>
                    <P>
                        In response, DOE notes that multiple variables are correlated in the analysis. For example, installation costs depend on installation location and other housing characteristics. There is also a relationship between design options, 
                        <PRTPAGE P="87554"/>
                        lifetime, and maintenance and repair costs. As discussed in chapter 8 and appendix 8F of the final rule TSD, repair costs do vary by failure year, and this is captured in the analysis. Annualized maintenance and repair costs also differ between non-condensing and condensing furnace. For other variables, DOE does not have enough information regarding any correlation. See appendix 8B for a description of the correlated variables. Thus, NPGA's assertion that DOE does not implement correlation of variables is incorrect.
                    </P>
                    <P>NPGA commented that the NOPR does not provide evidence to suggest the use of the techniques in Circular A-4 for developing expert judgment estimates. (NPGA, No. 395 at p. 16)</P>
                    <P>
                        NPGA commented that DOE frequently mixes the objectives of modeling input diversity and uncertainty within a single distribution. (NPGA, No. 395 at p. 16) In response, DOE notes that this mischaracterizes the analysis. DOE uses probability distributions for a number of input variables that are reasonably expected to exhibit natural variation and diversity in practice (
                        <E T="03">e.g.,</E>
                         lifetime, repair cost, installation costs). These probability distributions are modeling diversity. In contrast, DOE addresses input uncertainty primarily with the use of sensitivity scenarios. To determine whether the conclusions of the analysis are robust, DOE performed several sensitivity scenarios with more extreme versions of these input variables (including high/low economic growth and energy price scenarios, alternative price trend scenarios, alternative mean lifetime scenarios, alternative product switching scenarios, an alternative venting technology scenario, and scenarios with different Monte Carlo sampling). The relative comparison of potential standard levels in the analysis remains the same throughout these sensitivity scenarios, confirming that the conclusion of economic justification is robust despite some input uncertainty.
                    </P>
                    <P>NPGA stated that DOE does not employ Oracle guidance in implementing the Crystal Ball software in the analysis. (NPGA, No. 395 at p. 16) According to NPGA, DOE only provides rudimentary flow diagrams of its Crystal Ball LCC savings and payback spreadsheet. (NPGA, No. 395 at p. 17) NPGA stated that DOE also does not provide a record on how it arrived at model design or how alternative model designs were considered. (NPGA, No. 395 at p. 17) In response, DOE clarifies that the use of Crystal Ball is to generate the sequence of random numbers necessary to build the 10,000 samples utilized in the LCC analysis. All other calculations are contained in the LCC spreadsheet, which has been extensively documented and discussed at length with interested parties through various iterations of notice-and-comment, as well as informal workshops. Every calculation dependent on a random value is outlined in the LCC spreadsheet, including all the probability distributions relevant to the calculation. The LCC spreadsheet includes flow diagrams of all worksheets and outlines the dependencies of all calculations.</P>
                    <P>NPGA stated that DOE does not assess validity in terms of reasonableness or validity of “outlier” consumer cases. (NPGA, No. 395 at p. 18) NPGA further commented that DOE does not apply manufacturer and consumer outcome data or implement methods or proxy calculations for validating its LCC and PBP calculations. (NPGA, No. 395 at p. 18) NPGA stated that DOE failed to analyze key options for modeling and data inputs. (NPGA, No. 395 at p. 18) NPGA stated that DOE's current process for supporting its LCC savings and payback analysis discounts the potential value of subject matter experts participating in the design, implementation, testing, and validation of its LCC savings and payback calculations. (NPGA, No. 395 at p. 18)</P>
                    <P>DOE has requested, repeatedly, data and input from interested parties and has incorporated many such pieces of information and data into its analysis. When such data are provided, they are incorporated into the analysis to the maximum extent possible. DOE does not discount the value of commenters' expert judgement, but DOE also relies on concrete data whenever possible to inform the analysis. With respect to outlier results, DOE notes that the full distribution of results, including median results, are available in the LCC spreadsheet.</P>
                    <P>NPGA recommended that DOE should test extreme conditions and compare the model to any similar models. (NPGA, No. 395 at pp. 18-19) NPGA added that stakeholders have offered to provide calculations based on simpler approaches. (NPGA, No. 395 at p. 19) In response, DOE's development of the LCC model is based on many prior comments over the years recommending the inclusion of various effects and other considerations. The increasing complexity of the model is due, in part, to DOE's responsiveness to these prior comments from previous notices. Additionally, DOE considers the distribution of potential impacts across a range of conditions, which is why many input variables are characterized by probability distributions (whenever possible) and the LCC analyzes a sample of 10,000 households.</P>
                    <P>AGPA asserted that DOE fails to deal with outlier data points in a reasonable manner. According to the commenter, extreme values should be eliminated from an analysis, but DOE has failed to make such an adjustment. (APGA, No. 387 at p. 17)</P>
                    <P>AHRI stated that DOE should utilize median values (as opposed to mean values) for future LCC analyses, stating that this method will remove the impacts of outlier buildings. However, AHRI acknowledged that switching from mean to median leaves DOE's conclusions for this rulemaking essentially unchanged. (AHRI, No. 414-2 at pp. 3-4)</P>
                    <P>In response, DOE provides a full range of statistics in the LCC spreadsheet, including median values and results at various percentiles. DOE also provides a distribution of impacts, including consumers with a net benefit, net cost, and not impacted by the rule. DOE further notes that the evaluation of economic justification would be the same using either average or median LCC savings. Therefore, individual LCC results at the ends of the distribution are not distorting DOE's evaluation.</P>
                    <P>The Marley Companies claimed that DOE recognizes there is uncertainty in the model, but only accounts for uncertainty in some parts of the model, thereby discrediting the variation in the information used to perform calculations. The commenter further claimed that DOE fails to use documented variation in both the RECS and CBECS data sets and uses “representative capacities” in product categories instead of the well-documented range of input capacities in each product category. (The Marley Companies, No. 386 at p. 2)</P>
                    <P>
                        The Marley Companies further asserted that any life-cycle cost modeling must, at a minimum, include the variation in the CBECS and RECS data sets, consistently relate all references to the specific geographic information of the home or building modeled, and utilize both the variation and average of the energy usage identified in the national energy surveys noted in the 2015 RECS comparison with other studies. The commenter asserted that DOE must provide the impact to the results using different sources of information than RECS and CBECS, as well as provide realistic modeling by accounting for documented uncertainties and variation in the inputs to the analysis. (The Marley Companies, No. 386 at pp. 3-5)
                        <PRTPAGE P="87555"/>
                    </P>
                    <P>APGA claimed that DOE's analysis does not merely fail to address uncertainty in many cases in which uncertainty is known to exist; there are key cases in which DOE's model uses a single parameter input (as opposed to a distribution of inputs) and, thus, fails to address both the known variability of that input and any uncertainty as to what the range and distribution of that input should be. (APGA. No. 387 at p. 12)</P>
                    <P>In response, DOE acknowledges that the summary statistics published by RECS and CBECS include documented statistical uncertainties; however, DOE's analysis uses the individual household microdata directly. These are survey responses from individual households. Accordingly, the standard errors published for RECS and CBECS do not directly apply. The average LCC savings, based on these microdata, include a full distribution of results, as presented in chapter 8 of the final rule TSD and the LCC spreadsheet. These results are based on a similar averaging and sampling weights as in the RECS and CBECS summary statistics. The LCC results at several different percentiles are available.</P>
                    <P>DOE further notes that there will always be natural variation in RECS and CBECS editions because they are snapshots in time, and many aspects of energy consumption change with time. It is normal and expected for RECS and CBECS results to change with each edition, and DOE utilizes the most recent data set whenever possible so as to be as representative as possible. RECS and CBECS remain, by far, the most comprehensive and statistically representative surveys of energy consumption in residential and commercial buildings available for the U.S., and the commenters have failed to provide any alternative data sources that are of comparable quality. RECS and CBECS are the highest quality data sources available to DOE. DOE does correlate a number of inputs to individual building characteristics from RECS and CBECS as part of its energy use analysis, including heating load, building shell indices, installation costs, and no-new-standards case efficiency probability.</P>
                    <P>DOE develops probabilities for as many inputs to the LCC analysis as possible, to reflect the distribution of impacts as comprehensively as possible. For example, DOE develops probabilities for building sampling, installation costs, lifetime, discount rate, and efficiency distribution, among other inputs. If there are insufficient data with respect to a specific input parameter to create a robust probability distribution, DOE will utilize a single input parameter. Such approach is neither arbitrary nor capricious; it is informed by the available data.</P>
                    <P>Finally, DOE developed a number of sensitivity scenarios for the NOPR and this final rule to specifically address the potential uncertainty in some key input parameters, as raised in prior comments. DOE has been responsive to these comments and has provided a wealth of additional sensitivity scenarios to demonstrate that its conclusions of economic justification are robust.</P>
                    <P>NPGA commented that representation in variability and uncertainty is not fully considered by DOE around installation costs of propane furnaces in replacement applications that require venting changes. (NPGA, No. 395 at p. 14)</P>
                    <P>Atmos Energy commented that DOE should more accurately and justifiably consider the variability and uncertainty around installation costs of natural gas furnaces, adding that this is particularly important in furnace replacement applications requiring a shift in venting systems from atmospheric to power venting. The commenter added that the consequences of required venting changes to other appliances should also be more accurately and justifiably considered. Atmos Energy also stated that this suggestion would be consistent with National Academy of Science peer review report's recommendation. (Atmos Energy, No. 415 at p. 6)</P>
                    <P>In response, DOE notes that its installation cost estimates do include a number of input parameters characterized by probability distributions, including for propane furnaces. DOE further emphasizes that a significant number of factors are considered in replacement applications, as discussed in section IV.F.2 of this document. DOE has been responsive to prior comments and has enhanced the installation cost estimates, including the installation of new venting, a number of times based on these comments.</P>
                    <P>Southwest Gas Corporation commented that for the vast majority of Southwest customers who reside in a hot/dry climate, where the forced air system is used primarily for cooling, the payback period is estimated to range 20 to 23 years, beyond the useful life of the furnace of 18 years. (Southwest, No. 353 at p. 1)</P>
                    <P>MHI commented that consumers in southern climates will be disproportionately impacted by the proposed standards for MHGFs. MHI argued that, in places where heating requirements are minimal, high-efficiency furnaces make little economic sense, with longer payback periods. The commenter further asserted that southern consumers would likely move away from the gas furnace market, thereby shrinking the market and creating more challenges for manufactured homeowners who often rely on gas heating. (MHI, No. 365 at p. 4)</P>
                    <P>Georgia Gas Authority argued that consumers in Southern States, like Georgia, Florida, Alabama, and Texas, require much less home heating, making higher efficiency gas furnaces uneconomical. (Georgia Gas Authority, No. 367 at p. 3)</P>
                    <P>
                        NGA argued that DOE's model understates the number of customers negatively impacted by the standard. (NGA of Georgia, No. 380 at p. 2) NGA stated that with the majority of Georgians receiving negative or neutral payback from this standard, it believes that DOE has violated factor (ii) of 42 U.S.C. 6295(o)(2)(B). (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>HARDI commented that the payback period determined by DOE does not hold true for Southern States, such that the standards should not be updated nationwide. However, HARDI also commented that it opposes the development of regional standards for consumer furnaces, as Northern States are already trending towards high-efficiency products. (HARDI, No. 384 at p. 3)</P>
                    <P>The Coalition commented that in some areas (particularly the South), it will take years if not decades for owners to recoup the added costs of 95-percent AFUE furnaces through long-term energy savings, adding that furnaces run a maximum of three months a year in many southern climates. (The Coalition, No. 378 at p. 5)</P>
                    <P>ACCA stated that DOE's analysis overlooked regional burdens, especially in the Southern U.S. (ACCA, No. 398 at p. 3)</P>
                    <P>Daikin commented that DOE's payback analysis does not specify the impacts on particular regions, specifically the South, which has a lower heating load and longer payback periods. Daikin noted that the analysis still shows a national average benefit, but that southern areas are likely better suited for heat pump applications. (Daikin, No. 416 at p. 3)</P>
                    <P>AGA commented that the NOPR fails to address significant regional differences in costs and benefits that will disproportionately impact millions of Americans. Fuel switching has a disproportionate impact on projected LCC savings for consumers in the South. (AGA, No. 405 at pp. 81-82)</P>
                    <P>
                        In response, DOE notes that the analysis considers all households, including households in the Southern 
                        <PRTPAGE P="87556"/>
                        U.S. This analysis allows DOE to meet its statutory obligation under EPCA when determining the economic justification of a potential standard to assess the savings in operating costs throughout the estimated average life of the covered product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered product which are likely to result from a new or amended standard. (42 U.S.C. 6295(o)(2)(B)(i)(II)) DOE acknowledges that the impact of amended energy conservation standards for the subject furnaces on consumers, including the payback period, can vary from household to household and in different regions of the country. Some consumers may experience a net benefit and some may experience a net cost. This distribution of impacts is accounted for in the analysis and is part of the LCC results. DOE further acknowledges that some percentage of consumers will experience a net cost in the new-amended-standards case when weighing costs and benefits as part of its evaluation of economic justification, as discussed in further detail in section V.C of this document. The full range of statistics, including simple payback period, is available in the LCC spreadsheet (specifically in the “Statistics” and “Forecast Cells” worksheets). The LCC results are also presented by region in chapter 8 of the final rule TSD.
                    </P>
                    <P>
                        DOE finds without merit NGA's argument that because some percentage of consumers at either a national or regional level would experience a net LCC cost or an extended payback period, the Department has violated its obligations under 42 U.S.C. 6295(o)(2)(B)(i)(II).
                        <SU>102</SU>
                        <FTREF/>
                         The statute directs DOE to consider economic justification of a potential standard by determining whether its benefits exceed its burdens, by, to the greatest extent practicable, considering seven enumerated factors (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)). Consumer impacts are just one of the factors DOE must weigh when considering a potential standard. Furthermore, DOE assesses impacts of potential standards at a national level, so impacts at a State or regional level will not automatically trigger a determination that a potential standard lacks economic justification in the manner NGA suggests.
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             DOE notes that NGA's comment specifically referenced 42 U.S.C. 6295(o)(2)(B)(ii), which pertains to the U.S. Attorney General's obligation to determine, in writing, whether a proposed energy conservation standard would result in a lessening of competition in the relevant market. Because NGA's comment focuses on consumer impacts, DOE has concluded that the statutory provision in the comment was cited in error, but instead, DOE presumes that NGA intended to cite 42 U.S.C. 6295(o)(2)(B)(i)(II), the provision related to consumer impacts. DOE has responded to that comment accordingly. DOE further notes that the U.S. Department of Justice did conduct the requisite anti-competitive review for this rulemaking pursuant to 42 U.S.C. 6295(o)(2)(B)(ii), as discussed in section III.F.1.e of this document.
                        </P>
                    </FTNT>
                    <P>
                        Under EPCA, DOE may consider adopting an additional, regional standard for consumer furnaces that is more stringent than the national standard. (42 U.S.C. 6295(o)(6)(B)(ii)) In order to establish a regional standard, DOE would have to, among other things, determine that a regional standard would save significant additional energy as compared to a single, base national standard and be economically justified. (42 U.S.C. 6295(o)(6)(D)). DOE did consider a regional standard in one of its TSLs (TSL 4), but as explained in section V.C of this document, DOE has found that a national standard for both NWGFs and MHGFs corresponding to 95-percent AFUE (
                        <E T="03">i.e.,</E>
                         TSL 8) represents the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)). DOE did not consider adopting a more stringent, regional standard in addition to the base national standard of 95-percent AFUE.
                    </P>
                    <P>
                        NPGA stated that DOE's LCC analysis and proposed minimum efficiency rule failed to include a separate breakout of category I non-weatherized residential propane furnaces from the currently grouped analysis of efficiency levels (EL) for categories I, III, and IV. (NPGA, No. 395 at p. 21) NPGA stated that the proposal would deprive consumers of the utility of simple, lower-cost furnace replacements. NPGA added that replacement may not always be easily accomplished due to housing structural design and may compromise consumer safety. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        As discussed in sections II.B.2 and IV.A.1.c of this document, DOE published a final interpretive rule in the 
                        <E T="04">Federal Register</E>
                         on December 29, 2021, returning to DOE's long-standing interpretation (from which the January 2021 Final Interpretive Rule departed). 86 FR 73947. Accordingly, for purposes of the analyses conducted for this final rule, DOE did not analyze separate equipment classes for non-condensing and condensing furnaces nor for separate categories of venting. However, the costs and requirements associated with different venting categories are included in DOE's analysis, and any changes in venting in the new-amended-standards case are included in the LCC impacts.
                    </P>
                    <P>PHCC commented that Tables V.5 and V.6 of the NOPR should consider consumers who have existing high-efficiency products and replace them with new high-efficiency products. (PHCC, No. 403 at p. 6)</P>
                    <P>In response, DOE clarifies that the average LCC savings and percentage of consumers with a net cost, as presented in Table V.6 of the NOPR, does include consumers who replace an existing high-efficiency product with a new high-efficiency product. Those consumers are not impacted by the standard. Table V.5 presents results for each TSL assuming that all consumers use products at that efficiency level. The approach in Table V.5 is done for the purposes of presenting typical average costs at each efficiency level for an average household, whereas Table V.6 incorporates distributional impacts and the existing market share of consumers already utilizing higher-efficiency equipment.</P>
                    <P>AGA argued that the LCC model's cost savings relies on unreasonable and unsupported assumptions about what share of the market non-condensing furnaces would hold without the proposed rule's requirements. (AGA, No. 405 at p. 91)</P>
                    <P>In response, DOE's estimated market share of condensing and non-condensing furnaces in the LCC is based on historical shipment data provided by industry stakeholders or market research firms. DOE includes an increasing penetration of condensing furnaces in the no-new-standards case, based on recent trends. DOE disagrees with AGA's assertion that utilizing such industry data in the LCC analysis is unreasonable or unsupported.</P>
                    <P>
                        NPGA stated that DOE's economic analysis fails to take into account additional costs and circumstances specifically related to propane. (NPGA, No. 395 at p. 2) More specifically, NPGA argued that DOE did not directly calculate the specific costs and benefits to propane consumers from its proposed minimum efficiency standards. (NPGA, No. 395 at p. 23) NPGA commented that by aggregating consumer costs and benefits of all gas furnaces, the analysis is biased by the natural gas consumer market share. NPGA stated that the analysis does not account for the large presence of consumer propane market households in rural areas. (
                        <E T="03">Id.</E>
                        ) NPGA added that DOE did not account for the unique costs related to fuel switching from propane to electric space heating. (
                        <E T="03">Id.</E>
                        ) NPGA stated that the lack of representation of propane customers in the simulation results is a fundamental problem, noting that eleven States and the District of Columbia had no propane customers in the LCC. (
                        <E T="03">Id.</E>
                         at p. 24)
                        <PRTPAGE P="87557"/>
                    </P>
                    <P>
                        In response, DOE notes that the analysis takes into account the energy price for propane and uses a representative building sample of homes using a NWGF with propane based on RECS 2020 for the residential sample and CBECS 2018 for the commercial sample. RECS and CBECS, while representative, have an upper limit on the number of households and buildings that were surveyed. The eleven States identified by the commenter and DC comprise a very small fraction of the national population, and natural survey sampling can produce the results seen in the LCC. DOE notes that the national fraction of propane customers for NWGFs and MHGFs is appropriately accounted for in the analysis, even if some low-population States are under-sampled by RECS and CBECS. This does not invalidate the conclusions of the analysis. For installation costs, DOE used the latest information available in terms of piping and propane tank requirements. For this final rule, updated the energy prices using the latest EIA data and 
                        <E T="03">AEO2023</E>
                         energy price trends. In addition, DOE used the latest RECS 2020 and CBECS 2018 samples. In terms of installation costs, DOE updated its propane-related installation costs as highlighted in chapter 8 and appendices 8D and 8J of the final rule TSD.
                    </P>
                    <P>Lennox commented that they found that DOE has taken the necessary steps to improve the analysis of amended AFUE standards for consumer furnaces under EPCA but recommended that DOE should further assess the economic justification of these standards while minimizing negative consumer impacts. (Lennox, No. 389 at p. 2) In response, DOE has continued to refine its analysis and updated using the latest data, as described in this document and in the final rule TSD.</P>
                    <P>Atmos Energy commented that DOE should account for the savings among the choices of a baseline natural gas furnace against the proposed TSLs or the savings that could accrue from continuing to own a baseline product versus purchasing TSL efficiency products. Atmos Energy added that these savings are crucial for estimating the benefits of appliance replacement programs, adding that such savings analyses will better illuminate potential consumer impacts. (Atmos Energy, No. 415 at p. 6) In response, DOE notes that it does estimate the impacts of purchasing higher-efficiency furnaces against the impacts of replacing existing furnace efficiencies that would have been purchased in the absence of a new energy conservation standard. This is already captured in the LCC analysis, and indeed, some percentage of consumers would accrue economic savings from continuing to own, or from buying as a replacement, a lower-efficiency furnace, as compared to a furnace at the adopted standard level. This is reflected in the percentage of consumers experiencing a net cost, as presented in section V.B of this document, and it is considered as part of DOE's evaluation of economic justification.</P>
                    <P>Atmos Energy commented that DOE should separately assess natural gas and propane when calculating LCC, adding that the LCC of the proposed rule would be more accurate if natural gas and propane products were evaluated separately. (Atmos Energy, No. 415 at p. 7) Atmos Energy further commented that propane is more costly than natural gas, stating that aggregating these two products introduces an unsupported bias against natural gas into the consumer LCC savings and payback analysis and skews the outcome of the comparative cost of fuel-switching. (Atmos Energy, No. 415 at p. 7) In response, DOE accounts for both propane and natural gas consumers of furnaces in its analysis. However, since a potential standard is established at the product class level, the LCC results are aggregated up to this level.</P>
                    <P>PHCC commented that that the calculations regarding the annual benefit for DOE's proposed standby mode and off mode standards for NWGFs and MHGFs are unclear, as estimates show a $26 annual benefit (with a two-year payback period) in some places and a $2.60 annual benefit (with a two-year payback period) in others. PHCC claimed that their calculations related to the annual benefit of the proposed standby mode and off mode standards yielded $3.29 (assuming 2.5 kw, 24 hours a day, 365 days a year, and 15 cents per kWh). (PHCC, No. 403 at p. 3)</P>
                    <P>Similarly, Daikin commented that the anticipated energy savings associated with standby mode and off mode are very small, adding that the incremental annual savings between TSL 1 ($1.44/yr.) and TSL 3 ($2.40/yr.) would equate to only $0.96. Daikin further stated that DOE's analysis overstates the annual electricity consumption of auxiliary components by using 6680 hours for standby mode operation and 73.48 kWh of energy per year, which does not include weighting for two-stage products with fewer operating hours. (Daikin, No. 416 at p. 5)</P>
                    <P>As discussed previously in section III.A.8 of this document, DOE is not finalizing its previous proposal to set new standby mode and off mode power standards for NWGFs and MHGFs in this final rule. However, DOE will continue to monitor the standby mode and off mode power consumption of consumer furnaces and may address such standards in a future rulemaking. The Department may consider these comments at that time, as appropriate.</P>
                    <HD SOURCE="HD3">1. Product Cost</HD>
                    <P>To calculate consumer product costs, DOE multiplied the MPCs developed in the engineering analysis by the markups described previously (along with sales taxes). DOE used different markups for baseline products and higher-efficiency products because DOE applies an incremental markup to the increase in MSP associated with higher-efficiency products.</P>
                    <P>
                        For the default price trend for residential furnaces, DOE derived an experience rate based on an analysis of long-term historical data. As a proxy for manufacturer price, DOE used Producer Price Index (PPI) data for warm-air furnace equipment from the Bureau of Labor Statistics from 1990 through 2022.
                        <SU>103</SU>
                        <FTREF/>
                         An inflation-adjusted PPI was calculated using the implicit price deflators for gross domestic product (GDP) for the same years. To calculate an experience rate, DOE performed a least-squares power-law fit on the inflation-adjusted PPI versus cumulative shipments of residential furnaces, based on a corresponding series for total shipments of residential furnaces (
                        <E T="03">see</E>
                         section IV.G of this document for discussion of shipments data). Using the most recent data available, DOE fitted a power-law function to the deflated warm air furnace PPI and cumulative furnace shipments time series data between 1990 and 2018. The resulting power-law model has an R-square of 84 percent, indicating that the model explains 84 percent of the variability of the observations around the mean. DOE then derived a price factor index, with the price in 2022 equal to 1, to forecast prices in 2029 for the LCC and PBP analyses, and, for the NIA, for each subsequent year through 2058. The index value in each year is a function of the experience rate and the cumulative production through that year. To derive the latter, DOE combined the historical shipments data with projected shipments in the no-new-standards case determined for the NIA (
                        <E T="03">see</E>
                         section IV.H of this document).
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             U.S. Department of Labor, Bureau of Labor Statistics, Produce Price Indices Series ID PCU333415333415C (available at: 
                            <E T="03">www.bls.gov/ppi/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE's learning curve methodology was developed by examining the 
                        <PRTPAGE P="87558"/>
                        literature on accounting for technological change and empirical studies of energy technology learning rates.
                        <SU>104</SU>
                        <FTREF/>
                         DOE utilized the most extensive time series data available specific to residential furnaces.
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             Taylor, M. and K.S. Fujita, Accounting for Technological Change in Regulatory Impact Analyses: The Learning Curve Technique, Lawrence Berkeley National Laboratory, Report No. LBNL-6195E (2013). (Available at: 
                            <E T="03">eta-publications.lbl.gov/sites/default/files/lbnl-6195e_.pdf</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>Furnace prices can be affected by a variety of factors, and the cost of commodity materials is one of them. The nominal commodity PPI data for copper wire and cable, iron and steel, and aluminum wire and cable indicate that the nominal indices rose substantially between the early 2000s and 2011, which is primarily attributed to an increasing demand for such commodities from rapid industrialization in China, India, and other emerging economies. During the same period, the nominal warm air furnace PPI increased by 16 percent. However, these commodity indices have trended downward from 2011-2020, and the nominal warm air furnace PPI has steadily trended upward during this period. Based on these observations, DOE contends that even though the warm air furnace PPI, to a certain extent, is influenced by commodity indices, other factors impact furnace prices. In addition, due to the long-term nature of DOE's analysis, it would be inappropriate to make assumptions based on recent, short-term trends only.</P>
                    <P>The learning curve methodology implemented in this rule is based on sound economic theory, empirical evidence, and historical data. Based on the historical PPI data, the cost of commodity materials can only partially explain the furnace price trend, particularly when considering the recent trend observed in commodity and furnace price indices. The experience curve model that DOE developed, using the most recent data available, shows strong explanatory power and high statistical significance.</P>
                    <P>DOE acknowledges that the prices of non-condensing and condensing furnaces may not change at the same rate and that using a trend for all NWGFs and MHGFs to represent the price trend of condensing furnaces may underestimate the future changes in the cost of condensing furnaces. DOE also acknowledges that an increase in production and innovation due to a condensing standard could result in a decline in the cost of condensing furnaces. However, DOE could not find detailed data that would allow for a price trend projection for condensing NWGFs and MHGFs that may differ from non-condensing NWGFs and MHGFs. Thus, for this final rule, DOE used the same price trend projection for condensing and non-condensing NWGFs and MHGFs.</P>
                    <P>
                        NYSERDA recommended that DOE also should consider furnace shipments to Canada when estimating learning rates for condensing furnaces, since the vast majority of condensing furnaces sold in Canada are the same models sold in the U.S. NYSERDA further urged DOE to consider how the recent Canadian furnace standard may impact the North American furnace market so as to result in additional price learning and less costly condensing equipment for consumers in U.S. and Canada. (NYSERDA, No. 379 at p. 9) However, NYSERDA expect that DOE's 4.3 percent and 7.1 percent price learning rates are more conservative than what would take place in the real world once an amended standard were to take effect. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>NYSERDA also commented that the Heating, Refrigeration and Air Conditioning Institute (HRAI) of Canada reported that over 845,000 residential furnaces were shipped to Canada between 2020 and the first quarter of 2022. The commenter added that nearly 400,000 condensing furnaces are now being shipped into Canada annually, stating that the value is approximately 12 percent of annual U.S. furnace shipments. NYSERDA further commented that the Canadian condensing furnace market is increasing, with approximately 8.5 million Canadian homes currently relying on furnaces for heating. Furthermore, the commenter stated that it has found that the vast majority of furnaces sold in Canada are the same models sold in the U.S., and, as such, NYSERDA concluded that a higher learning rate factor should be considered in appendix 8C of the TSD. (NYSERDA, No. 379 at pp. 9-10)</P>
                    <P>In response, DOE notes that if DOE included historical furnace shipments to Canada when developing learning rates, it would also need to include projected furnace shipments to Canada during the analysis period to project future prices, resulting in approximately the same price trend as a function of time. Furthermore, DOE analyzes sensitivity scenarios using alternative price trends, including a higher learning rate and a constant price trend, in appendix 8C of the final rule TSD. Consequently, in light of these considerations, DOE has decided to retain the same evaluation of economic justification for all sensitivity scenarios, as was done in the July 2022 NOPR.</P>
                    <P>Joint Efficiency Commenters stated that DOE may be overestimating the future cost of condensing furnaces by not applying a learning rate associated with condensing technology. These commenters further stated that price trends associated with condensing technology will likely be different than the overall furnace price trends. (Joint Efficiency Commenters, No. 381 at p. 4)</P>
                    <P>In contrast, Lennox commented that price trends are indeed similar for both condensing and non-condensing consumer furnaces, as Lennox offers both technologies with premium features. Lennox commented that the trends increase the most for premium products, and the trends are similar for base and mid-level products. (Lennox, No. 389 at p. 6)</P>
                    <P>As noted previously, DOE was not able to disaggregate non-condensing and condensing furnaces in developing future price trends based on the available data. DOE acknowledges the input from Lennox supporting the use of the same trend for all furnaces.</P>
                    <P>Lennox further stated that costs and prices for all furnaces have increased significantly as a result of the pandemic, supply chain issues, and inflationary pressures. (Lennox, No. 389 at p. 6) Similarly, HARDI commented that supply chain and workforce issues since the beginning of the pandemic have dramatically changed the pricing of products, as would change the results of DOE's analysis, which the commenter faulted as based on pre-pandemic data. (HARDI, No. 384 at p. 3) PHCC commented that DOE's estimated equipment costs for gas furnaces are too low due to material cost and supply chain issues. (PHCC, No. 403 at p. 5) In response, DOE notes that its analysis adjusts costs and prices using updated price indices to reflect the changing dollar value, including the broader impact of inflation. DOE assumes that current supply chain issues will not persist out to 2029 and beyond, given that such issues are already in the process of resolving and current supply chains are not as constrained as they were during the pandemic.</P>
                    <P>
                        JCI pointed to several regulatory and market-related cost increases that impact mobile homes and mobile home HVAC products. As examples, the commenter noted the July 2014 furnace fan ECS rulemaking that eliminated PSC motors, recent inflation as a result of the COVID-19 pandemic that disproportionately impacted the MHGF industry, the January 2017 ECS rulemaking for CACs and heat pumps, and the IECC Construction Code 
                        <PRTPAGE P="87559"/>
                        mandate for manufactured homes. (JCI, No. 411 at pp. 1-2) JCI commented that the 2021 IECC Construction Code and the CAC/HP ECS rulemaking mandate will contribute additional cost increases, which JCI asserted will have the further effect of reducing mobile home ownership. (JCI, No. 411 at p. 2)
                    </P>
                    <P>
                        MHI also commented that, in May 2022, DOE finalized an energy rule that required manufactured homes to comply with the 2021 IECC but not the product standards within the 2021 IECC. (MHI, Public Meeting Webinar Transcript, No. 363 at pp. 25-26) MHI commented that DOE's proposed furnace standards align with the 2021 IECC, which the commenter argued did not consider homes that are built in a factory and transported to the site. (
                        <E T="03">Id.</E>
                        ) MHI stated that enforcing the IECC would require manufacturers to have to redesign current manufactured housing floor plans. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE notes that the purported mobile home cost increases, unrelated to the furnaces rulemaking, will not impact the LCC results. Because these costs are already present in the no-new-standards case, there is no incremental cost to include in the amended standards case. The impact of cost increases for rules on manufactured homes or other equipment are captured as part of the analyses for those separate rulemakings. DOE further notes that the July 2014 final rule for furnace fans did not eliminate PSC motors for furnace fans in MHGFs. Finally, DOE reiterates that it adjusts costs and prices using price indices to reflect the changing dollar value, including the broader impact of inflation. DOE has also evaluated the cost of installing furnaces in new manufactured housing construction as part of the LCC analysis, which in many cases is less expensive (as summarized in section IV.F.2.e of this document) due to the materials required. Given this context, DOE's expectation is that redesign costs are likely to be minimal.</P>
                    <P>Lennox commented that condensing furnace products are mature products that constitute the majority of the current market. Therefore, Lennox recommended that DOE should reassess the “learning curve” for these products, as the commenter opined that the Department is overstating the degree to which a “learning curve” could lead to significant reduction in MPCs. (Lennox, No. 389 at p. 3) NYSERDA commented that it expects that the final furnaces standard will provide market certainty to streamline the manufacturing process to only condensing equipment and added that this is expected to decrease the marginal production costs in the medium- to long-run due to economies of scale and technological improvements. (NYSERDA, No. 379 at p. 11)</P>
                    <P>Regarding the points involving learning curve-related prices declines raised by Lennox and NYSERDA, DOE notes that it has evaluated several price trend scenarios, including a constant price scenario, as part of its analysis (see appendix 8C of the final rule TSD for further details). The conclusions of the analysis remain the same regardless of the price trend scenario.</P>
                    <P>A detailed discussion of DOE's derivation of the experience rate is provided in appendix 8C of the final rule TSD.</P>
                    <HD SOURCE="HD3">2. Installation Cost</HD>
                    <P>
                        The installation cost is the cost to the consumer of installing the furnace, in addition to the cost of the furnace itself. Installation cost includes all labor, overhead, and any materials costs associated with the replacement of an existing furnace or the installation of a furnace in a new home, as well as delivery of the new furnace, removal of the existing furnace, and any applicable permit fees. Higher-efficiency furnaces may require a consumer to incur additional installation costs. DOE's analysis of installation costs estimated specific installation costs for each sample household based on building characteristics given in RECS 2020 (updated from RECS 2015 in the NOPR). For this final rule, DOE used 2023 RS Means data for the installation cost estimates, including labor costs.
                        <E T="51">105 106 107 108</E>
                        <FTREF/>
                         DOE's analysis of installation costs accounted for regional differences in labor costs by aggregating city-level labor rates from RS Means into the 50 distinct States plus Washington, DC to match RECS 2020 and CBECS 2018 data.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             RS Means Company Inc., RS Means Mechanical Cost Data. Kingston, MA (2023) (available at: 
                            <E T="03">www.rsmeans.com/products/books/2023-cost-data-books</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>106</SU>
                             RS Means Company Inc., RS Means Residential Repair &amp; Remodeling Cost Data. Kingston, MA (2023) (available at: 
                            <E T="03">www.rsmeans.com/products/books/2023-cost-data-books</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>107</SU>
                             RS Means Company Inc., RS Means Plumbing Cost Data. Kingston, MA (2023) (available at: 
                            <E T="03">www.rsmeans.com/products/books/2023-cost-data-books</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>108</SU>
                             RS Means Company Inc., RS Means Electrical Cost Data. Kingston, MA (2023) (available at: 
                            <E T="03">www.rsmeans.com/products/books/2023-cost-data-books</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>DOE conducted a detailed analysis of installation costs for all potential installation cases, including when a non-condensing gas furnace is replaced with a non-condensing gas furnace, and when a non-condensing gas furnace is replaced with a condensing gas furnace. For the latter, particular attention was paid to venting issues in replacement applications, including adding a new flue venting (PVC), combustion air venting (PVC), concealing vent pipes, addressing an orphaned water heater (by updating flue vent connectors, vent resizing, or chimney relining), as well as condensate removal. DOE also included additional installation costs (“adders”) for new construction installations. These are described below.</P>
                    <P>HARDI commented that increased installation costs should be considered in this analysis despite DOE's statement that installation and retrofit requirements are not to be used in determining product utility for a class. (HARDI, No. 384 at p. 5)</P>
                    <P>In response, DOE notes that a variety of installation factors are included in the analysis, as described extensively in the paragraphs that follow, which generally increase the installation cost of higher-efficiency furnaces. Even though installation costs do not form a basis for the development of product classes, DOE does include all relevant installation costs to estimate the total economic impacts on consumers.</P>
                    <P>ACCA stated that data from a 2016 survey of over 700 of ACCA's members showed that installing a condensing furnace costs $569 more than installing a non-condensing furnace, so the commenter concluded that DOE's cost assumptions inadequately reflect the true cost to consumers. (ACCA, No. 398 at p. 2)</P>
                    <P>DOE clarifies that in the final rule analysis, on average for replacement installations, the incremental installation cost is $490 for condensing NWGFs relative to non-condensing NWGFs, while the total installed costs for ranges between $654 and $914, which is consistent with ACCA's survey results.</P>
                    <P>
                        APGA commented that DOE understates the cost difference between condensing and non-condensing furnaces because DOE is not reporting real consumer prices. (APGA, No. 387 at pp. 50-53) APGA explained that a website sponsored by a team of industry experts in the HVAC industry report that the installed cost of a condensing NWGF is three times more than a non-condensing NWGF at the current standard: an “80AFUE, Variable Speed Furnace” is $1,320 less than a “95AFUE 2-Stage, Variable Speed Furnace.” (
                        <E T="03">Id.</E>
                        ) APGA noted that DOE's LCC model, however, provides that the difference in the average installed cost of a condensing furnace and a non-condensing furnace is only $417. (
                        <E T="03">Id.</E>
                        ) 
                        <PRTPAGE P="87560"/>
                        Thus, APGA stated that DOE's view of the additional cost of an installed furnace complying with the proposed standard is inconsistent with reality. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE emphasizes that it has conducted an extensive engineering tear-down cost analysis, as well as a manufacturer and distribution channel mark-up analysis, to estimate final consumer prices. These prices reflect an amended-standards scenario in which a given efficiency level is the new minimally compliant, baseline level. These products may not fully correspond to products in the market today sold and marketed as a “premium” product, and therefore the prices are not necessarily comparable. DOE further notes that the vast majority of consumer furnaces are sold through a distribution channel involving a contractor, not via a retail outlet. Therefore prices seen on a website are unlikely to be representative of typical prices ultimately paid for by consumers.</P>
                    <P>NPGA commented that merging product installed costs with changes in building structural elements required for a change in venting systems goes beyond the scope of minimum efficiency standards for a covered product as outlined in EPCA. (NPGA, No.395 at p. 21) In response, DOE notes that the installation cost analysis considers all relevant costs associated with the installation of furnaces, as required by EPCA, in order to estimate representative impacts to consumers.</P>
                    <HD SOURCE="HD3">a. Basic Installation Costs</HD>
                    <P>DOE's analysis estimated basic installation costs for replacement, new owner, and new home applications. These costs, which apply to both condensing and non-condensing gas furnaces, include furnace set-up and transportation, gas piping, ductwork, electrical hook-up, permit and removal/disposal fees, and, where applicable, additional labor hours for an attic installation.</P>
                    <P>
                        DOE's installation costs account for cases where significant ductwork redesign is required, including when furnaces with variable-speed motors are utilizing undersized ducts. DOE notes that this cost is applicable to variable-speed motors installed in either condensing or non-condensing furnaces. Variable-speed furnace blowers will try to maintain the same air flow at high static pressure (especially if the variable-speed blower is designed with a high cut-off or no cut-off static pressure),
                        <SU>109</SU>
                        <FTREF/>
                         which could lead to noise issues in smaller ducts due to the increased speed of moving the air. However, the Federal furnace fan standard that took effect in 2019 requires constant-torque furnace fans (with X13 motors) for NWGFs, which have similar performance curves as PSC motors.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Newer variable-speed motors are designed with lower cut-off static pressures to deal with this issue. In addition, the installer can easily decrease the airflow to address the issue by changing the airflow speed control setting (tap) on the furnace motor.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             For further details, 
                            <E T="03">see</E>
                             the TSD for the July 2014 final rule for furnace fans. (Available at: 
                            <E T="03">www.regulations.gov/document/EERE-2010-BT-STD-0011-0111</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE notes that asbestos presents a safety hazard that must be properly abated for all retrofit installations where it is present. As explained previously, DOE recognizes that potential ductwork modifications typically occur due to the furnace fan requirements and not necessarily due to the installation of a condensing furnace. DOE included the cost of asbestos abatement for a fraction of both non-condensing and condensing NWGF installations. 
                        <E T="03">See</E>
                         appendix 8D of the final rule TSD for more details.
                    </P>
                    <HD SOURCE="HD3">b. Additional Installation Costs for Non-Weatherized Gas Furnaces</HD>
                    <P>For replacement applications, DOE included a number of adders for a fraction of the sample households. For non-condensing gas furnaces, these additional costs included updating flue vent connectors, vent resizing, and chimney relining. For condensing gas furnaces, DOE included adders for flue venting (PVC), combustion air venting (PVC), concealing vent pipes, addressing an orphaned water heater (by updating flue vent connectors, vent resizing, or chimney relining), and condensate removal.</P>
                    <HD SOURCE="HD3">Replacement Installations: Non-Condensing to Non-Condensing Non-Weatherized Gas Furnace</HD>
                    <P>For non-condensing non-weatherized gas furnace replacements, DOE added additional costs to a small fraction of installations that involve updating flue vent connectors, vent resizing, and chimney relining. These costs are most commonly applied to older furnace installations, such as natural draft furnace installations, furnaces not installed according to the current codes, and furnace installations that do not meet manufacturers' installation requirements. In total, these costs for vent resizing or chimney relining are applied to less than eight percent of non-condensing to non-condensing furnace replacement installations in 2029, with an average cost of $990. In addition, DOE estimated that 23 percent of installations of non-condensing to non-condensing furnace replacement installations in 2029 would require updating flue vent connectors, with an average cost of $328.</P>
                    <HD SOURCE="HD3">Replacement Installations: Non-Condensing to Condensing Non-Weatherized Gas Furnace</HD>
                    <P>DOE assumed that condensing furnaces that replace non-condensing furnaces do not utilize the existing venting system, but instead require new, dedicated plastic venting that meets all applicable building codes and manufacturer instructions. In determining these installation costs, DOE takes into account vent length, vent diameter, vent termination, the potential need to create openings in walls or floors for the vent system, additional vent costs for housing units with shared walls, vent resizing in the case of an orphaned water heater, and concealment work cost increases in some installations.</P>
                    <P>Appendix 8D in the TSD for this final rule describes the methodology used to determine the installation costs for all of the issues described in the paragraphs that follow.</P>
                    <P>
                        NGA of Georgia stated that because furnace replacements will have to undergo structural modifications and contractors will have to devise custom installation plans and procure materials after surveying the home, installations will take a few days rather than simply changing out the unit. Furthermore, the commenter stated that the longer installations will force homeowners to endure cold conditions longer, and to risk home damage in the form of freezing pipes, and they may be forced to endure the expense of a hotel room during the installation. NGA of Georgia stated that DOE's analysis did not adequately consider these additional costs or the environmental impact of attempting to heat homes with electric room heaters during construction. (NGA of Georgia, No. 380 at p. 2) In response, DOE notes that its analysis thoroughly accounts for any potential vent or duct-work redesign. However, for most homes, installation is unlikely to take several days, even in the case of replacing a non-condensing furnace with a condensing furnace. DOE acknowledges that some fraction of replacements are emergency replacements, as described previously, with increased labor costs due to the emergency nature of the work during possibly challenging winter conditions. Accordingly, DOE also accounts for the cost of temporary space heating during the replacement of the furnace.
                        <PRTPAGE P="87561"/>
                    </P>
                    <P>ACCA stated that DOE's analysis overlooked the increased costs and extent of venting modifications and electrical upgrades necessary for condensing furnaces. (ACCA, No. 398 at p. 3)</P>
                    <P>In response, DOE emphasizes that its analysis includes an extensive list of factors impacting the installation cost of venting, as discussed in this section and in chapter 8 of the final rule TSD. Several of these factors were previously suggested by commenters and incorporated into the analysis. ACCA did not provide any further details on additional venting modifications that should have been considered. With respect to electrical upgrades, those are accounted for in the analysis, including the potential requirement to upgrade the electrical panel.</P>
                    <P>AGA asserted that the imposition of standards that non-condensing products cannot achieve would raise significant practical, economic, and legal issues. Furthermore, AGA claimed that the economic analysis in the NOPR fails to properly account for the necessary engineering relative to venting consumer furnaces or common venting of multiple appliances, including consumer water heaters. According to the commenter, the modifications required to alter existing buildings to accommodate the use of condensing products are far more complicated, extensive, and burdensome than the NOPR assumes. (AGA, No. 405 at p. 39)</P>
                    <P>
                        In response, DOE has already included a variety of factors in its installation cost estimates, including costs related to updating flue venting, accommodating the venting of multiple appliances such as water heaters, and any necessary building modifications to accommodate new venting outlets. The commenter has not provided any additional, specific factors for DOE to consider, other than to assert that DOE's estimates are incorrect. Furthermore, the experience of replacing non-condensing furnaces with condensing furnaces in several jurisdictions (
                        <E T="03">e.g.,</E>
                         Canada) has shown that such installations can be achieved without excessively burdensome or costly modifications.
                    </P>
                    <P>AGA argued that DOE has potentially overestimated the cost of venting for non-condensing furnaces. The commenter claimed that DOE's method for calculating labor overestimates time spent on tasks because it includes an average unit of type for each individual part instead of acknowledging that tasks can be completed concurrently. (AGA, No. 405 at pp. 88-89)</P>
                    <P>On this topic, DOE clarifies that for non-condensing furnaces, there are several potential scenarios. In a replacement scenario, if the existing venting is in good condition, no additional installation costs are required, and the venting system can be used as-is. Costs for installing venting for non-condensing furnaces are only applicable if the existing venting has reached the end of its lifetime (in older homes), based on the estimated equipment age derived from RECS data and historical shipments, or in new construction. Therefore, DOE's estimated costs for installing venting for non-condensing furnaces are not necessarily applicable in all situations. Regarding labor cost estimates, these are based on data from industry reference manuals and input from HVAC consultants and apply to both non-condensing and condensing installations. DOE estimates the time spent for typical tasks and multiplies this time by a labor rate. The overall labor time for a given installation will vary based on the specifics of the installation, as described in further detail in chapter 8 and appendix 8D of the final rule TSD.</P>
                    <P>AGA recommended that DOE undertake additional evaluation of installation costs and annual maintenance costs of non-weatherized residential and manufactured home gas furnaces to ensure a complete LCC and payback period analysis. Specifically, AGA recommended a comprehensive analysis of the average installed replacement cost of an 80 kBtu/hour, 80-percent AFUE non-condensing residential non-weatherized natural gas furnace. (AGA, No. 405 at p. 87)</P>
                    <P>In response, DOE notes that it already conducts such an analysis. There are a range of input capacities considered as part of the LCC analysis, including 80 kBtu/hour furnaces.</P>
                    <P>AGA commented that DOE may have overestimated the length of pipe, which makes up half the cost of a new 4” vent. AGA stated that for buildings where the furnace was installed in the basement, the DOE calculations appear to fit a typical 2-story home where the average vent length is 26 feet. However, for buildings where the furnace is in the attic, the average length is 10 feet, so DOE's analysis would result in venting extending up to 15 feet beyond the roof surface. (AGA, No. 405 at p. 89)</P>
                    <P>In response, DOE clarifies that its installation cost methodology does not assume a fixed vent length for each home or building in the LCC. The length of the vent varies and is dependent on the characteristics of that specific building. For example, the vent length depends on the furnace location in the house, the ceiling height, and the number of floors above the furnace, among other factors. The analysis accounts for attic installations and does not assume excessively long vent lengths beyond the roof.</P>
                    <P>In contrast, the Joint Efficiency Commenters stated that DOE may be overestimating the installation costs of condensing NWGFs in certain scenarios. (Joint Efficiency Commenters, No. 381 at p. 4)</P>
                    <P>In response, DOE has included a number of factors that may impact the installation costs of condensing NWGFs, partly based on prior comments. There is no indication that these costs are systematically overestimated, and the commenter has not provided any data with which to update the analysis.</P>
                    <P>Joint Efficiency Commenters stated that they are not aware of any issues regarding the size or installation of condensing MHGFs in new or replacement applications. These commenters further stated that these issues have been thoroughly evaluated and adequately addressed. (Joint Efficiency Commenters, No. 381 at p. 5) Similarly, NCLC stated that installing condensing MHGFs in manufactured homes will not present unique, significant, or insurmountable challenges. (NCLC, No. 383 at p. 7) DOE agrees.</P>
                    <P>Joint Efficiency Commenters stated that DOE extensively evaluated installation scenarios and costs for consumer furnaces in the NOPR analysis and expressed their belief that these thorough evaluations are comprehensive and reasonable for condensing furnace installations. (Joint Efficiency Commenters, No. 381 at pp. 5-6) DOE agrees.</P>
                    <P>
                        OPAE commented that a Cleveland-based heating and weatherization contractor for one of their member agencies who has been working in the low-income weatherization program for over 30 years, stated that he has not found a home where he could not install a condensing furnace. Additionally, OPAE stated that for most cases where venting changes may be difficult, manufacturers are developing solutions to use an existing chimney as a chase-way for the condensing furnace's intake and exhaust pipes and other category I appliance ventilation. Furthermore, OPAE stated that these methods usually remove any impediment to installing a condensing furnace in situations that currently provide challenges. (OPAE, No. 347 at p. 1) DOE agrees that solutions exist for such situations, as described by the commentator and as evidenced in other jurisdictions (
                        <E T="03">e.g.,</E>
                         Canada). Moreover, DOE accounts for increased installation costs in these situations.
                        <PRTPAGE P="87562"/>
                    </P>
                    <P>NYSERDA recommended that DOE should investigate the economics of newer venting technologies. The commenter added that newer venting technologies enable reuse of existing vents or masonry chimneys, thereby allowing condensing furnaces and water heaters with atmospheric combustion to share the same vent. NYSERDA further remarked that this technology could reduce total installation costs for consumers and improve LCC savings. (NYSERDA, No. 379 at p. 6)</P>
                    <P>
                        NCLC 
                        <E T="03">et al.</E>
                         commented that DOE has not fully considered venting technologies that could bring down the assumed installation costs in settings where installing a condensing furnace may present challenges and added costs. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 7)
                    </P>
                    <P>
                        In response, DOE notes that it did investigate new venting technologies in a sensitivity scenario for the July 2022 NOPR, and does so again for the final rule (
                        <E T="03">see</E>
                         appendix 8L of the final rule TSD). The LCC impacts are very similar to the reference case, and DOE's evaluation of economic justification remains the same.
                    </P>
                    <P>NGA of Georgia stated that the proposed rule would eliminate the ability to common vent multiple gas appliances. The commenter also stated that this would prevent the use of gas appliances in older homes, multi-family developments, row homes, and townhomes. Furthermore, NGA of Georgia stated that because of this, water heaters may need to be changed out when the furnace is replaced, even if the water heater is still working. (NGA of Georgia, No. 380 at p. 2)</P>
                    <P>APGA claimed that DOE does not account correctly for “orphaned” non-condensing gas water heaters. In those situations, APGA asserted that additional costs should be considered for updating flue vent connectors, vent resizing, or chimney relining. Where costs are relatively higher to address an orphaned water heater, the costs of venting should be higher there as well. APGA argued that DOE understates additional venting installation costs in multi-family buildings, townhomes, and row houses. AGA also argued that other homeowner obstacles are unaccounted for entirely, including: zoning variances required when venting is too close to a property line; building code restrictions; historic building limitations; and concerns about venting near places of congregation such as decks. (APGA, No. 387 at pp. 54-55)</P>
                    <P>In response, DOE acknowledges that common vents may need to be replaced and includes those costs in its analysis where applicable, including updating flue connectors, vent resizing, or chimney relining. However, DOE finds that these obstacles can be overcome, given that these buildings already have an existing furnace exhaust vent. Full details of the installation cost methodology are provided in appendix 8D of the final rule TSD. DOE additionally includes situations in which the water heater is replaced as well, instead of updating the venting to permit continued use of the existing gas appliance. These costs are all included as part of the LCC analysis.</P>
                    <P>ACCA stated that DOE's analysis overlooked potential building code restrictions for apartments, condominiums, and/or row houses/townhomes. (ACCA, No. 398 at p. 3)</P>
                    <P>
                        DOE is not aware of any physical limitations or building code issues that would preclude the installation of a condensing NWGF in multi-family buildings, townhomes, and row houses. Condensing NWGFs have been successfully installed in multi-family buildings, townhomes and row houses in jurisdictions requiring condensing furnaces (
                        <E T="03">e.g.,</E>
                         Canada, which has very similar building codes as the U.S.) and in regions with active efficiency and weatherization programs. The analysis includes additional costs, where necessary, to capture the increased complexity of such installations.
                    </P>
                    <P>PHCC commented that installation labor costs in DOE's NOPR are not near today's contractor rates, and that DOE's residential and commercial rates are low, which will impact the economic model calculations. (PHCC, No. 403 at p. 5) In response, DOE notes that its analysis uses the latest RSMeans data to estimate labor rates, which are the best data available to the Department. No other sources of contractor rate data were submitted to DOE.</P>
                    <P>Similarly, Daikin commented that there are existing applications (such as placement of furnaces in cold spaces such as attics and crawl spaces) that will incur additional burden as a result of a condensing standard. (Daikin, No. 416 at p. 2) In response, DOE accounts for such applications as described subsequently in this document and in chapter 8 of the final rule TSD.</P>
                    <P>
                        Plastics Pipe Institute commented that if DOE eliminates non-condensing furnaces as a viable option, consumers will have to update their existing venting systems to accommodate a new natural gas furnace. (Plastics Pipe Institute, No. 404 at p. 2) Plastics Pipe Institute added that this conversion will lead to higher operating costs and will require electrical upgrades, inevitably increasing the cost of heating. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE acknowledges that the installation of a condensing furnace may require an update to the venting system and includes these additional costs in the analysis. DOE also accounts for households that may require a new electrical connection.</P>
                    <HD SOURCE="HD3">(a) Flue Venting</HD>
                    <P>DOE assumed that condensing furnaces do not utilize the existing venting system but instead require new, dedicated plastic venting that meets all applicable building codes and manufacturer instructions. Accordingly, DOE determined whether a condensing furnace is horizontally or vertically vented based on the shortest vent length. DOE's analysis estimated that 70 percent of condensing furnaces will be installed with a horizontal vent.</P>
                    <P>DOE assumed that vent length varies depending on where a suitable wall is located relative to the furnace. In addition, when applicable, DOE accounts for use of a snorkel termination to meet minimum clearances to sidewalks, average snow accumulation level, overhangs, and air intake sources, including operable doors and windows, building corners, and gas meter vents. In DOE's analysis, snorkel termination is more frequently needed in situations where the furnace is below the snow line (such as in basements or crawl spaces). DOE assumed that the replacement furnace would remain in the same location as the existing furnace and accounted for the new vent length and other changes, such as wall knockouts, to install new venting. In some installations, it might be easier and cheaper to change the furnace location, but this would require both gas line extensions and ductwork modifications, which were not modeled in DOE's installation cost analysis. DOE accounted for additional vent length for housing units with shared walls. DOE also accounted for the cost of vent resizing in the case of an orphaned water heater and the cost of concealment work in some installations.</P>
                    <P>
                        The vent pipe length limitations depend on a number of factors, including number of elbows, vent diameter, horizontal vs. vertical length, as well as combustion fan size. A review of several manufacturer installation manuals shows that the maximum vent lengths range from 30 to 130 ft., depending primarily on the vent diameter. For a fraction of installations, DOE increased the vent diameter in order to be able to extend the vent length according to manufacturer specifications.
                        <PRTPAGE P="87563"/>
                    </P>
                    <HD SOURCE="HD3">(b) Common Venting Issues (Including Orphaned Water Heaters)</HD>
                    <P>
                        Common venting provides a single exhaust flue for multiple gas appliances. In some cases, a non-condensing NWGF is commonly vented with a gas-fired water heater. When the non-condensing NWGF is replaced with a condensing NWGF, the new condensing furnace and the existing water heater can no longer be commonly vented due to different venting requirements,
                        <SU>111</SU>
                        <FTREF/>
                         and the water heater becomes “orphaned.” The existing vent may need to be modified to safely vent the orphaned water heater, while a new vent is installed for the condensing NWGF. DOE accounted for a fraction of installations that would require chimney relining or vent resizing for the orphaned water heater, including updating flue vent connectors, resizing vents, or relining chimneys when applicable based upon the age of the furnace and the home.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             The ANSI Z223.1/NFPA 54 Natural Fuel Gas Code (NFGC) venting requirements refer to category I, II, III, and IV gas appliances. Category I gas appliances, such as natural draft gas water heaters, exhaust high-temperature flue gases and are vented using negative static pressure vents designed to avoid excessive condensate production in the vent. Category IV gas appliances, such as condensing furnaces, exhaust low temperature flue gases and are vented using positive static pressure corrosion-resistant vents. Due to the different venting requirements, the NFGC does not allow common venting of condensing and non-condensing appliances. The 2021 Edition is available at 
                            <E T="03">www.nfpa.org/codes-and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?code=54</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE accounted for the probability that in some cases, replacing a non-condensing furnace with a condensing furnace may require significant modifications to the existing vent system for the commonly-vented gas water heater. DOE accounted for costs related to updating the vent connector, relining the chimney, and resizing the vent, which would satisfy the installation requirements of the Natural Fuel Gas Code. DOE has determined that a potential option would be to install either a storage or tankless power-vented water heater to avoid the cost of a chimney or metal flue vent modification just for the gas water heater, or to switch to an electric storage water heater. DOE recognizes that the frequency of chimney relining and vent resizing may decrease slightly due to the increase in adoption of high-efficiency gas water heaters. However, DOE did not find any additional information or data 
                        <SU>112</SU>
                        <FTREF/>
                         to project the market share of high-efficiency water heaters in 2029 or the decrease in the fraction of installations with common vents. Therefore, DOE did not consider the power-vented gas storage or other higher-efficiency water heater options. Instead, DOE either added additional installation costs associated with venting a category I water heater, such that the orphaned water heater could be vented through the chimney, or accounted for the installation of an electric storage water heater as an alternative. For new owners and new construction installations, DOE applied a venting cost differential if the owner/builder was planning to install a commonly-vented non-condensing furnace and water heater.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Data from the consumer water heater NOPR were used in this analysis. 88 FR 49058 (July 28, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE acknowledges that multi-family buildings may require additional measures to replace non-condensing furnaces with condensing furnaces. Such measures include the vent length, existing common vents, and horizontal venting. For this final rule, DOE assigned additional venting installation costs (on average $241) for a quarter of replacement installations 
                        <SU>113</SU>
                        <FTREF/>
                         in multi-family buildings to account for modifying the existing vent systems to accommodate a condensing furnace installation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             This fraction accounts for buildings without common venting; buildings where all/most furnaces are replaced at the same time (many rentals/homeowners association (HOA) situations); smaller multi-family units/smaller number of floors; and situations where disconnecting one furnace from the common vent does not impact the common venting for remaining furnaces. This fraction is also based on 2020 RECS data regarding the number of apartments/units and the number of stories per multi-family building.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(c) New Venting Technologies</HD>
                    <P>
                        To address certain difficult installation situations, new venting technologies are being developed to vent a condensing residential furnace and an atmospheric combustion water heater through the same vent by reusing the existing metal vent or masonry chimney with a new vent cap and appropriate liner(s).
                        <E T="51">114 115</E>
                        <FTREF/>
                         In 2015, the FasNSeal 80/90 venting system was introduced commercially by M&amp;G DuraVent, a new venting system that uses a unique, pipe-within-a-pipe design to vent a condensing furnace and a natural draft water heater.
                        <SU>116</SU>
                        <FTREF/>
                         FasNSeal 80/90 is UL-approved. An additional venting solution known as EntrainVent is available as a pre-commercial prototype by Oak Ridge National Laboratory.
                        <SU>117</SU>
                        <FTREF/>
                         DOE conducted a sensitivity analysis to estimate the impact of such technologies on the installation cost of a condensing NWGF, but did not include the technologies in the primary analysis.
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Oak Ridge National Laboratory, Condensing Furnace Venting Part 1: The Issue, Prospective Solutions, and Facility for Experimental Evaluation (October 2014) (available at: 
                            <E T="03">web.ornl.gov/sci/buildings/docs/Condensing-Furnace-Venting-Part1-Report.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>115</SU>
                             Oak Ridge National Laboratory, Condensing Furnace Venting Part 2: Evaluation of Same-Chimney Vent Systems for Condensing Furnaces and Natural Draft Water Heaters (February 2015) (available at: 
                            <E T="03">web.ornl.gov/sci/buildings/docs/Condensing-Furnace-Venting-Part2-Report.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             M&amp;G DuraVent's FasNSeal 80/90 Combination Cat I and Cat IV gas vent system is UL listed to applicable portions of ULC S636/UL1738, UL1777, and UL441 (available at: 
                            <E T="03">www.duravent.com/fasnseal-80-90/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             Oak Ridge National Laboratory, Condensing Furnace Venting Part 2: Evaluation of Same-Chimney Vent Systems for Condensing Furnaces and Natural Draft Water Heaters (February 2015) (available at: 
                            <E T="03">web.ornl.gov/sci/buildings/docs/Condensing-Furnace-Venting-Part2-Report.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE recognizes that there are currently limitations to DuraVent's new FasNSeal 80/90 venting technology related to venting in masonry chimneys and that currently there are limited field performance data.
                        <SU>118</SU>
                        <FTREF/>
                         Because of the uncertainty regarding applicability of FasNSeal 80/90 and other new venting technologies, DOE only considered using this option in a sensitivity analysis. DOE conducted two additional sensitivity analyses: (1) the FasNSeal 80/90 option is applied to installations that can currently meet the FasNSeal 80/90 installation requirements (metal vents only); and (2) all new venting technology options are applied to installations that could meet the respective installation requirements (metal vents and masonry chimney installations, including installations with more horizontal sections).
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             Oak Ridge National Laboratory, Furnace and Water Heater Venting Field Demonstration (May, 2019) (available at: 
                            <E T="03">www.ornl.gov/publication/furnace-and-water-heater-venting-field-demonstration</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Combustion Air Venting</HD>
                    <P>
                        DOE's analysis accounts for the additional cost associated with direct vent installations that use combustion air intake. Direct vent or sealed combustion is not required for condensing installations, but it is recommended for any condensing furnace to utilize “sealed combustion.” All condensing furnaces come with this feature (which requires an opening for the intake combustion air pipe/vent). Condensing furnaces will often be installed as direct vent furnaces since it 
                        <PRTPAGE P="87564"/>
                        offers significant energy savings 
                        <SU>119</SU>
                        <FTREF/>
                         and safety 
                        <SU>120</SU>
                        <FTREF/>
                         advantages.
                        <E T="51">121 122</E>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             A non-direct vent furnace increases the air infiltration that the house experiences since for every cubic foot of air that leaves the house, another cubic foot of air comes in. Thus, a direct vent furnace avoids using heated indoor air for combustion.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             By separating the combustion air from indoor household air, the furnace is not affected by other home appliances in a tight home. A direct vent furnace reduces the danger of any potential backdrafts (pulling exhaust gases down the chimney), as well as reducing the danger of foreign gases in the combustion air. For example, a furnace could be damaged by vapors from laundry products, as these vapors can mix with indoor combustion air to corrode furnace components.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             DOE, Technology Fact Sheet. Combustion Equipment Safety: Provide Safe Installation for Combustion Appliances (October 2000) (DOE/GO-102000-0784) (available at: 
                            <E T="03">www1.eere.energy.gov/buildings/publications/pdfs/building_america/26464.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>122</SU>
                             DOE, Furnace and Boilers (available at: 
                            <E T="03">www.energy.gov/energysaver/home-heating-systems/furnaces-and-boilers</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE's analysis assumes that two-thirds of condensing furnaces will be installed with the direct vent feature, based on a consultant report (
                        <E T="03">see</E>
                         appendix 8D of the final rule TSD for further details). Typically, the combustion air intake pipe will go in the same direction of the flue vent or can be in a concentric vent.
                    </P>
                    <HD SOURCE="HD3">(e) Condensate Withdrawal</HD>
                    <P>
                        DOE accounted for the cost of condensate removal for condensing NWGF installations, including, when applicable, a condensate drain, condensate pump, freeze protection (heat tape),
                        <SU>123</SU>
                        <FTREF/>
                         drain pan, condensate neutralizer, and an additional electric outlet for the condensate pump.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Heat tape is also referred to as heating cable and provides electric heating.
                        </P>
                    </FTNT>
                    <P>
                        DOE acknowledges that condensate management can be costly for some installations (
                        <E T="03">e.g.,</E>
                         multi-family units) and very difficult in rare cases. DOE's current installation cost approach accounts for these costs. However, DOE added a sensitivity analysis with additional condensate costs.
                    </P>
                    <P>
                        The use of heat tape to prevent condensate pipes from freezing is standard installation practice 
                        <E T="51">124 125</E>
                        <FTREF/>
                         DOE's analysis accounts for the use of heat tape typical in unconditioned attic installations, which are more likely to face freezing conditions. DOE acknowledges that other unconditioned locations could also face freezing, but it is far less common.
                        <SU>126</SU>
                        <FTREF/>
                         DOE also included heat tape to installations in additional non-conditioned spaces such as crawl spaces, non-conditioned basements, and garages that are in regions that could be exposed to freezing conditions. DOE accounted for the additional installation cost and energy use of the heat tape. Additionally, because it is recommended practice that heat tape be plugged into a ground fault circuit interrupter (GFCI) circuit, DOE included the cost of adding a GFCI circuit for the fraction of households that do not have one available. DOE also conducted a sensitivity analysis with an additional fraction of installations necessitating the use of heat tape.
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             ICP, Installation Instructions for Condensate Freeze Protection Kit (2012) (available at: 
                            <E T="03">www.icptempstarparts.com/mdocs-posts/naha00201hh-condensate-freeze-protection-kit-installation-instructions/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>125</SU>
                             Bryant, Installation Instructions: Condensate Drain Protection (2008) (available at: 
                            <E T="03">www.questargas.com/ForEmployees/qgcOperationsTraining/Furnaces/Bryant_355AAV.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             Brand, L. and W. Rose, Strategy Guideline: Accurate Heating and Cooling Load Calculations. Partnership for Advanced Residential Retrofits (October 2012) (available at: 
                            <E T="03">www.nrel.gov/docs/fy13osti/55493.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        To address situations where condensate must be treated before disposal (
                        <E T="03">e.g.,</E>
                         due to a local regulation), DOE assumed that a fraction of installations require condensate neutralizer for condensate withdrawal. As discussed in appendix 8D of the TSD for this final rule, the fraction of installations that require condensate neutralizer used in the analysis is representative of the current use. DOE includes the cost of using non-corrosive drains for an additional fraction of installations. Additionally, DOE conducted a sensitivity analysis assuming a high fraction of installations use condensate neutralizer or are installed with a non-corrosive drain.
                    </P>
                    <P>Napoleon stated that the proposals in the July 2022 NOPR will have negative economic and safety impacts on consumers in replacement scenarios. The commenter stated that increasing the minimum efficiency will require the furnaces to be condensing, and it is not practical to use the condensate removal system for an air conditioner (typically located in unconditioned space outside the building structure) to remove condensate from a condensing furnace when it could be subject to freezing temperatures. Napoleon also stated that installing a plumbed drain will be a significant cost for the consumer and may not even be feasible, and the commenter further added that installing such plumbing could be cost-prohibitive and force property owners to attempt to perpetually repair their existing products, thereby leading to a safety hazard. Therefore, Napoleon recommended that 80-percent AFUE furnaces must remain available for the replacement market because, according to the commenter, they are the only cost-effective and safe option for consumers. (Napoleon, No. 374 at p. 1-2)</P>
                    <P>In response, DOE notes that the analysis does consider appropriate additional costs to remove condensate for condensing furnaces, as described above, in accordance with all manufacturer instructions and local requirements. The analysis accounts for situations in which additional freeze protection is required, imposing additional costs on the installation. DOE acknowledges that in some cases the costs to address condensate withdrawal may be significant, but these are already captured by the analysis and included in the distribution of impacts.</P>
                    <HD SOURCE="HD3">(f) Difficult Installations</HD>
                    <P>DOE considered the potential need for additional vent length to reach a suitable location on an outside wall where the vent termination could be located, as well as the potential need for wall penetrations and/or concealing of flue vents in conditioned spaces.</P>
                    <P>
                        DOE used the best available information and data to characterize the likely nature and cost of installations of a condensing furnace as a replacement for a non-condensing furnace in its consumer sample. DOE estimates that 39 percent of replacements in residential applications could be labeled as “difficult” installations,
                        <SU>127</SU>
                        <FTREF/>
                         with an average incremental installation cost of $867 relative to the baseline 80-percent AFUE NWGF (compared to an incremental cost of $247 for all other replacement installations).
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             DOE considered an installation to be “difficult” if there is an orphaned water heater, a long PVC vent connection though multiple walls, or in households with condensate issues (
                            <E T="03">e.g.,</E>
                             ones requiring heat tape or a condensate pump).
                        </P>
                    </FTNT>
                    <P>
                        DOE sought any information or data regarding potential physical limitations when installing a new condensing furnace. In consumer 
                        <SU>128</SU>
                        <FTREF/>
                         and contractor 
                        <SU>129</SU>
                        <FTREF/>
                         surveys, relocation was not mentioned as an issue for furnace installation.
                        <SU>130</SU>
                        <FTREF/>
                         DOE recognizes that in some cases, homeowners could elect to relocate their furnace when replacing a non-condensing NWGF with a condensing NWGF, especially if the 
                        <PRTPAGE P="87565"/>
                        relocation is part of a planned remodel of the home. In such cases, the cost of relocation is likely to be comparable to the costs that DOE estimated for difficult installations.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             Decision Analyst, Homeowner “Spotlight” Report: Equipment Switching, Repair Profile and Energy Efficiency (August 2011) (available at: 
                            <E T="03">www.decisionanalyst.com/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             Decision Analyst, Contractor “Spotlight” Report: Energy Efficiency and Installation Profile (August 2011) (available at: 
                            <E T="03">www.decisionanalyst.com/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             This finding is supported by an expert consultant (EER Consulting).
                        </P>
                    </FTNT>
                    <P>GAS commented that by not drawing a regulatory distinction between condensing and non-condensing appliances, DOE ignores the well-documented “problematic designs” faced by consumers forced into replacing non-condensing appliances into structures that were not designed for condensing appliances. (GAS, No. 385 at p. 3)</P>
                    <P>
                        The Coalition also commented as to the construction and configuration challenges that come with converting to a condensing furnace. The Coalition stated that insufficient exterior wall clearance for venting would be an obstacle, and that altering the venting might also necessitate replacement of the gas hot water heater. (The Coalition, No. 378 at p. 5) Also, the Coalition argued that plumbing issues would lead to considerable expense, and the cost impact of changing out flues and adding combustion air ducts would impact fire-rated floor assemblies. Finally, the Coalition commented that these issues of converting to a condensing furnace would potentially result in the displacement of residents, interruption of resident quality of life, disruption to property operation, and significant costs. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>As DOE has discussed here and in further detail in chapter 8 and appendix 8D of the final rule TSD, the analysis accounts for some situations in which there are high costs associated with the replacement of a non-condensing furnace with a condensing furnace, including interior wall displacement, vent or equipment relocation, and condensate withdrawal management. Those impacts are included in the distribution of LCC results. Furthermore, DOE has concluded that any disruptions associated with installation of a more-efficient furnace are likely to be temporary and of limited duration. Because such disruptions are temporary, they would not have a significant effect on the results of the analyses or DOE's conclusions.</P>
                    <HD SOURCE="HD3">(g) Emergency Replacements</HD>
                    <P>
                        DOE acknowledges that installation costs could increase for condensing furnaces in an unplanned emergency situation for the reasons that follow. Decision Analyst's 2022 American Home Comfort Study (AHCS) 
                        <SU>131</SU>
                        <FTREF/>
                         reported that unplanned replacements accounted for one-third of gas furnace installations. For this final rule, DOE included labor costs for unplanned replacements to account for additional contractor labor needed to finish the installation, factoring in the difficulty of accessing the roof during periods of snow or ice accumulation. In addition, to address periods without heat during the replacement, DOE considered the costs of the temporary use of small electric resistance space heaters or secondary/back-up heaters.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Decision Analysts, 2022 American Home Comfort Studies (available at: 
                            <E T="03">www.decisionanalyst.com/syndicated/homecomfort/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(h) Incremental Installation Cost for Condensing Furnaces</HD>
                    <P>
                        DOE estimated that the incremental retrofit installation cost for condensing furnaces was $539. For new construction and new owners, the incremental installation cost was estimated to be, on average, −$708.
                        <SU>132</SU>
                        <FTREF/>
                         Since 26 percent of shipments were estimated to be in the new construction and new owners market, based on the projected growth in new housing units and historical shipments (see chapter 9 of the final rule TSD), the resulting average incremental installation cost was $218. The incremental installation cost estimates reflect labor cost and installation material cost data from 2023 RS Means.
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             DOE calculated that, on average, condensing NWGF installation costs are lower in the new construction market compared to non-condensing NWGFs, since high-efficiency NWGFs can be vented either horizontally or vertically (whichever is most cost-effective), and, therefore, a vertical buildout with roof penetration is not required. 
                            <E T="03">See</E>
                             appendix 8D of the TSD for this final rule for more details regarding new construction installation costs.
                        </P>
                    </FTNT>
                    <P>In response to the July 2022 NOPR, the DCA commented that DOE does not need to force the installation of condensing furnaces by terminating the types of furnaces that can be easily installed without retrofitting. The DCA further commented that this proposed rulemaking would eliminate the 40 percent of non-weatherized natural gas furnaces that are non-condensing. (DCA, No. 372 at p. 2) Daikin commented that in 2019, the standard in Canada was set to condensing standard of 95-percent AFUE, so presumably, that country must have found ways to overcome these installation challenges. (Daikin, No. 416 at p. 2) Similarly, the Watertown Municipal Utilities stated that close to 75 percent of the homes and businesses in its service area currently use non-condensing furnaces, and the commenter argued that retrofitting existing homes will increase monthly expenses for the average consumer. (WMU, No. 351 at p. 1)</P>
                    <P>
                        The Coalition commented that replacing non-condensing units with condensing units might require substantial retrofitting and/or property modifications. (The Coalition, No. 378 at p. 4) The Coalition commented that the cost of retrofitting could be prohibitive or even impossible. (
                        <E T="03">Id.</E>
                        ) The Coalition added that this would result in some owners switching to less-efficient forms of heating that defeat the purpose of the proposed standards. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE has conducted an extensive analysis of potential retrofit costs as detailed in this section, including replacement situations involving significant additional installation costs. These “difficult” installations are accounted for in the distribution of results (see section IV.F.2.b.f of this document). DOE has further evaluated the potential for some consumers to switch to alternative forms of space-heating as described in more detail in section IV.F.10 of this document.</P>
                    <HD SOURCE="HD3">(i) New Construction or New Owner Installations</HD>
                    <P>
                        It is common practice in new construction, when possible, to avoid vertical venting in order to limit roof penetrations and reduce potential liability issues (
                        <E T="03">e.g.,</E>
                         water leakage through new roof penetrations).
                        <SU>133</SU>
                        <FTREF/>
                         Condensing furnaces have the flexibility of being vented either horizontally or vertically. When presented with this option in new construction, it is reasonable to conclude that most designers, architects, builders, contractors, and/or homeowners would opt for the most cost-effective installation. Current building practices are likely to evolve as the market changes in response to any amended energy conservation standards for the subject furnaces.
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Lekov A., V. Franco, G. Wong-Parodi, J. McMahon, P. Chan, Economics of residential gas furnaces and water heaters in U.S. new construction market, Energy Efficiency (September 2010) Volume 3, Issue 3, pp. 203-222 (available at: 
                            <E T="03">link.springer.com/article/10.1007/s12053-009-9061-y</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>For new owner and new construction installations, DOE applied an incremental venting cost if the owner/builder had been planning to install a commonly-vented non-condensing furnace and water heater.</P>
                    <HD SOURCE="HD3">c. Additional Installation Costs for Mobile Home Gas Furnaces</HD>
                    <P>
                        DOE included the same basic installation costs for MHGFs as described previously for NWGFs. DOE also included costs for venting and condensate removal. Protection from 
                        <PRTPAGE P="87566"/>
                        freezing (heat tape), a condensate pipe, condensate neutralizer, and an additional electrical connection are accounted for in the cost of condensate removal, where applicable.
                    </P>
                    <P>DOE notes that MHGFs are usually installed in tight spaces and often require space modifications if the replacement furnace dimensions are different from those of the existing furnace. DOE notes that most of the MHGF models at the adopted standard level of 95-percent AFUE are similar in size to the existing non-condensing MHGFs. However, some condensing furnaces in the manufacturer literature are wider and shorter than existing non-condensing furnaces. Accordingly, DOE increased the installation costs for a fraction of installations to address the impacts related to space constraints or condensate withdrawal that may be encountered when a condensing MHGF replaces an older manufactured-home-specific furnace. DOE also adjusted the installation cost for the dedicated vent system for condensing MHGFs by including an additional cost to remove the old venting system. Manufactured home designs must be approved by an accepted third-party inspection agency, as required by the U.S. Department of Housing and Urban Development, to ensure compliance with the HUD Code (24 CFR 3282.203), which requires sealed combustion system appliances. MHGFs cannot be commonly vented with other gas-fired equipment (such as a gas-fired water heater) (24 CFR 328.709). Further, manufacturers are required to have an inspection agent, and each home must be inspected by the inspection agent in at least one phase of production, and the manufacturer must self-certify each section of the home as in compliance with the HUD code (24 CFR 3282.204 and 3282.205). DOE also adjusted the condensate withdrawal installation costs to account for a fraction of installations that encounter difficulty installing the condensate drain.</P>
                    <P>In regard to space constraints and installation, DOE received several comments in response to the July 2022 NOPR. HARDI commented that EPCA prevents DOE from finalizing a rule that would outlaw equipment with certain size requirements. HARDI commented that size is not limited to the equipment itself, but any encroachment on the consumer's living space. (HARDI, No. 384 at p. 5) PHCC commented that venting poses a major challenge to installation, which will affect the installation costs. PHCC further stated that potential venting issues include excessive vent lengths, significant building modifications, drainage issues, or nuisance condensing vent plumes. (PHCC, No. 403 at p. 3) CEC commented that although some owners of manufactured homes may be concerned about potential space and cost constraints related to the proposed standards for MHGFs, updating their heating system with an efficient furnaces or electric heat pumps is feasible, both technically and economically. (CEC, No. 382 at p. 2)</P>
                    <P>
                        In response, DOE notes that the LCC includes costs related to additional venting requirements, condensate removal, and any modifications to address any space constraints for replacement installations of MHGFs. There is no technical limitation preventing the installation of a condensing MHGF, and all relevant costs are included in the analysis. Alternatively, consumers could switch to an appliance which utilizes a different technology (
                        <E T="03">e.g.,</E>
                         a heat pump). For these reasons, DOE has concluded that the approach adopted in this final rule is consistent with the requirements of EPCA.
                    </P>
                    <P>
                        MHI commented that condensing furnaces require different venting and combustion air intake designs as compared to non-condensing furnaces, as well as the addition of condensate drain systems. (MHI, No. 365 at p. 2) Also, MHI noted that condensing furnaces would require manufactured home designers to change the typical floor plans of their designs, adding costs to this process that will be passed down to the consumer. (
                        <E T="03">Id.</E>
                        ) MHI commented that the impacts of changing the typical floor plan of a manufactured home in order to accommodate a condensing furnace are not fully captured in the July 2022 NOPR, and these impacts are particularly harmful for manufactured housing consumers, especially in southern climates. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        MHI commented that the proposed standards for MHGF would increase construction costs for new manufactured homes by approximately $1300. (
                        <E T="03">Id.</E>
                        ) Nortek commented that condensing furnaces cost approximately $1300 more than non-condensing furnaces, and that they require significantly different venting/combustion air in-take/condensate drainage systems. According to the commenter, these changes would lead to additional cost and floorplan design changes for manufactured homes. (Nortek, No. 406 at p. 4) In response, DOE's analysis includes all costs necessary to install a condensing MHGF in new construction, including venting costs and condensate removal. However, DOE's analysis, based on the best available evidence, does not indicate that incremental costs for installation of a condensing MHGF are as high as $1300.
                        <SU>134</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             On average, DOE's analysis indicates that the incremental totaled installed cost of an AFUE 95 percent MHGF, compared to an AFUE 80 percent MHGF, is only $188 (averaged over replacement installations and new construction and including both equipment and installation costs). Further details can be found in chapter 8 and appendix 8D of the final rule TSD.
                        </P>
                    </FTNT>
                    <P>MHI commented that owners of manufactured homes typically have more budgetary restrictions than other consumers, as their median annual household income is well below the national average. MHI argued that manufactured homeowners, who would be unlikely to see cost savings from condensing furnaces for many years, would face significant budgetary burdens. (MHI, No. 365 at p. 3) In response, DOE notes that its analysis captures the discount rate that is applicable to owners of manufactured homes, based on their household income, and which reflects their access to capital and budgetary constraints.</P>
                    <P>MHI estimated that certain floorplans of manufactured housing would incur up to $7000 to comply with the requirements of the May 2022 final rule for manufactured housing. (MHI, No. 365 at p. 3) Similarly, Nortek commented that DOE's final rule to establish energy conservation standards for manufactured housing will also impose costs on manufactured homeowners, and that DOE's analytical models do for the furnaces rule not consider these costs.(Nortek, No. 406 at pp. 2-3)</P>
                    <P>In response, DOE notes that the impacts of the May 2022 final rule for manufactured housing were considered as part of that rule and are not relevant in this rulemaking.</P>
                    <P>
                        MHI commented that the proposed standards for MHGFs will negatively impact the manufactured home resale and replacement market. The commenter argued that about one-third of manufactured homes use natural gas for heating, and that the cost to replace a non-condensing gas furnace with a condensing one could be burdensome to the consumer due to increased cost, the need to increase the cabinet size, and changes to venting. (MHI, No. 365 at pp. 3-4) MHI also noted that there are a limited number of furnace manufacturers that manufacture condensing furnaces for use in manufactured homes. (
                        <E T="03">Id.</E>
                         at 3) MHI commented that furnace replacements that would typically cost around $3,000 now would cost $10,000 or more under DOE's proposal, which the commenters asserted that many manufactured 
                        <PRTPAGE P="87567"/>
                        homeowners would not be able to afford. (MHI, Public Meeting Webinar Transcript, No. 363 at p. 28) MHI also stated that these impacts would be disproportionately felt by homeowners in Southern States. (
                        <E T="03">Id.</E>
                        ) MHI also asserted that this rulemaking would require redesigns of manufactured homes subject to the National Home Construction and Safety Standards Act, as any changes to a home's design, manufacture, or installation must be reviewed and approved by HUD. (MHI, No. 365 at p. 2)
                    </P>
                    <P>
                        Mortex commented that DOE's incremental cost from non-condensing to condensing furnaces is much lower than MHI's estimate, which is conservative. (Mortex, No. 410 at p. 2) Mortex estimated that the incremental cost to consumers to move from a non-condensing to a condensing MHGF is between $1700 and $2100. (
                        <E T="03">Id.</E>
                        ) Mortex further commented that the average savings estimated by DOE would be eliminated if the incremental cost was adjusted, meaning that there would be no payback for manufactured homeowners. Mortex further commented that southern consumers would be even less likely to experience life cycle cost savings. (Mortex, No. 410 at pp. 2-3)
                    </P>
                    <P>AHRI expressed its concern regarding DOE's results for TSL 8. AHRI stated that MHI has estimated that the incremental cost of a condensing furnace is $1,300, as opposed to the $315 estimated by DOE, adding that the LCC savings from a condensing furnace disappear when any cost approaching MHI's estimated value is used. (AHRI, No. 414-2 at p. 3)</P>
                    <P>JCI commented that it disagrees with the costs and benefits assumed for MHGFs in DOE's analysis, arguing in particular that the replacement market is not accurately reflected. (JCI, No. 411 at p. 3)</P>
                    <P>
                        In response to these comments, DOE disagrees with these cost estimates and notes that no persuasive evidence was submitted to substantiate these estimates. DOE has performed a detailed cost analysis and has determined that the potential benefits outweigh the costs, including the costs to replace a non-condensing MHGF with a condensing MHGF (including adjusting cabinet size and venting). DOE disagrees that a more-efficient MHGF will negatively impact the resale value of a manufactured home, as a more efficient MHGF will have lower operating costs, which is more attractive to potential buyers. Furthermore, DOE notes that potential investments made by manufactured housing OEMs are outside the scope of this rulemaking. DOE must follow specific statutory criteria for prescribing new or amended energy conservation standards for covered products, such as the subject consumer furnaces. Pursuant to EPCA, DOE's analysis considers the economic impact of the standard on consumers and manufacturers of the products subject to the standard (
                        <E T="03">i.e.,</E>
                         manufacturers of NWGFs and MHGFs). (42 U.S.C. 6295(o)(2)(B)(i)(I)) The LCC analysis is focused on consumers of MHGFs and the costs to purchase the covered product (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(II)), not the costs to purchase a manufactured home. With respect to manufacturers, since manufactured housing OEMs are not manufacturers of the products subject to the standard, DOE does not explicitly analyze those investments in its MIA. Furthermore, DOE did not include the manufactured housing rulemaking in its cumulative regulatory burden analysis for this rulemaking as none of the MHGF OEMs identified produce manufactured homes subject to the May 2022 final rule for manufactured housing.
                    </P>
                    <P>
                        JCI also commented that manufactured homeowners often have electrical limitations due to remote locations and limited electrical capacity, meaning that it would be more challenging for these consumers to switch to other methods of heating such as electric furnaces and heat pumps. (JCI, No. 411 at p. 2) JCI stated this means that manufactured homeowners would be more likely to incur the higher costs for condensing furnaces. (
                        <E T="03">Id.</E>
                        ) JCI stated that this is because electric mobile home furnaces and heat pumps require electric resistance backup heating which have additional power/kW requirements which can greatly exceed those of a gas furnace especially in colder, northern climates (
                        <E T="03">i.e.,</E>
                         approximately 15 amps for the gas furnace vs 90 amps for the electric furnace). (
                        <E T="03">Id.</E>
                        ) JCI further noted that electric furnaces require 240 V, while gas furnaces require 120 V, which is more common. (
                        <E T="03">Id.</E>
                        ) Finally, JCI stated that southern areas are better suited for heat pump loads, with backup heat required for anomaly events. JCI commented that these requirements add cost for manufactured homeowners, increasing with colder temperatures. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In response, DOE acknowledges that there may be additional electrical connection costs when replacing a non-condensing furnace with a condensing furnace and has included such costs in the analysis.</P>
                    <P>
                        In contrast, NCLC 
                        <E T="03">et al.</E>
                         stated that installing condensing furnaces in manufactured homes will not present unique, significant, or insurmountable challenges, adding that the Low-income Energy Affordability Network has always been able to find condensing furnaces that fit into the available space when upgrading from non-condensing furnaces. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 7) DOE agrees with this comment.
                    </P>
                    <P>
                        The CA IOUs agreed with DOE that the average cost of a condensing MHGF in a new mobile home is comparable to a non-condensing MHGF because the price increase of the product is offset by lower installation costs for a condensing MHGF for most installations. (The CA IOUs, No. 400 at p. 2) Additionally, the CA IOUs noted that the National Consumer Law Center contacted two programs that retrofit mobile homes to improve efficiency (Action for Boston Community Development and Action Inc., Gloucester, Massachusetts) which indicated that the proposal would not be burdensome for MHGF replacements. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <HD SOURCE="HD3">d. Contractor Survey and DOE's Sources</HD>
                    <P>
                        DOE notes that its focus for installation costs is to estimate the incremental cost between different efficiency levels. DOE used the results of a contractor survey previously submitted to DOE in order to validate its estimates of the average total installed cost for condensing furnaces in replacement applications, as well as the average incremental installation cost. DOE examined the ACCA/AHRI/PHCC survey of contractors but was unable to use the data directly in the LCC analysis because only aggregate values were reported. The ACCA/AHRI/PHCC survey results are binned in wide bins of $250, and the sample is heavily weighted towards the North (339 responses in the North and 181 in the South). As noted previously, installation costs vary widely for different contractors and areas of the country. The installation costs in the Northern region will tend to be much higher than those reported in the rest of the country (as defined in the LCC analysis). For this final rule, DOE revised its installation cost methodology to account for various factors affecting both non-condensing and condensing NWGFs, such as: the cost of ductwork upgrades; baseline electrical installation costs; additional labor required for baseline installations; the cost of relining, resizing, and/or other adjustments of metal venting for baseline installations; premium installation costs for emergency replacements; and other premium installation costs for comfort-related features (
                        <E T="03">e.g.,</E>
                         advanced thermostats, zoning, hypoallergenic filters, humidity 
                        <PRTPAGE P="87568"/>
                        controls). For this final rule, DOE also compared its average estimates to the AHRI/ACCA/PHCC contractor survey report and other sources such as Home Advisor,
                        <SU>135</SU>
                        <FTREF/>
                         ImproveNet,
                        <SU>136</SU>
                        <FTREF/>
                         Angie's List,
                        <SU>137</SU>
                        <FTREF/>
                         HomeWyse,
                        <SU>138</SU>
                        <FTREF/>
                         Cost Helper,
                        <SU>139</SU>
                        <FTREF/>
                         Fixr,
                        <SU>140</SU>
                        <FTREF/>
                         CostOwl,
                        <SU>141</SU>
                        <FTREF/>
                         and Gas Furnace Guide,
                        <SU>142</SU>
                        <FTREF/>
                         and also consulted with RS Means staff. In addition, DOE was able to obtain installation costs disaggregated for households installing only a furnace versus installing both a furnace and air conditioner from the 2016 AHCS. For this final rule, the average incremental installation cost for a condensing NWGF in a retrofit installation was $539 (in 2022$), which is consistent with the AHRI/ACCA/PHCC contractor survey and data provided by SoCalGas, as well as the other sources previously listed. Therefore, DOE concludes that the industry-supplied data support its installation cost methodology.
                    </P>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             Home Advisor, How Much Does a New Gas Furnace Cost? (available at: 
                            <E T="03">www.homeadvisor.com/cost/heating-and-cooling/gas-furnace-prices/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See www.improvenet.com/</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Angie's List, How Much Does it Cost to Install a New Furnace (available at: 
                            <E T="03">www.angieslist.com/articles/how-much-does-it-cost-install-new-furnace.htm</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             HomeWyse, Cost to Install a Furnace (available at: 
                            <E T="03">www.homewyse.com/services/cost_to_install_furnace.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             Cost Helper, How Much Does a Furnace Cost? (available at: 
                            <E T="03">home.costhelper.com/furnace.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             FIXr, Gas Central Heating Installation Cost (available at: 
                            <E T="03">www.fixr.com/costs/gas-central-heating-installation</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">CostOwl.com,</E>
                             How much Does a New Furnace Cost? (available at: 
                            <E T="03">www.costowl.com/home-improvement/hvac-furnace-replacement-cost.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Gas Furnace Guide, Gas Furnace Prices and Installation Cost Comparison (available at: 
                            <E T="03">www.gasfurnaceguide.com/compare/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">e. Summary of Installation Costs</HD>
                    <P>Table IV.8 shows the fraction of installations impacted and the average cost for each of the installation cost adders in replacement applications (not including new owners). The estimates of the fraction of installations impacted were based on the furnace location (primarily derived from information in RECS 2020) and a number of other sources that are described in chapter 8 of the final rule TSD.</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table IV.8—Additional Installation Costs for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces in Replacement Applications</TTITLE>
                        <BOXHD>
                            <CHED H="1">Installation cost adder</CHED>
                            <CHED H="1">NWGFs</CHED>
                            <CHED H="2">
                                Replacement
                                <LI>installations</LI>
                                <LI>impacted</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                Average cost
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="1">MHGFs</CHED>
                            <CHED H="2">
                                Replacement
                                <LI>installations</LI>
                                <LI>impacted</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                Average cost
                                <LI>(2022$)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Non-Condensing Furnaces</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Updating Vent Connector</ENT>
                            <ENT>23</ENT>
                            <ENT>$328</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Updating Flue Vent *</ENT>
                            <ENT>8</ENT>
                            <ENT>990</ENT>
                            <ENT>100</ENT>
                            <ENT>$233</ENT>
                        </ROW>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Condensing Furnaces</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">New Flue Venting (PVC)</ENT>
                            <ENT>100</ENT>
                            <ENT>308</ENT>
                            <ENT>100</ENT>
                            <ENT>58</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Combustion Air Venting (PVC)</ENT>
                            <ENT>62</ENT>
                            <ENT>324</ENT>
                            <ENT>100</ENT>
                            <ENT>58</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Concealing Vent Pipes</ENT>
                            <ENT>5</ENT>
                            <ENT>603</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Orphaned Water Heater</ENT>
                            <ENT>7</ENT>
                            <ENT>806</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Condensate Removal</ENT>
                            <ENT>100</ENT>
                            <ENT>92</ENT>
                            <ENT>100</ENT>
                            <ENT>163</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Multi-Family Adder</ENT>
                            <ENT>2</ENT>
                            <ENT>241</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Adder</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>25</ENT>
                            <ENT>127</ENT>
                        </ROW>
                        <TNOTE>* For a fraction of installations, this cost includes the commonly-vented water heater vent connector, chimney relining, and vent resizing. For mobile home gas furnaces, DOE assumed that flue venting has to be upgraded for all replacement installations.</TNOTE>
                    </GPOTABLE>
                    <P>Table IV.9 shows the estimated fraction of new home installations impacted and the average cost for each of the adders.</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table IV.9—Additional Installation Costs for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces in New Construction and New Owner Applications</TTITLE>
                        <BOXHD>
                            <CHED H="1">Installation cost adder</CHED>
                            <CHED H="1">NWGFs</CHED>
                            <CHED H="2">
                                New
                                <LI>installations</LI>
                                <LI>impacted</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                Average cost
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="1">MHGFs</CHED>
                            <CHED H="2">
                                New
                                <LI>installations</LI>
                                <LI>impacted</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                Average cost
                                <LI>(2022$)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Non-Condensing Furnaces</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00" RUL="s">
                            <ENT I="01">New Flue Vent (Metal) *</ENT>
                            <ENT>100</ENT>
                            <ENT>$1,835</ENT>
                            <ENT>100</ENT>
                            <ENT>$263</ENT>
                        </ROW>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Condensing Furnaces</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">New Flue Venting (PVC)</ENT>
                            <ENT>100</ENT>
                            <ENT>190</ENT>
                            <ENT>100</ENT>
                            <ENT>52</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Combustion Air Venting (PVC)</ENT>
                            <ENT>66</ENT>
                            <ENT>358</ENT>
                            <ENT>100</ENT>
                            <ENT>52</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Concealing Vent Pipes *</ENT>
                            <ENT>1</ENT>
                            <ENT>206</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Orphaned Water Heater</ENT>
                            <ENT>46</ENT>
                            <ENT>1,380</ENT>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87569"/>
                            <ENT I="01">Condensate Removal</ENT>
                            <ENT>100</ENT>
                            <ENT>56</ENT>
                            <ENT>100</ENT>
                            <ENT>53</ENT>
                        </ROW>
                        <TNOTE>* Applied to new owner installations only.</TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD3">3. Annual Energy Consumption</HD>
                    <P>For each sampled residential furnace installation, DOE determined the energy consumption for a NWGF or MHGF at different efficiency levels using the approach described previously in section IV.E of this document.</P>
                    <P>
                        Higher-efficiency furnaces reduce the operating costs for a consumer, which can lead to greater use of the furnace. A direct rebound effect occurs when a product that is made more efficient is used more intensively, such that the expected energy savings from the efficiency improvement may not fully materialize. At the same time, consumers benefit from increased utilization of products due to rebound. Overall consumer surplus (taking into account additional costs and benefits) is generally understood to increase from rebound. DOE examined a 2009 review of empirical estimates of the rebound effect for various energy-using products.
                        <SU>143</SU>
                        <FTREF/>
                         This review concluded that the econometric and quasi-experimental studies suggest a mean value for the direct rebound effect for household heating of around 20 percent. DOE also examined a 2012 ACEEE paper 
                        <SU>144</SU>
                        <FTREF/>
                         and a 2013 paper by Thomas and Azevedo.
                        <SU>145</SU>
                        <FTREF/>
                         Both of these publications examined the same studies that were reviewed by Sorrell, as well as Greening 
                        <E T="03">et al.,</E>
                        <SU>146</SU>
                        <FTREF/>
                         and identified methodological problems with some of the studies. The studies believed to be most reliable by Thomas and Azevedo show a direct rebound effect for heating products in the 1-percent to 15-percent range, while Nadel concludes that a more likely range is 1 to 12 percent, with rebound effects sometimes higher for low-income households who could not afford to adequately heat their homes prior to weatherization. Based on DOE's review of these recent assessments, DOE used a 15-percent rebound effect for NWGFs and MHGFs. This rebound is the same as assumed in EIA's National Energy Modeling System (NEMS) for residential space heating.
                        <SU>147</SU>
                        <FTREF/>
                         However, for commercial applications DOE applied no rebound effect, consistent with other recent energy conservation standards rulemakings.
                        <E T="51">148 149 150</E>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             Steven Sorrell, 
                            <E T="03">et al.,</E>
                             Empirical Estimates of the Direct Rebound Effect: A Review, 37 
                            <E T="03">Energy Policy</E>
                             1356-71 (2009) (available at: 
                            <E T="03">www.sciencedirect.com/science/article/pii/S0301421508007131</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Steven Nadel, “The Rebound Effect: Large or Small?” ACEEE White Paper (August 2012) (available at: 
                            <E T="03">www.aceee.org/files/pdf/white-paper/rebound-large-and-small.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Brinda Thomas and Ines Azevedo, Estimating Direct and Indirect Rebound Effects for U.S. Households with Input-Output Analysis, Part 1: Theoretical Framework, 86 
                            <E T="03">Ecological Econ.</E>
                             199-201 (2013) (available at: 
                            <E T="03">www.sciencedirect.com/science/article/pii/S0921800912004764</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Lorna A. Greening, 
                            <E T="03">et al.,</E>
                             Energy Efficiency and Consumption—The Rebound Effect—A Survey, 28 
                            <E T="03">Energy Policy</E>
                             389-401 (2002) (available at: 
                            <E T="03">www.sciencedirect.com/science/article/pii/S0301421500000215</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             See: 
                            <E T="03">www.eia.gov/outlooks/aeo/nems/documentation/residential/pdf/m067(2020).pdf</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             DOE. Energy Conservation Program for Certain Industrial Equipment: Energy Conservation Standards for Small, Large, and Very Large Air-Cooled Commercial Package Air Conditioning and Heating Equipment and Commercial Warm Air Furnaces; Direct final rule. 81 FR 2419 (Jan. 15, 2016) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2013-BT-STD-0021-0055</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>149</SU>
                             DOE. Energy Conservation Program: Energy Conservation Standards for Residential Boilers; Final rule. 81 FR 2319 (Jan. 15, 2016) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2012-BT-STD-0047-0078</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>150</SU>
                             DOE. Energy Conservation Program: Energy Conservation Standards for Commercial Packaged Boilers; Final Rule. 85 FR 1592 (Jan. 10, 2020) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2013-BT-STD-0030-0099</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>The LCC analysis considers increases in product and installation costs as well as decreases in operating costs, as directed by EPCA. In this analysis, DOE did not include the rebound effect in the LCC for the reasons that follow. Some households may increase their furnace use in response to increased efficiency, and as a result, not all households will realize the LCC savings represented in section V.B of this document. At the same time, those consumers will also experience a welfare gain from the increased utilization of the equipment, which has economic value. DOE includes rebound in the NIA for a conservative estimate of national energy savings and the corresponding impact to consumer NPV. See section IV.H of this document for further details.</P>
                    <P>EPCA requires that in its evaluation of proposed energy conservation standards, DOE must consider the savings in operating costs throughout the estimated average life of the covered product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered products which are likely to result from the imposition of the standard. (42 U.S.C. 6295(o)(2)(B)(i)(II)) That is, DOE must consider the savings resulting from operating a covered product that the consumer would purchase under the proposed standard and the costs that the consumer would realize from operating such a product, as compared to the costs that the consumer would realize from operating a product under the current standard. This consideration is to inform the determination of whether an amended standard would be economically justified.</P>
                    <P>
                        EPCA directs DOE to consider “savings in operating costs” with no reference as to how DOE is to consider any potential increase in value provided to the consumer under a proposed standard. (
                        <E T="03">See</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(II)) In evaluating potential changes in the operating costs, DOE has considered the useful output of a furnace provided to the consumer. The rebound effect reflects a benefit directly realized by the consumer in the form of increased comfort. Were DOE to adopt an approach that did not include a value for the additional comfort provided by a more-efficient furnace, the economic benefits from the proposed standard would have been underestimated. DOE's evaluation of the economic impact of a proposed standard would include the cost of additional fuel consumption resulting from the rebound effect, but would fail to recognize the additional welfare provided directly to the consumer from a NWGF or MHGF that 
                        <PRTPAGE P="87570"/>
                        complies at the proposed efficiency level.
                    </P>
                    <P>
                        In addition to the consideration required by 42 U.S.C. 6295(o)(2)(B)(i)(II), EPCA directs DOE to consider the economic impact of the standard on manufacturers and on the consumers of the products subject to such standard. (42 U.S.C. 6295(o)(2)(B)(i)(I)) The economic impact is not narrowly defined to include only costs related to energy consumption. The occurrence of a rebound effect demonstrates that consumers value the additional output (
                        <E T="03">i.e.,</E>
                         heat) as they are paying for the additional heat, and resulting increase in comfort, reflected in their energy bills. To quantify the effects of rebound, DOE estimates the economic and energy savings impact in the NIA. See chapter 10 of the final rule TSD for more details.
                    </P>
                    <HD SOURCE="HD3">4. Energy Prices</HD>
                    <P>A marginal energy price reflects the cost or benefit of adding or subtracting one additional unit of energy consumption. Because marginal electricity price more accurately captures the incremental savings associated with a change in energy use from higher efficiency, it provides a better representation of incremental change in consumer costs than average electricity prices. Therefore, DOE applied average electricity prices for the energy use of the product purchased in the no-new-standards case, and marginal electricity prices for the incremental change in energy use associated with the other efficiency levels considered.</P>
                    <P>
                        DOE derived average monthly marginal residential and commercial electricity, natural gas, and LPG prices for each State using data from EIA.
                        <E T="51">151 152 153</E>
                        <FTREF/>
                         DOE calculated marginal monthly regional energy prices by: (1) first estimating an average annual price for each region; (2) multiplying by monthly energy price factors, and (3) multiplying by seasonal marginal price factors for electricity, natural gas, and LPG. The analysis used historical data up to 2022 for residential and commercial natural gas and electricity prices and historical data up to 2021 for LPG prices. Further details may be found in chapter 8 of the final rule TSD.
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             U.S. Department of Energy-Energy Information Administration, Form EIA-861M (formerly EIA-826) detailed data (2022) (available at: 
                            <E T="03">www.eia.gov/electricity/data/eia861m/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>152</SU>
                             U.S. Department of Energy-Energy Information Administration, Natural Gas Navigator (2022) (available at: 
                            <E T="03">www.eia.gov/naturalgas/data.php</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>153</SU>
                             U.S. Department of Energy-Energy Information Administration, 2021 State Energy Data System (SEDS) (2021) (available at: 
                            <E T="03">www.eia.gov/state/seds/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE compared marginal price factors developed by DOE from the EIA data to develop seasonal marginal price factors for 23 gas tariffs provided by the Gas Technology Institute for the 2016 residential boilers energy conservation standards rulemaking.
                        <SU>154</SU>
                        <FTREF/>
                         DOE found that the winter price factors used by DOE are generally comparable to those computed from the tariff data, indicating that DOE's marginal price estimates are reasonable at average usage levels. The summer price factors are also generally comparable. Of the 23 tariffs analyzed, eight have multiple tiers, and of these eight, six have ascending rates and two have descending rates. The tariff-based marginal factors use an average of the two tiers as the commodity price. A full tariff-based analysis would require information about the household's total baseline gas usage (to establish which tier the consumer is in), and a weight factor for each tariff that determines how many customers are served by that utility on that tariff. These data are generally not available in the public domain. DOE's use of EIA State-level data effectively averages overall consumer sales in each State, and so incorporates information from all utilities. DOE's approach is, therefore, more representative of a large group of consumers with diverse baseline gas usage levels than an approach that uses only tariffs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Gas Technology Institute (GTI) provided a reference located in the docket of DOE's 2016 rulemaking to develop energy conservation standards for residential boilers. (Docket No. EERE-2012-BT-STD-0047-0068) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2012-BT-STD-0047-0068</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE notes that within a State, there could be significant variation in the marginal price factors, including differences between rural and urban rates. In order to take this into account, DOE developed price factors for each individual household and building using the annual RECS 2020 and CBECS 2018 energy cost and energy use data. These data are then normalized to match the average State price factors, which are equivalent to a consumption-weighted average price across all households in the State. For more details on the comparative analysis and energy price analysis, 
                        <E T="03">see</E>
                         appendix 8E of the final rule TSD.
                    </P>
                    <P>
                        To estimate energy prices in future years, DOE multiplied the 2022 energy prices by the projection of annual average price changes for each of the nine Census Divisions from the Reference case in 
                        <E T="03">AEO2023,</E>
                         which has an end year of 2050.
                        <SU>155</SU>
                        <FTREF/>
                         To estimate price trends after 2050, DOE used the average annual rate of change in prices from 2045 through 2050. DOE also conducted sensitivity analyses using lower and higher energy price projections. The impact of these alternative scenarios is shown in appendix 8K of the final rule TSD.
                    </P>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             U.S. Department of Energy-Energy Information Administration, 
                            <E T="03">Annual Energy Outlook 2023</E>
                             (available at: 
                            <E T="03">www.eia.gov/outlooks/aeo/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        NCLC and Joint Efficiency Commenters stated that DOE may be underestimating future costs of natural gas and, therefore, the energy savings from installing a more efficient furnace. (NCLC, No. 383 at pp. 6-7; Joint Efficiency Commenters, No. 381 at p. 3) In contrast, AGA claimed that DOE continues to utilize energy price projections with an upward bias, consistently overestimates future natural gas costs, and should utilize price distributions instead of a mean. (AGA, No. 405 at pp. 90-91) In response, DOE notes that projected energy price trends from 
                        <E T="03">AEO</E>
                         are the best available to DOE at the time of the analysis, and DOE does not have any persuasive evidence to suggest these projected energy prices are underestimated. There is no other data set on energy prices of which DOE is aware that is as comprehensive or nationally representative as that from EIA. Furthermore, 
                        <E T="03">AEO</E>
                         provides a projection of future energy prices based on comprehensive macroeconomic modeling. Near-term projections of energy prices (as used in the LCC) tend to be similar to today's prices. The analysis does not use a single mean value, but rather the energy prices vary by State according to the input data. Finally, DOE conducts sensitivity analyses using high/low economic growth scenarios from 
                        <E T="03">AEO,</E>
                         which have higher/lower energy price trends.
                    </P>
                    <P>
                        NYSERDA agreed that actual prices deviating from forecasted prices in a given year would not significantly change the analysis, especially over a 30-year time frame, but recommended that DOE develop and publish forecast accuracy estimates for energy price projections. (NYSERDA, No. 379 at p. 10) In response, DOE acknowledges the uncertainty in energy price projections, but calculating formal uncertainty parameters based on historical editions of 
                        <E T="03">AEO</E>
                         is not necessarily informative, due to the constantly evolving models and input data sets. Prior forecast accuracy is not necessarily reflective of current models. Instead, DOE addresses energy price projection uncertainty with 
                        <PRTPAGE P="87571"/>
                        the use of sensitivity scenarios, in particular the high- and low-economic-growth sensitivity scenarios. These utilize alternative economic growth cases in 
                        <E T="03">AEO,</E>
                         as well as alternative energy price projections. The conclusions of the analysis remain the same regardless of the scenario.
                    </P>
                    <P>
                        APGA commented that, given the need to greatly expand electricity infrastructure to meet electrification and clean electricity goals, it is dubious that 
                        <E T="03">AEO2021</E>
                         relied on in the NOPR predicts residential electricity prices declining over the next 30 years. (APGA, No. 387 at p. 60) In response, DOE notes that the analysis has been updated with 
                        <E T="03">AEO2023,</E>
                         which projects increasing electricity prices in years beyond 2030.
                    </P>
                    <HD SOURCE="HD3">5. Maintenance and Repair Costs</HD>
                    <P>Repair costs are associated with repairing or replacing product components that have failed in an appliance; maintenance costs are associated with maintaining the operation of the product.</P>
                    <P>
                        DOE estimated maintenance costs for residential furnaces at each considered efficiency level using a variety of sources, including 2023 RS Means,
                        <SU>156</SU>
                        <FTREF/>
                         manufacturer literature, and information from expert consultants. DOE estimated the frequency of annual maintenance using data from RECS 2020 and the 2022 American Home Comfort Study.
                        <SU>157</SU>
                        <FTREF/>
                         DOE accounted for the likelihood that condensing furnaces require more maintenance and repair than non-condensing furnaces by adding costs to check the secondary heat exchanger and condensate system (including regular replacement of the condensate neutralizer fill material). For repair costs, DOE included repair of the ignition, gas valve, controls, and inducer fan, as well as the furnace fan blower. For condensing repair costs, DOE assumed higher material repair costs for the ignition, gas valve, controls, inducer fan, and furnace fan blower, as well as replacing or repairing the condensate pump, if applicable. To determine the service lifetime of various components, DOE used a Gas Research Institute (“GRI”) study.
                        <SU>158</SU>
                        <FTREF/>
                         For the considered standby mode and off mode standards, DOE assumed that no additional maintenance or repair is required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             RS Means Company Inc., 
                            <E T="03">RS Means Facilities Maintenance &amp; Repair Cost Data</E>
                             (2023) (available at: 
                            <E T="03">www.rsmeans.com/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             Decision Analysts, 2022 American Home Comfort Study (available at: 
                            <E T="03">www.decisionanalyst.com/Syndicated/HomeComfort/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             Jakob, F.E., J.J. Crisafulli, J.R. Menkedick, R.D. Fischer, D.B. Philips, R.L. Osbone, J.C. Cross, G.R. Whitacre, J.G. Murray, W.J. Sheppard, D.W. DeWirth, and W.H. Thrasher, 
                            <E T="03">Assessment of Technology for Improving the Efficiency of Residential Gas Furnaces and Boilers, Volume I and II—Appendices</E>
                             (September 1994) Gas Research Institute, Report No. GRI-94/0175 (available at: 
                            <E T="03">www.gti.energy/software-and-reports/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>In order to validate DOE's approach, DOE did a review of maintenance and repair costs available from a variety of sources, including online resources. Overall, DOE found that the maintenance and repair cost estimates applied in its analysis fall within the typical range of published maintenance and repair charges.</P>
                    <P>
                        For more details on DOE's methodology for calculating maintenance and repair costs, including all online resources reviewed, 
                        <E T="03">see</E>
                         appendix 8F of the TSD for this final rule.
                    </P>
                    <HD SOURCE="HD3">6. Product Lifetime</HD>
                    <P>
                        Product lifetime is the age at which an appliance is retired from service. DOE conducted an analysis of furnace lifetimes based on the methodology described in a recent journal paper.
                        <SU>159</SU>
                        <FTREF/>
                         For this analysis, DOE relied on RECS 1990, 1993, 2001, 2005, 2009, 2015, and 2020.
                        <SU>160</SU>
                        <FTREF/>
                         DOE also used the U.S. Census's biennial American Housing Survey (“AHS”), from 1974-2021, which surveys all housing, noting the presence of a range of appliances.
                        <SU>161</SU>
                        <FTREF/>
                         DOE used the appliance age data from these surveys, as well as the historical furnace shipments, to generate an estimate of the survival function. The survival function provides a lifetime range from minimum to maximum, as well as an average lifetime. DOE estimates the average product lifetime to be 21.5 years for NWGFs and MHGFs. This estimate is consistent with the range of values identified in a literature review, which included values from 16 years to 23.6 years.
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Lutz, J., A. Hopkins, V. Letschert, V. Franco, and A. Sturges, Using national survey data to estimate lifetimes of residential appliances, 
                            <E T="03">HVAC&amp;R Research</E>
                             (2011) 17(5): p. 28. (Available at 
                            <E T="03">www.tandfonline.com/doi/abs/10.1080/10789669.2011.558166</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             U.S. Department of Energy: Energy Information Administration, 
                            <E T="03">Residential Energy Consumption Survey (“RECS”),</E>
                             Multiple Years (1990, 1993, 1997, 2001, 2005, 2009, 2015, and 2020). (Available at 
                            <E T="03">www.eia.gov/consumption/residential/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             U.S. Census Bureau: Housing and Household Economic Statistics Division, 
                            <E T="03">American Housing Survey,</E>
                             Multiple Years (1974, 1975, 1976, 1977, 1978, 1979, 1980, 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, 2001, 2003, 2005, 2007, 2009, 2011, 2013, 2015, 2017, 2019, and 2021). (Available at 
                            <E T="03">www.census.gov/programs-surveys/ahs/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        To better account for differences in lifetime due to furnace utilization, DOE determined separate lifetimes for the North and rest of country (as identified in the shipments analysis) but only based on the difference in operating hours in the two regions. DOE assumed that equipment operated for fewer hours will have a longer service lifetime. DOE developed regional lifetime estimates by using regional shipments, RECS survey data, and AHS survey data and applying the methodology described above. More specifically, these data include AHRI shipments in the North and rest of country regions from 2010-2015,
                        <SU>162</SU>
                        <FTREF/>
                         2020 RECS data,
                        <SU>163</SU>
                        <FTREF/>
                         and 2015-2021 AHS data survey data.
                        <SU>164</SU>
                        <FTREF/>
                         DOE also incorporated lifetime data from Decision Analysts AHCS from 2006, 2008, 2010, 2013, 2016, 2019, and 2022.
                        <SU>165</SU>
                        <FTREF/>
                         The average lifetime used in this final rule is 22.5 years in the North and 20.2 years in the rest of country for both NWGFs and MHGFs (national average is 21.5 years). Consumer furnaces located in the North are generally higher capacity to meet the higher heating load, and, thus, can have lower operating hours. Additionally, furnace replacements in the rest of country are more likely to be linked to a paired central air conditioner. For these reasons, the consumer furnace lifetimes in the two regions differ slightly. DOE also conducted sensitivity analyses using a median lifetime of 16 years (low lifetime scenario) and 27 years (high lifetime scenario) for NWGFs and MHGFs (
                        <E T="03">see</E>
                         appendix 8G in the TSD for this final rule).
                    </P>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute, Non-Condensing and Condensing Regional Gas Furnace Shipments for 2010-2015, Confidential Data Provided to Navigant Consulting (Nov. 26, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             U.S. Department of Energy: Energy Information Administration, 
                            <E T="03">Residential Energy Consumption Survey (“RECS”)</E>
                             (2020). (Available at 
                            <E T="03">www.eia.gov/consumption/residential/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             U.S. Census Bureau: Housing and Household Economic Statistics Division, 
                            <E T="03">American Housing Survey,</E>
                             Multiple Years (2015-2021). (Available at 
                            <E T="03">www.census.gov/programs-surveys/ahs/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             Decision Analysts, 2006, 2008, 2010, 2013, 2016, 2019, and 2022 American Home Comfort Studies. (Available at 
                            <E T="03">www.decisionanalyst.com/Syndicated/HomeComfort/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        There is significant variation in the distribution of furnace lifetime, and DOE uses a Weibull distribution to account for this distribution of product failure. DOE accounts for this variation by projecting energy cost savings and health benefits through the final year of furnace lifetime for all products shipped in 2058 (
                        <E T="03">i.e.,</E>
                         through 2113).
                        <PRTPAGE P="87572"/>
                    </P>
                    <P>Chapter 8 of the TSD for this final rule provides further details on the methodology and sources DOE used to develop furnace lifetimes.</P>
                    <P>AGPA claimed that a more complex condensing furnace with more parts that could break down will have a shorter life. APGA asserted that appliance manufacturers have explained to DOE that condensing natural gas appliances are more complex than their baseline counterparts, so the likelihood that the condensing appliance will fail is greater than with a non-condensing appliance. (APGA, No. 387 at pp. 49-50)</P>
                    <P>As described in more detail in appendix 8G of the final rule TSD, the historical lifetime data do not show any indication that condensing furnace lifetimes are significantly different from non-condensing furnaces. The historical data cover a time period during which condensing furnaces gained more significant market share. As described in section IV.F.5 of this document, DOE included additional repair and maintenance costs for condensing furnaces to account for the increased complexity of these products, which would cover minor component failures that do not necessitate replacing the furnace.</P>
                    <P>APGA asserted that DOE made an absurd conclusion that the average lifetime used in this NOPR is 22.5 years in the North and 20.2 years in the rest of country for both NWGFs and MHGFs. APGA claims that where furnaces run longer and harder in the North, product lifetime should be shorter rather than longer. (APGA, No. 387 at p. 50)</P>
                    <P>In response, DOE notes that although the heating load is higher in the North compared to the rest of country, furnace sizing is also typically much higher. As a result, burner operating hours are not necessarily higher in the North than the rest of country, due to the increased capacity, and, thus, the furnace is not necessarily “working harder” in the North as the commenter claims. Furthermore, furnaces in the rest of country are more likely to be paired with an air conditioner, and, thus, the air handler can have significantly higher operating hours than in the North. Therefore, the fact that the lifetime is slightly lower in the rest of country is a reasonable result. DOE also notes that, with a slightly shorter lifetime in the rest of country, which typically has lower furnace operating costs compared to the North, DOE's estimates of LCC savings are, therefore, more conservative than if DOE had assumed a higher lifetime for the rest of country.</P>
                    <P>AGA argued that DOE's economic analysis is highly sensitive to equipment lifetime assumptions, but the assumed consumer furnace lifetime used in that analysis is neither reasonable nor justified. More specifically, AGA asserted that the LCC spreadsheet incorrectly assumes that all consumer gas furnaces have the same lifetime regardless of energy efficiency. According to the commenter, since condensing furnaces are subject to condensing, acidic water vapor, contain more parts, and are generally more complex, it is unreasonable to assume condensing furnaces would not have a shorter lifetime than non-condensing furnaces. Indeed, AGA argued that the shorter lifespan of condensing products is well documented by actual data and studies that the NOPR fails to confront. AGA presented an analysis using DOE's LCC model spreadsheet that seeks to demonstrate that even modest changes in assumed equipment lifetime produce significant changes in the life-cycle cost savings. (AGA, No. 405 at pp. 67-70)</P>
                    <P>
                        In response, DOE conducted an analysis of the available data on furnace lifetime, including both condensing and non-condensing furnaces. As discussed in further detail in appendix 8G of the final rule TSD, DOE found no data to support a shorter lifetime for condensing furnaces, despite their generally more complex nature. DOE further notes that it presented sensitivity scenarios with alternative lifetime estimates in the NOPR TSD and does so again for the final rule TSD (
                        <E T="03">see</E>
                         appendix 8G). With a shorter lifetime assumption, the average LCC savings are obviously not as large as DOE's reference case. However, LCC savings at the adopted standard level remain positive, with a similar percentage of consumers experiencing net cost, and the relative comparison between the potential standard levels remain the same. Therefore, DOE's conclusions regarding the economic justification for the rule remain unchanged, even under these scenarios with alternative lifetimes.
                    </P>
                    <P>APGA argued that including distant benefits beyond 2058 is contrary to the statute and that DOE should limit its evaluation of savings in operating costs to the period of the estimated average life of the covered product. (APGA, No. 387 at p. 15) In response, DOE clarifies that the LCC analysis only considers the costs and operating savings throughout the estimated average life of the covered product. This is explicitly in line with the direction of the statute. (42 U.S.C. 6295(o)(2)(B)(i)(II)) The commenter appears to be conflating the LCC with national impact analysis (NIA), which additionally considers the aggregated national impact of products shipped over a 30 year period (2029-2058), in order to evaluate the total projected energy savings and net present value of the rule. (42 U.S.C. 6295(o)(2)(B)(i)(III)) Products shipped in that final year will accrue costs and savings beyond 2058. Both the LCC and NIA are considered as part of the evaluation of economic justification of potential standards.</P>
                    <P>MHI asserted that DOE's assumption that the lifetime of a MHGF is the same as the lifetime of a manufactured home is incorrect, as the useful life of manufactured homes is increasing and is now equivalent to site-built housing for properly maintained homes. Therefore, MHI argued that manufactured homeowners will incur substantial costs when replacing their furnace that may be prohibitively expensive. MHI further argued that this could lead consumers to continue servicing old equipment rather than making improvements, which would negate any energy savings the potential standards under consideration might bring, as well as potentially increasing the risk of air quality concerns such as carbon monoxide exposure. (MHI, No. 365 at p. 4)</P>
                    <P>In response, DOE notes that its estimate of MHGF lifetime is approximately 21 years on average, which is the same as for NWGFs. It is not directly tied to the future life expectancy of a manufactured home. Additionally, DOE accounts for increased installation costs when replacing an existing MHGF in a manufactured home with a higher-efficiency MHGF. This accounts for the situation described by the commenter in which the useful life of the manufactured home is longer and the MHGF is replaced. DOE also acknowledges that some consumers may choose to continue servicing an existing MHGF rather than replace it, and includes this effect in its repair vs. replace methodology. This will reduce energy savings to some degree, although eventually, the MHGF will ultimately need to be replaced. Finally, DOE assumes that any licensed professional servicing an existing MHGF will correct any leaks or potential safety issues and will not allow any unsafe operation of a MHGF to persist.</P>
                    <HD SOURCE="HD3">7. Discount Rates</HD>
                    <P>
                        In the calculation of LCC, DOE applies discount rates appropriate to households and commercial buildings to estimate the present value of future operating cost savings. The discount rate used in the LCC analysis represents the rate from an individual consumer's perspective. DOE estimated a distribution of discount rates for NWGFs and MHGFs based on consumer 
                        <PRTPAGE P="87573"/>
                        financing costs and the opportunity cost of consumer funds for residential applications and cost of capital for commercial applications.
                    </P>
                    <P>
                        DOE applies weighted average discount rates calculated from consumer debt and asset data, rather than marginal or implicit discount rates.
                        <SU>166</SU>
                        <FTREF/>
                         DOE notes that the LCC does not analyze the appliance purchase decision, so the implicit discount rate is not relevant in this model. The LCC analysis estimates net present value over the lifetime of the product, so the appropriate discount rate will reflect the general opportunity cost of household funds, taking this time scale into account. Given the long time horizon modeled in the LCC, the application of a marginal interest rate associated with an initial source of funds is inaccurate. Regardless of the method of purchase, consumers are expected to continue to rebalance their debt and asset holdings over the LCC analysis period, based on the restrictions consumers face in their debt payment requirements and the relative size of the interest rates available on debts and assets. DOE estimates the aggregate impact of this rebalancing using the historical distribution of debts and assets. For commercial applications, DOE's method views the purchase of a higher-efficiency appliance as an investment that yields a stream of energy cost savings. DOE derived the discount rates for the LCC analysis by estimating the cost of capital for companies or public entities that purchase consumer boilers. For private firms, the weighted-average cost of capital (WACC) is commonly used to estimate the present value of cash flows to be derived from a typical company project or investment. Most companies use both debt and equity capital to fund investments, so their cost of capital is the weighted average of the cost to the firm of equity and debt financing, as estimated from financial data for publicly-traded firms in the sectors that purchase consumer boilers. As discount rates can differ across industries, DOE estimates separate discount rate distributions for a number of aggregate sectors with which elements of the LCC building sample can be associated.
                    </P>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             The implicit discount rate is inferred from a consumer purchase decision between two otherwise identical goods with different first cost and operating cost. It is the interest rate that equates the increment of first cost to the difference in net present value of lifetime operating cost, incorporating the influence of several factors: transaction costs; risk premiums and response to uncertainty; time preferences; interest rates at which a consumer is able to borrow or lend. The implicit discount rate is not appropriate for the LCC analysis because it reflects a range of factors that influence consumer purchase decisions, rather than the opportunity cost of the funds that are used in purchases.
                        </P>
                    </FTNT>
                    <P>
                        To establish residential discount rates for the LCC analysis, DOE identified all relevant household debt or asset classes in order to approximate a consumer's opportunity cost of funds related to appliance energy cost savings. DOE estimated the average percentage shares of the various types of debt and equity by household income group using data from the Federal Reserve Board's triennial Survey of Consumer Finances 
                        <SU>167</SU>
                        <FTREF/>
                         (SCF) for 1995, 1998, 2001, 2004, 2007, 2010, 2013, 2016, and 2019. Using the SCF and other sources, DOE developed a distribution of rates for each type of debt and asset by income group to represent the rates that may apply in the year in which amended or new standards would take effect. DOE assigned each sample household a specific discount rate drawn from one of the distributions. DOE assigned each sample household a specific discount rate drawn from one of the distributions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             The Federal Reserve Board, 
                            <E T="03">Survey of Consumer Finances</E>
                             (1995, 1998, 2001, 2004, 2007, 2010, 2013, 2016, and 2019) (available at: 
                            <E T="03">www.federalreserve.gov/econres/ scfindex.htm</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE notes that the interest rate associated with the specific source of funds used to purchase a furnace (
                        <E T="03">i.e.,</E>
                         the marginal rate) is not the appropriate metric to measure the discount rate as defined for the LCC analysis. The marginal interest rate alone would only be the relevant discount rate if the consumer were restricted from re-balancing their debt and asset holdings (by redistributing debts and assets based on the relative interest rates available) over the entire time period modeled in the LCC analysis. The LCC is not analyzing a marginal decision; rather, it estimates net present value over the lifetime of the product, so, therefore, the discount rate needs to reflect the opportunity cost of both the money flowing in (through operating cost savings) and out (through upfront cost expenditures) of the net present value calculation. In the context of the LCC analysis, the consumer is not only discounting based on their opportunity cost of money spent today, but instead, they are additionally discounting the stream of future benefits. A consumer might pay for an appliance with cash, thereby forgoing investment of those funds into one of the interest earning assets to which they might have access. Alternatively, a consumer might pay for the initial purchase by going into debt, subject to the cost of capital at the interest rate relevant for that purchase. However, a consumer will also receive a stream of future benefits in terms of annual operating cost savings that they could either put towards paying off that or other debts, or towards assets, depending on the restrictions they face in their debt payment requirements and the relative size of the interest rates on their debts and assets. All of these interest rates are relevant in the context of the LCC analysis, as they all reflect direct costs of borrowing, or opportunity costs of money either now or in the future. Additionally, while a furnace itself is not a readily tradable commodity, the money used to purchase it and the annual operating cost savings accruing to it over time flow from and to a household's pool of debt and assets, including mortgages, mutual funds, money market accounts, 
                        <E T="03">etc.</E>
                         Therefore, the weighted-average interest rate on debts and assets provides a reasonable estimate for a household's opportunity cost (and discount rate) relevant to future costs and savings. The best proxy for this re-optimization of debt and asset holdings over the lifetime of the LCC analysis is to assume that the distribution of debts and assets in the future will be proportional to the distribution of debts and assets historically. Given the long time horizon modeled in the LCC, the application of a marginal rate alone would be inaccurate. DOE's methodology for deriving residential discount rates is in line with the weighted-average cost of capital used to estimate commercial discount rates. The average rate in this final rule analysis across all types of household debt and equity and across all income groups, weighted by the shares of each type, is 4.0 percent for NWGFs and 4.5 percent for MHGFs.
                    </P>
                    <P>
                        To establish commercial discount rates for the small fraction of NWGFs installed in commercial buildings, DOE estimated the weighted-average cost of capital using data from Damodaran Online.
                        <SU>168</SU>
                        <FTREF/>
                         The weighted-average cost of capital is commonly used to estimate the present value of cash flows to be derived from a typical company project or investment. Most companies use both debt and equity capital to fund investments, so their cost of capital is the weighted average of the cost to the firm of equity and debt financing. DOE estimated the cost of equity using the capital asset pricing model, which assumes that the cost of equity for a particular company is proportional to the systematic risk faced by that company. DOE's commercial discount rate approach is based on the 
                        <PRTPAGE P="87574"/>
                        methodology described in a LBNL report, and the distribution varies by business activity.
                        <SU>169</SU>
                        <FTREF/>
                         The average rate for NWGFs used in commercial applications in this final rule analysis, across all business activity, is 6.7 percent.
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             Damodaran Online, Data Page: Costs of Capital by Industry Sector (2022) (available at: 
                            <E T="03">pages.stern.nyu.edu/~adamodar/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             Fujita, K. Sydny. Commercial, Industrial, and Institutional Discount Rate Estimation for Efficiency Standards Analysis: Sector-Level Data 1998-2022. 2023. (Available at: 
                            <E T="03">eta-publications.lbl.gov/publications/commercial-industrial-and-2</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>See chapter 8 and appendix 8H of the final rule TSD for further details on the development of consumer and commercial discount rates.</P>
                    <HD SOURCE="HD3">8. Energy Efficiency Distribution in the No-New-Standards Case</HD>
                    <P>
                        To accurately estimate the share of consumers that would be affected by a potential energy conservation standard at a particular efficiency level, DOE's LCC analysis considered the projected distribution (
                        <E T="03">i.e.,</E>
                         market shares) of product efficiencies under the no-new-standards case (
                        <E T="03">i.e.,</E>
                         the case without amended or new energy conservation standards) in the compliance year (2029). This approach reflects the fact that some consumers may purchase products with efficiencies greater than the baseline levels, such that even in a no-new-standards case, consumers will be purchasing higher-efficiency furnaces.
                    </P>
                    <P>To estimate the effect of a potential standard, DOE must estimate not only the expected market share of products at varying efficiencies, but also estimate how such products will be used—that is, in what buildings. The base case reflects three analytical steps: (1) an estimate of the buildings likely to use furnaces, (2) an estimate of the efficiency of the furnaces that would be sold absent the rule; and (3) the matching of particular furnace efficiencies with particular building types.</P>
                    <P>Each building in the sample was assigned a furnace efficiency sampled from the no-new-standards-case efficiency distribution for the appropriate product class, either NWGFs or MHGFs. In assigning furnace efficiencies, DOE determined that, based on the presence of well-understood market failures (discussed at the end of this section), a random assignment of efficiencies, with some modifications discussed below, best accounts for consumer behavior in the consumer furnaces market. Random assignment of efficiencies reflects the full range of consumer behaviors in this market, including consumers who make economically beneficial decisions and consumers that, due to market failures, do not make such economically beneficial decisions.</P>
                    <P>The LCC Monte Carlo simulations draw from the efficiency distributions and randomly assign an efficiency to the consumer furnaces purchased by each sample household and commercial building in the no-new-standards case. The resulting percentage shares within the sample match the market shares in the efficiency distributions. But, as mentioned previously, DOE considered available data in determining whether any modifications should be made to the random assignment methodology, as discussed in the following sections.</P>
                    <HD SOURCE="HD3">a. Condensing Furnace Market Share in Compliance Year</HD>
                    <P>
                        To estimate the efficiency distribution of NWGFs and MHGFs in 2029, DOE considered the market trends regarding increased sales of high-efficiency furnaces (including any available incentives). DOE relied on data provided by AHRI on historical shipments for each product class. DOE reviewed AHRI data from 1992 and 1994-2003 (which includes both NWGF and MHGF shipments data), detailing the market shares of non-condensing 
                        <SU>170</SU>
                        <FTREF/>
                         and condensing (90-percent AFUE and greater) furnaces by State.
                        <SU>171</SU>
                        <FTREF/>
                         AHRI also provided data for non-condensing and condensing furnace shipments by region for 2004-2009 
                        <SU>172</SU>
                        <FTREF/>
                         and nationally for 2010-2014.
                        <SU>173</SU>
                        <FTREF/>
                         AHRI additionally submitted proprietary data including shipments of condensing and non-condensing furnaces in the North and rest of country regions from 2010 to 2015.
                        <SU>174</SU>
                        <FTREF/>
                         DOE also obtained 2013-2022 HARDI shipments data by efficiency for most States.
                        <SU>175</SU>
                        <FTREF/>
                         AHRI and HARDI data capture different fractions of the market. Using the shipments data from AHRI and HARDI, DOE derived historical trends for each State. DOE used the HARDI State-level data (2013-2022) to project the trends and to estimate the condensing furnace market share in 2029. This excludes years with a Federal tax incentive 
                        <E T="51">176 177</E>
                        <FTREF/>
                         in order to better reflect the trends of the current market. The maximum share of condensing furnace shipments for each region was assumed to be 95 percent, in order to reflect a small fraction of the market that would continue to install non-condensing furnaces. See chapter 8 and appendix 8I of the TSD for this final rule for further information on the derivation of the efficiency distribution projections.
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             The market share of furnaces with AFUE between 80 and 90 percent is well below 1 percent due to the very high installed cost of 81-percent AFUE furnaces, compared with condensing designs, and concerns about safety of operation. AHRI also provided national shipments data (not disaggregated by region) by efficiency for 1975, 1978, 1980, 1983-1991, and 1993.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute (formerly Gas Appliance Manufacturers Association), Updated Shipments Data for Residential Furnaces and Boilers (April 25, 2005) (available at 
                            <E T="03">www.regulations.gov/document/EERE-2006-STD-0102-0138</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute, Non-Condensing and Condensing Regional Gas Furnace Shipments for 2004-2009 Data Provided to DOE (July 20, 2010).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute, Non-Condensing and Condensing Gas Furnace Shipments for 2010-2014. (Available at 
                            <E T="03">www.regulations.gov/document/EERE-2014-BT-STD-0031-0052</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute, Non-Condensing and Condensing Regional Gas Furnace Shipments for 2010-2015, Confidential Data Provided to Navigant Consulting (Nov. 26, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             Heating, Air-conditioning and Refrigeration Distributors International (HARDI), DRIVE portal (HARDI Visualization Tool managed by D+R International until 2022), proprietary Gas Furnace Shipments Data from 2013-2022 provided to Lawrence Berkeley National Laboratory (LBNL).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             DOE did not use the data for 2008-2011 because these data appear to be influenced by incentives. AHRI also stated the period from 2008 through 2011 was an outlier. (AHRI, No. 303 at pp. 23-25).
                        </P>
                        <P>
                            <SU>177</SU>
                             The Energy Policy Act of 2005 established the tax credit for energy improvements to existing homes. The credit was originally limited to purchases made in 2006 and 2007, with an aggregate cap of $500 for all qualifying purchases made in these two years combined. For improvements made in 2009 and 2010, the cap was increased to $1,500. This coincides with a sharp increase in condensing furnace shipments. This credit has since been renewed several times, but the credit was reduced to its original form and original cap of $500 starting in 2011. More information is available at 
                            <E T="03">www.energy.gov/savings/dsire-page</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>APGA argued that DOE used insufficient shipments data to estimate the share of condensing furnaces in the country, relying only on data from 2010-2014, and as a result, there is considerable reason to doubt the results of the analysis. (APGA, No. 387 at p. 13) In response, DOE notes that the commenter misunderstands the analysis. As detailed above, DOE utilizes significantly more historical shipment data than only 2010-2014, data which are disaggregated by efficiency in order to estimate the current and projected market share of condensing furnaces in the no-new-standards case. In particular, DOE includes shipment data by efficiency up to 2022 in its analysis.</P>
                    <HD SOURCE="HD3">b. Market Shares of Different Condensing Furnace Efficiency Levels</HD>
                    <P>
                        DOE used data on the shipments by efficiency from the 2013-2022 HARDI shipments to disaggregate the condensing furnace shipments among 
                        <PRTPAGE P="87575"/>
                        the different condensing efficiency levels. Based on stakeholder input, DOE assumed that the fraction of furnace shipments of 95-percent or higher AFUE would be double in the new construction market. DOE also assumed that the fraction of furnace shipments of 95-percent or higher AFUE would be higher in the North compared to the South, because the threshold for ENERGY STAR designation in the North is 95-percent AFUE compared to 90-percent AFUE in the South. The resulting distributions were then used to assign the new furnace AFUE for each sampled household or building in the no-new-standards case, both in the replacement and new construction markets, and in each of the 50 States and Washington, DC.
                    </P>
                    <P>
                        The estimated market shares by region (North and rest of country) and market segment (replacement and new construction) for the no-new-standards case for NWGFs and MHGFs in 2029 are shown in Tables IV.11 and IV.12 of this document, respectively. DOE estimated that the national market share of condensing products would be 61 percent in 2029 for NWGFs, and 34 percent for MHGFs. 
                        <E T="03">See</E>
                         chapter 8 and appendix 8I of the final rule TSD for further information on the derivation of the efficiency distributions.
                    </P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table IV—10 AFUE Efficiency Distribution in the No-New-Standards Case for Non-Weatherized Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Efficiency, AFUE
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="1">
                                2029 Market share
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">North, repl</CHED>
                            <CHED H="2">North, new</CHED>
                            <CHED H="2">South, repl</CHED>
                            <CHED H="2">South, new</CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Residential Market</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">80</ENT>
                            <ENT>25.0</ENT>
                            <ENT>15.9</ENT>
                            <ENT>67.8</ENT>
                            <ENT>33.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">90</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">92</ENT>
                            <ENT>17.9</ENT>
                            <ENT>19.9</ENT>
                            <ENT>10.6</ENT>
                            <ENT>23.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">95</ENT>
                            <ENT>55.3</ENT>
                            <ENT>62.4</ENT>
                            <ENT>20.2</ENT>
                            <ENT>39.4</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">98</ENT>
                            <ENT>1.4</ENT>
                            <ENT>1.5</ENT>
                            <ENT>1.3</ENT>
                            <ENT>3.2</ENT>
                        </ROW>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Commercial Market</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">80</ENT>
                            <ENT>22.3</ENT>
                            <ENT>11.8</ENT>
                            <ENT>67.5</ENT>
                            <ENT>34.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">90</ENT>
                            <ENT>1.7</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">92</ENT>
                            <ENT>17.8</ENT>
                            <ENT>17.6</ENT>
                            <ENT>11.9</ENT>
                            <ENT>17.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">95</ENT>
                            <ENT>58.3</ENT>
                            <ENT>70.6</ENT>
                            <ENT>20.6</ENT>
                            <ENT>44.7</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">98</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>4.3</ENT>
                        </ROW>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">All</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">80</ENT>
                            <ENT>24.8</ENT>
                            <ENT>15.6</ENT>
                            <ENT>67.8</ENT>
                            <ENT>33.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">90</ENT>
                            <ENT>0.5</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">92</ENT>
                            <ENT>17.8</ENT>
                            <ENT>19.7</ENT>
                            <ENT>10.7</ENT>
                            <ENT>23.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">95</ENT>
                            <ENT>55.5</ENT>
                            <ENT>63.1</ENT>
                            <ENT>20.2</ENT>
                            <ENT>39.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">98</ENT>
                            <ENT>1.4</ENT>
                            <ENT>1.4</ENT>
                            <ENT>1.2</ENT>
                            <ENT>3.2</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             “Repl” means “replacement,” and “New” means “new construction.”
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table IV—11 AFUE Efficiency Distribution in the No-New-Standards Case for Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Efficiency, AFUE
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="1">
                                2029 Market share
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">North, repl</CHED>
                            <CHED H="2">North, new</CHED>
                            <CHED H="2">South, repl</CHED>
                            <CHED H="2">South, new</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">80</ENT>
                            <ENT>58.2</ENT>
                            <ENT>57.2</ENT>
                            <ENT>83.7</ENT>
                            <ENT>85.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">90</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">92</ENT>
                            <ENT>9.4</ENT>
                            <ENT>9.1</ENT>
                            <ENT>5.5</ENT>
                            <ENT>4.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">95</ENT>
                            <ENT>31.3</ENT>
                            <ENT>32.2</ENT>
                            <ENT>8.7</ENT>
                            <ENT>8.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">96</ENT>
                            <ENT>1.1</ENT>
                            <ENT>1.5</ENT>
                            <ENT>2.0</ENT>
                            <ENT>1.3</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             “Repl” means “replacement,” and “New” means “new construction.”
                        </TNOTE>
                    </GPOTABLE>
                    <P>MHI argued that manufactured homes already offer high-efficiency options, and that over 30 percent of manufactured homes meet or exceed EnergyStar Standards (MHI, No. 365 at p. 2)</P>
                    <P>The DCA commented that consumers are already installing higher-efficiency furnaces across the country. (DCA, No. 372 at p. 1) NYSERDA similarly stated that the proposed standard's efficiency levels are already being met by a significant share of the New York market. (NYSERDA, No. 379 at p. 1) CEC commented that furnaces capable of meeting the proposed standards are already commercially available on the market, and that condensing furnaces have been required in Canada for over a decade. (CEC, No. 382 at p. 2)</P>
                    <P>
                        In response, DOE acknowledges that some consumers are already purchasing furnaces at an efficiency level equal to or greater than the standard level proposed in the NOPR and accounts for these consumers in the analysis. Such consumers are not impacted by the rule and are not included in the estimate of average LCC savings. As the commenters suggest, the availability of these high-efficiency furnaces on the market demonstrates their technological feasibility in the context of DOE's 
                        <PRTPAGE P="87576"/>
                        consideration of amended energy conservation standards for NWGFs and MHGFs pursuant to EPCA at a national level.
                    </P>
                    <HD SOURCE="HD3">c. Assignment of Furnace Efficiency to Sampled Households</HD>
                    <P>For this final rule, DOE continued to assign furnace efficiency to households in the no-new-standards case in two steps, first at the State level, then at the building-specific level. However, DOE's approach was modified to include other household characteristics. The market share of each efficiency level at the State level is based on historical shipments data (from the 2013-2022 HARDI data) and an estimated projection of trends between 2022 and the compliance year. The furnace efficiency distribution is then allocated to specific RECS households or CBECS, according to the market shares generated for each State. In some States, the market share of condensing furnaces is very high, and, therefore, most households in that State in the LCC analysis will be assigned a condensing furnace in the no-new-standards case. If a household is assigned a condensing furnace in the no-new-standards case, the replacement furnace is assumed to be condensing as well.</P>
                    <P>
                        To assign the efficiency at the building-specific level, DOE carefully considered any available data that might improve assignment of furnace efficiency in the LCC analysis. First, DOE examined the 2013-2022 HARDI data of gas furnace input capacity by efficiency level and region. DOE did not find a significant correlation between input capacity and condensing furnace market share in a given region, a correlation that might be expected 
                        <E T="03">a priori</E>
                         since buildings with larger furnace input capacity are more likely to be larger and have greater energy consumption. DOE next considered the GTI data submitted to DOE for 21 Illinois households, which included the efficiency of the furnace (AFUE), size of the furnace (input capacity), square footage of the house, and annual energy use.
                        <SU>178</SU>
                        <FTREF/>
                         Recognizing the relatively small sample size, DOE notes that these data exhibit no significant correlations between furnace efficiency and other household characteristics (with most furnace installations in this sample being non-condensing furnaces with high energy use). DOE also considered other data of furnace efficiency compared to household characteristics for other parts of the country, including the NEEA Database and permit data (
                        <E T="03">see</E>
                         appendix 8I of the TSD for this final rule for more details). These data also suggest little to no correlation between furnace efficiency and household characteristics or economic factors. Finally, DOE considered the 2019 AHCS survey data.
                        <SU>179</SU>
                        <FTREF/>
                         This survey includes questions to recent purchasers of HVAC equipment regarding the perceived efficiency of their equipment (Standard, High, and Super-High Efficiency), as well as questions related to various household and demographic characteristics. From these data, DOE did find a statistically significant, albeit weak, correlation: Households with larger square footage exhibited a slightly higher fraction of High or Super-High efficiency equipment installed. Specifically, the lower third of the square footage bins was five percent less likely to install higher efficiency units as compared to the middle third of the square footage bins, while the upper third of square footage bins was five percent more likely to do so than the middle square footage bin. Therefore, DOE used the AHCS data to adjust its furnace efficiency distributions as follows: (1) the market share of condensing equipment for households under 1,500 sq. ft. was decreased by five percentage points; and (2) the market share of condensing equipment for households above 2,500 sq. ft. was increased by five percentage points; however, DOE continued to maintain the same aggregate State-level efficiency distribution. For example, if a given State has a condensing market share of 50 percent based on the shipments data, the probability of any one household in that State being assigned a condensing furnace in the no-new-standards case is 50 percent. However, if the household is larger than 2,500 sq. ft., that probability increases to 55 percent instead. This adjustment preferentially assigns condensing furnaces within a given State to larger households (with presumably larger energy consumption) in the no-new-standards case, and preferentially assigns non-condensing furnaces to smaller households. This adjustment results in a more conservative estimate of potential energy savings.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             Gas Technology Institute (GTI), Empirical Analysis of Natural Gas Furnace Sizing and Operation, GTI-16/0003 (November 2016) (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2014-BT-STD-0031-0309</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             Decision Analysts, 2019 American Home Comfort Studies (available at: 
                            <E T="03">www.decisionanalyst.com/Syndicated/HomeComfort/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>Beyond this adjustment of the probability distribution, which is bounded by the shipments data, the assignment of furnace efficiency to a given household is performed according to the random-assignment method described in this section.</P>
                    <P>
                        While DOE acknowledges that economic factors may play a role when consumers, commercial building owners, or builders decide on what type of furnace to install, assignment of furnace efficiency for a given installation, based solely on economic measures such as life-cycle cost or simple payback period most likely would not fully and accurately reflect actual real-world installations. There are a number of market failures discussed in the economics literature, as discussed in the July 2022 NOPR and summarized below, that illustrate how purchasing decisions with respect to energy efficiency are unlikely to be perfectly correlated with energy use, as described subsequently. DOE maintains that the method of assignment, which is in part random, is a reasonable approach. It simulates behavior in the furnace market, where market failures result in purchasing decisions not being perfectly aligned with economic interests, and it does so more realistically than relying only on apparent cost-effectiveness criteria derived from the limited information in CBECS or RECS. DOE further emphasizes that its approach does not assume that all purchasers of furnaces make economically irrational decisions (
                        <E T="03">i.e.,</E>
                         the lack of a correlation is not the same as a negative correlation). As part of the random assignment, some homes or buildings with large heating loads will be assigned higher-efficiency furnaces, and some homes or buildings with particularly low heating loads will be assigned baseline furnaces, which aligns with the available data. By using this approach, DOE acknowledges the uncertainty inherent in the data and minimizes any bias in the analysis by using random assignment, as opposed to assuming certain market conditions that are unsupported by the available evidence.
                    </P>
                    <P>
                        The following discussion provides more detail about the various market failures that affect consumer furnace purchases. First, consumers are motivated by more than simple financial trade-offs. There are consumers who are willing to pay a premium for more energy-efficient products because they are environmentally conscious.
                        <SU>180</SU>
                        <FTREF/>
                         There are also several behavioral factors that can influence the purchasing decisions 
                        <PRTPAGE P="87577"/>
                        of complicated multi-attribute products, such as furnaces. For example, consumers (or decision makers in an organization) are highly influenced by choice architecture, defined as the framing of the decision, the surrounding circumstances of the purchase, the alternatives available, and how they are presented for any given choice scenario.
                        <SU>181</SU>
                        <FTREF/>
                         The same consumer or decision maker may make different choices depending on the characteristics of the decision context (
                        <E T="03">e.g.,</E>
                         the timing of the purchase, competing demands for funds), which have nothing to do with the characteristics of the alternatives themselves or their prices. Consumers or decision makers also face a variety of other behavioral phenomena including loss aversion, sensitivity to information salience, and other forms of bounded rationality.
                        <SU>182</SU>
                        <FTREF/>
                         Thaler, who won the Nobel Prize in Economics in 2017 for his contributions to behavioral economics, and Sunstein point out that these behavioral factors are strongest when the decisions are complex and infrequent, when feedback on the decision is muted and slow, and when there is a high degree of information asymmetry.
                        <SU>183</SU>
                        <FTREF/>
                         These characteristics describe almost all purchasing situations of appliances and equipment, including furnaces. The installation of a new or replacement furnace is done very infrequently, as evidenced by the mean lifetime of 21.5 years for NWGFs and MHGFs. Additionally, it would take at least one full heating season for any impacts on operating costs to be fully apparent. Further, if the purchaser of the furnace is not the entity paying the energy costs (
                        <E T="03">e.g.,</E>
                         a building owner and tenant), there may be little to no feedback on the purchase. Additionally, there are systematic market failures that are likely to contribute further complexity to how products are chosen by consumers, as explained in the following paragraphs. The first of these market failures—the split-incentive or principal-agent problem—is likely to affect furnaces more than many other types of appliances. The principal-agent problem is a market failure that results when the consumer that purchases the equipment does not internalize all of the costs associated with operating the equipment. Instead, the user of the product, who has no control over the purchase decision, pays the operating costs. There is a high likelihood of split-incentive problems in the case of rental properties where the landlord makes the choice of what furnace to install, whereas the renter is responsible for paying energy bills. In the LCC sample, 18.1 percent of households with a NWGF and 19.8 percent of households with a MHGF are renters. These fractions are significantly higher for low-income households (see section IV.I.1 of this document). In new construction, builders influence the type of furnace used in many homes but do not pay operating costs. Finally, contractors install a large share of furnaces in replacement situations, and they can exert a high degree of influence over the type of furnace purchased.
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             Ward, D.O., Clark, C.D., Jensen, K.L., Yen, S.T., &amp; Russell, C.S. (2011): “Factors influencing willingness-to pay for the ENERGY STAR® label,” 
                            <E T="03">Energy Policy, 39</E>
                             (3), 1450-1458 (available at: 
                            <E T="03">www.sciencedirect.com/science/article/abs/pii/S0301421510009171</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             Thaler, R.H., Sunstein, C.R., and Balz, J.P. (2014). “Choice Architecture” in 
                            <E T="03">The Behavioral Foundations of Public Policy,</E>
                             Eldar Shafir (ed).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             Thaler, R.H., and Bernartzi, S. (2004). “Save More Tomorrow: Using Behavioral Economics in Increase Employee Savings,” 
                            <E T="03">Journal of Political Economy</E>
                             112(1), S164-S187. 
                            <E T="03">See also</E>
                             Klemick, H., 
                            <E T="03">et al.</E>
                             (2015) “Heavy-Duty Trucking and the Energy Efficiency Paradox: Evidence from Focus Groups and Interviews,” 
                            <E T="03">Transportation Research Part A: Policy &amp; Practice,</E>
                             77, 154-166 (providing evidence that loss aversion and other market failures can affect otherwise profit-maximizing firms).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             Thaler, R.H., and Sunstein, C.R. (2008). Nudge: Improving Decisions on Health, Wealth, and Happiness. New Haven, CT: Yale University Press.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the split-incentive problem, there are other market failures that are likely to affect the choice of furnace efficiency made by consumers. For example, emergency replacements of essential equipment such as a furnace in the heating season are strongly biased toward like-for-like replacement (
                        <E T="03">i.e.,</E>
                         replacing the non-functioning equipment with a similar or identical product). Time is a constraining factor during emergency replacements, and consumers may not consider the full range of available options on the market, despite their availability. The consideration of alternative product options is far more likely for planned replacements and installations in new construction.
                    </P>
                    <P>
                        Additionally, Davis and Metcalf 
                        <SU>184</SU>
                        <FTREF/>
                         conducted an experiment demonstrating that the nature of the information available to consumers from EnergyGuide labels posted on air conditioning equipment results in an inefficient allocation of energy efficiency across households with different usage levels. Their findings indicate that households are likely to make decisions regarding the efficiency of the climate-control equipment of their homes that do not result in the highest net present value for their specific usage pattern (
                        <E T="03">i.e.,</E>
                         their decision is based on imperfect information and, therefore, is not necessarily optimal). Also, most consumers did not properly understand the labels (specifically whether energy consumption and cost estimates were national averages or specific to their State). As such, consumers did not make the most informed decisions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             Davis, L.W., and G.E. Metcalf (2016): “Does better information lead to better choices? Evidence from energy-efficiency labels,” 
                            <E T="03">Journal of the Association of Environmental and Resource Economists,</E>
                             3(3), 589-625 (available at: 
                            <E T="03">www.journals.uchicago.edu/doi/full/10.1086/686252</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        In part because of the way information is presented, and in part because of the way consumers process information, there is also a market failure consisting of a systematic bias in the perception of equipment energy usage, which can affect consumer choices. Attari 
                        <E T="03">et al.</E>
                        <SU>185</SU>
                        <FTREF/>
                         show that consumers tend to underestimate the energy use of large energy-intensive appliances (such as central air conditioners), but overestimate the energy use of small appliances. Therefore, it is possible that consumers systematically underestimate the energy use associated with furnaces, resulting in less cost-effective furnace purchases.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             Attari, S.Z., M.L. DeKay, C.I. Davidson, and W. Bruine de Bruin (2010): “Public perceptions of energy consumption and savings.” 
                            <E T="03">Proceedings of the National Academy of Sciences</E>
                             107(37), 16054-16059 (available at: 
                            <E T="03">www.pnas.org/content/107/37/16054</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        These market failures affect a sizeable share of the consumer population. A study by Houde 
                        <SU>186</SU>
                        <FTREF/>
                         indicates that there is a significant subset of consumers that appear to purchase appliances without taking into account their energy efficiency and operating costs at all.
                    </P>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             Houde, S. (2018): “How Consumers Respond to Environmental Certification and the Value of Energy Information,” 
                            <E T="03">The RAND Journal of Economics,</E>
                             49 (2), 453-477 (available at: 
                            <E T="03">onlinelibrary.wiley.com/doi/full/10.1111/1756-2171.12231</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>There are market failures relevant to furnaces installed in commercial applications as well. It is often assumed that because commercial and industrial customers are businesses that have trained or experienced individuals making decisions regarding investments in cost-saving measures, some of the commonly observed market failures present in the general population of residential customers should not be as prevalent in a commercial setting. However, there are many characteristics of organizational structure and historic circumstance in commercial settings that can lead to underinvestment in energy efficiency.</P>
                    <P>First, a recognized problem in commercial settings is the principal-agent problem, where the building owner (or building developer) selects the equipment and the tenant (or subsequent building owner) pays for </P>
                    <PRTPAGE P="87578"/>
                    <FP>
                        energy costs.
                        <E T="51">187 188</E>
                        <FTREF/>
                         Indeed, more than a quarter of commercial buildings in the CBECS 2018 sample are occupied at least in part by a tenant, not the building owner (indicating that, in DOE's experience, the building owner likely is not responsible for paying energy costs). Additionally, some commercial buildings have multiple tenants. There are other similarly misaligned incentives embedded in the organizational structure within a given firm or business that can impact the choice of a furnace. For example, if one department or individual within an organization is responsible for capital expenditures (and therefore equipment selection) while a separate department or individual is responsible for paying the energy bills, a market failure similar to the principal-agent problem can result.
                        <SU>189</SU>
                        <FTREF/>
                         Additionally, managers may have other responsibilities and often have other incentives besides operating cost minimization, such as satisfying shareholder expectations, which can sometimes be focused on short-term returns.
                        <SU>190</SU>
                        <FTREF/>
                         Decision-making related to commercial buildings is highly complex and involves gathering information from and for a variety of different market actors. It is common to see conflicting goals across various actors within the same organization, as well as information asymmetries between market actors in the energy efficiency context in commercial building construction.
                        <SU>191</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             Vernon, D., and Meier, A. (2012). “Identification and quantification of principal-agent problems affecting energy efficiency investments and use decisions in the trucking industry,” 
                            <E T="03">Energy Policy,</E>
                             49, 266-273.
                        </P>
                        <P>
                            <SU>188</SU>
                             Blum, H. and Sathaye, J. (2010). “Quantitative Analysis of the Principal-Agent Problem in Commercial Buildings in the U.S.: Focus on Central Space Heating and Cooling,” Lawrence Berkeley National Laboratory, LBNL-3557E (available at: 
                            <E T="03">escholarship.org/uc/item/6p1525mg</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             Prindle, B., Sathaye, J., Murtishaw, S., Crossley, D., Watt, G., Hughes, J., and de Visser, E. (2007). “Quantifying the effects of market failures in the end-use of energy,” Final Draft Report Prepared for International Energy Agency (Available from International Energy Agency, Head of Publications Service, 9 rue de la Federation, 75739 Paris, Cedex 15 France).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             Bushee, B.J. (1998). “The influence of institutional investors on myopic R&amp;D investment behavior,” 
                            <E T="03">Accounting Review,</E>
                             305-333. DeCanio, S.J. (1993). “Barriers Within Firms to Energy Efficient Investments,” 
                            <E T="03">Energy Policy,</E>
                             21(9), 906-914 (explaining the connection between short-termism and underinvestment in energy efficiency).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             International Energy Agency (IEA). (2007). Mind the Gap: Quantifying Principal-Agent Problems in Energy Efficiency. OECD Pub. (available at 
                            <E T="03">www.iea.org/reports/mind-the-gap</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Second, the nature of the organizational structure and design can influence priorities for capital budgeting, resulting in choices that do not necessarily maximize profitability.
                        <SU>192</SU>
                        <FTREF/>
                         Even factors as simple as unmotivated staff or lack of priority-setting and/or a lack of a long-term energy strategy can have a sizable effect on the likelihood that an energy-efficient investment will be undertaken.
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                         U.S. tax rules for commercial buildings may incentivize lower capital expenditures, since capital costs must be depreciated over many years, whereas operating costs can be fully deducted from taxable income or passed through directly to building tenants.
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                             15(4), pp. 596-612 (finding that manager inattention contributed to the non-adoption of energy efficiency initiatives).
                        </P>
                        <P>
                            Boyd, G.A., Curtis, E.M. (2014). “Evidence of an ‘energy management gap’in U.S. manufacturing: Spillovers from firm management practices to energy efficiency,” 
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                             68(3), pp. 463-479.
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                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Third, there are asymmetric information and other potential market failures in financial markets in general, which can affect decisions by firms with regard to their choice among alternative investment options, with energy efficiency being one such option.
                        <SU>195</SU>
                        <FTREF/>
                         Asymmetric information in financial markets is particularly pronounced with regard to energy efficiency investments.
                        <SU>196</SU>
                        <FTREF/>
                         There is a dearth of information about risk and volatility related to energy-efficiency investments, and energy efficiency investment metrics may not be as visible to investment managers,
                        <SU>197</SU>
                        <FTREF/>
                         which can bias firms towards more certain or familiar options. This market failure results not because the returns from energy efficiency as an investment are inherently riskier, but because information about the risk itself tends not to be available in the same way it is for other types of investment, like stocks or bonds. In some cases, energy efficiency is not a formal investment category used by financial managers, and if there is a formal category for energy efficiency within the investment portfolio options assessed by financial managers, they are seen as weakly strategic and not seen as likely to increase competitive advantage.
                        <SU>198</SU>
                        <FTREF/>
                         This information asymmetry extends to commercial investors, lenders, and real-estate financing, which is biased against new and perhaps unfamiliar technology (even though it may be economically beneficial).
                        <SU>199</SU>
                        <FTREF/>
                         Another market failure known as the first-mover disadvantage can exacerbate this bias against adopting new technologies, as the successful integration of new technology in a particular context by one actor generates 
                        <PRTPAGE P="87579"/>
                        information about cost-savings, and other actors in the market can then benefit from that information by following suit; yet because the first to adopt a new technology bears the risk but cannot keep to themselves all the informational benefits, firms may inefficiently underinvest in new technologies.
                        <SU>200</SU>
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                             1988(1), 141-206.
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                             1994(2), 1-74.
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                            DeCanio, S.J., and Watkins, W.E. (1998). “Investment in energy efficiency: do the characteristics of firms matter?” 
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                             80(1), 95-107.
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                            Hubbard R.G. and Kashyap A. (1992). “Internal Net Worth and the Investment Process: An Application to U.S. Agriculture,” 
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                             100, 506-534.
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                             34(2), 188-199.
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                        <P>
                            Jollands, N., Waide, P., Ellis, M., Onoda, T., Laustsen, J., Tanaka, K., and Meier, A. (2010). “The 25 IEA energy efficiency policy recommendations to the G8 Gleneagles Plan of Action,” 
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                             38(11), 6409-6418.
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                             Reed, J.H., Johnson, K., Riggert, J., and Oh, A.D. (2004). “Who plays and who decides: The structure and operation of the commercial building market,” U.S. Department of Energy Office of Building Technology, State and Community Programs (available at: 
                            <E T="03">www1.eere.energy.gov/buildings/publications/pdfs/commercial_initiative/who_plays_who_decides.pdf</E>
                            ) (last accessed August 1, 2023).
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                        <P>
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                             Cooremans, C. (2012). “Investment in energy efficiency: do the characteristics of investments matter?” 
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                             5(4), 497-518.
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                        <P>
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                    <FTNT>
                        <P>
                            <SU>200</SU>
                             Blumstein, C. and Taylor, M. (2013). Rethinking the Energy-Efficiency Gap: Producers, Intermediaries, and Innovation. Energy Institute at Haas Working Paper 243 (available at: 
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                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        In sum, the commercial and industrial sectors face many market failures that can result in an under-investment in energy efficiency. This means that discount rates implied by hurdle rates 
                        <SU>201</SU>
                        <FTREF/>
                         and required payback periods of many firms are higher than the appropriate cost of capital for the investment.
                        <SU>202</SU>
                        <FTREF/>
                         The preceding arguments for the existence of market failures in the commercial and industrial sectors are corroborated by empirical evidence. One study in particular showed evidence of substantial gains in energy efficiency that could have been achieved without negative repercussions on profitability, but the investments had not been undertaken by firms.
                        <SU>203</SU>
                        <FTREF/>
                         The study found that multiple organizational and institutional factors caused firms to require shorter payback periods and higher returns than the cost of capital for alternative investments of similar risk. Another study demonstrated similar results with firms requiring very short payback periods of 1-2 years in order to adopt energy-saving projects, implying hurdle rates of 50 to 100 percent, despite the potential economic benefits.
                        <SU>204</SU>
                        <FTREF/>
                         A number of other case studies similarly demonstrate the existence of market failures preventing the adoption of energy-efficient technologies in a variety of commercial sectors around the world, including office buildings,
                        <SU>205</SU>
                        <FTREF/>
                         supermarkets,
                        <SU>206</SU>
                        <FTREF/>
                         and the electric motor market.
                        <SU>207</SU>
                        <FTREF/>
                         The existence of market failures in the residential and commercial sectors is well supported by the economics literature and by a number of case studies. If DOE developed an efficiency distribution that assigned furnace efficiency in the no-new-standards case solely according to energy use or economic considerations such as life-cycle cost or payback period, the resulting distribution of efficiencies within the building sample would not reflect any of the market failures or behavioral factors above. Thus, DOE concludes such a distribution would not be representative of the consumer furnace market. Further, even if a specific household/building/organization is not subject to the market failures above, the purchasing decision of furnace efficiency can be highly complex and influenced by a number of factors not captured by the building characteristics available in the RECS or CBECS samples. These factors can lead to households or building owners choosing a furnace efficiency that deviates from the efficiency predicted using only energy use or economic considerations such as life-cycle cost or payback period (as calculated using the information from RECS 2020 or CBECS 2018).
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             A hurdle rate is the minimum rate of return on a project or investment required by an organization or investor. It is determined by assessing capital costs, operating costs, and an estimate of risks and opportunities.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             DeCanio 1994, op. cit.
                        </P>
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                        <P>
                            <SU>203</SU>
                             DeCanio, S.J. (1998). “The Efficiency Paradox: Bureaucratic and Organizational Barriers to Profitable Energy-Saving Investments,” 
                            <E T="03">Energy Policy,</E>
                             26(5), 441-454.
                        </P>
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                    <FTNT>
                        <P>
                            <SU>204</SU>
                             Andersen, S.T., and Newell, R.G. (2004). “Information programs for technology adoption: the case of energy-efficiency audits,” 
                            <E T="03">Resource and Energy Economics,</E>
                             26, 27-50.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>205</SU>
                             Prindle 2007, op. cit.; Howarth, R.B., Haddad, B.M., and Paton, B. (2000). “The economics of energy efficiency: insights from voluntary participation programs,” 
                            <E T="03">Energy Policy,</E>
                             28, 477-486.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>206</SU>
                             Klemick, H., Kopits, E., Wolverton, A. (2017). “Potential Barriers to Improving Energy Efficiency in Commercial Buildings: The Case of Supermarket Refrigeration,” Journal of Benefit-Cost Analysis, 8(1), 115-145.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>207</SU>
                             de Almeida, E.L.F. (1998). “Energy efficiency and the limits of market forces: The example of the electric motor market in France”, 
                            <E T="03">Energy Policy,</E>
                             26(8), 643-653; Xenergy, Inc. (1998). United States Industrial Electric Motor Systems Market Opportunity Assessment. (Available at: 
                            <E T="03">www.energy.gov/sites/default/files/2014/04/f15/mtrmkt.pdf</E>
                            ) (Last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>DOE further notes that, in certain States, the current market is heavily weighted toward either baseline furnace efficiency or a condensing furnace efficiency. Therefore, most consumers in these States are either similarly impacted (for States with predominantly non-condensing furnaces) or minimally impacted (for States with predominantly condensing furnaces). This result is merely a reflection of the available market data. Therefore, any variation to DOE's efficiency assignment methodology would not produce substantially differing results than presented in this rule for these States, as most consumers would continue to be assigned the same efficiency regardless of the details of the methodology.</P>
                    <P>APGA commented that in the NOPR, despite intense criticisms and detailed evidentiary showings, DOE has continued to justify its approach on the theory that consumers do not act rationally, such that random assignment is as valid as using actual consumer choice data. APGA argued that although DOE acknowledges “that economic factors may play a role” when consumers decide on what type of furnace to install, DOE persists in maintaining that market failures render random assignment just as valid an approach. APGA argued that much of DOE's recitation on market failure misses the mark and lacks reference to current studies of how residential furnaces are purchased. APGA further argued that DOE relies upon “inexplicit consumer patterns on all sorts of purchases.” Although APGA noted that DOE's statement that it “intends to investigate this issue further . . . [to] improve its assignment of furnace efficiency in its analyses,” the commenter urged DOE to do so before acting on the subject NOPR because it argued that the agency's methodology does not produce results that accurately reflect the market. (APGA, No. 387 at pp. 25-27) Similarly, AGA argued that DOE's economic analysis suffers from a critical defect in the economic criteria of how gas furnace efficiencies are assigned to consumers in the no-new-standards case or “base case.” The commenter took issue with DOE's use of so-called “random assignment” to determine which consumers in the base case would be assigned specific furnace efficiencies and whether they install condensing or non-condensing furnaces. AGA claimed that DOE is assuming that consumers completely disregard economics when selecting a gas furnace, arguing that random assignment leads to an overstatement of benefits associated with the proposed rulemaking and an underestimation of the total costs. According to AGA, this defect in the development of the base case renders all of DOE's subsequent analyses of any proposed standard levels void and unusable. (AGA, No. 405 at pp. 54-57)</P>
                    <P>
                        Spire argued that DOE's analysis of 10,000 trial cases does not represent the real world, where—as regional market share data for residential furnaces demonstrates—consumers generally purchase condensing gas furnaces when it is economically beneficial to do so and generally decline to purchase condensing gas furnaces where there are installation problems, insufficient economic returns, or insufficient resources for the initial investment required. Spire asserted that DOE's trial cases represent an alternative universe in which consumers choose their gas furnaces with no consideration of the economic consequences of those decisions. (Spire, No. 413 at p. 7) Spire asserted that DOE's use of random 
                        <PRTPAGE P="87580"/>
                        assignment implies that consumer purchasing decisions are never influenced by the economics of potential efficiency investments. (Spire, No. 413 at p. 39)
                    </P>
                    <P>NPGA commented that a key error in the economic analysis is the use of a “random assignment” process. NPGA stated that the examples of exceptions to the general rule of rational economic behavior relied upon in the rule are misplaced and do not justify ignoring that consumers do indeed act rationally in their own economic interest. (NPGA, No. 395 at pp. 11-12) Atmos Energy argued that DOE's economic analysis approach of using a random assignment of consumers across design options considered in the life-cycle analysis has no technical basis or justification. The company further commented that this results in an inaccurate overstatement of efficiency standards' potential to produce economic benefits for consumers. Atmos Energy argued that the use of random assignment results in consumers selecting furnaces that are suboptimal among available furnace options and artificially inflates the potential savings of the rule. (Atmos Energy, No. 415 at pp. 5-6)</P>
                    <P>Spire further argued that base-case investments should disproportionately include investments with attractive economic outcomes; that rule-outcome investments should disproportionately include investments with unattractive economic outcomes, and, therefore, the average economic outcome for base-case investments would be better (and the average for rule-outcome investments would be worse) than the average of all potential investments in standards-compliant products. Spire further argued that purchasers of gas furnaces have a significant preference for economically beneficial investments, as evident from the fact that the market share for furnaces compliant with the proposed standard level is dramatically higher than average in colder regions where the economic benefits of more-efficient gas furnaces tend to be greatest and is dramatically lower than average in warmer regions where those benefits tend to be lowest. Spire went on to claim that DOE's LCC analysis is based on a “random assignment” methodology that “assigns” particular efficiency investments to the “base” or “standards” case randomly, an approach that effectively assumes that purchasers of residential furnaces have no preference for economically beneficial efficiency investments—and no aversion to economically unfavorable investments. (Spire, No. 413 at pp. 22-23)</P>
                    <P>
                        These commenters significantly mischaracterize the Department's analysis in this area. Most fundamentally, DOE does not assume that consumers act irrationally. As stated above, the use of a random assignment of furnace efficiency is a methodological approach that reflects the full range of consumer behaviors in this market, including consumers who make economically beneficial decisions and consumers who, due to market failures, do not or cannot make such economically beneficial decisions, both of which occur in reality. As explained in the proposed rule and previously, DOE begins its assignment of furnaces in the no-new standards case based on two empirical constraints: (1) historical shipment data, by State demonstrating regional variation, with some regions (
                        <E T="03">e.g.,</E>
                         the North) having a higher market share of condensing furnaces; and (2) survey data demonstrating a correlation (albeit small) between home size and installed furnace efficiency. Within those constraints, DOE then models consumer behavior, consistent with the economics literature discussed previously, to reflect neither purely rational nor purely irrational decision-making. This approach presents a close approximation of the current market reality.
                    </P>
                    <P>The alternative approach advanced by these commenters assumes consumer behavior that is not evidenced by the scientific literature surveyed above or by any data submitted in the course of this rulemaking. The commenters' approach depends on the assumption, for example, that homeowners know—as a rule—the efficiency of their homes' insulation and windows, such that they always make heating investments accordingly. Similarly, the commenters' approach assumes that, faced with a furnace failure, homeowners will always select as a replacement the most efficient available model. DOE's approach, by contrast, recognizes that assumptions like these hold for some consumers some of the time—but not all consumers and not at all times.</P>
                    <P>
                        As part of the random assignment, some households or buildings with large heating loads will be assigned higher-efficiency furnaces, and some households or buildings with particularly low heating loads will be assigned baseline furnaces—
                        <E T="03">i.e.,</E>
                         the economically rational investments. For example, at the adopted standard level, approximately 19 percent of NWGF consumers experience a net cost. These are consumers who would not financially gain from a more-efficient furnace and have a non-condensing furnace in the no-new-standards case, reflecting an economically optimal investment. Similarly, at the adopted standard level, approximately 45 percent of NWGF consumers are not impacted by the rule, as they already purchase higher-efficiency furnaces. Many of these consumers experience lifetime savings compared to a baseline furnace, and the adoption of higher efficiency furnaces in the no-new-standards case again reflects an economically optimal investment.
                    </P>
                    <P>
                        However, as DOE has noted, there is a complex set of behavioral factors, with sometimes opposing effects, affecting the furnace market. It is impractical to model every consumer decision incorporating all of these effects at this extreme level of granularity given the limited available data. Given these myriad factors, DOE estimates the resulting distribution of such a model, if it were possible, would be very scattered with high variability. It is for this reason DOE utilizes a random distribution (after accounting for market share constraints) to approximate these effects. The methodology is not an assertion of economic irrationality, but instead, it is a methodological approximation of complex consumer behavior. The analysis is neither biased toward high or low energy savings. The methodology does not preferentially assign lower-efficiency furnaces to households in the no-new-standards case where savings from the rule would be greatest, nor does it preferentially assign lower-efficiency furnaces to households in the no-new-standards case where savings from the rule would be smallest. Some consumers were assigned the furnaces that they would have chosen if they had engaged in the kind of perfect economic thinking upon which the commenters have focused. Others were assigned less-efficient furnaces even where a more-efficient furnace would eventually result in life-cycle savings, simulating scenarios where, for example, various market failures prevent consumers from realizing those savings. Still others were assigned furnaces that were 
                        <E T="03">more</E>
                         efficient than one would expect simply from life-cycle costs analysis, reflecting, say, “green” behavior, whereby consumers ascribe independent value to minimizing harm to the environment.
                    </P>
                    <P>
                        DOE cites the available economic literature of which it is aware on this subject, supporting the existence of the various market failures which would give rise to such a distribution, and has repeatedly requested more data or studies on this topic. There are no studies DOE is aware of specific to how consumer furnaces are purchased. Commenters have failed to provide any 
                        <PRTPAGE P="87581"/>
                        specific external data, information, or studies that could be incorporated into the analysis, but instead, they claim that DOE is assuming consumers are all making irrational decisions, which is incorrect and a mischaracterization of the analysis. DOE continues to evaluate the literature on this subject and is not aware of any new data or studies that contradict DOE's analysis. DOE also notes that in a separate comment regarding the usage of RECS, APGA acknowledges that households may not have perfect information regarding their own furnace. (APGA, No. 387 at p. 11)
                    </P>
                    <P>
                        Finally, DOE's analysis does incorporate and reflect regional market share data and reflects this larger correlation. For States with a large majority of consumers already purchasing more-efficient furnaces per the available market data (
                        <E T="03">e.g.,</E>
                         in colder regions), the analysis assigns a correspondingly large majority of households with an efficient furnace at or above the adopted efficiency level in the no-new-standards case. The analysis also includes a greater probability that new construction is assigned higher-efficiency furnaces in the no-new-standards case, given the typically lower installation costs in new construction; however, this probability is constrained by actual market share data.
                    </P>
                    <P>In response to Spire's assertion that most investments in the no-new-standards case should include those with attractive economic outcomes and most outcomes as a result of the standard should be biased toward unattractive outcomes, DOE firmly disagrees. This assertion presupposes that any energy conservation standard would primarily result in unattractive outcomes by definition. The logical extension of this assertion is that the current furnace market already allocates furnace efficiencies in a nearly optimum manner, and, therefore, there is little to no benefit from an energy conservation standard. As DOE has presented, there is a wealth of academic literature clearly demonstrating that this view of the market is incorrect, as there are a number of identified market failures and other behaviors that prevent some consumers from maximizing their economic outcome in the absence of new energy conservation standards, and, therefore, the allocation of furnace efficiency among households is not economically optimal in the real world. Systematically biasing the analysis to preferentially produce unfavorable results due to an energy conservation standard, as the commenter suggests, has no basis in any of the available data or literature. DOE also notes that the acknowledgement of market failures and the resulting distribution of energy efficiency in the no-new-standards case is commonplace in DOE's analyses for other energy conservation standards rulemakings.</P>
                    <P>
                        DOE has further confirmed its determination that the proposed TSL is economically justified through additional analysis of the anticipated life-cycle costs. First, DOE presents total life-cycle costs at each efficiency level, averaged over all households, in section V.B of this document. This effectively compares costs for an average household in the sample, not an extreme outlier household. DOE also makes available total life-cycle costs for households at the 25th, 50th, 75th, and 95th percentile of the total life-cycle cost distribution in the LCC spreadsheet. Regardless of which value is considered, the total life-cycle cost of a furnace at the adopted standard level is lower than the total life-cycle cost of a baseline furnace or any lower-efficiency furnace. The claim that outlier results distort DOE's conclusions can also be refuted by considering the median LCC savings instead of the mean LCC savings, which are robust against outlier results. The median LCC savings at the adopted standard level across the entire NWGF sample, which accounts for the existing distribution of furnace efficiency in the market, remain positive. If DOE were to exclude outlier results from the average LCC savings (
                        <E T="03">e.g.,</E>
                         both the top and bottom 10 percent of results), the average LCC savings would remain positive. If DOE were to adopt an even more conservative estimate and bias the results by excluding only the most favorable outcomes (
                        <E T="03">e.g.,</E>
                         the top 10 percent) but maintain the least favorable outcomes, the average LCC would still remain positive, and DOE's conclusions would remain the same. Finally, none of these results include the estimated climate and health benefits, which as discussed in section V.C of this document are significant and only further reinforce the benefits of the rule.
                    </P>
                    <P>Spire stated that the results of the LCC analysis are disproportionately impacted by a relatively small percentage of individual trial cases, due to the efficiency assignment methodology, thereby producing unreasonable impacts that bias the conclusions of the analysis. (Spire, No. 413 at pp. 25-34)</P>
                    <P>In response, DOE acknowledges that there are some LCC trials with very high LCC savings as part of the distribution of impacts. There are similarly some LCC trials with very high net LCC costs. However, when evaluating the median LCC impacts instead of the average LCC impacts, the effects of outlier results are minimized. The median LCC savings remain positive at the adopted standard level. The median LCC savings are available in the LCC spreadsheet and presented in chapter 8 of the final rule TSD. Although the absolute magnitude of total savings would decrease if such extreme trial cases were excluded, the conclusions of the analysis would remain the same.</P>
                    <P>APGA claimed that DOE's method of randomly assigning furnace efficiencies eliminates from the no-new-standards case those instances where consumers would elect the most efficient product that costs the least, which inflates LCC benefits when compared to the standards case. Without random assignment, APGA claims that the estimated LCC benefits decline significantly because the consumer will rationally take the lower cost furnace that also brings higher energy efficiency regardless of a new standard. APGA further argued that outlier cases control LCC outcomes, even though those outlier cases are the most likely to be avoided by rational consumer behavior. APGA claimed that the analysis fails to reflect the market share of natural gas customers by State or Census Division. (APGA, No. 387 at pp. 22-33) Spire argued that DOE's analysis inappropriately credits standards with the benefits of efficiency investments in which a higher-efficiency product selected as a result of a standard is the low-cost option in terms of initial costs and would provide additional economic benefits (in the form of operating cost savings) from day one. Because consumers would naturally select this result, Spire argued that DOE's modeling approach produces spurious regulatory benefits. (Spire, No. 413 at p. 27)</P>
                    <P>
                        In response, DOE notes that the commenters are once again mischaracterizing the Department's analysis. First, the costs estimated in the analysis for higher-efficiency products reflect DOE's projection that such products are at the new baseline efficiency, produced in volume, and no longer offered as a “premium” product. As such, costs may deviate from those seen in the market today or in the no-new-standards case. In some regions, the market share of higher-efficiency products remains low, and they are generally perceived as a more premium product, with higher total installed costs. This will impact the existing market share by efficiency. If these higher-efficiency products become the new baseline, as DOE analyzes in the standards cases, their costs generally will be lower than seen in the market 
                        <PRTPAGE P="87582"/>
                        today. The costs developed in section IV.C of this document account for higher-efficiency products becoming the new baseline, produced at greater volume. The comparison made by the commenters does not account for this subtlety. Second, DOE notes that the assignment methodology is bounded by the available shipment data by efficiency, and, therefore, the market share of non-condensing/condensing furnaces reflects market data. Total installed costs for higher-efficiency products are generally lower in new construction, as discussed in section IV.F.2 of this document. However, in some States, the market share and estimated total shipments of condensing furnaces are lower than the estimated new construction; therefore, according to the data, some non-condensing furnaces must be installed in new construction. Thus, this market share constraint requires that some installations in new construction be assigned a baseline furnace even though a higher-efficiency furnace would cost less. Because such market shares are based upon real world data, this is not a spurious assumption on DOE's part, and such approach does not produce spurious regulatory benefits. This is a factual result based on the available data and representative of the market as it is, which is indicative of some of the market failures DOE has identified. Nevertheless, if DOE were to exclude all these trial results from the average LCC savings, the result would remain positive, and DOE's conclusions from the analysis would remain the same. Thus, the claim that outlier results control LCC outcomes—and, therefore, the justification for the rule—is incorrect. Finally, regarding the share of natural gas customers, DOE samples households and commercial buildings in RECS and CBECS that utilize natural gas furnaces. RECS and CBECS are large, nationally representative surveys with a representative sample of natural gas customers. DOE is not aware of any evidence to suggest these national surveys are systematically biased with respect to natural gas customers.
                    </P>
                    <P>
                        APGA argued that DOE has not addressed prior stakeholder analyses (
                        <E T="03">e.g.,</E>
                         the GTI analysis) directly but only cataloged the stakeholder criticisms in defending its “random assignment” methodology. (APGA, No. 387 at p. 25) Those analyses, however, were based on LCC results presented as part of the 2015 NOPR and 2016 SNOPR, both of which were withdrawn and replaced by the 2022 NOPR. DOE is responding to all relevant comments, but comments related to the detailed results of the withdrawn analyses are no longer applicable.
                    </P>
                    <P>Spire further argued that, for example, in a region in which 90 percent of consumers are already utilizing a furnace with an efficiency at or above the adopted standard level, the remaining 10 percent of consumers should disproportionately include the worst economic outcomes in the region as a result of the standard. (Spire, No. 413 at pp. 35-36) Again, DOE firmly disagrees with this assertion. Spire's assertion ignores the wealth of well-documented market failures and other behaviors that can explain why some of the remaining 10 percent of consumers may have favorable outcomes as a result of the energy conservation standard. There is no compelling evidence or data of which DOE is aware that would necessitate proactively biasing results toward unfavorable outcomes, as suggested by the commenter. Furthermore, DOE's assignment methodology already includes adjustments based on household square footage and based on new construction vs. replacement installations.</P>
                    <P>Spire argued that economic theory provides no basis to disregard fact. On this point, Spire asserted that if random assignment came close to representing the market as it is, the regional market share for condensing furnaces would not range from 5 percent to 95 percent in the replacement market (and 6 percent to 97 percent in the new construction market), with an obvious correlation to regional length and depth of the heating season. Spire further argued that if random assignment provided a reasonable simulation of base case purchasing behavior, there would not be a statistically significant correlation between the average regional LCC outcomes and regional market shares for condensing furnaces. (Spire, No. 413 at p. 42)</P>
                    <P>
                        In response, DOE agrees that economic factors may play a role in purchasing decisions, but the commenter is mischaracterizing both the Department's analysis and its efficiency assignment methodology. DOE does not dispute that heating-degree days likely play a role in consumers choosing furnace efficiency, and, as stated previously, the Department incorporates this effect into the analysis at the State/regional level based on current market share data (
                        <E T="03">i.e.,</E>
                         actual purchasing decisions). The efficiency assignment methodology is randomized as a last step, within a given State/region, to approximate a range of real-world effects and behaviors. Thus, the larger correlation based on region is taken into account. Consequently, at the next stage in the assignment methodology, the impact of large regional climate differences is no longer relevant, as most of those consumers experience a similar climate. Furthermore, the commenter did not acknowledge the role of historical incentive and rebate programs that have shaped consumer behavior and significantly increased the market share of higher-efficiency furnaces in some colder regions, beyond what consumers were adopting without those programs. Due to the bias toward like-for-like replacements, the estimated future market share in these regions is expected to remain dominated by higher-efficiency furnaces, but this market share is likely higher than what would have resulted had these past incentive and rebate programs not occurred. Therefore, the apparent correlation of efficiency with region would likely not be as evident without these programs.
                    </P>
                    <P>
                        APGA argued that DOE's inconsistent treatment of consumer behavior is arbitrary and capricious. On the one hand, APGA asserted that by using random assignment to predict consumer furnace selection, DOE assumes consumers to be “virtual zombies.” On the other hand, when it comes to fuel switching, APGA asserted that DOE assumes consumers to be rational and prescient by selecting the lowest cost option. (APGA, No. 387 at p. 24) Spire similarly commented that paradoxically, DOE employs a random assignment methodology that assumes that consumers never consider the economic consequences of choices between gas furnaces, but then included a fuel switching analysis that assumes consumers who do not (randomly) select a standards-compliant gas furnace on their own would always consider economics in deciding whether to switch from a gas appliance to an electric appliance. (Spire, No. 413 at pp. 49-50) AGA also argued that the assignment of furnace efficiency in the no-new-standards case does not adhere to the model logic related to consumer fuel switching to electricity, which assumes consumers consider economics when choosing to switch. Furthermore, AGA stated that some of the critical inputs in that model are derived from survey data which indicates that consumers do consider economics when making purchasing decisions. (AGA, No. 405 at pp. 54-57) Along these same lines, NPGA commented that DOE contradicts itself by assuming consumers will not act in their own self-interest when purchasing a gas furnace but will when switching from gas 
                        <PRTPAGE P="87583"/>
                        furnaces to electric alternatives. (NPGA, No. 395 at p. 2)
                    </P>
                    <P>
                        In response, DOE notes that the commenters are significantly misrepresenting the Department's analysis. As discussed in this section, DOE's approach for assigning efficiency in the no-new-standards case does not assume that purchasers of furnaces all make economically irrational decisions (
                        <E T="03">i.e.,</E>
                         the lack of a correlation is not the same as a negative correlation). The use of a random assignment of furnace efficiency is merely a methodological approach that reflects the full range of consumer behaviors in this market, including consumers who make economically beneficial decisions and consumers that, due to market failures, do not make such economically beneficial decisions, both of which occur in reality. The Department's product switching analysis was incorporated into the analysis to address prior comments from stakeholders specifically regarding price-sensitive consumers opting to switch to alternative electric heating options in response to increased NWGF costs as discussed in section IV.F.10 of this document. DOE has conducted a fuel-switching analysis in this rule as a form of sensitivity analysis. That is, DOE has modeled the economic impacts of the rule assuming both no fuel switching and the maximum level of fuel switching reasonably foreseeable. To model that maximum level of fuel switching, DOE has assumed that consumers would act based solely on costs. DOE uses a simplified decision model based only on costs, in this very specific instance, to estimate the impact of product switching. The percentage of consumers who engage in product switching based on this simplified decision model is intended as an estimate of the maximum fuel switching reasonably likely to result from the rule. In any event, as discussed further below, the proportion of consumers expected to switch fuels is small, and any further refinements to DOE's modeling would be expected to lead to similar conclusions. That is, a further refined model, which incorporated the market failures likely to prevail in the market for fuel switching, would be unlikely to produce meaningfully different results. Given the limited purpose for which DOE has considered product switching, DOE has not found it necessary to further refine its assumptions about product-switching consumer behavior. Furthermore, DOE presents results both with and without incorporating this effect, as an upper and lower bound, and DOE's conclusions remain the same under both sets of results. The two approaches (assignment of efficiency in the no-new-standards case and estimating product switching) are not incompatible and are not inconsistent with each other. They simply reflect different levels of modeling approximation on different consumer samples. Further discussion of the product switching methodology is presented in section IV.F.10 of this document.
                    </P>
                    <P>NPGA stated that consumers will often voluntarily choose to install condensing furnaces, without mandatory standards, when it makes economic sense. (NPGA, No. 395 at p. 11) The commenter further stated that this is evident in the fact that high-efficiency gas furnaces have a much higher market share where the economic benefits of such furnaces are greatest. (NPGA, No. 395 at pp. 11-12) In response, DOE agrees and incorporates the existing market share of condensing furnaces by State in its analysis. In States with a very high fraction of consumers with condensing furnaces at the adopted efficiency level or above in the current market (typically States with colder winters where the benefits of such furnaces are higher), most consumers in those States are not impacted by the rule and do not factor into the standards-case analysis. However, as noted previously, incentive and rebate programs have increased the market share of condensing furnaces beyond what consumers had been previously adopting, even in colder regions.</P>
                    <P>
                        Spire commented that the issue of efficiency assignment in the no-new-standards case was raised in 
                        <E T="03">American Public Gas Ass'n</E>
                         v. 
                        <E T="03">U.S. Dept. of Energy,</E>
                         22 F.4th 1018 (D.C. Cir. 2022) (
                        <E T="03">APGA</E>
                         v. 
                        <E T="03">DOE</E>
                        )—a challenge to DOE's commercial packaged boiler standards—and the Court found that DOE had failed to respond to the “substantial concerns” about this “crucial part of its analysis” and that its “failure to engage the arguments raised before it . . . bespeaks a failure to consider an important aspect of the problem.” 
                        <E T="03">Id.,</E>
                         22 F.4th at 1027-28. Spire claimed that the furnaces NOPR exhibits the same failing. (Spire, No. 413 at pp. 34-35)
                    </P>
                    <P>In response, DOE disagrees with Spire's assertion that it has failed to adequately explain the choices made in its LCC analysis or has failed to provide sufficient opportunity for comment on those matters. Instead, DOE has extensively discussed the rationale and evidentiary basis for its LCC analysis in this both the July 2022 NOPR, as well as this final rule. DOE's detailed explanation has focused on the presence of numerous market failures that cause consumers to purchase commercial packaged boilers that do not maximize LCC savings. Furthermore, DOE provided and sought public comment on its thorough explanation in the July 2022 Furnaces NOPR as to why the assignment of efficiencies in the no-new-standards case, which is in part random, is a reasonable approach that simulates behavior in the furnace market, where market failures frequently result in purchasing decisions not being perfectly aligned with economic interests. 87 FR 40590, 40640-40643 (July 7, 2022).</P>
                    <P>AGA presented an analysis using DOE's LCC spreadsheet and claimed that it demonstrates that DOE's method of randomly assigning furnace efficiencies in its base case is improper. AGA further argued that its analysis demonstrates that any market failure results in greater adoption of high-efficiency equipment than would be expected by economics alone. AGA concluded that DOE, therefore, overstates the benefits of the proposed standards by assuming consumers do not consider economics at all when selecting furnaces. (AGA, No. 405 at pp. 59-67)</P>
                    <P>In response, as discussed above, DOE notes that this is a mischaracterization of the analysis. DOE does not assume consumers never consider the economics of the purchase. DOE acknowledges that there are several market failures in the furnace market affecting some consumers, while other consumers are making economically beneficial decisions. Indeed, the existence of consumers experiencing a net cost in the standards case is an illustration of this. Such consumers are assigned a baseline efficiency furnace in the no-new-standards case and do not benefit from a higher efficiency furnace, reflecting an economically beneficial decision in the no-new-standards case. Similarly, some consumers are already purchasing a higher-efficiency furnace because it is beneficial to them and as a result are not impacted in the standards case. The characterization of the analysis as assuming all consumers are irrational is incorrect.</P>
                    <P>
                        AGA's analysis of the NOPR results is flawed in several respects. Their analysis identifies a relationship that is known and discussed in the TSD, namely that regions with a higher current market share of condensing furnaces are more likely to be colder and, thus, have higher space-heating energy consumption. Therefore, it is no surprise that LCC savings for households or buildings in those regions that have not yet adopted condensing 
                        <PRTPAGE P="87584"/>
                        furnaces are likely to be higher. Similarly, regions with a lower current market share of condensing furnaces are more likely to be warmer, and consumers there may have negative LCC savings in the standards case. The analysis incorporates these regional market share trends as part of the efficiency assignment methodology. The commenter is attempting to highlight these relationships in the LCC, which is a reflection of the current market, as evidence that DOE cannot assume consumers never consider the economics of their purchasing decisions. However, this is a mischaracterization, and DOE is not making an assumption that consumers never consider the economics of their purchasing decision. The efficiency assignment is a methodological simplification that takes into account existing market trends, such as the regional trends identified by the commenter, and acknowledges a range of consumer behaviors and market failures. The LCC produces relationships in the results that AGA's own analysis shows are reasonable and expected, given the current market shares of condensing and non-condensing furnaces.
                    </P>
                    <P>AGA noted that there are examples in the LCC where the total installed cost of a non-condensing furnace is higher than the total installed cost of a condensing furnace for an individual household or building, and yet DOE's methodology assigns a non-condensing furnace in the no-new-standards case to this household or building. AGA argues this is an illogical scenario that ignores consumer rationality and biases the overall results to overly favorable outcomes. (AGA, No. 405 at pp. 57-58) APGA pointed to the inclusion of LCC trials where a higher efficiency furnace costs less than a baseline furnace, but for which the LCC assigns a baseline furnace in the no-new-standards case, as unreasonably inflating LCC benefits. (APGA, No. 387 at pp. 22-23) Spire also commented that the LCC includes LCC trials where the higher-efficiency furnace is the lower-cost option, but it argued that the LCC erroneously assigns benefits to such trial cases by assigning a baseline furnace in the no-new-standards case. (Spire, No. 413 at pp. 27-28)</P>
                    <P>In response, DOE acknowledges that there are scenarios in which the total installed cost is lower for higher-efficiency condensing furnaces. This situation primarily occurs in new construction, where a new vent is required for all installations, and condensing furnaces can often take advantage of a shorter vent length that is incorporated into the construction design from the beginning. This scenario can also occur in replacement installations where the existing vent has reached the end of its life and requires replacement, even when replacing a non-condensing furnace with another non-condensing furnace. With respect to the LCC assigning a non-condensing furnace in some of these instances, DOE once again notes that the efficiency assignment methodology is constrained by the State-level shipments market share data. For example, in States with a low current market share of condensing furnaces, the methodology will be constrained to assign mostly non-condensing furnaces in the no-new-standards case, reflecting the current market, and, therefore, some new construction will be assigned non-condensing furnaces in the no-new-standards case. The commenters argue that this is an illogical outcome, but the methodology is simply reflecting the reality of the current market. This situation can also occur in replacement installations due to, for example, familiarity bias on the part of the consumer or contractor, biasing replacements to familiar technology options even if a lower cost option is available. However, the percentage of individual LCC trial outcomes where this situation occurs is limited to only a few percent in the final rule analysis, predominately in new construction. Even if DOE were to exclude these individual outcomes as extreme outlier results, the LCC analysis would demonstrate economic justification, as seen from the median LCC savings (as opposed to the average), available in the LCC spreadsheet and in chapter 8 of the final rule TSD. The median LCC savings are robust to outlier results, and they remain positive at the adopted standard level. Additionally, excluding these individual outcomes as extreme outlier results would not substantially change the percent of consumers with a net cost and would not alter the conclusion of economic justification.</P>
                    <P>PHCC commented that DOE should reconsider its assumptions regarding consumer awareness of products, as the studies used for reference are 20-30 years old, and trends for LED lighting that indicate that consumers choose higher levels of performance in cases of lower cost and lower maintenance. (PHCC, No. 403 at p. 3) In response, DOE notes that it cites the relevant available literature, which is still applicable to consumers of furnaces even if published 20-30 years ago. DOE also cites studies performed with respect to appliances and HVAC equipment, which are more relevant than studies related to lighting. The lighting market and associated technology are very different than the furnaces market.</P>
                    <P>PHCC commented that DOE's conclusion that commercial customers will not value higher efficiency because typically owners do not pay operating bills or consider operating costs as write-offs is inaccurate. Because their clients seek out best-case operating expenses, owners seek to offer high-quality facilities in order to give themselves an advantage in the market. PHCC further commented that write-offs are not desirable, as owners benefit from keeping their income and paying taxes in full rather than overspending. The commenter stated that there are contractors who have successfully marketed high-efficiency equipment. (PHCC, No. 403 at pp. 3-4) In response, DOE clarifies that it does not assert that commercial customers will not value higher-efficiency equipment. DOE merely notes that there are market failures prevalent in the commercial sector, similar to the residential sector, that may cause some commercial customers to undervalue the benefits of higher-efficiency equipment. DOE agrees that some commercial customers will highly value the benefits of efficient furnaces, and the efficiency assignment methodology approximates this range in commercial customer behavior.</P>
                    <P>Sierra Club and Earth Justice commented that the claims of internal inconsistency posed by some commenters ignores that the DOE's method of modeling the base-case furnace efficiency distribution reflects available data showing only a modest correlation between high-efficiency furnace installations and applications where those high-efficiency products are more likely to be cost-effective. (Sierra Club and Earth Justice, No. 401 at pp. 1-2) DOE agrees with the comment in support of the agency's approach.</P>
                    <P>
                        NYSERDA expressed support for DOE's methodology and approaches presented in the NOPR, particularly around random distribution. NYSERDA disagreed with commenters who argue that the random nature of DOE's LCC distributions is problematic. NYSERDA further stated that using a random distribution in the no-new-standards case to model the assignment of furnace efficiency is a valid method, driven by the best available data. NYSERDA emphasized that DOE used AHRI and HARDI data to accurately capture the existing market distributions of furnaces at different efficiency levels, informing the efficiency distributions in the no-
                        <PRTPAGE P="87585"/>
                        new-standards case. NYSERDA further noted that DOE includes a correlation of efficiency with household square footage, using available data to inform the structure of the probabilistic distribution. Consequently, NYSERDA concludes that the stochastic approach is valid and viable. (NYSERDA, No. 379 at pp. 11-12) DOE agrees with this comment.
                    </P>
                    <P>Similarly, Joint Efficiency Commenters stated that DOE's assignment of efficiency levels in the no-new-standards case reasonably reflects actual consumer behavior and is more representative than assigning efficiencies based solely on cost-effectiveness. Joint Efficiency Commenters noted that there are various market failures, as well as aspects of consumer preference, that significantly impact how products are chosen by consumers, including misaligned incentives for rental properties, the influence of contractors during replacement installations, and the very infrequent nature of furnace replacements impacting information transparency with respect to costs. (Joint Efficiency Commenters, No. 381 at pp. 6-7) DOE agrees.</P>
                    <HD SOURCE="HD3">9. Alternative Size Thresholds for Small Consumer Gas Furnaces</HD>
                    <P>DOE analyzed potential separate energy conservation standards for small and large NWGFs and MHGFs, with varying capacity thresholds for a small NWGF or MHGF. The examined thresholds had a maximum input rate that ranged from less than or equal to 40 kBtu/h to 100 kBtu/h, which were assessed in 5 kBtu/h increments.</P>
                    <P>
                        DOE assigned an input capacity to existing furnaces based on data from RECS 2020 and CBECS 2018. It is common industry practice to oversize furnaces to ensure that they can meet the house heating load in extreme temperature conditions. Under a scenario which envisions a separate energy conservation standard for small NWGFs and MHGFs set at a level which does not require condensing technology, DOE expects that some consumers who would otherwise install a typically oversized furnace 
                        <SU>208</SU>
                        <FTREF/>
                         may choose to downsize in order to be able to purchase a less-expensive, non-condensing furnace.
                    </P>
                    <FTNT>
                        <P>
                            <SU>208</SU>
                             By typical oversizing, DOE refers to a value of 1.7, as specified in ASHRAE 103, “Method of Testing for Annual Fuel Utilization Efficiency of Residential Central Furnaces and Boilers,” which is incorporated by reference in the DOE residential furnace and boiler test procedure at 10 CFR part 430, subpart B, appendix N.
                        </P>
                    </FTNT>
                    <P>
                        DOE identified households from the NWGF and MHGF sample that might downsize at each of the considered standard levels. In identifying these households, DOE first determined whether a household would install a non-condensing furnace with an input capacity greater than the small furnace size limit in the no-new-standards case, based on the assigned input capacity (which reflects historical oversizing) and efficiency. DOE relied on the ASHRAE 103-1993 test procedure, “Method of Testing for Annual Fuel Utilization Efficiency of Residential Central Furnaces and Boilers,” (incorporated by referenced in the DOE residential furnace and boiler test procedure) 
                        <SU>209</SU>
                        <FTREF/>
                         to estimate that the typical oversize factor used to size furnaces was 70 percent (
                        <E T="03">i.e.,</E>
                         the furnace capacity is 70-percent greater than required to heat the home under heating outdoor design temperature (“ODT”) conditions). If the input capacity of the furnace determined using a reduced oversize factor of 10 to 40 percent is less than or equal to the input capacity limit for small furnaces, DOE assumed that the consumer would downsize his or her furnace. DOE believes that an oversize factor of 10-40 percent is realistic because ACCA recommends a maximum oversize factor of 40 percent.
                        <SU>210</SU>
                        <FTREF/>
                         Note that the 10 percent is the maximum downsizing, but in many cases, the actual downsizing is less because the resulting input capacity is rounded up to the nearest input capacity bin in 5 kBtu/h increments, and the unit is downsized up to the maximum small furnace size limit criteria.
                    </P>
                    <FTNT>
                        <P>
                            <SU>209</SU>
                             10 CFR part 430, subpart B, appendix N.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>210</SU>
                             ACCA recommends oversizing by a maximum of 40 percent. ACCA. 
                            <E T="03">See</E>
                             Manual S—Residential Equipment Selection (2nd Edition). (Available at 
                            <E T="03">https://www.acca.org/standards/technical-manuals/manual-s</E>
                            ) (Last accessed August 1, 2023)
                        </P>
                    </FTNT>
                    <P>
                        DOE has found that the available data regarding oversizing of furnaces in the existing stock indicate that an average oversizing in past installations of 70 percent is likewise reasonable.
                        <SU>211</SU>
                        <FTREF/>
                         DOE acknowledges that the oversizing varies among furnace installations, and, thus, DOE assigned an oversizing factor to each household based on the furnace sizing methodology described in section IV.E.2 of this document (which rank ordered the estimated design heating load and matched to furnace shipments by input capacity). The actual oversizing factor in the analysis for a given existing household or building varies from 0 percent to 275 percent (85 percent on average).
                    </P>
                    <FTNT>
                        <P>
                            <SU>211</SU>
                             City of Fort Collins, Evaluation of New Home Energy Efficiency: Summary Report (June 2002) (available at: 
                            <E T="03">www.fcgov.com/utilities/img/site_specific/uploads/newhome-eval.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            Pigg, Scott, What you need to know about residential furnaces, air conditioners and heat pumps if you're NOT an HVAC professional (Feb. 2017) (available at: 
                            <E T="03">www.duluthenergydesign.com/Content/Documents/GeneralInfo/PresentationMaterials/2017/Day2/What-You-Need-Pigg.pdf</E>
                            ) (last accessed August 1, 2023). Energy Center of Wisconsin, Electricity Use by New Furnaces: A Wisconsin Field Study (2003) (available at: 
                            <E T="03">www.proctoreng.com/dnld/WIDOE2013.pdf</E>
                            ) (last accessed August 1, 2023). Burdick, Arlan, Strategy Guideline: Accurate Heating and Cooling Load Calculations. Ibacos, Inc. (June 2011) (available at: 
                            <E T="03">www.nrel.gov/docs/fy11osti/51603.pdf</E>
                            ) (last accessed August 1, 2023). Ecovent, When Bigger is not Better (August 2014) (available at: 
                            <E T="03">docplayer.net/13225631-When-bigger-isn-t-better.html</E>
                            ) (last accessed August 1, 2023). Energy Center of Wisconsin, Central Air Conditioning in Wisconsin (May 2008) (available at: 
                            <E T="03">www.focusonenergy.com/sites/default/files/centralairconditioning_report.pdf</E>
                            ) (last accessed August 1, 2023). Washington State University, Efficient Home Cooling (2003) (available at: 
                            <E T="03">www.energy.wsu.edu/documents/AHT_Energy%20Efficient%20Home%20Cooling.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>DOE continues to expect that in the case of an energy conservation standard that allows small furnaces to use non-condensing technology, some consumers would have a financial incentive to downsize their furnace. Even without oversizing, a furnace installation should be designed to handle dry-bulb temperatures that will occur 99 percent of the time. Therefore, handling nearly all extreme conditions is already accounted for when selecting the unit, so a 10-40 percent oversizing should provide ample allowance for the most extreme conditions that might occur. Thus, DOE reasons that there would be no loss of utility or comfort under the Department's approach. DOE acknowledges that there could be cases where downsizing might not be advantageous. Therefore, for this final rule, DOE assumed that not all consumers would downsize when the oversize factor of 10-40 percent is less than or equal to the assumed input capacity limit for small furnaces. In addition, DOE conducted several sensitivity analyses of its downsizing methodology, assuming no downsizing as well as higher and lower levels of downsizing. See appendix 8M of the final rule TSD for further details.</P>
                    <P>
                        PHCC commented that current furnace models (both condensing and non-condensing) will have problems with oversizing, as excessive temperature rise can be detrimental to the life of the furnace, and that selecting excessive fan speed to compensate for the excess temperature rise will produce very drafty conditions. The commenter further stated that professional contractors have been accurately sizing equipment, despite ACCA references to limit oversizing to 40 percent. Finally, 
                        <PRTPAGE P="87586"/>
                        although PHCC acknowledged that the exact furnace size required for a space is not always available, the commenter stated that contractors will select the next incremental size and be reluctant to select equipment below the “design day capacity,” as weather and needs vary. (PHCC, No. 403 at p. 4)
                    </P>
                    <P>DOE acknowledges that complex factors are relevant when contractors size equipment. However, as discussed previously, DOE has found multiple sources of data to indicate an average oversizing factor in historical installations and has used those data in the analysis.</P>
                    <P>PHCC commented that DOE's assumption that consumers have financial incentive to downsize products indicates that costs are a concern for them and that consumers are aware of the economic impacts of furnace sizing. (PHCC, No. 403 at p. 4)</P>
                    <P>In response, DOE acknowledges that the initial total installed cost of a consumer furnace may result in a consumer making an alternative choice instead of a like-for-like replacement. For potential standard levels that include a capacity cutoff, below which the standard is not amended, DOE estimates some fraction of consumers would instead opt to purchase a slightly lower capacity furnace at a lower efficiency instead of a higher capacity furnace at the new efficiency level. DOE's analysis similarly accounts for consumers who may choose to extend the life of their existing furnace with additional repairs, or switch to an electric space heat alternative altogether. All of these potential options are accounted for in the analysis, as discussed in further detail in chapter 8 of the final rule TSD.</P>
                    <P>For this final rule, DOE analyzed the potential for similar separate energy conservation standards for small and large MHGFs as it did for NWGFs.</P>
                    <HD SOURCE="HD3">a. Accounting for Impacts of Downsized Equipment</HD>
                    <P>
                        The estimated degree of downsizing anticipated in the case of a non-condensing standard for small NWGFs and MHGFs is presented in Table IV.14 under the criteria of various “small furnace” definitions. For further details regarding this downsizing methodology, 
                        <E T="03">see</E>
                         appendix 8M of the TSD for this final rule. This appendix also presents sensitivity analysis results.
                    </P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s25,10,13p,10,13">
                        <TTITLE>Table IV.11—Share of LCC Sample Households Meeting Small Furnace Definition in 2029</TTITLE>
                        <BOXHD>
                            <CHED H="1">Small furnace definition</CHED>
                            <CHED H="1">NWGFs</CHED>
                            <CHED H="2">
                                Without
                                <LI>amended</LI>
                                <LI>standards</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                With separate
                                <LI>small furnace</LI>
                                <LI>standard and</LI>
                                <LI>downsizing</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="1">MHGFs</CHED>
                            <CHED H="2">
                                Without
                                <LI>amended</LI>
                                <LI>standards</LI>
                                <LI>(percent)</LI>
                            </CHED>
                            <CHED H="2">
                                With separate
                                <LI>small furnace</LI>
                                <LI>tandard and</LI>
                                <LI>with</LI>
                                <LI>downsizing (percent)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">≤40 kBtu/h</ENT>
                            <ENT>3.0</ENT>
                            <ENT>13.6</ENT>
                            <ENT>5.6</ENT>
                            <ENT>14.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤45 kBtu/h</ENT>
                            <ENT>4.4</ENT>
                            <ENT>16.7</ENT>
                            <ENT>9.7</ENT>
                            <ENT>18.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤50 kBtu/h</ENT>
                            <ENT>6.2</ENT>
                            <ENT>19.7</ENT>
                            <ENT>12.7</ENT>
                            <ENT>21.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤55 kBtu/h</ENT>
                            <ENT>7.4</ENT>
                            <ENT>21.4</ENT>
                            <ENT>13.8</ENT>
                            <ENT>23.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤60 kBtu/h</ENT>
                            <ENT>18.8</ENT>
                            <ENT>29.5</ENT>
                            <ENT>29.0</ENT>
                            <ENT>35.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤65 kBtu/h</ENT>
                            <ENT>20.3</ENT>
                            <ENT>31.5</ENT>
                            <ENT>32.8</ENT>
                            <ENT>39.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤70 kBtu/h</ENT>
                            <ENT>30.4</ENT>
                            <ENT>38.7</ENT>
                            <ENT>43.6</ENT>
                            <ENT>48.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤75 kBtu/h</ENT>
                            <ENT>41.5</ENT>
                            <ENT>47.1</ENT>
                            <ENT>59.6</ENT>
                            <ENT>63.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤80 kBtu/h</ENT>
                            <ENT>54.6</ENT>
                            <ENT>57.5</ENT>
                            <ENT>82.9</ENT>
                            <ENT>84.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤85 kBtu/h</ENT>
                            <ENT>56.4</ENT>
                            <ENT>59.4</ENT>
                            <ENT>85.9</ENT>
                            <ENT>87.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤90 kBtu/h</ENT>
                            <ENT>63.7</ENT>
                            <ENT>65.8</ENT>
                            <ENT>92.0</ENT>
                            <ENT>92.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤95 kBtu/h</ENT>
                            <ENT>63.7</ENT>
                            <ENT>66.2</ENT>
                            <ENT>92.0</ENT>
                            <ENT>92.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">≤100 kBtu/h</ENT>
                            <ENT>81.7</ENT>
                            <ENT>82.2</ENT>
                            <ENT>98.7</ENT>
                            <ENT>98.7</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">10. Accounting for Product Switching Under Potential Standards</HD>
                    <P>
                        During the development of the 2006 NOPR for consumer furnaces, manufacturers commented that when presented with potential standards for non-weatherized gas furnaces set at a level effectively requiring condensing technology, they expect consumers to switch to heat pumps or repair their existing equipment due to the increased cost of condensing non-weatherized gas furnaces. 71 FR 59204, 59230-59231 (Oct. 6, 2006). During the development of the 2011 direct final rule for consumer furnaces, some commenters again stated that a furnace standard set at a level effectively requiring condensing furnaces would cause some consumers to switch from gas furnaces to electric resistance heating or heat pumps. 76 FR 37408, 37483 (June 27, 2011). For the 2011 direct final rule, DOE did not explicitly quantify this potential for product switching, assuming that such switching was likely minimal in response to standards. 
                        <E T="03">Id.</E>
                         at 76 37483-37484. As part of the development of the March 2015 NOPR during informal workshops, some commenters again stated that consumers might switch to alternative electric heating systems due to a standard set at a level effectively requiring condensing furnaces.
                    </P>
                    <P>
                        As noted previously, DOE recognizes that consumers may elect to switch from one heating source to another. Those consumer choices are affected by many factors. As commenters to this proposed rule and prior rules have noted, one such factor is the furnace efficiency standard itself. Accordingly, in this rulemaking, DOE has considered the potential for a standard level to impact the choice between various types of heating products, for residential new construction, new owners, and the replacement of existing products. Because home builders are sensitive to the initial cost of heating equipment, a standard level that significantly increases purchase price may induce some builders to switch to a different heating product than they would have otherwise installed in the no-new-standards case. Such an amended standard level may also induce some homeowners to replace their existing furnace at the end of its useful life with a different type of heating product. The central assumption is that, for consumers to switch, the total installed cost of the alternative heating equipment would be less than the cost of a new consumer furnace at the amended standard level (operating costs may or may not be higher).
                        <PRTPAGE P="87587"/>
                    </P>
                    <P>In conducting this analysis, DOE has remained focused on the covered products subject to this rulemaking—consumer furnaces. That is, this analysis is intended to inform DOE's assessment of whether the standard level proposed is “economically justified” “for [the] type (or class) of covered product.” 42 U.S.C. 6295(o)(2)(A).</P>
                    <P>To assess the effect of fuel switching, DOE modeled the proposed standard under two scenarios. The first scenario assumed no switching at all; that is, it assumed that consumers faced with negative LCCs as a result of the standard would nevertheless make those investments (the zero-switching scenario). Under the second scenario, DOE assumed that every consumer for whom switching would be economically justified (according to simplified assumptions, detailed below), would do so (the maximum-switching scenario). These scenarios are intended to bookend the range of reasonably plausible switching results foreseeable as a result of this rule.</P>
                    <P>
                        The assumptions underlying the maximum-switching scenario are intentionally simplified. The purpose of this scenario is not to model consumers' 
                        <E T="03">actual</E>
                         expected behavior, but rather to estimate an outer bound for the possible range of responses. Accordingly, DOE has not attempted to incorporate into this model the market inefficiencies and consumer biases known to shape consumers' actual purchasing decisions. Instead, by assuming perfect economic rationality, this model produces an estimate of the most switching reasonably foreseeable as a result of this rule.
                    </P>
                    <P>The results of these two estimates confirm DOE's conclusion that the proposed standard level is economically justified. That is, whether DOE assumes that no consumers will switch fuels as a result of the rule or assumes that the maximum reasonably foreseeable number of consumers will do so, the rule is economically justified. The analysis underlying that conclusion is explained further below.</P>
                    <HD SOURCE="HD3">a. Product Switching Resulting From Amended Standards for Non-Weatherized Gas Furnaces</HD>
                    <P>In order to estimate the impact of potential product switching resulting from amended standards, DOE developed a consumer choice model to estimate the switching response of builders and homeowners in residential installations to potential amended AFUE standards for NWGFs. (Potential product switching for MHGFs is discussed in the following subsection.) However, the potential consumer switching response is highly uncertain, as this represents a significant change in residential heating equipment. Given this uncertainty, DOE chose to bound the range of potential impacts by analyzing several scenarios, including a scenario with no product switching, scenarios with a moderate amount of product switching, and an additional scenario with a much higher percentage of consumers switching to heat pump systems due to the potential availability of tax credits. By analyzing this range of scenarios, DOE can determine whether the potential for product switching affects its evaluation of economic justification.</P>
                    <P>For the purposes of the reference case analysis, DOE assumed a moderate level of product switching. DOE analyzed product switching scenarios that represent the most common combinations of space conditioning and water heating products. The model considers three options available for each sample home when installing a heating product: (1) a NWGF that meets a particular standard level, (2) a heat pump, or (3) an electric furnace. In addition, for situations in which installation of a condensing furnace would leave an “orphaned” gas water heater requiring costly re-venting, the model allows for the option to purchase an electric water heater as an alternative. For option 2, DOE took into consideration the age of the existing central air conditioner, if one exists, by including its residual value in the choice model. If an existing air conditioner is not very old, it is unlikely that the consumer would opt to install a heat pump, which can also provide cooling.</P>
                    <P>
                        The consumer choice model calculates the PBP between the higher-efficiency NWGF in each standards case compared to the electric heating options using the total installed cost and first-year operating cost for each sample household or building. The operating costs take into account the space-heating load and the water heating load for each household, as well as the energy prices over the lifetime of the available product options.
                        <SU>212</SU>
                        <FTREF/>
                         DOE accounted for any additional installation costs to accommodate a new product. DOE also accounted for the cooling load of each relevant household that might switch from a NWGF and central air conditioners (“CAC”) to a heat pump. For switching to occur, the total installed cost of the electric option must be less than the NWGF standards case option.
                    </P>
                    <FTNT>
                        <P>
                            <SU>212</SU>
                             Electric furnaces are estimated to have the same lifetime as NWGFs (21.5 years); however, heat pumps have an estimated average lifetime of 19 years. To ensure comparable accounting, DOE annualized the installed cost of a second heat pump and multiplied the annualized cost by the difference in lifetime between the heat pump and a NWGF.
                        </P>
                    </FTNT>
                    <P>
                        DOE used updated CAC and heat pump prices from the 2016 CAC and heat pump direct final rule,
                        <SU>213</SU>
                        <FTREF/>
                         assuming implementation of the CAC/HP minimum standards scheduled to take effect in 2023. 82 FR 1786 (Jan. 6, 2017). These heat pump prices include the manufacturer production costs, shipping costs, markups, and installation costs determined in the 2016 final rule. These costs were updated to 2022$ and the installation costs were updated using the same labor costs as discussed in section IV.F.2 of this document. DOE additionally updated the decreasing price trend for heat pumps derived in the 2016 final rule with the latest price data available. This trend suppresses the cost of heat pumps over time for the analysis period in this rulemaking. The consumer choice model assumes that if a consumer switches to a heat pump, it is to a minimally compliant heat pump (SEER 14). If consumers were to instead install higher efficiency heat pumps, this would generally increase heat pump installation costs, lowering the rate of equipment switching. DOE estimated the price of electric furnaces in the engineering analysis (see section IV.C of this document). For water heaters, DOE used efficiency and consumer prices for models that meet the amended energy conservation standards that took effect on April 16, 2015. 10 CFR 430.32(d). DOE estimated the price of gas and electric storage water heaters based on the 2010 heating products final rule. 75 FR 20112 (April 16, 2010).
                        <SU>214</SU>
                        <FTREF/>
                         For situations where a household with a NWGF might switch to an electric space-heating appliance, DOE determined the total installed cost of the electric heating options, including a separate circuit up to 100 amps that would need to be installed to power the electric resistance heater within an electric furnace or heat pump, as well as the cost of upgrading the electrical service panel for a fraction of households.
                    </P>
                    <FTNT>
                        <P>
                            <SU>213</SU>
                             U.S. Department of Energy-Office of Energy Efficiency and Renewable Energy, Residential Central Air Conditioners and Heat Pumps Technical Support Document (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2014-BT-STD-0048-0098</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>214</SU>
                             U.S. Department of Energy-Office of Energy Efficiency and Renewable Energy, Heating Products Final Rule (available at: 
                            <E T="03">www.regulations.gov/document?D=EERE-2006-STD-0129-0005</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        For the purposes of the reference case analysis, the consumer choice model 
                        <PRTPAGE P="87588"/>
                        needs to be calibrated to an available data point. The decision criterion in DOE's model was based on proprietary survey data from Decision Analyst, collected from five separate surveys conducted between 2006 and 2022.
                        <SU>215</SU>
                        <FTREF/>
                         Each survey involved approximately 30,000 homeowners. For a representative sample of consumers, the surveys identified consumers' willingness to purchase more-efficient space-conditioning systems. The surveys asked respondents the maximum price they would be willing to pay for a product that was 25 percent more efficient than their existing product, which DOE assumed is equivalent to a 25-percent decrease in annual energy costs. From these data, as well as RECS billing data to determine average annual space-heating energy costs, DOE determined that consumers considering replacing their gas furnace would require, on average, a payback period of 3.5 years or less in order to purchase a condensing furnace rather than switch to an electric space-heating option. This resulting payback period requirement is very short, consistent with other studies discussed in section IV.F.8.c of this document that found consumers and organizations often have very short payback period requirements, despite the longer-term economic benefits, thereby leading to suboptimal allocation of energy efficiency as a decisional factor. This relatively low payback period requirement means that consumers are quite sensitive to first costs, and as such, this will tend to dominate the switching criterion.
                    </P>
                    <FTNT>
                        <P>
                            <SU>215</SU>
                             Decision Analysts, 2006, 2008, 2010, 2013, 2016, 2019, and 2022 American Home Comfort Studies (available at: 
                            <E T="03">www.decisionanalyst.com/Syndicated/HomeComfort/</E>
                            ) (last accessed August 1, 2023). Non-proprietary data of a similar nature were not available.
                        </P>
                    </FTNT>
                    <P>
                        The consumer choice model calculates the PBP between the condensing NWGF in each standards case compared to the electric heating options using the total installed cost and first-year operating cost as estimated for each sample household or building. For switching to occur, the total installed cost of the electric option must be less than the NWGF standards case option. The model assumes that a consumer will switch to an electric heating option if the PBP of the condensing NWGF relative to the electric heating option is greater than 3.5 years or the PBP relative to the electric heating option is negative.
                        <SU>216</SU>
                        <FTREF/>
                         In the case of switching to an electric heating option, the model selects the most economically beneficial product. For the proposed energy conservation standard, the switching fraction of NWGF consumers is 8.9 percent, and the switching fraction of MHGF consumers is 8.5 percent.
                    </P>
                    <FTNT>
                        <P>
                            <SU>216</SU>
                             The PBP is negative when the electric heating option has lower operating cost compared to the condensing NWGF option.
                        </P>
                    </FTNT>
                    <P>This consumer model may overestimate the level of product switching that would occur, as not every consumer is likely to run through this PBP calculation to determine whether to switch or not. Familiarity bias and like-for-like replacement bias may reduce the impact of product switching. However, as previously mentioned, DOE developed several scenarios in order to place upper and lower limits on this effect, including a scenario in which no product switching occurs and a scenario with significantly more product switching. Analyzing all these scenarios allows DOE to account for the identified uncertainty in this consumer response.</P>
                    <P>DOE acknowledges that the consumer survey data it used to determine the switching criterion do not directly address the consumer choice to switch heating fuels, but because the data reflect a trade-off between first cost and ongoing savings, it is reasonable to expect that the payback criterion is broadly reflective of the potential consumer behavior regarding switching. Furthermore, the fuel switching results from DOE's analysis match the overall findings from the GTI Fuel Switching Study (see appendix 8J of the final rule TSD), which surveyed both contractors and home builders.</P>
                    <P>
                        In addition to the primary estimate, DOE conducted sensitivity analyses using higher and lower levels of switching, as well as a scenario with no switching. The sensitivity analyses use payback periods that are one year higher or lower than 3.5 years (
                        <E T="03">i.e.,</E>
                         2.5 years and 4.5 years). DOE also analyzed a scenario in which potential tax credits (up to $2,000) significantly reduce the cost of installing a heat pump system, thereby incentivizing even more consumers to switch from non-weatherized gas furnaces to heat pumps. This scenario represents an upper bound on the fraction of consumers switching to alternative heating equipment in response to amended energy conservation standards for NWGFs.
                        <SU>217</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>217</SU>
                             DOE notes that any product switching that may occur in the absence of amended energy conservation standards due to tax credits is discussed in section IV.G of this document. Such switching would not be relevant in the LCC analysis as those consumers would switch in the no-new-standards case and thus not be part of the furnaces LCC sample anymore.
                        </P>
                    </FTNT>
                    <P>The relative comparison of the standard levels analyzed for NWGFs remains similar, regardless of the switching scenario (including the scenario with no switching), as shown in appendix 8J of the final rule TSD. The average LCC savings and percentage of consumers experiencing a net cost vary between the different switching scenarios; however, at the adopted standard level, the average LCC savings are positive, and the percentage of consumers experiencing a net cost is below 25 percent in all scenarios. Therefore, DOE's evaluation of economic justification for NWGFs does not depend on the specific details or assumptions regarding product switching, and DOE would come to the same conclusions regarding economic justification even if the impacts of the fuel switching analysis were not included.</P>
                    <P>In response to the NOPR, APGA commented that DOE's statutory interpretation that the incorporation of the results of fuel switching into the LCC analysis is permissible is contrary to clear intent of Congress. (APGA, No. 387 at pp. 19-20) APGA further commented that it is unlawful for DOE to compel fuel switching in a rule and that Congress intentionally designed EPCA to be fuel neutral—and specifically between gas furnaces and electric alternatives. APGA argued that EPCA requires DOE to consider the possibility of fuel switching and set a standard that “is not likely to result in a significant shift from gas heating to electric resistance heating with respect to either residential construction or furnace replacement.” APGA claimed that DOE allows fuel switching in some cases and not in others—for example depending on degree. APGA disagreed with DOE's interpretation given a plain reading of the statute and upon the strength of the legislative history. (APGA, No. 387 at pp. 36-39)</P>
                    <P>
                        AGA similarly stated that it is improper for DOE to include LCC savings associated with fuel switching in the energy saving and economic justification of a consumer natural gas furnace standard. (AGA, No. 405 at pp. 74-77) AGA further argued, similarly to APGA, that the proposed rule would unlawfully compel many consumers to switch from gas to electric appliances. AGA argued that when Congress gave the Department authority to establish new standards for furnaces, it specified that those standards must not be “likely to result in a significant shift from gas heating to electric resistance heating with respect to either residential construction or furnace replacement,” and, therefore, the legislative history demonstrates that Congress did not intend for energy conservation standards to allow DOE to favor one fuel 
                        <PRTPAGE P="87589"/>
                        over another or limit consumer choice. (AGA, No. 405 at pp. 102-103) AGA argued that Congress designed the energy conservation standard program to be fuel-neutral and prevent fuel switching. (AGA, No. 405 at p. 105)
                    </P>
                    <P>HARDI commented that the NOPR did not meet the requirements outlined by EPCA, stating that the statute prescribes that standards cannot “result in a significant shift from gas heating,” and that the fuel-switching analysis does not demonstrate this requirement has been met. (HARDI, No. 384 at pp. 3-4)</P>
                    <P>NPGA stated that because the proposed minimum efficiency level can only be achieved using condensing technology that requires a condenser and venting configurations that differ from atmospherically drafted furnaces, the proposal exceeds authority under EPCA, unlawfully compels fuel switching from gas furnaces to electric alternatives, and imposes design requirements. (NPGA, No. 395 at p. 2) NPGA further stated that Congress gave DOE authority to promulgate standards, but such standards must not be “likely to result in a significant shift from gas heating to electric resistance heating with respect to either residential construction or furnace replacement.” NPGA commented that the proposed standard is contrary to this requirement because it is so uneconomical that it is predicted to force consumers from gas furnaces to electric alternatives, such as electric resistance heating or heat pumps. (NPGA, No. 395 at p. 4) NPGA cited Senate and Congressional reports from 1986 and 1987 discussing the standards to be set for small gas furnaces, in order to show that Congress did not want to set standards for small gas furnaces that would impact competition between fuel sources and cause a significant switch to electric resistance heating. (NPGA, No. 395 at pp. 4-8) NPGA commented that contrary to the intent of Congress, DOE's proposal embraces fuel switching, biases against gas in favor of electricity, and harms an important industry vital to consumer wellbeing. (NPGA, No. 395 at pp. 8-9) The Heartland Institute expressed concern that consumers will switch from natural gas to less-efficient electricity or heat their homes in a dangerous or more inefficient manner, stating that this is unlawful and that EPCA is designed to be fuel-neutral. (Heartland Institute, No. 376 at pp. 1-2) The Georgia Gas Authority commented that the lack of economic justification and the effect of driving consumers towards fuel-switching makes the proposed rule unlawful under EPCA. (Georgia Gas Authority, No. 367 at p. 2) Spire commented that DOE's fuel switching analysis is inconsistent with EPCA's statutory scheme because it fails to provide comparisons between the cost of furnaces with the required efficiency improvements and the value of the operating cost savings those efficiency improvements would provide as a result of the standard. (Spire, No. 413 at pp. 45-46) Spire also commented that the proposed standards promote electrification rather than conserve energy through efficiency in gas products, thereby conflicting with EPCA and being inconsistent with the overall statutory scheme. (Spire, No. 413 at pp. 2, 43-49) Finally, Spire commented that the fuel-switching analysis occurs in instances without new standards, and that the fuel-switching numbers provided include those instances. (Spire, Public Meeting Webinar Transcript, No. 4099 at p. 15)</P>
                    <P>The following paragraphs explain DOE's rationale as to why the Department's amended standard and fuel switching analysis are appropriate and are consistent with EPCA.</P>
                    <P>
                        First, DOE has concluded that the amended standards it is adopting for NWGFs and MHGFs are performance-based energy conservation standards that meet all relevant statutory requirements. As explained in section II.B of this document, DOE has determined that non-condensing technology and associated venting do not constitute a performance-related “feature” under 42 U.S.C. 6295(o)(4), consistent with the Department's December 2021 Final Interpretive Rule. Consequently, DOE is not making any covered product with a performance-related feature unavailable as a result of this rulemaking. These furnace standards are AFUE-based standards, which reflect efficiencies that are achieved by furnaces currently on the market. Although such levels are typically achieved by use of condensing technology, DOE does not mandate any specific technology or design to be used for meeting the standard, thereby allowing manufacturers maximum flexibility in terms of incorporating future technological advancements they deem appropriate. In the end, DOE has determined that the adopted furnace standards would result in the maximum energy savings that are technologically feasible and economically justified. Because these standards have been set in accordance with the applicable statutory criteria, DOE finds Spire's and NPGA's assertions that DOE has exceeded its statutory authority to be without merit. So, too, DOE finds without merit Spire's comments that these standards seek to promote electrification rather than to improve the energy efficiency of gas furnaces or that DOE's rule evidences a bias against gas. Consistent with EPCA's mandate, DOE has established product classes for each fuel source—gas, oil, and electricity—and set standards for those classes based on the criteria EPCA requires, 
                        <E T="03">i.e.,</E>
                         to achieve the maximum improvement in energy efficiency which the Secretary determines is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A))
                    </P>
                    <P>
                        Second, DOE has concluded that an analysis of potential fuel switching effects is appropriate and consistent with EPCA. Initially, DOE notes that its analysis of fuel switching in the context of furnaces was initiated at the request of commenters who urged the Department to analyze such effects. As discussed previously, even in the absence of standards, consumers of HVAC appliances have a number of choices in terms of product selection in the current marketplace. For example, some number of consumers voluntarily switch their home heating system in any given year to a heat pump from a gas furnace, and some number of consumers switch from a gas furnace to an electric furnace. Understanding such routine changes is necessary for DOE to properly analyze the base case in any standards rulemaking, particularly as it relates to annual product shipments. DOE sees no reason why such real-world effects should be ignored in the standards cases. Instead, the failure to properly account for such effects would be inconsistent with EPCA's direction to consider whether the standard is economically justified, accounting for, among other things, future product shipments. (
                        <E T="03">See</E>
                         42 U.S.C. 6295(o)(2)(B)(i)(I) and (III)) Consistent with that recognition, DOE has analyzed potential changes in consumer behavior in a number of other rulemakings—and without controversy in terms of the permissibility under EPCA of considering such effects. DOE has analyzed the impacts of a potential standard on out-of-scope products as well as cross-elasticities between different product classes in other rulemakings.
                        <SU>218</SU>
                        <FTREF/>
                         DOE cautions that any primary analysis that refuses to acknowledge the potential for fuel switching (product switching) ignores reality, so DOE has continued to include the fuel switching model as part of its analysis, in order to provide the most accurate assessment of the costs and benefits of this rulemaking. However, as 
                        <PRTPAGE P="87590"/>
                        discussed in the paragraph that follows, DOE has performed sensitivity analyses which assessed the effects of DOE's proposed standards if there were to be no fuel switching (see appendix 8J of the final rule TSD).
                    </P>
                    <FTNT>
                        <P>
                            <SU>218</SU>
                             For example, general service fluorescent lamps, motors, and clothes washers.
                        </P>
                    </FTNT>
                    <P>DOE's sensitivity analysis shows that the rule would be economically justified even if consumers were assumed to forgo economically beneficial opportunities to switch from gas furnaces to electric heat pumps. For example, with the reference case switching assumptions, DOE estimates that 18.7 percent of NWGF consumers would experience a net cost with average LCC savings of $350. Assuming no switching, DOE estimates that 21.6 percent of consumers would experience a net cost with an overall average LCC savings of $164 across all consumers. In either case, DOE considers the amended standard level to be economically justified. Thus, even if EPCA required the Department to ignore the likely real-world effects of its standards, and instead compelled an analysis that assumed consumers would eschew all fuel-switching, the resulting analysis would produce the same results: the standards adopted for gas-fired furnaces by this rule would still be the standards that achieve the maximum improvement in energy efficiency and that are technologically feasible and economically justified.</P>
                    <P>The amended standards plainly do not compel fuel switching. DOE's rule does not ban gas furnaces, and the Department has concluded that there are technological solutions available to allow continued installation of gas-fired furnaces for virtually all installation scenarios, as discussed in section IV.F.2 of this document. Consequently, DOE's rule does not compel any consumer to convert to an electric space-heating product, and consumers continue to have a variety of choices to suit their needs. DOE does acknowledge (and accounts for in its analysis) that in certain difficult installation situations with higher costs, consumers may choose to change their HVAC equipment to a product using a different fuel type, but as previously discussed, DOE expects this percentage to be small. Furthermore, newer technology options such as DuraVent FasNSeal may further reduce the prevalence and cost of such problematic installations. Although gas industry commenters have made numerous qualitative arguments regarding such installations, they have provided no data to demonstrate the quantitative impacts or to show that DOE's estimates are incorrect. DOE also finds no basis to support the Heartland Institute's assertion that consumers who choose to change their home heating product would face safety challenges or encounter a lack of energy-efficient alternatives; DOE's energy conservation standards for any of its covered space-heating products set minimum energy efficiency requirements for those products, and there are typically a variety of even more efficient products available on the market. DOE further has found that there are trained and qualified personnel available to adequately install and service such products, thereby alleviating any potential safety or reliability concerns.</P>
                    <P>
                        Finally, DOE clarifies the concept of fuel neutrality. Contrary to commenters' arguments, EPCA does not contain a general fuel-neutrality provision. In addition, in several specific provisions, EPCA requires particular consideration of fuel switching and the utility consumers derive from different fuels. DOE has adhered to these requirements of EPCA, as applicable. The Department has made clear in other rules that “DOE does not agree that EPCA, as amended, mandates fuel neutral energy conservation standards.” 
                        <E T="03">See</E>
                         Full-Fuel-Cycle Final Statement of Policy, 76 FR 51281, 51284 (August 18, 2011). In that document, DOE confirmed that it will continue to consider comparable products that use different fuels in separate classes as required by 42 U.S.C. 6295(q)(1). 
                        <E T="03">Id.</E>
                    </P>
                    <P>
                        As explained in DOE's August 2021 proposed interpretive rule, fuel switching is a natural part of market operation for the subject appliances, and it may occur even in the absence of amended energy conservation standards. The Department has recognized that “fuel switching occurs frequently and most certainly in the context of new energy conservation standards.” 86 FR 48049, 40856 (August 27, 2021). Installation costs may influence consumer decisions regarding fuel choice, and at any time, a segment of consumers may choose replacement products that rely on a different fuel source than that of the unit being replaced. 
                        <E T="03">Id.</E>
                         Because fuel switching may be impacted by the adoption of standards, when conducting an energy conservation standards rulemaking, the Department routinely accounts for potential fuel switching in its consumer choice model, which is one part of its full suite of analyses. Accordingly, “[a]lthough DOE typically analyzes fuel-switching effects, the agency is generally free to set an appropriate level under the applicable statutory criteria regardless of any ancillary fuel switching effects.” 
                        <E T="03">Id.</E>
                         Consequently, to the extent EPCA imposes a general principle of fuel-neutrality, DOE has understood that principle to be “violate[d]” only by “a degree of fuel switching that is much greater than typically found in DOE energy conservation standards rulemakings.” 
                        <E T="03">Id.</E>
                    </P>
                    <P>
                        The specific provision to which gas industry commenters cite in support of their fuel-neutrality argument is not applicable to this rulemaking. Specifically, commenters rely on a provision requiring DOE to determine that a particular energy conservation standard not “result in a significant shift from gas heating to electric resistance heating with respect to either residential construction or furnace replacements” (
                        <E T="03">see</E>
                         42 U.S.C. 6295(f)(1)(B)(iii)). However, commenters ignore the limited applicability of that provision. That limitation is one of three requirements applicable to DOE's issuance of an energy conservation standard for 
                        <E T="03">small</E>
                         furnaces (
                        <E T="03">i.e.,</E>
                         less than 45,000 BTUs) (
                        <E T="03">see</E>
                         42 U.S.C. 6295(f)(1)(B)(i)), for which DOE was required to establish standards no later than January 1, 1989 (
                        <E T="03">see Id.</E>
                         at 42 U.S.C. 6295(f)(1)(B)). DOE discharged that obligation by rulemaking in 1989. See Energy Conservation Program for Consumer Products: Energy Conservation Standards for Two Types of Consumer Products, 54 FR 47916 (Nov. 17, 1989). The statutory provision to which commenters point demonstrates that Congress knew how to address concerns about fuel neutrality, doing so explicitly at the relevant place in the statute; Congress did not choose to adopt fuel neutrality provisions in other, broader provisions of EPCA's rulemaking authority.
                    </P>
                    <P>The commenters seek to expand the reach of that provision to all subsequent furnace rulemakings. As explained subsequently, neither the language of the statute nor the legislative history support such a broad expansion of this fuel-neutrality limitation.</P>
                    <P>
                        Congress did not place this fuel neutrality requirement in a provision of EPCA applicable to all rulemakings or even in a separate provision applicable to all furnace rulemakings. Instead, this specific limitation was included in a grant of authority for a single rulemaking to be completed by January 1, 1989, establishing an energy conservation standard for furnaces (other than furnaces designed solely for installation in mobile homes) having an input of less than 45,000 Btu per hour and manufactured on or after January 1, 1992. (42 U.S.C. 6295(f)(1)(B)(i)) The statute further provided that DOE's final rule must be set at an AFUE between 71 percent and 78 percent. (42 U.S.C. 6295(f)(1)(B)(ii)) Congress set specific 
                        <PRTPAGE P="87591"/>
                        AFUE levels for most consumer furnaces by statute. (See 
                        <E T="03">Id.</E>
                         at 42 U.S.C. 6295(f)(1) and (2)) For this specific small furnaces rulemaking, however, Congress granted DOE discretion, but nevertheless imposed unusually prescriptive guidelines. Those specific guidelines make sense against a backdrop of otherwise congressionally mandated standards. However, they are entirely inconsistent with the general rulemaking authority Congress conferred upon the Department to set new or amended standards for covered products. The previous subsection makes this plain. Subsection (f)(1)(B)(ii) mandates that a January 1, 1989, regulation for “such furnaces”—
                        <E T="03">i.e.,</E>
                         small furnaces manufactured after January 1, 1992—must set an AFUE between 71 and 78 percent. (
                        <E T="03">Id.</E>
                         at 42 U.S.C. 6295(f)(1)(B)(ii)) But that provision is obviously inapplicable to 
                        <E T="03">all</E>
                         future furnace rulemakings. In its 1989 regulation, DOE established a standard for the small furnaces to which these provisions apply with an AFUE of 78 percent. In 2007, pursuant to EPCA's requirement that DOE consider amended standards for consumer furnaces, DOE promulgated amended standards for furnaces—including both these small furnaces and furnaces of other sizes—which raised the AFUE standard to 80-percent AFUE for NWGFs, to 81-percent AFUE for weatherized gas furnaces, to 80-percent AFUE for MHGFs, and to 82-percent AFUE for non-weatherized oil-fired furnaces. Such a rule would have been impossible if the efficiency range specified by 42 U.S.C. 6295(f)(1)(B)(ii)—71-78 percent AFUE—applied to that rulemaking. Of course, it did not, because 42 U.S.C. 6295(f)(1)(B)(ii) applied only to the Department's initial small-furnace rulemaking in 1989. Commenters never explain why subsection (f)(1)(B)(iii)—proscribing a significant shift to electric resistance heating—should apply to future rulemakings while subsection (f)(1)(B)(ii) should not.
                    </P>
                    <P>
                        Further, even if applicable to this rulemaking, the specific prohibition of 42 U.S.C. 6295(f)(1)(B)(iii) would have far less effect here than commenters assert. That section prevented DOE from setting a standard that would likely result in a significant shift from gas heating to “electric 
                        <E T="03">resistance</E>
                         heating.” Although that statutory requirement to avoid a shift to electric resistance heating was limited to the past rulemaking conducted under 42 U.S.C. 6295(f)(1)(B)(iii), DOE has concluded that the current rulemaking is also unlikely to drive a shift to electric resistance heating. To the extent the standard at issue here may result in a shift, it is far more likely to result in a shift from gas heating to electric heat pumps, a different technology with very different characteristics. At the time these particular statutory provisions were adopted, electric heat pumps were not as common with low market share in regions traditionally heated by furnaces, but in the intervening years, the heat pump market has seen considerable development. Heat pumps are far more efficient than electric resistance heating and can be more energy efficient than gas-fired furnaces. It would pervert EPCA's energy-savings purpose to infer from a prohibition on setting a standard likely to result in an 
                        <E T="03">inefficient</E>
                         shift an additional, a textual prohibition on setting a standard likely to result in an 
                        <E T="03">efficient</E>
                         one.
                    </P>
                    <P>Although the relevant statutory text is clear and controls, DOE nonetheless examined the legislative history to confirm its reading of the text, particularly since certain commenters advanced a contrary reading based at least in part on legislative history. This inquiry confirmed DOE's understanding of the statutory text and likewise confirmed that the contrary reading espoused by those commenters is incorrect, for the reasons discussed subsequently. The legislative history that commenters cite supports the Department's interpretation. In one set of remarks regarding amendments to EPCA, Senator Bennett Johnston, Chairman of the Senate Committee on Energy and Natural Resources, stated:</P>
                    <EXTRACT>
                        <P>We were concerned that if the Secretary establishes a standard for small gas furnaces at 78 percent, as originally proposed, the first cost differential between electric resistance heat and natural gas will increase to the point where builders will not even consider gas heat, particularly in southern areas where heating is a minor part of the overall residential energy requirement. With regard to the first cost, according to AGA, a 71-percent efficient gas furnace costs $475. Electric-resistance-heating equipment costs on an average $350, a difference of $125. By contrast, a 78-percent efficient gas furnace entails additional installation and duct work cost estimated conservatively at $150 to $200. Thus, the builder could save some $500 per living unit by choosing electric resistance heat over a 78-percent efficient gas furnace.</P>
                        <P>
                            One of the main goals of this legislation is to encourage energy conservation without unduly altering the economics of fuel choices. This goal will be impaired unless the 
                            <E T="03">standard for small gas furnaces</E>
                             is set so as to avoid raising the cost of these furnaces to the point where builders are forced to select electric resistance heat instead of a gas furnace purely on the basis of first cost.
                        </P>
                        <P>
                            That is why I added language in our Energy and Natural Resources Committee report making it clear that the Secretary must pay due consideration to the need for utilities to continue to compete fairly 
                            <E T="03">when DOE considers setting the standard for small gas</E>
                             furnaces. I made it clear the 
                            <E T="03">committee was concerned that setting a standard for small gas furnaces</E>
                             at or near the 78-percent level mandated in the bill for larger gas furnaces would increase the first cost of the small gas furnace sufficiently to induce a significant switch to electric resistance heating.
                        </P>
                        <P>
                            The report language goes on to say that the bill will, upon a sufficient showing, * * * forbid a standard for small gas furnaces being set at a level that would increase the price to the point that the product would be noncompetitive, resulting in minimal demand for the product.
                            <SU>219</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>219</SU>
                                 132 Cong. Rec. 31328 (Oct. 15, 1986) (emphasis added).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>In Senate Report No. 99-497, the report states in relevant part:</P>
                    <EXTRACT>
                        <P>
                            In addition, the 
                            <E T="03">Committee agreed to adopt specific report language clarifying its intent with respect to small furnaces;</E>
                             those having an input of less than 45,000 Btu's per hour.
                        </P>
                        <P>
                            The Committee did not establish an initial standard for 
                            <E T="03">small gas furnaces</E>
                             in the statute and instead directed the DOE to establish the standard by rule at an annual fuel utilization efficiency of not less than 71 percent and not more than 78 percent. The Committee was concerned that setting a standard for 
                            <E T="03">small gas furnaces,</E>
                             at or near 78 percent (the level for larger gas furnaces), would increase their initial price. Because of the 
                            <E T="03">competition between small gas furnaces and electric resistance heating</E>
                             in some areas of the Nation, such a price increase for 
                            <E T="03">small gas furnaces</E>
                             could induce builders or consumers to switch to electric resistance heating. No specific standard for electric resistance heating is included in this bill.
                        </P>
                        <P>
                            Section 325(j) provides several safeguards against a standard for 
                            <E T="03">small gas furnaces</E>
                             being set at a level that results in a buying preference or significant switching from gas heating to electric resistance heating. The Secretary must consider the impact of any lessening of competition that is likely to result from the establishment of a standard for 
                            <E T="03">small furnaces.</E>
                             He must consider the economic impact of the standard on manufacturers and consumers. In addition, the Secretary must consider the total projected amount of energy savings likely to result from the establishment or revision of a standard for 
                            <E T="03">small furnaces.</E>
                        </P>
                        <P>
                            Finally, section 325(j)(4) forbids a standard being set so as to result in the unavailability in the United States in any covered product type (or class) of performance charact[e]ristics, such as size or capacity. This paragraph, upon a sufficient showing, would forbid a standard for 
                            <E T="03">small gas furnaces</E>
                             being set at a level that would increase the price to the point that the product would be noncompetitive and that would result in minimal demand for the product.” 
                            <SU>220</SU>
                            <FTREF/>
                             Language from Senate Report 
                            <PRTPAGE P="87592"/>
                            No. 100-6 similarly reflects Congress's specific focus on small gas furnaces: “On page 23, lines 13 through 18, the Committee modified the language of the bill amending section 325(f)(1)(B) of EPCA to include an additional clause (iii). The purpose of the new clause is to clarify that, in setting an energy conservation standard 
                            <E T="03">for small gas furnaces</E>
                             (those having an input of less than 45,000 Btu's per hour), the Secretary of Energy shall, in a manner which is otherwise consistent with this Act, establish the standard at a level between 71 percent and 78 percent AFUE `which the Secretary determines is not likely to result in a significant shift from gas heating to electric resistance heating with respect to either residential construction or furnace replacement.
                        </P>
                        <FTNT>
                            <P>
                                <SU>220</SU>
                                 S. Rep. No. 99-497, at 5 (1986) (emphasis added).
                            </P>
                        </FTNT>
                        <P>
                            The Committee did not establish an initial standard 
                            <E T="03">for small gas furnaces</E>
                             in the statute and instead directed the DOE to establish the standard by rule at an annual fuel utilization efficiency of not less than 71 percent and not more than 78 percent. The Committee was concerned that setting a standard 
                            <E T="03">for small gas furnaces,</E>
                             at or near 78 percent (the level for larger gas furnaces), would increase their initial price. Because of the competition between 
                            <E T="03">small gas furnaces</E>
                             and electric resistance heating in some areas of the Nation, such a price increase 
                            <E T="03">for small gas furnaces</E>
                             could induce builders or consumers to switch to electric resistance hearing. No specific standard for electric resistance heating is included in this bill.
                        </P>
                        <P>
                            Section 325(j) provides additional safeguards against a standard 
                            <E T="03">for small gas furnaces</E>
                             being set at a level that results in a buying preference or significant switching from gas heating to electric resistance heating (see section-by-section analysis).
                            <SU>221</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>221</SU>
                                 S. Rep. No. 100-6, at 5-6 (emphasis added).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Although the legislative history reveals a broader statement 
                        <SU>222</SU>
                        <FTREF/>
                         by one individual member of Congress, once again Senator Bennett Johnston, its breadth is an outlier which contrasts with his own later statements and committee report language which demonstrates a focus on the small furnaces standard. The grants of rulemaking authority at 42 U.S.C. 6295(f)(4) and 42 U.S.C. 6295(m)(1), on which this rulemaking relies, do not limit the Department's discretion in the manner of 42 U.S.C. 6295(f)(1)(B)(iii). As relevant here, rather, the Department's discretion under those provisions is constrained by the generally applicable limits found in 42 U.S.C. 6295(m), (o), (p), and (q). Those provisions disallow establishment of a standard likely to result in the unavailability of a feature (
                        <E T="03">see</E>
                         42 U.S.C. 6295(o)(4)), and require establishment of a separate standard for any covered products that “consume a different kind of energy from that consumed by other covered products within” the regulated type of products (42 U.S.C. 6295(q)(1)(A)). The standards established by this final rule comport with these statutory requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>222</SU>
                             At 133 Cong. Rec. 545 (Jan. 6, 1987), Senator Johnston states, “One very sensitive aspect of this bill has been to minimize the effect it might have on the intense competition between the electric and gas industries. We don't want the bill to have the effect of creating a significant bias against any fuel—be it oil, gas, or electricity—so as to favor one over the other.”
                        </P>
                    </FTNT>
                    <P>AGA stated that it is improper for DOE to consider fuel switching as one of the benefits of the proposed standards. To be consistent with EPCA's text, purpose, structure, and intent, AGA argued instead that the purported savings due to fuel switching must be subtracted from the analysis of whether the standards would be economically justified. (AGA, No. 405 at p. 105) In response, DOE notes that the impacts of fuel switching are not necessarily benefits. There are differences in costs and energy consumption compared to the no-new-standards case, and DOE is merely accounting for these differences in the sensitivity analysis described in this section. DOE has evaluated a variety of fuel-switching scenarios (including a scenario with no switching). The relative comparison of the standard levels analyzed for NWGFs remains similar, regardless of the switching scenario. The results for all scenarios are found in appendices 8J and 10E of the final rule TSD. Therefore, DOE's evaluation of economic justification for NWGFs does not depend on the specific details or assumptions regarding product switching, and DOE comes to the same conclusions even if the impacts of fuel switching are not included.</P>
                    <P>AGA argued that DOE also fails to acknowledge that with a condensing furnace, consumers will use more electricity, counteracting the fuel savings. AGA asserted that DOE should recognize that fuel switching, under the proposed rule, would increase overall energy consumption, which runs counter to the objectives of an energy conservation standard. (AGA, No. 405 at pp. 74-77) In response, DOE finds AGA's claim to be incorrect and without merit. DOE's analysis does account for the slight increase in electricity consumption for condensing furnaces compared to non-condensing furnaces, as presented in section IV.E.4 of this document, and the estimated energy savings of the rule incorporate this impact. DOE also accounts for the increase in electricity consumption if a consumer switches to a heat pump or electric furnace. These effects are incorporated in both the LCC analysis and national impact analysis. However, the energy savings from reduced natural gas consumption vastly outweigh the slight increase in electricity consumption. Furthermore, DOE fully accounts for these impacts in all fuel-switching scenarios. Even in scenarios where some fraction of consumers switch to an electric heating alternative, the energy savings from reduced natural gas consumption vastly outweigh the increase in electricity consumption. It would run counter to the purposes of EPCA to forgo such energy savings unnecessarily.</P>
                    <P>Spire commented that forced transition to electric alternatives would increase energy consumption. (Spire, No. 413 at pp. 5-14) In response, DOE accounts for the increased electricity consumption as a result of product switching to electric alternatives in its analysis.</P>
                    <P>APGA commented that DOE's analysis fails to appropriately account for the increased emissions from the electricity sector that results from increased electrical energy consumption caused by fuel switching. (APGA, No. 387 at p. 29) AGA commented that DOE should fully examine the impacts fuel switching would have on the entire energy system, including utilities and end-use residential consumers. According to the commenter, fuel switching can impact existing and future natural gas utility and electricity consumers, so, therefore, the Department should thoroughly examine how fuel switching would impact future electricity generation, transmission, or distribution infrastructure requirements. (AGA, No. 405 at pp. 105-106) In response, DOE emphasizes that the impacts of fuel switching are incorporated in all parts of its analysis (as part of the reference new-standards scenario). This includes the impacts on end-use residential consumers, electric utilities, natural gas utilities, and emissions reductions or increases. The results do account for increased emissions from the electricity sector. The utility impact analysis specifically accounts for the effects of fuel switching.</P>
                    <P>
                        APGA opined that the estimates of potential switching in the TSD remain low, especially given financial incentives just passed by Congress in the Inflation Reduction Act, various initiatives of DOE to support low-income households, and numerous State initiatives. According to APGA, another reason that DOE's estimate of fuel switching is low is that DOE continues to underestimate the cost of difficult retrofits. The commenter reasoned that additional fuel switching to electric appliances decreases energy savings under DOE's analysis. (APGA, No. 387 at pp. 33-34) As discussed more fully 
                        <PRTPAGE P="87593"/>
                        subsequently, DOE has amended its shipments projection to account for existing policy initiatives with known impacts (
                        <E T="03">see</E>
                         section IV.G.2 of this document), which has resulted in adjustments to the no-new-standards shipments projection. For the final rule, the shipments projected in 2050 are approximately 3 percent lower than was estimated in the NOPR. With respect to costs, DOE estimates its installation costs based on the best available data and information submitted by commenters, as discussed in section IV.F.2 of this document. DOE has evaluated all relevant information and data and has not identified any data that contradict its cost estimates. DOE concludes that its installation cost estimates are reasonable and representative and, therefore, that the resulting fuel-switching impacts are reasonable and representative. Finally, DOE accounts for all energy consumption differences compared to the no-new-standards case. In fuel-switching scenarios where some fraction of consumers switch to an electric heating alternative, the energy savings from reduced natural gas consumption vastly outweigh the increase in electricity consumption.
                    </P>
                    <P>Spire claimed that DOE employs a fuel-switching analysis that assumes that consumers facing higher initial costs will engage in fuel-switching and does not consider the economic outcome of an investment in a standards-compliant furnace. Spire further argued that this is statutorily prohibited, as it is not fuel-neutral and is not comparing directly within classes because the technology is changing (non-condensing to electric). Spire claimed that DOE's fuel-switching analysis seeks to justify standards imposing economically unjustified efficiency by driving consumers to choose alternatives to gas furnaces. (Spire, No. 413 at pp. 43-44) In response, DOE finds that Spire is incorrect in its characterization of the analysis. The analysis considers the economic outcome of an investment in a standards-compliant furnace. Only a small fraction of consumers then opt for an electric alternative after this consideration. Even in the absence of amended standards, some portion of consumers with furnaces will choose to convert their home's heating system to a heat pump, changes which reflect consumer choice and the availability of alternative space-heating appliances in the marketplace. As commenters acknowledge, amended standards are likely to have some effect on such consumer purchasing decisions, so it would be inappropriate for DOE to fail to analyze these effects in both the no-new-standards case and standards cases. Furthermore, DOE evaluates a range of sensitivity scenarios with respect to fuel-switching assumptions, including a scenario with no fuel switching. The relative comparison of the standard levels analyzed for NWGFs remains similar, regardless of the switching scenario. The results for all scenarios are found in appendices 8J and 10E of the final rule TSD. Therefore, DOE's evaluation of economic justification for NWGFs does not depend on the specific details or assumptions regarding product switching, and DOE would reach the same conclusions even if the impacts of fuel switching are not included. To be clear, contrary to the assertions of Spire and others, justification for the amended standards set by DOE in this final rule does not hinge on fuel-switching results.</P>
                    <P>
                        Spire commented that DOE's analysis does not appear to account for base case fuel switching (
                        <E T="03">i.e.,</E>
                         fuel switching that would occur in the absence of new standards). (Spire, No. 413 at p. 50) In response, DOE notes that this assertion is incorrect. As previously mentioned, DOE incorporates existing market trends, including a shift to heat pumps and other heating alternatives in the absence of new standards, in its shipments projection and national impact analysis (see section IV.G of this document for further discussion). The LCC analysis specifically analyzes existing furnace consumers and the impacts on them due to a standard. Consumers that have already switched in the absence of a standard are not part of the LCC analysis, as they are not directly impacted by the rule; however, the reduction of future furnace shipments due to product switching will reduce overall energy savings in the national impact analysis, and that is accounted for in the analysis.
                    </P>
                    <P>Spire further argued that DOE's assumptions appear to be designed to maximize LCC savings rather than to simulate actual consumer purchasing behavior. (Spire, No. 413 at p. 51) In response, DOE notes that this is a significant mischaracterization of the analysis. The incorporation of product switching is intended to capture a potential effect raised in previous comments. DOE evaluated a variety of fuel-switching scenarios (including a scenario with no switching). The relative comparison of the standard levels analyzed for NWGFs remains similar, regardless of the switching scenario. The results for all scenarios are found in appendices 8J and 10E of the final rule TSD. Therefore, DOE's evaluation of economic justification for NWGFs does not depend on the specific details or assumptions regarding product switching, and DOE reaches the same conclusions even if the impacts of fuel switching are not included.</P>
                    <P>Spire argued that DOE's fuel-switching analysis understates the adverse impacts of fuel switching resulting from the standards by significantly understating the costs associated with switching to heat pumps and ignoring the extent to which high initial costs and installation constraints can be expected to drive fuel-switching consumers to the worst option from an energy conservation perspective: electric resistance heating. (Spire, No. 413 at p. 15) Spire further argued that DOE arbitrarily limits the fuel-switching options to heat pumps and electric furnaces, ignoring the fact that baseboard heating is readily available, easy to install, and has extremely low initial costs. (Spire, No. 413 at p. 52)</P>
                    <P>
                        In response, DOE notes that its estimates of heat pump costs are based on the 2016 final rule technical support document for central air conditioners and heat pumps and adjusted to 2022$. These are the most recently published estimates by DOE. Heat pump costs are unlikely to have changed significantly in the intervening years, other than due to the dollar value (which was accounted for). DOE's current analysis is consistent with the prior analysis specific to heat pumps. DOE further notes that the product-switching analysis considers alternative heating options that work with the existing ducted HVAC system. For a stand-alone gas furnace, the only other option is an electric furnace (
                        <E T="03">i.e.,</E>
                         electric resistance heating). For a system that includes both an air conditioner and a furnace, a heat pump becomes another comparable option. DOE also considers switching options related to a water heater that formerly shared an exhaust vent with a NWGF. Switching from a NWGF to electric baseboard heating requires extensive electrical work in all rooms of a home and a likely upgrade of the electrical panel, which likely costs several thousands of dollars. DOE disagrees that this is a low-cost option and estimates that very few consumers, if any, would switch to this option as a result of amended energy conservation standards, given the availability of other lower-cost alternatives. Additionally, DOE does not consider electric resistance space heaters as a viable space-heating alternative to a NWGF, because such heaters provide only localized heating utility as opposed to whole-home heating.
                        <PRTPAGE P="87594"/>
                    </P>
                    <P>Spire argued that fuel switching substantially increases overall carbon emissions and claimed that DOE is understating the adverse energy consumption and emissions impacts due to product switching. (Spire, No. 413 at pp. 5-6) In response, DOE notes that these assertions are incorrect and a mischaracterization of the analysis. Product switching does not substantially increase carbon emissions, and DOE evaluates a full range of energy savings and emissions impacts for all the switching sensitivity scenarios (including a scenario with no switching). The national impact analysis results for all scenarios are presented in appendix 10E of the final rule TSD. Although incorporating product switching decreases national energy savings (due to increased electricity consumption), in all scenarios, the rule will result in significant energy savings and emissions reductions compared to the no-new-standards case. The energy savings from reduced natural gas consumption vastly outweigh the increase in electricity consumption, when addressed on a comparable FFC basis.</P>
                    <P>APGA stated that a 95-percent AFUE furnace costs nearly three times as much as an 80-percent AFUE natural gas furnace and that an average air-source heat-pump system could cost $5,000 to $10,000 to install, which the commenter claimed is several times more than a gas furnace. (APGA, No. 387 at p. 65) APGA further commented that the heat pumps and central air conditioners test procedure final rule that the July 2022 NOPR cited for its product prices did not clearly explain how the prices were developed. APGA questioned whether DOE used a different methodology to predict the future prices of heat pumps, and the commenter stated that these matters should be clearly explained in the final rule. (APGA, No. 387 at p. 53) DOE has described how it estimated furnace costs previously in significant detail. With respect heat pumps, as noted, DOE utilized the estimated costs published in the January 2017 direct final rule for central air conditioners and heat pumps. 82 FR 1786 (Jan. 6, 2017). The heat pump product switching analysis is only relevant for households with an existing air conditioning system, because adding an air conditioner or heat pump requires significant additional installation costs, as well as space requirements (including adding a concrete pad). Households without an existing air conditioning system are unlikely to switch to a heat pump in response to an amended standard for consumer furnaces, whereas households with an existing (and aging) air conditioning system might opt to switch to a heat pump for both their heating and cooling needs.</P>
                    <P>
                        PHCC commented that DOE's assumption that heat pump equipment costs will go down is incorrect, as material prices have increased due to the COVID-19 pandemic and resulting supply chain issues. PHCC further stated that heat pump costs are too low as estimated in the NOPR, and that the costs for adding power capacity and estimates of the number of homes that require additional power capacity are also too low. (PHCC, No. 403 at p. 5) In response, DOE acknowledges the supply chain issues that were prevalent during the COVID-19 pandemic; however, DOE estimates that by the first year of compliance (
                        <E T="03">i.e.,</E>
                         2029) these constraints will no longer be relevant. DOE has also adjusted all cost estimates to $2022 to reflect recent inflation trends. Lastly, no additional data were submitted to support further adjustment of the number of homes that require additional power capacity.
                    </P>
                    <P>PHCC expressed uncertainty as to whether DOE's updates related to heat pumps and to its fuel-switching analysis are sufficient, including whether the Department considered the impacts on the recent proposal to require a new refrigerant. (PHCC, No. 403 at pp. 4-5) In response, DOE notes that it incorporates the latest refrigerant requirements for heat pumps in its fuel-switching estimates.</P>
                    <P>PHCC commented that the fuel-switching and repair information in Tables V.3 and V.4 of the NOPR are understated. (PHCC, No. 403 at p. 6) In response, DOE notes that the commenter did not provide any meaningful information or data to update or improve the analysis. DOE's analysis is based on the best available data and information, including that submitted by commenters. DOE has evaluated all relevant information and data and has not identified any data that contradicts its estimates. Therefore, DOE concludes that its estimate of the percentage of consumers switching to an electric heating alternative or opting for extended repair are reasonable and representative.</P>
                    <P>
                        NGA of Georgia commented that the proposed rule will create a competitive disadvantage because the high initial cost of the installation requirements for condensing furnaces will cause consumers to switch from natural gas to less-efficient home heating alternatives such as oil, kerosene, and electric resistance furnaces. (NGA of Georgia, No. 380 at p. 3) In response, DOE disagrees that consumers will likely switch to oil or kerosene alternatives, as there are significantly higher operating and installation costs for those fuels. For example, as projected in 
                        <E T="03">AEO2023,</E>
                         the cost of fuel oil per MMBtu is more than double that of natural gas. Therefore, DOE does not include these fuels in its fuel-switching estimates. With respect to electric furnaces, DOE already accounts for a fraction of consumers that opt to switch to an electric furnace and includes these impacts in its analysis.
                    </P>
                    <P>The Georgia Gas Authority stated that the residential customers served by its members continue to choose the non-condensing furnace as the most economical and energy-efficient option. The commenter stated that this is evidenced by the number of non-condensing furnaces financed through the Georgia Gas Authority's on-bill financing program and the responses of HVAC contractors interviewed throughout the various regions their members serve. According to the commenter, the interviewed HVAC contractors indicated that the unavailability of non-condensing furnaces would cause widespread fuel switching to electric heating. Furthermore, the Georgia Gas Authority stated that many natural gas customers would face higher monthly energy costs without any improved energy efficiencies by switching to electric appliances. (The Georgia Gas Authority, No. 367 at p. 2) In response, DOE estimates the total costs and benefits associated with existing non-condensing furnace consumers moving to a condensing furnace. DOE's analysis is national in scope but captures regional variability. DOE's analyses show that a majority of consumers, nationally, are expected to receive a net LCC benefit under this rulemaking, and DOE disagrees with the commenter that most consumers would switch to an electric alternative. In particular, the availability of condensing furnaces will change in the new-standards case, and, therefore, it is highly unlikely that consumers will switch to electric alternatives due to the unavailability of products. Furthermore, DOE's analysis estimates that only a modest fraction of consumers would switch to an electric alternative. The full impacts of this switch, including all operating costs and energy consumption impacts, are accounted for in DOE's analysis and evaluation of economic justification.</P>
                    <P>
                        The DCA also commented that this proposed rulemaking would lead to customers switching to electric furnaces. The commenter further added that this switch would lead to higher operating costs and necessitate upgrades to electrical systems. (DCA, No. 372 at 
                        <PRTPAGE P="87595"/>
                        p. 2) In response, DOE has evaluated this possibility of consumers switching to electric furnaces as part of the fuel-switching analysis, including the impacts of potentially higher operating costs and the need for upgrades to electrical systems.
                    </P>
                    <P>Edison Electric Institute commented that the fuel-switching analysis should account for the other standards that have been implemented for related products such as heat pumps. (Edison Electric Institute, Public Meeting Webinar Transcript, No. 363 at p. 85) Edison Electric Institute similarly commented that the fuel-switching model should include technologies such as oil furnaces or other technologies besides electric heating systems. (Edison Electric Institute, Public Meeting Webinar Transcript, No. 4099 at p. 18) In response, DOE notes that the fuel-switching analysis does account for relevant and up-to-date standards for heat pumps. DOE further estimates that switching from gas-fired to oil-fired furnaces is highly unlikely, given the installation costs necessary to do so and significantly higher fuel oil prices. As a general matter, there has been an overall market shift away from oil-fired furnaces.</P>
                    <P>HARDI commented that DOE's analysis fails to adequately measure the impact of the NOPR. Specifically, HARDI commented that the LCC model and its fuel-switching analysis contain incorrect assumptions that will make it more difficult for distributors to predict the market changes and warehouse the appropriate inventory. (HARDI, No. 384 at p. 2) In response, DOE notes that in the standards case, the market for furnaces will be more predictable in terms of furnace efficiency options. DOE acknowledges the uncertainty in how consumers may respond in terms of product switching, which is why there are several product switching sensitivity scenarios, but in all cases, DOE concludes that the rule is economically justified.</P>
                    <P>Sierra Club and Earthjustice commented that the modeling of consumers' decisions to switch to electric space-heating appliances in response to amended consumer furnace standards is solidly grounded in the available data. (Sierra Club and Earthjustice, No. 401 at p. 2) Sierra Club and Earthjustice further commented that industry stakeholders misapprehend DOE's objective in modeling consumer decisions about fuel switching. These commenters stated, as long-term industry trends suggest, some portion of consumers will switch to heat pumps no matter what standard DOE selects. Further, Sierra Club and Earthjustice stated that the amended standard would not be driving the broader shift to electric heating appliances, but it may encourage customers to invest in cost-effective electric alternatives to consumer furnaces. These organizations commented that the base-case efficiency and consumer fuel-switching analysis serve different roles in the analysis of impact. (Sierra Club and Earthjustice, No. 401 at p. 2) In response, DOE clarifies that there are indeed separate aspects to fuel switching addressed in the analysis. To the extent that the existing NWGF market is shifting to electric heating alternatives, such as heat pumps, in the absence of any amended energy conservation standard for NWGFs, that is reflected in the no-new-standards case shipments projection, as discussed in more detail in section IV.G of this final rule. The second aspect of fuel switching is in response to an amended energy conservation standard for NWGFs. DOE agrees with Sierra Club and Earth Justice that an amended energy conservation standard will not drive a significantly broader shift to electric heating alternatives. As explained previously, the estimated fraction of consumers that switch to an electric heating alternative in response to an amended energy conservation standard for NWGFs is expected to be modest.</P>
                    <P>Joint Efficiency Commenters stated that DOE's sensitivity analyses demonstrate that the proposed standards are cost-effective even with alternative assumptions for key parameters. These groups further commented that, while higher product switching was found to result in greater LCC savings and a lower simple payback period, assuming no product switching still resulted in positive LCC savings for the proposed standard level. (Joint Efficiency Commenters, No. 381 at pp. 4-5) DOE agrees.</P>
                    <HD SOURCE="HD3">b. Product Switching Resulting From Amended Standards for Mobile Home Gas Furnaces</HD>
                    <P>As in the NOPR analysis, DOE has included product switching in its analysis for MHGFs for this final rule, including a variety of sensitivity scenarios. The MHGF product-switching methodology is similar to the product-switching methodology for NWGFs, except that the model does not assume any switching from gas storage water heaters to electric storage water heaters, since MHGFs and gas storage water heaters do not share common vents. See appendix 8J of the TSD for this final rule for more details regarding the product-switching model for MHGFs.</P>
                    <P>The relative comparison of the standard levels analyzed for MHGFs in this final rule remains similar, regardless of the switching scenario (including the scenario with no switching), as presented in appendix 8J of the final rule TSD. The average LCC savings and percentage of consumers experiencing a net cost vary between the different switching scenarios. However, at the adopted standard level, the average LCC savings are positive, and the percentage of consumers experiencing a net cost is below 25 percent in all scenarios. Therefore, DOE's evaluation of economic justification demonstrates that MHGFs are not significantly impacted by the specific details or assumptions regarding product switching.</P>
                    <P>
                        MHI suggested that the standards proposed in the July 2022 NOPR could lead consumers to adopt less-efficient, and sometimes dangerous, heating methods. (MHI, No. 344 at p. 1) JCI similarly commented that DOE should evaluate whether the proposed MHGF standards would drive homeowners to unsafe heating alternatives such as portable space heaters. (JCI, No. 411 at p. 2) In response, DOE has not found data to suggest that MHGF standards would drive homeowners to unsafe heating alternatives such as portable space heaters. In addition, DOE notes that the commenters did not provide, and that DOE was unable to identify, data to support the claim that consumers would switch to dangerous heating methods in response to an amended efficiency standard for the subject furnaces. While homeowners of manufactured homes could purchase multiple portable space heaters to fulfill their heating needs throughout the winter in various rooms, switching to portable electric resistance heating would substantially increase operating costs for most consumers to maintain the same level of comfort and increase monthly utility bills for most owners of manufactured homes. DOE believes this occurrence will be rare because homeowners are unlikely to forgo the use of heat throughout the winter, are unlikely to choose unsafe heating alternatives where warnings regarding their constant use are readily available and apparent, and are sensitive to monthly expenses on utility bills. Thus, DOE believes any occurrences of the type posited by MHA and JCI would be rare in practice. DOE has identified and evaluated the likely heating alternatives for consumers of MHGFs, based on existing and safe products on the market, in its switching analysis.
                        <PRTPAGE P="87596"/>
                    </P>
                    <HD SOURCE="HD3">11. Accounting for Furnace Repair as an Alternative to Replacement Under Potential Standards</HD>
                    <P>For this final rule, DOE added a repair option into its consumer choice model. Because repair is likely to be considered first by consumers facing furnace replacement, DOE evaluated this option before the product switching options.</P>
                    <P>
                        To estimate the fraction of consumers in a standards case that would choose to repair their existing furnace rather than replace it or switch to an alternative product, DOE used a price elasticity parameter, which relates the incremental total installed cost to total gas furnace shipments, and an efficiency elasticity parameter, which relates the change in the operating cost to gas furnace shipments. Both types of elasticity relate changes in demand to changes in the corresponding characteristic (price or efficiency). A regression analysis estimated these terms separately from each other and found that the price elasticity of demand for several appliances is on average −0.45.
                        <SU>223</SU>
                        <FTREF/>
                         Thus, for example, a price increase of 10 percent would result in a shipment decrease of 4.5 percent, all other factors held constant. The same regression analysis found that the efficiency elasticity is estimated to be on average 0.2 (
                        <E T="03">i.e.,</E>
                         a 10-percent efficiency improvement, equivalent to a 10-percent decrease in operating costs, would result in a shipments increase of 2 percent, all else being equal). From these two parameters, DOE derived a probability that a given household will not purchase a furnace, which is interpreted as the household repairing rather than replacing the furnace. The regression analysis included a range for the elasticity parameters. The price elasticity parameter was adjusted by income such that the higher elasticity was assigned to lower-income households and the lower elasticity was assigned to higher-income households, resulting in a greater probability of repairing existing equipment for lower-income households. Households that are designated as doing a repair rather than replacement are not considered in the subsequent switching analysis. DOE also conducted sensitivity analyses using higher and lower rates of repair. See appendix 8J of the TSD for this final rule for more details on the repair vs. replace consumer choice model for NWGFs and MHGFs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>223</SU>
                             Fujita, S., Estimating Price Elasticity Using Market-Level Appliance Data. LBNL-188289 (August 2015) (available at: 
                            <E T="03">eta-publications.lbl.gov/sites/default/files/lbnl-188289.pdf</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>HARDI commented that the proposed standards would increase repairs of older equipment, which would make it more challenging to stock repair parts, make these repairs more expensive, and take longer due to more product shipments. Finally, HARDI argued that many consumers would still opt for these higher repair costs rather than replace their furnace due to the increased cost of a new, standards-compliant unit. (HARDI, No. 384 at pp. 2-3) ACCA also stated its expectation that the proposals in the July 2022 NOPR would result in a significant increase in homeowners opting to repair their existing equipment rather than working with a licensed professional to replace it. (ACCA, No. 398 at p. 3)</P>
                    <P>In response, DOE acknowledges that some consumers may opt to extend the lifetime of an existing lower-efficiency furnace rather than replace it, and the Department includes this effect in its analysis as part of its repair vs. replace methodology. Incorporating this effect into DOE's analysis reduces the total energy savings expected as a result of the standards. However, DOE estimates that only a few percent of consumers will opt for an extended repair, which will only delay the replacement by a few years given that the furnace will ultimately need to be replaced (see results presented in section V.B of this document). DOE's shipments projection accounts for these extended repair situations. With respect to the availability of non-condensing furnace replacement parts, DOE acknowledges that as the share of non-condensing furnaces in the building stock decreases over time, the availability of replacement parts will decrease as well, but the Department expects that manufacturers will have both an economic incentive to continue to make such parts available, as well as a desire to maintain good relations with their customer base.</P>
                    <P>PHCC expressed disagreement with DOE's conclusion that new standards will not cause consumers to repair products or use alternate heating methods. The commenter surmised that DOE's rationale relates to contractors not doing much of this type of repair work in the market now, but PHCC argued that the relatively low rate of repair is likely tied to consumers currently having other non-condensing furnace options. PHCC pointed to the air-conditioning industry, where repairs increased when refrigerant requirements changed. Finally, the commenter argued that low- and fixed-income consumers would be impacted by these increased costs, and that these costs should be considered as a part of the LCC and PBP analysis. (PHCC, No. 403 at p. 5)</P>
                    <P>In response, DOE clarifies that it does include repair and maintenance costs as part of the analysis, differentiated by efficiency level. DOE also considers that a fraction of consumers may choose to repair a furnace, rather than replace it, at the end of its lifetime, in response to an amended energy conservation standard, as described previously. DOE also clarifies that it considered the possibility that consumers may adopt alternative heating methods in response to an amended energy conservation standard for consumer furnaces, as described in section IV.F.10 of this document.</P>
                    <HD SOURCE="HD3">12. Payback Period Analysis</HD>
                    <P>The payback period is the amount of time (expressed in years) it takes the consumer to recover the additional installed cost of more-efficient products, compared to baseline products, through energy cost savings. Payback periods that exceed the life of the product mean that the increased total installed cost is not recovered in reduced operating expenses.</P>
                    <P>The inputs to the PBP calculation for each efficiency level are the change in total installed cost of the product and the change in the first-year annual operating expenditures relative to the baseline. The PBP calculation uses the same inputs as the LCC analysis when deriving first-year operating costs, except that discount rates are not needed.</P>
                    <P>As noted previously in section III.F.2 of this document, 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 first year's energy savings resulting from the standard, as calculated under the applicable test procedure. (42 U.S.C. 6295(o)(2)(B)(iii)) For each considered efficiency level, DOE determined the value of the first year's energy savings by calculating the energy savings in accordance with the applicable DOE test procedure, and multiplying those savings by the average energy price projection for the year in which compliance with the amended standards would be required.</P>
                    <P>
                        APGA argued that since the product switching decision criterion is based on a simple payback period calculation, the inclusion of product switching biases the average PBPs to be more attractive than they should be. (APGA, No. 387 at pp. 57-58) In response, DOE notes that it has performed a sensitivity scenario 
                        <PRTPAGE P="87597"/>
                        with no product switching, including calculating the resulting PBPs, and the conclusions of economic justification remain the same regardless of whether product switching is included or not.
                    </P>
                    <HD SOURCE="HD2">G. Shipments Analysis</HD>
                    <HD SOURCE="HD3">1. Shipments Model and Inputs</HD>
                    <P>
                        DOE uses projections of annual product shipments to calculate the national impacts of potential amended or new energy conservation standards on energy use, NPV, and future manufacturer cash flows.
                        <SU>224</SU>
                        <FTREF/>
                         The shipments model takes an accounting approach, tracking market shares of each product class and the vintage of units in the stock. Stock accounting uses product shipments as inputs to estimate the age distribution of in-service product stocks for all years. The age distribution of in-service product stocks is a key input to calculations of both the NES and NPV, because operating costs for any year depend on the age distribution of the stock.
                    </P>
                    <FTNT>
                        <P>
                            <SU>224</SU>
                             DOE uses data on manufacturer shipments as a proxy for national sales, as aggregate data on sales are lacking. In general, one would expect a close correspondence between shipments and sales.
                        </P>
                    </FTNT>
                    <P>
                        DOE developed shipment projections based on historical data and an analysis of key market drivers for each product. DOE estimated NWGF and MHGF shipments by projecting shipments in three market segments: (1) replacement of existing consumer furnaces; (2) new housing; and (3) new owners in buildings that did not previously have a NWGF or MHGF or existing NWGF or MHGF owners that are adding an additional consumer furnace.
                        <SU>225</SU>
                        <FTREF/>
                         DOE also considered whether standards that require more efficient consumer furnaces would have an impact on consumer furnace shipments, as discussed in section IV.G.2 of this final rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>225</SU>
                             The new owners primarily consist of households that add or switch to NWGFs or MHGFs during a major remodel. Because DOE calculates new owners as the residual between its shipments model compared to historical shipments, new owners also include shipments that switch away from NWGFs or MHGFs.
                        </P>
                    </FTNT>
                    <P>
                        An anonymous commenter stated that with recent shortages, it has been hard to find air-conditioner or furnace units that meet the ultra-low NO
                        <E T="52">X</E>
                         requirement in areas that require them. (Anonymous 2, No. 346 at p. 1) The anonymous commenter further recommended that more resources should be made available to manufacturers so that availability is no longer an issue. (
                        <E T="03">Id.</E>
                        ) The same anonymous commenter also stated that heat pumps alleviate the issue of not having available resources to meet ultra-low NO
                        <E T="52">X</E>
                         requirements. (
                        <E T="03">Id.</E>
                        ) The same anonymous commenter referenced a blog from Lee's Air, Plumbing, and Heating that may serve as a resource for helping residential homeowners upgrade old furnaces to ultra-low NO
                        <E T="52">X</E>
                         systems. (
                        <E T="03">Id.</E>
                        ) In response, DOE acknowledges recent supply chain constraints but assumes that all such constraints will be resolved by the first year of compliance (2029), as such constraints were heavily tied to the COVID-19 pandemic. DOE assumes that current supply chain issues will not persist out to 2029 and beyond, given that such issues are already in the process of resolving and current supply chains are not as constrained as they were during the pandemic.
                    </P>
                    <P>The Georgia Gas Authority stated that over the past 15 years, the average residential natural gas consumption per customer has dropped from 72 MMBtu per year to 65 MMBtu per year. The Georgia Gas Authority commented that condensing units are currently 50 percent of the market and 60 percent of shipped NWGFs. (Georgia Gas Authority, No. 367 at p. 2)</P>
                    <P>Citing a report from the Bonneville Power Administration, NEEA stated that 65 percent of gas furnace sales in the Northwest in 2020 were at an efficiency of 95 percent AFUE or higher. Similarly, NEEA added that less than one-third of gas furnaces sales in the Northwest are non-condensing, and that this figure has been stable and declining from 2016 to 2020. (NEEA, No. 368 at p. 3)</P>
                    <P>The Heartland Institute commented that condensing furnaces capture more than half the market, with six in ten NWGFs shipped being condensing models. Accordingly, the commenter argued that the proposed standards for NWGFs and MHGFs are not needed. (Heartland Institute, No. 376 at p. 2)</P>
                    <P>APGA asserted that growth in the market share for condensing furnaces is likely to be higher than DOE's estimate and undermines DOE's economic justification for further market intervention in the form of new standards. (APGA, No. 387 at pp. 7-8)</P>
                    <P>
                        In contrast, NYSERDA further commented that DOE's condensing furnace national projections are lower than as described in the 2021 HARDI data for the Northeast and New York, which shows 76 percent and 64 percent of natural gas furnace shipments as being condensing systems, respectively. (
                        <E T="03">Id.</E>
                        ) NYSERDA also commented that HARDI sales data for New York show that over 50 percent of furnaces sold in the Northeast and over 45 percent of those sold in New York are at 96-percent AFUE. (NYSERDA, No. 379 at p. 2)
                    </P>
                    <P>DOE acknowledges the increasing market saturation of condensing furnaces and has included this trend as part of the shipments analysis based on historical shipments data. These data do indicate a high fraction of condensing furnaces in the Northeast.</P>
                    <P>Evergreen Action commented that condensing furnaces represent about half of the new purchases on the current market; the other half of purchases are made by landlords or builders who are not responsible for the utility bills, or by homeowners who are making a quick decision when replacing a broken furnace. (Evergreen Action, No. 364 at p. 1) In response, although DOE acknowledges that a mix of landlords or homeowners purchase consumer furnaces, the Department bases its shipments projection on historical shipment and saturation data. DOE further notes that these observations regarding landlords and builders, as well as homeowners making quick replacement decisions, are consistent with DOE's discussion of market failures in section IV.F.8 of this document.</P>
                    <P>Nortek commented that the proposed furnace standards could lead the already relatively small retail market for MHGFs to shrink, which could cause companies to stop making them. The commenter further stated that this could reduce competition and, in turn, cause problems for manufactured homeowners who would have to turn to more expensive alternatives. (Nortek, No. 406 at p. 6)</P>
                    <P>Mortex commented that DOE's shipments estimates for MHGFs are too high, and estimating that these values should be closer to 36,000 (consistent with 2021 shipments). In contrast to DOE's projection of increasing shipments, Mortex forecasted that shipments of MHGFs will decline, reaching 19,000 by 2040. (Mortex, No. 410 at p. 2)</P>
                    <P>
                        As discussed in the subsections that fellow, DOE's shipments projections for MHGFs are based on historical shipment data submitted to DOE by manufacturers and trade associations and historical and projected manufactured housing data (existing and new construction), as described in chapter 9 and appendix 9A of the final rule TSD. Projected housing trends are based on 
                        <E T="03">AEO2023.</E>
                         These data indicate that MHGF shipments are unlikely to decrease to the level suggested by Mortex, primarily due to replacements needed for existing manufactured homes.
                    </P>
                    <P>
                        AGA inquired about how the modeled market correlates to the 2020 RECS data, pointing out that the modeled market 
                        <PRTPAGE P="87598"/>
                        share of the Pacific Region in 2029 differs from the 2020 RECS data. (AGA, Public Meeting Transcript, No. 363 at p. 55) In response, DOE clarifies that it includes market share trends into its analysis, such that the market shares projected for 2029 will not exactly match 2020 market shares. Furthermore, RECS data represent the market share of the existing stock, whereas the market share for 2029 represents new shipments of consumer furnaces.
                    </P>
                    <HD SOURCE="HD3">a. Historical Shipments Data</HD>
                    <P>
                        DOE assembled historical shipments data for NWGFs and MHGFs from Appliance Magazine for 1954-2012,
                        <SU>226</SU>
                        <FTREF/>
                         AHRI from 1996-2022,
                        <SU>227</SU>
                        <FTREF/>
                         HARDI from 2013-2022,
                        <SU>228</SU>
                        <FTREF/>
                         and BRG from 2000-2022.
                        <SU>229</SU>
                        <FTREF/>
                         DOE also used the 1992 and 1994-2003 shipments data by State provided by AHRI 
                        <SU>230</SU>
                        <FTREF/>
                         and 2004-2009 and 2010-2015 shipments data by North and rest of country regions provided by AHRI,
                        <SU>231</SU>
                        <FTREF/>
                         as well as HARDI shipments data that is disaggregated by region and most States to disaggregate shipments by region. DOE also used CBECS 2018 data and BRG shipments data to estimate the commercial fraction of shipments. Disaggregated shipments for MHGFs are not available, so DOE disaggregated MHGF shipments from the total by using a combination of data from the U.S. Census 
                        <E T="51">232 233</E>
                        <FTREF/>
                         American Housing Survey (AHS),
                        <SU>234</SU>
                        <FTREF/>
                         and RECS.
                        <SU>235</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>226</SU>
                             Appliance Magazine. Appliance Historical Statistical Review: 1954-2012 (2014).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>227</SU>
                             Air-Conditioning, Heating, &amp; Refrigeration Institute, 
                            <E T="03">Furnace Historical Shipments Data.</E>
                             (1996-2022) (Available at: 
                            <E T="03">www.ahrinet.org/resources/statistics/historical-data/furnaces-historical-data</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>228</SU>
                             Heating, Air-conditioning and Refrigeration Distributors International (HARDI). DRIVE portal (HARDI Visualization Tool managed by D+R International until 2022), proprietary Gas Furnace Shipments Data from 2013-2022 proprietary Gas Furnace Shipments Data from 2013-2022 provided to Lawrence Berkeley National Laboratory (LBNL).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>229</SU>
                             BRG Building Solutions. The North American Heating &amp; Cooling Product Markets (2023 Edition) (available at: 
                            <E T="03">www.brgbuildingsolutions.com/reports-insights</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>230</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute (formerly Gas Appliance Manufacturers Association). 
                            <E T="03">Updated Shipments Data for Residential Furnaces and Boilers,</E>
                             April 25, 2005 (available at: 
                            <E T="03">www.regulations.gov/document/EERE-2006-STD-0102-0138</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>231</SU>
                             Air-Conditioning, Heating, and Refrigeration Institute. Non-Condensing and Condensing Regional Gas Furnace Shipments for 2004-2009 and 2010-2015 Data Provided to DOE contractors, July 20, 2010, and November 26, 2016.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>232</SU>
                             U.S. Census Bureau, Manufactured Homes Survey: Annual Shipments to States from 1994-2022 (available at: 
                            <E T="03">www.census.gov/data/tables/time-series/econ/mhs/shipments.html</E>
                            ) (last accessed Aug. 1, 2023).
                        </P>
                        <P>
                            <SU>233</SU>
                             U.S. Census Bureau, Manufactured Homes Survey: Historical Annual Placements by State from 1980-2013 (available at: 
                            <E T="03">www.census.gov/data/tables/time-series/econ/mhs/historical-annual-placements.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>234</SU>
                             U.S. Census Bureau—Housing and Household Economic Statistics Division, American Housing Survey, multiple years from 1973-2021 (available at: 
                            <E T="03">www.census.gov/programs-surveys/ahs/data.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>235</SU>
                             Energy Information Administration (EIA). Residential Energy Consumption Survey (RECS), multiple years from 1979-2020 (available at: 
                            <E T="03">www.eia.gov/consumption/residential/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">b. Shipment Projections in No-New-Standards Case</HD>
                    <P>As stated previously, DOE estimated NWGF and MHGF shipments by projecting shipments in three market segments: (1) replacement of existing furnaces; (2) new housing; and (3) new owners in buildings that did not previously have a NWGF or MHGF or existing NWGF or MHGF owners that are adding an additional consumer furnace. These projections reflect equipment switching that is occurring without standards and additions to homes without central heating.</P>
                    <P>
                        To project furnace replacement shipments, DOE developed retirement functions from furnace lifetime estimates and applied them to the existing products in the housing stock, which are tracked by vintage. DOE calculated replacement shipments using historical shipments and the lifetime estimates (average 21.5 years). In addition, DOE adjusted replacement shipments by taking into account demolitions, using the estimated changes to the housing stock from 
                        <E T="03">AEO2023.</E>
                    </P>
                    <P>
                        To project shipments to the new housing market, DOE utilized a forecast of new housing construction and historic saturation rates of furnaces in new housing. DOE used the 
                        <E T="03">AEO2023</E>
                         housing starts and commercial building floor space projections and data from U.S. Census Characteristics of New Housing,
                        <E T="51">236 237</E>
                        <FTREF/>
                         Home Innovation Research Labs Annual Builder Practices Survey,
                        <SU>238</SU>
                        <FTREF/>
                         RECS 2020, AHS 2021, and CBECS 2018 to estimate new construction saturations. DOE also estimated future furnace saturation rates in new single-family housing based on a weighted average of values from the U.S. Census Bureau's Characteristics of New Housing from 1990 through 2022.
                        <SU>239</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>236</SU>
                             U.S. Census. Characteristics of New Housing from 1999-2022 (available at: 
                            <E T="03">www.census.gov/construction/chars/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                        <P>
                            <SU>237</SU>
                             U.S. Census. Characteristics of New Housing (Multi-Family Units) from 1973-2022 (available at: 
                            <E T="03">www.census.gov/construction/chars/mfu.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>238</SU>
                             Home Innovation Research Labs (independent subsidiary of the National Association of Home Builders (NAHB). Annual Builder Practices Survey (2015-2019) (available at: 
                            <E T="03">www.homeinnovation.com/trends_and_reports/data/new_construction</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>239</SU>
                             U.S. Census Bureau, Characteristics of New Housing (available at: 
                            <E T="03">www.census.gov/construction/chars/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        To project shipments to the new-owner market, DOE estimated the new owners based on the residual shipments from the calculated replacement and new construction shipments compared to historical shipments over five years (2016-2020 for this final rule). DOE compared this with data from Decision Analysts' 2002 to 2019 American Home Comfort Study,
                        <SU>240</SU>
                        <FTREF/>
                         2023 BRG data,
                        <SU>241</SU>
                        <FTREF/>
                         and AHRI's estimated shipments in 2000,
                        <SU>242</SU>
                        <FTREF/>
                         which showed similar historical fractions of new owners. DOE assumed that the new-owner fraction would be the 10-year average in 2029 and then decrease to zero by the end of the analysis period (2058). If the resulting fraction of new owners is negative, DOE assumed that it was primarily due to equipment switching or non-replacement and added this number to replacements (thus reducing the replacements value).
                    </P>
                    <FTNT>
                        <P>
                            <SU>240</SU>
                             Decision Analysts, 2002, 2004, 2006, 2008, 2010, 2013, 2016, 2019, and 2022 American Home Comfort Study (available at: 
                            <E T="03">www.decisionanalyst.com/Syndicated/HomeComfort/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>241</SU>
                             BRG Building Solutions. The North American Heating &amp; Cooling Product Markets (2023 Edition) (available at: 
                            <E T="03">www.brgbuildingsolutions.com/reports-insights</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>242</SU>
                             AHRI (formerly GAMA), Furnace and Boiler Shipments data provided to DOE for Furnace and Boiler ANOPR (Jan. 23, 2002).
                        </P>
                    </FTNT>
                    <P>
                        Table IV.12 shows the fraction of shipments for the replacement, new construction, and new owner markets in 2029. For NWGFs in residential applications, 59 percent of shipments are projected to be in the North and 41 percent in the rest of the country. For NWGFs in commercial applications, 51 percent of shipments are projected to be in the North and 49 percent in the rest of the country. For MHGFs, 70 percent of shipments are projected to be in the North and 30 percent in the rest of the country. See chapter 9 of the final rule TSD for more details on the shipments analysis.
                        <PRTPAGE P="87599"/>
                    </P>
                    <GPOTABLE COLS="8" OPTS="L2,i1" CDEF="s25,r25,8,8p,8,8p,8,8">
                        <TTITLE>Table IV—12 Total and Fraction of Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipments by Market Segment (Replacements, New Construction, and New Owners) in 2029</TTITLE>
                        <BOXHD>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">Market segment</CHED>
                            <CHED H="1">North</CHED>
                            <CHED H="2">Million</CHED>
                            <CHED H="2">%</CHED>
                            <CHED H="1">Rest of country</CHED>
                            <CHED H="2">Million</CHED>
                            <CHED H="2">%</CHED>
                            <CHED H="1">Total</CHED>
                            <CHED H="2">Million</CHED>
                            <CHED H="2">%</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">NWGF (Residential)</ENT>
                            <ENT>Replacements *</ENT>
                            <ENT>1.412</ENT>
                            <ENT>82</ENT>
                            <ENT>0.948</ENT>
                            <ENT>79</ENT>
                            <ENT>2.360</ENT>
                            <ENT>81</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>New Construction</ENT>
                            <ENT>0.316</ENT>
                            <ENT>18</ENT>
                            <ENT>0.255</ENT>
                            <ENT>21</ENT>
                            <ENT>0.571</ENT>
                            <ENT>19</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>1.728</ENT>
                            <ENT>100</ENT>
                            <ENT>1.202</ENT>
                            <ENT>100</ENT>
                            <ENT>2.930</ENT>
                            <ENT>100</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">NWGF (Commercial)</ENT>
                            <ENT>Replacements *</ENT>
                            <ENT>0.057</ENT>
                            <ENT>74</ENT>
                            <ENT>0.052</ENT>
                            <ENT>72</ENT>
                            <ENT>0.109</ENT>
                            <ENT>73</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>New Construction</ENT>
                            <ENT>0.020</ENT>
                            <ENT>26</ENT>
                            <ENT>0.020</ENT>
                            <ENT>28</ENT>
                            <ENT>0.040</ENT>
                            <ENT>27</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>0.077</ENT>
                            <ENT>100</ENT>
                            <ENT>0.072</ENT>
                            <ENT>100</ENT>
                            <ENT>0.149</ENT>
                            <ENT>100</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">MHGF</ENT>
                            <ENT>Replacements *</ENT>
                            <ENT>0.050</ENT>
                            <ENT>70</ENT>
                            <ENT>0.020</ENT>
                            <ENT>64</ENT>
                            <ENT>0.070</ENT>
                            <ENT>68</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>New Construction</ENT>
                            <ENT>0.021</ENT>
                            <ENT>30</ENT>
                            <ENT>0.011</ENT>
                            <ENT>36</ENT>
                            <ENT>0.032</ENT>
                            <ENT>32</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>0.071</ENT>
                            <ENT>100</ENT>
                            <ENT>0.031</ENT>
                            <ENT>100</ENT>
                            <ENT>0.102</ENT>
                            <ENT>100</ENT>
                        </ROW>
                        <TNOTE>* Includes new owners.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             percentages may not add up to 100 percent due to rounding
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        Regarding the proposed California 2016 Air Quality Management Plan (AQMP),
                        <SU>243</SU>
                        <FTREF/>
                         which targets ozone-depleting NO
                        <E T="52">X</E>
                         emissions, DOE notes that the proposed control measure has two components: (1) implementing the existing Rule 1111 
                        <SU>244</SU>
                        <FTREF/>
                         emission limit of NO
                        <E T="52">X</E>
                         for residential space heaters; and (2) incentivizing the replacement of older space heaters with more efficient low-NO
                        <E T="52">X</E>
                         products, and/or “green technologies” such as solar heating or heat pumps. Incentivizing heat pumps is only one of the proposed approaches to reduce NO
                        <E T="52">X</E>
                         emissions that were offered in the plan, but it is unclear how this would trigger actual market and/or policy changes in the future. Current requirements in many parts of California for low-NO
                        <E T="52">X</E>
                         and ultra-low-NO
                        <E T="52">X</E>
                         furnaces could also increase the cost of these furnaces, but it is currently unclear if it will be enough to drive shipments towards other heating options (including heat pumps). Thus, it is very uncertain to what extent installations of heat pumps would increase.
                    </P>
                    <FTNT>
                        <P>
                            <SU>243</SU>
                             South Coast Air Quality Management District. 2016 Air Quality Management Plan (AQMP) (available at: 
                            <E T="03">www.aqmd.gov/home/air-quality/clean-air-plans/air-quality-mgt-plan/final-2016-aqmp</E>
                            ) (last accessed Feb. 15, 2022).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>244</SU>
                             See 
                            <E T="03">www.aqmd.gov/docs/default-source/rule-book/reg-xi/rule-1111.pdf</E>
                             (last accessed May 31, 2023).
                        </P>
                    </FTNT>
                    <P>
                        For the NOPR, assumptions regarding future policies encouraging electrification of households were speculative at that time, so such policies were not incorporated into the shipments projection. For the final rule, DOE accounted for the 2022 update to Title 24 in California 
                        <SU>245</SU>
                        <FTREF/>
                         and also the decision of the California Public Utilities Commission to eliminate ratepayer subsidies for the extension of new gas lines beginning in July 2023. Together, these policies are expected to lead to the eventual phase-out of NWGFs and MHGFs in new single-family homes in California. The California Air Resources Board has adopted a 2022 State Strategy for the State Implementation Plan that would effectively ban sales of new gas furnaces beginning in 2030.
                        <SU>246</SU>
                        <FTREF/>
                         However, because a final decision on a rule would not happen until 2025, DOE did not include this latter policy in its analysis for the final rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>245</SU>
                             The 2022 update includes heat pumps as a performance standard baseline for water heating or space heating in single-family homes, as well as space heating in multi-family homes. Under the California Code, builders will need to either include one high-efficiency heat pump in new constructions or subject those buildings to more-stringent energy efficiency standards.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>246</SU>
                             See 
                            <E T="03">https://ww2.arb.ca.gov/resources/documents/2022-state-strategy-state-implementation-plan-2022-state-sip-strategy#:~:text=The%202022%20State%20SIP%20Strategy,all%20nonattainment%20areas%20across%20California</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE understands that ongoing electrification policies at the Federal, State, and local levels are likely to encourage installation of heat pumps in some new homes and adoption of heat pumps in some homes that currently use NWGFs and MHGFs. However, there are many uncertainties about the timing and effects of these policies that make it difficult to fully account for their likely impact on NWGF and MHGF market shares in the time frame for this analysis (
                        <E T="03">i.e.,</E>
                         2029 through 2058). Nonetheless, DOE has modified some of its projections to attempt to account for impacts that are most likely in the relevant time frame. The assumptions are described in chapter 9 and appendix 9A of the final rule TSD. The changes result in a decrease of NWGF and MHGF shipments in the no-new-standards case in 2029 compared to the NOPR analysis, with a corresponding decrease in estimated energy savings resulting from the standards. DOE acknowledges that electrification policies may result in a larger decrease in shipments of NWGFs and MHGFs than projected in this final rule, especially if stronger policies are adopted in coming years. However, this would occur in the no-new-amended-standards case and, thus, would only reduce the energy savings estimated in this rule. For example, if incentives and rebates shifted five percent of shipments in the no-new-amended-standards case from NWGFs to heat pumps, then the energy savings estimated and associated monetized benefits for NWGFs in this rule would decline by approximately five percent. The estimated consumer impacts are likely to be similar, however, except that the percentage of consumers with no impact at a given efficiency level would increase. Nor does DOE expect that a modest shift in shipments would have a significant effect on manufacturers. DOE notes that the economic justification for the rule would be unlikely to significantly change even if DOE were to include these larger impacts of incentives and rebates in the no-new-standards case, although the absolute magnitude of the savings might decline.
                    </P>
                    <P>
                        Regarding this aspect of the July 2022 NOPR, Lennox commented that Resolution 22-14 (
                        <E T="03">i.e.,</E>
                         the 2022 State SIP Strategy in California), the New York State scoping plan, and the incentives and tax credits for electric HVAC in the Inflation Reduction Act 
                        <PRTPAGE P="87600"/>
                        will contribute to additional shifting towards electrification for heating and cooling. The commenter asserted that DOE should consider these factors in the shipment estimates and related analysis for consumer furnaces. (Lennox, No. 389 at p. 3)
                    </P>
                    <P>In response, as noted in the previous discussion, DOE has accounted for some policies encouraging the electrification of homes, such as the 2022 update to Title 24 in California. The shipments analysis reflects these initiatives. With respect to the California 2022 State Strategy for the State Implementation Plan, a rule specific to NWGFs and MHGFs is not yet final and remains uncertain at this time. Similarly, the specific implementation of any incentives or rebates as part of the New York State Scoping Plan and Inflation Reduction Act remain speculative at this time. Therefore, DOE did not incorporate either of these initiatives in the shipments projections for this rulemaking. As DOE has noted, however, the economic justification for the rule would be unlikely to change significantly, even if DOE were to include these larger impacts of incentives and rebates in the no-new-standards case, although the absolute magnitude of the savings might decline.</P>
                    <P>Rheem commented that it does not agree with DOE's shipment projections that predict a 30-percent increase in furnace sales between 2035 and 2050, arguing that they are inaccurate because of the Federal and State-level policy trends toward electric appliances which is largely buoyed by manufacturers. (Rheem, No. 394 at p. 2) In response, DOE clarifies that at the proposed standard levels in the NOPR, total furnace shipments (NWGFs and MHGFs) only increased by approximately 15 percent between 2035 and 2050, not 30 percent. DOE notes, however, that it has revised its shipments projection to reflect Federal, State, and local-level initiatives currently in effect, as described previously, which results in a smaller increase in furnace sales. Accordingly, for the final rule shipments projection, total furnace shipments (NWGFs and MHGFs) are expected to increase by approximately 5 percent between 2035 and 2050.</P>
                    <P>
                        Atmos Energy commented that the proposed rule would likely reduce the effectiveness of existing rebate programs, arguing that it would undermine the overall goals of the energy efficiency program. The commenter added that the proposed rule would reduce the pool of customers able to take advantage of available incentive programs. (Atmos Energy, No. 415 at p. 4) Atmos Energy further stated that it currently offers conservation and energy efficiency programs in its Louisiana, Mississippi, Colorado, and Mid-Tex divisions, adding that it provides financial incentives to purchase high-efficiency natural gas equipment, smart thermostats, and home weatherization upgrades. Atmos Energy stated that in 2020, 1.39 million therms of natural gas were conserved and 8,117 tons of CO
                        <E T="52">2</E>
                         emissions were avoided annually as a result of energy efficiency programs. (Atmos Energy, No. 415 at p. 5) In response, DOE acknowledges that rebate programs incentivizing the purchase of higher efficiency condensing furnaces will no longer be needed after energy conservation standards for consumer furnaces come into effect.
                    </P>
                    <HD SOURCE="HD3">2. Impact of Potential Standards on Shipments</HD>
                    <HD SOURCE="HD3">a. Impact of Equipment Switching</HD>
                    <P>
                        DOE applied the consumer choice model described in section IV.F.10 of this document to estimate the impact on NWGF and MHGF shipments of product switching that may be incentivized by potential standards. The options available to each sample household or building are to purchase and install: (1) the NWGF or MHGF that meets a particular standard level, (2) a heat pump, or (3) an electric furnace.
                        <SU>247</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>247</SU>
                             DOE also accounted for situations when installing a condensing furnace could leave an “orphaned” gas storage water heater that would require expensive re-sizing of the vent system. Rather than incurring this cost, the consumer could choose to purchase an electric storage water heater along with a new furnace.
                        </P>
                    </FTNT>
                    <P>As applied in the LCC and PBP analyses, the consumer choice model considers product prices in the compliance year and energy prices over the lifetime of products installed in that year. The shipments model considers the switching that might occur in each year of the analysis period (2029-2058). To do so, DOE estimated the switching in the first year of the analysis period (2029) and derived trends from 2029 to 2058. First, DOE applied the NWGF and MHGF product price trend described in section IV.F.1 of this document to project prices in 2058. DOE used the appropriate energy prices over the lifetime of products installed in each year. Although the inputs vary, the decision criteria were the same in each year. For each considered standard level, the number of NWGFs or MHGFs shipped in each year is equal to the base shipments in the no-new-standards case minus the number of NWGF or MHGF buyers who switch to either a heat pump or an electric furnace. The shipments model also tracks the number of additional heat pumps and electric furnaces shipped in each year.</P>
                    <HD SOURCE="HD3">b. Impact of Repair vs. Replace</HD>
                    <P>As discussed in section IV.F.11 of this document, for this final rule, DOE estimated a fraction of both NWGF and MHGF replacement installations that choose to repair their equipment, rather than replace their equipment or switch to a heat pump or electric furnace, in the new standards case. The approach captures not only a decrease in NWGF and MHGF replacement shipments, but also the energy use from continuing to use the existing furnace and the cost of the repair. For purposes of this analysis, DOE assumes that the demand for space heating is inelastic and, therefore, that no modeled household or commercial building will forgo either repairing or replacing their equipment (either with a new NWGF of MHGF or a suitable space-heating alternative). While DOE recognizes that edge cases exist, DOE believes that its analytical assumption of inelasticity is representative of the vast majority of households.</P>
                    <P>For details on DOE's shipments analysis, product and fuel switching, and the repair option, see chapter 9 of the final rule TSD.</P>
                    <HD SOURCE="HD2">H. National Impact Analysis</HD>
                    <P>
                        The NIA assesses the national energy savings (NES) and the NPV from a national perspective of total consumer costs and savings that would be expected to result from new or amended energy conservation standards at specific efficiency levels.
                        <SU>248</SU>
                        <FTREF/>
                         (“Consumer” in this context refers to consumers of the product being regulated.) 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.
                        <SU>249</SU>
                        <FTREF/>
                         For the present analysis, DOE projected the energy savings, operating cost savings, product costs, and NPV of consumer benefits over the lifetime of NWGFs and MHGFs sold from 2029 through 2058.
                    </P>
                    <FTNT>
                        <P>
                            <SU>248</SU>
                             The NIA accounts for impacts in the 50 States and U.S. territories.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>249</SU>
                             For the NIA, DOE adjusts the installed cost data from the LCC analysis to exclude sales tax, which is a transfer.
                        </P>
                    </FTNT>
                    <P>
                        DOE evaluates the impacts of new or amended standards by comparing a case without such standards 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 
                        <PRTPAGE P="87601"/>
                        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 (
                        <E T="03">i.e.,</E>
                         the TSLs or standards cases) for that class. For the standards cases, DOE considers how a given standard would likely affect the market shares of products with efficiencies greater than the standard. In the standards cases, a small fraction of households will replace the furnace a second time within the 30-year analytical period of the NIA. For these households, the installation cost adders for going from a non-condensing furnace to a condensing furnace are not applied in the standards cases for the second replacement, as the household will already have a condensing furnace.
                    </P>
                    <P>
                        DOE uses a spreadsheet model to calculate the energy savings and the national consumer costs and savings from each TSL. 
                        <E T="03">AEO2023</E>
                         is the source of the energy price trends as well as other inputs to the NIA such as projected housing starts and new commercial building floor space, heating and cooling degree day projections, and building shell efficiency projections. 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.
                    </P>
                    <P>Table IV.13 summarizes the inputs and methods DOE used for the NIA analysis for the final rule. Discussion of these inputs and methods follows the table. See chapter 10 of the final rule TSD for further details.</P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s70,r200">
                        <TTITLE>Table IV.13—Summary of Inputs and Methods for the National Impact Analysis</TTITLE>
                        <BOXHD>
                            <CHED H="1">Inputs</CHED>
                            <CHED H="1">Method</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Shipments</ENT>
                            <ENT>Annual shipments from shipments model.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Compliance Date of Standard</ENT>
                            <ENT>2029.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Efficiency Trends</ENT>
                            <ENT>
                                No-new-standards case: Based on historical data.
                                <LI>Standard cases: Roll-up in the compliance year (except for EL 1, 90-percent AFUE for NWGFs as described below) and then DOE estimated growth in shipment-weighted efficiency in all the standards cases, except max-tech.</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Annual Energy Consumption per Unit</ENT>
                            <ENT>
                                Annual weighted-average values are a function of energy use at each TSL. Incorporates projection of future energy use based on 
                                <E T="03">AEO2023</E>
                                 projections for HDD/cooling degree days (CDD) and building shell efficiency index.
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Installed Cost per Unit</ENT>
                            <ENT>Annual weighted-average values are a function of cost at each TSL. Incorporates projection of future product prices based on historical data.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Repair and Maintenance Cost per Unit</ENT>
                            <ENT>Annual weighted-average values vary by efficiency level.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Energy Price Trends</ENT>
                            <ENT>
                                <E T="03">AEO2023</E>
                                 projections (to 2050) and extrapolation thereafter. Natural gas and electricity marginal prices based on EIA and RECS 2020 and CBECS 2018 billing data.
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Energy Site-to-Primary and FFC Conversion</ENT>
                            <ENT>
                                A time-series conversion factor based on 
                                <E T="03">AEO2023.</E>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Discount Rate</ENT>
                            <ENT>Three and seven percent.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Present Year</ENT>
                            <ENT>2023.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">1. Product Efficiency Trends</HD>
                    <P>
                        A key component of the NIA is the trend in energy efficiency projected for the no-new-standards case and each of the standards cases. Section IV.F.8 of this document describes how DOE developed an energy efficiency distribution for the no-new-standards case (which yields a shipment-weighted average efficiency) for each of the considered product classes for the year of anticipated compliance with an amended or new standard (2029). To project the trend in efficiency absent amended standards for NWGFs and MHGFs over the entire shipments projection period, DOE extrapolated the historical trends in efficiency that were described in section III.F.8 of this document. These trends are based on industry shipment data from AHRI and HARDI and include a near 100-percent saturation of condensing furnaces in the North region. For this final rule, DOE estimated that the national market share of condensing products would grow from 61 percent in 2029 to 71 percent by 2058 for NWGFs, and from 34 percent to 48 percent for MHGFs during those same years. The market shares of the different condensing efficiency levels (
                        <E T="03">i.e.,</E>
                         90-, 92-, 95-, and 98-percent AFUE for NWGFs and 92-, 95-, and 96-percent AFUE for MHGFs) are maintained in the same proportional relationship as in 2029. The approach is further described in appendix 8I and chapter 10 of the final rule TSD.
                    </P>
                    <P>For the standards cases, DOE used a “roll-up” scenario to establish the shipment-weighted efficiency for the year that standards are assumed to become effective (2029). In this scenario, the market shares of products in the no-new-standards case that do not meet the standard under consideration would “roll up” to meet the new standard level, and the market share of products above the standard would remain unchanged. In the standards case with a 90-percent AFUE national standard, DOE estimated that many consumers will purchase a 92-percent AFUE NWGF rather than a 90-percent AFUE furnace because the extra installed cost is minimal, and the market has already moved significantly toward the 92-percent AFUE level. To develop standards-case efficiency trends after 2029, DOE estimated growth in shipment-weighted efficiency in the standards cases, except in the max-tech standards case.</P>
                    <HD SOURCE="HD3">2. National Energy Savings</HD>
                    <P>
                        The national energy savings analysis involves a comparison of national energy consumption of the considered products between each potential standards level (TSL) case and the case with no new or amended energy conservation standards. DOE calculated the national energy consumption by multiplying the number of units (stock) of each product (by vintage or age) by the unit energy consumption (also by vintage). DOE calculated annual NES based on the difference in national energy consumption for the no-new-standards case and for each higher-efficiency standards case. DOE estimated energy consumption and savings based on site energy and converted the electricity consumption 
                        <PRTPAGE P="87602"/>
                        and savings to primary energy (
                        <E T="03">i.e.,</E>
                         the energy consumed by power plants to generate site electricity) using annual conversion factors derived from 
                        <E T="03">AEO2023.</E>
                         For natural gas and LPG, DOE assumed that site energy consumption is the same as primary energy consumption. Cumulative energy savings are the sum of the NES for each year over the timeframe of the analysis.
                    </P>
                    <P>The per-unit annual energy use is adjusted with the building shell improvement index, which results in a decline of three percent in the heating load from 2029 to 2058, and the climate index, which results in a decline of nine percent in the heating load.</P>
                    <P>
                        DOE incorporated a rebound effect for NWGFs and MHGFs by reducing the site energy savings (and the associated FFC energy savings) in each year by 15 percent. However, for commercial applications, DOE applied no rebound effect in order to be consistent with other recent standards rulemakings (
                        <E T="03">see</E>
                         section IV.F.3 of this document).
                    </P>
                    <P>In the standards cases, there are fewer shipments of NWGFs or MHGFs compared to the no-new-standards case because of product switching and repair vs. replaced, but there are additional shipments of heat pumps, electric furnaces, and electric water heaters. DOE incorporated the per-unit annual energy use of the heat pumps and electric furnaces that was calculated in the LCC and PBP analyses (based on the specific sample households that switch to these products) into the NIA model.</P>
                    <P>NYSERDA expressed support for DOE's methodology and approaches used for this NOPR, particularly around the rebound effect, stating that it is consistent with documented behaviors. The commenter further stated agreement with DOE's use of the 15-percent estimate for rebound effect. (NYSERDA, No. 379 at pp. 11-12) DOE agrees and maintains a 15-percent rebound effect estimate for the final rule.</P>
                    <P>NYSERDA recommended that DOE should qualitatively discuss the indirect rebound effect in the rebound section of the TSD. (NYSERDA, No. 379 at p. 13)</P>
                    <P>
                        In response, DOE acknowledges that indirect rebound (increased energy consumption by consumers in other areas due to the monetary savings from efficiency standards) may be a factor warranting consideration in the context of amended energy conservation standards for the subject furnaces, but quantifying such a macroeconomic effect is particularly challenging and subject to inherently large uncertainties. However, regardless of the specific magnitude of this effect, DOE notes that it is very likely to be welfare-increasing even if energy savings are reduced.
                        <SU>250</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>250</SU>
                             For example, see 
                            <E T="03">www.journals.uchicago.edu/doi/abs/10.1093/reep/rev017?journalCode=reep</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>In the standards cases, there are fewer shipments of NWGFs or MHGFs compared to the no-new-standards case because of product switching and product repairs, but there are also additional shipments of heat pumps, electric furnaces, and electric water heaters. DOE incorporated the per-unit annual energy use of the heat pumps and electric furnaces that was calculated in the LCC and PBP analyses (based on the specific sample households that switch to these products) into the NIA model.</P>
                    <P>
                        In 2011, in response to the recommendations of a committee on “Point-of-Use and Full-Fuel-Cycle Measurement Approaches to Energy Efficiency Standards” appointed by the National Academy of Sciences, DOE announced its intention to use FFC measures of energy use and greenhouse gas and other emissions in the national impact analyses and emissions analyses included in future energy conservation standards rulemakings. 76 FR 51281 (August 18, 2011). After evaluating the approaches discussed in the August 18, 2011 announcement, DOE published a statement of amended policy in which DOE explained its determination that EIA's National Energy Modeling System (NEMS) is the most appropriate tool for its FFC analysis and its intention to use NEMS for that purpose. 77 FR 49701 (August 17, 2012). NEMS is a public domain, multi-sector, partial equilibrium model of the U.S. energy sector 
                        <SU>251</SU>
                        <FTREF/>
                         that EIA uses to prepare its 
                        <E T="03">Annual Energy Outlook.</E>
                         The FFC factors incorporate losses in production and delivery in the case of natural gas (including fugitive emissions) and additional energy used to produce and deliver the various fuels used by power plants. The approach used for deriving FFC measures of energy use and emissions is described in appendix 10A of the final rule TSD.
                    </P>
                    <FTNT>
                        <P>
                            <SU>251</SU>
                             For more information on NEMS, refer to 
                            <E T="03">The National Energy Modeling System: An Overview 2023,</E>
                             DOE/EIA-0581(2023) (available at: 
                            <E T="03">www.eia.gov/forecasts/aeo/index.cfm</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. Net Present Value Analysis</HD>
                    <P>The inputs for determining the NPV of the total costs and benefits experienced by consumers are: (1) total annual installed cost; (2) total annual operating costs (energy costs and repair and maintenance costs), and (3) a discount factor to calculate the present value of costs and savings. DOE calculates net savings each year as the difference between the no-new-standards case and each standards case in terms of total savings in operating costs versus total increases in installed costs. DOE calculates operating cost savings over the lifetime of each product shipped during the projection period.</P>
                    <P>As discussed in section IV.F.1 of this document, DOE developed NWGF and MHGF price trends based on historical PPI data. DOE applied the same trends to project prices for each product class at each considered efficiency level. DOE's projection of product prices is described in appendix 10C of the final rule TSD.</P>
                    <P>To evaluate the effect of uncertainty regarding the price trend estimates, DOE investigated the impact of different product price projections on the consumer NPV for the considered TSLs for NWGFs and MHGFs. In addition to the default price trend, DOE considered two product price sensitivity cases: (1) a high-price-decline case based on PPI data from 1990-2006 and (2) a constant-price-trend case. The derivation of these price trends and the results of these sensitivity cases are described in appendix 10C of the final rule TSD.</P>
                    <P>
                        As described in section IV.H.2 of this document, DOE assumed a 15-percent rebound from an increase in utilization of the product arising from the increase in efficiency (
                        <E T="03">i.e.,</E>
                         the direct rebound effect). In considering the economic impact on consumers due to the direct rebound effect, DOE accounted for change in consumer surplus attributed to additional heating/comfort from the purchase of a more-efficient unit. Overall consumer surplus is generally understood to be enhanced from rebound. The net consumer impact of the rebound effect is included in the calculation of operating cost savings in the consumer NPV results. See appendix 10G of the final rule TSD for details on DOE's treatment of the monetary valuation of the rebound effect.
                    </P>
                    <P>
                        The operating cost savings are energy cost savings, which are calculated using the estimated energy savings in each year and the projected price of the appropriate form of energy. To estimate energy prices in future years, DOE multiplied the average regional energy prices by the projection of annual national-average residential energy price changes in the Reference case from 
                        <E T="03">AEO2023,</E>
                         which has an end year of 2050. To estimate price trends after 2050, DOE used the average annual rate of change in prices from 2045 through 2050. As part of the NIA, DOE also analyzed scenarios that used inputs from variants of the 
                        <E T="03">AEO2023</E>
                         Reference 
                        <PRTPAGE P="87603"/>
                        case that have lower and higher economic growth. Those cases have lower and higher energy price trends compared to the Reference case. NIA results based on these cases are presented in appendix 10D of the final rule TSD.
                    </P>
                    <P>In considering the consumer welfare gained due to the direct rebound effect, DOE accounted for change in consumer surplus attributed to additional heating from the purchase of a more efficient unit. Overall consumer welfare is generally understood to be enhanced from rebound. The net consumer impact of the rebound effect is included in the calculation of operating cost savings in the consumer NPV results. See appendix 10G of the final rule TSD for details on DOE's treatment of the monetary valuation of the rebound effect.</P>
                    <P>
                        In calculating the NPV, DOE multiplies the net savings in future years by a discount factor to determine their present value. For this final rule, DOE estimated the NPV of consumer benefits using both a 3-percent and a 7-percent real discount rate. DOE uses these discount rates in accordance with guidance provided by the Office of Management and Budget (“OMB”) to Federal agencies on the development of regulatory analysis.
                        <SU>252</SU>
                        <FTREF/>
                         The discount rates for the determination of NPV are in contrast to the discount rates used in the LCC analysis, which are designed to reflect a consumer's perspective. The 7-percent real value is an estimate of the average before-tax rate of return to private capital in the U.S. economy. The 3-percent real value represents the “social rate of time preference,” which is the rate at which society discounts future consumption flows to their present value.
                    </P>
                    <FTNT>
                        <P>
                            <SU>252</SU>
                             United States Office of Management and Budget, 
                            <E T="03">Circular A-4: Regulatory Analysis</E>
                             (Sept. 17, 2003) Section E (available at: 
                            <E T="03">obamawhitehouse.archives.gov/omb/circulars_a004_a-4/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">I. Consumer Subgroup Analysis</HD>
                    <P>In analyzing the potential impact of new or amended energy conservation standards on consumers, DOE evaluates the impact on identifiable subgroups of consumers that may be disproportionately affected by a new or amended national standard. The purpose of a subgroup analysis is to determine the extent of any such disproportional impacts. DOE evaluates impacts on particular subgroups of consumers by analyzing the LCC impacts and PBP for those particular consumers from alternative standard levels. For this final rule, DOE analyzed the impacts of the considered standard levels on three subgroups: (1) low-income households, (2) senior-only households, and (3) small businesses. The analysis used subsets of the RECS 2020 sample composed of households that meet the criteria for the considered subgroups. DOE used the LCC and PBP spreadsheet model to estimate the impacts of the considered efficiency levels on these subgroups. Chapter 11 in the final rule TSD describes the consumer subgroup analysis.</P>
                    <HD SOURCE="HD3">1. Low-Income Households</HD>
                    <P>
                        Low-income households are significantly more likely to be renters and/or live in subsidized housing units, compared to homeowners. DOE notes that in these cases, the landlord purchases the equipment and may pay the gas bill as well. RECS 2020 includes data on whether a household pays for the gas bill, allowing DOE to categorize households appropriately in the analysis.
                        <SU>253</SU>
                        <FTREF/>
                         For this consumer subgroup analysis, DOE considers the impact on the low-income household narrowly, excluding any costs or benefits that are accrued by either a landlord or subsidized housing agency. This allows DOE to determine whether low-income households are disproportionately affected by an amended energy conservation standard in a more representative manner. DOE takes into account a fraction of renters that face costly product switching, that is, when landlords switch to products that have lower upfront costs but higher operating costs, which will be incurred by tenants. Table IV.19 summarizes the low-income statistics and potential impacts. For the low-income subgroup, renters account for more than half of the NWGF installations and close to thirty percent of the MHGF installations.
                    </P>
                    <FTNT>
                        <P>
                            <SU>253</SU>
                             RECS 2020 includes a category for households that pay only some of the gas bill. For the low-income consumer subgroup analysis, DOE assumes that these households pay 50 percent of the gas bill, and, therefore, would receive 50 percent of operating cost benefits of an amended energy conservation standard.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s25,12,12,xs72,xs72">
                        <TTITLE>Table IV.19—Low-Income Subgroup Characteristics and Potential Net Benefits</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                Type of household *
                                <LI>(pay for gas?) **</LI>
                            </CHED>
                            <CHED H="1">
                                Percentage of low-income
                                <LI>sample *</LI>
                            </CHED>
                            <CHED H="2">NWGF</CHED>
                            <CHED H="2">MHGF</CHED>
                            <CHED H="1">
                                Benefits from 
                                <LI>energy cost </LI>
                                <LI>savings</LI>
                            </CHED>
                            <CHED H="1">
                                Responsibility for 
                                <LI>incremental cost</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Renters (Pay for Gas Bill)</ENT>
                            <ENT>43.0</ENT>
                            <ENT>27.8</ENT>
                            <ENT>Full</ENT>
                            <ENT>None.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Renters (Pay for Part of Gas Bill)</ENT>
                            <ENT>1.5</ENT>
                            <ENT>0.0</ENT>
                            <ENT>Partial savings</ENT>
                            <ENT>None.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Renters (Do Not Pay for Gas Bill)</ENT>
                            <ENT>8.6</ENT>
                            <ENT>2.0</ENT>
                            <ENT>None</ENT>
                            <ENT>None.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Owners (Pay for Gas Bill)</ENT>
                            <ENT>45.9</ENT>
                            <ENT>64.3</ENT>
                            <ENT>Full</ENT>
                            <ENT>Full.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Owners (Pay for Part of Gas Bill)</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.0</ENT>
                            <ENT>Partial savings</ENT>
                            <ENT>Full.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Owners (Do Not Pay for Gas Bill)</ENT>
                            <ENT>0.9</ENT>
                            <ENT>5.9</ENT>
                            <ENT>None</ENT>
                            <ENT>Full.</ENT>
                        </ROW>
                        <TNOTE>* RECS 2020 lists three categories: (1) Owned or being bought by someone in your household (classified as “Owners” in this table); (2) Rented (classified as “Renters” in this table); (3) Occupied without payment of rent (also classified as “Renters” in this table). Therefore, renters include occupants in subsidized housing including public housing, subsidized housing in private properties, and other households that do not pay rent. RECS 2020 does not distinguish homes in subsidized or public housing.</TNOTE>
                        <TNOTE>** RECS 2020 lists four categories: (1) Household is responsible for paying for all used in this home; (2) All used in this home is included in the rent or condo fee; (3) Some is paid by the household, some is included in the rent or condo fee; and (4) Paid for some other way. “Pay for Gas Bill” includes only category (1); all other categories are included in “Don't Pay for Gas Bill.” Note that DOE also takes into account if the occupant pays for electricity, as for some higher-efficiency options, electricity use can vary compared to baseline equipment.</TNOTE>
                    </GPOTABLE>
                    <P>Atmos Energy commented that in fulfilling its statutory obligations, DOE cannot rely on potential external measures to mitigate the negative impacts of its standards, including rebate programs so as to improve its analytical outcomes and reduce the burden on low-income households. (Atmos Energy, No. 415 at p. 3)</P>
                    <P>
                        In response, DOE clarifies that it does not rely on potential measures, such as rebate programs, to justify a standard. These measures are not part of the low-income subgroup analysis. DOE merely 
                        <PRTPAGE P="87604"/>
                        notes their possible existence, which would improve the assessed impacts to low-income households as presented in section V.B of this document.
                    </P>
                    <P>MHI commented that it stands ready to work with DOE to ensure that standards for consumer furnaces do not negatively impact potential manufactured homeowners. (MHI, No. 365 at p. 5)</P>
                    <P>In response, DOE analyzed the impact of the considered amended energy conservation standards on manufactured-home households, including low-income manufactured-home households, and the Department has concluded that these standards are economically justified, as discussed in section V.C of this document.</P>
                    <P>Measures of energy insecurity provide another accounting of the number of households that are affected by cost changes due to rules for heating equipment energy efficiency in addition to the senior-only and low-income categories used by DOE in this analysis. Energy insecurity in the 2020 RECS quantifies the households reporting one or more of the metrics for energy insecurity, including that they that are forgoing basic necessities to pay for energy, and that they leave their home at an unhealthy temperature due to energy cost. The energy insecurity data are disaggregated by heating equipment type, income category, race, ethnicity, presence of children, presence of seniors, regional distribution, and ownership/rental status. DOE has determined that the energy-insecure designation captures more households than the low-income and seniors-only categories used for distributional analysis. Similar PBP and net savings/net cost analysis applied to energy insecure households could result in larger impacts than for the categories DOE chose to analyze and may be more directly interpreted in terms of welfare changes that can be disaggregated by the factors already listed.</P>
                    <P>Commenting on the NOPR, a number of commenters opposed the proposed rule based on, in part, the potential impacts to low-income households.</P>
                    <P>Southwest Gas Corporation commented that for low-income and vulnerable populations, the appliance replacement and retrofit costs would be a financial burden. Southwest estimated that the NOPR would not be economically justifiable for a majority of its customers. (Southwest, No. 353 at p. 2)</P>
                    <P>The Georgia Gas Authority recognized the importance of appliance efficiency but argued that energy conservation standards should not sacrifice the well-being of low-income families to achieve such goals. (The Georgia Gas Authority, No. 367 at p. 2)</P>
                    <P>NGA of Georgia stated that DOE's proposed rule would place an undue burden on those who can afford it the least, including seniors and low-income consumers. (NGA of Georgia, No. 380 at p. 1) The commenter more specifically argued that the rule would unfairly impact low- and fixed-income homeowners and renters, seniors, and small businesses. NGA of Georgia added that low- and fixed-income homeowners are less likely to purchase a new home and, thus, would be forced to endure costly retrofit installations. Additionally, the commenter stated, that low- and fixed-income homeowners typically live in smaller spaces requiring less energy to heat, which diminishes the value of a high-efficiency product in such applications. Further, NGA of Georgia stated that low-income renters would be forced to deal with increased rent when landlords try to recoup the high cost of retrofitting apartments with condensing furnaces. (NGA of Georgia, No. 380 at p. 2)</P>
                    <P>APGA claimed that DOE's analysis shows that low-income households fare much worse than average consumers under the proposed rule. APGA further claimed that DOE has not fully accounted for the impacts on low-income residents. The commenter asserted that regional differences in the impact of the proposed rule would create even more unfavorable results for low-income households in certain negatively affected regions; for example, the South, where APGA has many members, would be expected to be more adversely affected than average. APGA further argued that the impact of fuel switching on low-income households is not clear in the NOPR. (APGA, No. 387 at pp. 45-47)</P>
                    <P>Spencer and Dayaratna stated that the amended standards proposed in the July 2022 NOPR will unjustifiably reduce consumer choice. The commenters added that the economic value of energy efficiency is best determined by individual consumers and businesses. The commenters also added that the flexibility to assess individual economic tradeoffs is even more important to low-income Americans, citing statements from OMB and research studies. Spencer and Dayaratna argued that a nine-year payback period may not make sense for many Americans who would be better served by having additional resources available for food or housing. The commenters opined that DOE should not compel Americans to take on these extra costs or degrade the livability of their homes. (Spencer and Dayaratna, No. 390 at pp. 8-9)</P>
                    <P>Black Hills Energy commented that, if adopted, the proposed rule would negatively impact individual homeowners, including senior and low-income households, small business, and the overall furnace market. The commenter stated that DOE should not issue a rule with such negative impacts as those described in the proposal that would affect low-income households, seniors, and energy insecure consumers. (Black Hills Energy, No. 397 at pp. 1-2)</P>
                    <P>PHCC commented that energy insecurity is a significant concern and that access to gas products and non-condensing products remains an important solution to this issue. (PHCC, No. 403 at p. 5)</P>
                    <P>AHRI stated that the impacts of a full condensing furnace standards would fall disproportionately on lower-income and senior households. AHRI referenced a statement from MHI that the median income for mobile home purchasers is $35,000 and that manufactured homeowners comprise a disproportionate amount of the Nation's fixed-income citizens and first-time homebuyers. (AHRI, No. 414-2 at p. 3)</P>
                    <P>Atmos Energy commented that DOE should amend the proposed furnace standards to address the significant adverse impacts on low-income households, adding that DOE's assessment on this matter is insufficient. (Atmos Energy, No. 415 at p. 2) Atmos Energy further commented that the proposed rule burdens low-income households because it would cause an increase in furnace costs. Atmos Energy stated that condensing furnaces cost consumers around $1,300 more than non-condensing furnaces, adding that this increase in cost would burden homeowners and place upward pressure on rents by adding to maintenance costs. (Atmos Energy, No. 415 at p. 3)</P>
                    <P>
                        Several commenters expressed concern regarding the July 2022 NOPR's potential impacts on housing affordability and consumers. AGA 
                        <E T="03">et al.,</E>
                         The Coalition, The Heartland Institute, Plastics Pipe Institute, ACCA, and DCA all commented that the proposed rule would have significant adverse impacts, especially on low-income or fixed-income households, seniors, energy insecure consumers, small businesses, and/or the overall furnace market. (AGA 
                        <E T="03">et al.,</E>
                         No. 391 at p. 1; The Coalition, No. 378 at p. 2; The Heartland Institute, No. 376 at pp. 1-2; Plastics Pipe Institute, No. 404 at p. 1; ACCA, No. 398 at pp. 1-2; DCA, No. 372 at pp. 1-2) Strauch objected to the life-cycle methodology of DOE's proposed rulemaking due to concerns about consumer impacts. (Strauch, No. 366 at p. 1) Strauch stated 
                        <PRTPAGE P="87605"/>
                        that poorer individuals or those with fixed incomes may not be able to afford the up-front investment that would allow them access to the future dollar savings of a more-efficient product. (
                        <E T="03">Id.</E>
                        ) Strauch also noted that the elderly population similarly may not live long enough to recover these additional costs through energy savings. (
                        <E T="03">Id.</E>
                        ) Strauch also argued that the July 2022 NOPR will reduce consumer choice. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        MTNGUD, WMU, Consumer Energy Alliance, LANGD, Georgia Gas Authority, and the Heartland Institute stated that the potential negative impacts of the proposals in the July 2022 NOPR on consumers, including senior-only households, low-income households, and small business consumers, are inconsistent with the Biden-Harris Administration's priority of achieving environmental justice in Federal programs. (MTNGUD, No. 350 at p. 1; WMU, No. 350 at p. 1; Consumer Energy Alliance, No. 354 at p. 1; LANGD, No. 355, at p. 1; Georgia Gas Authority, No 367 at p. 2; The Heartland Institute, No. 376 at p. 1) Also, several commenters noted that manufactured housing provides a source of affordable homeownership, which is impacted by this rulemaking. (Nortek, No. 406 at p. 5; MHI, No. 344 at p. 1; MHI, Public Meeting Webinar Transcript, No. 363 at p. 25-29; MHI, No. 365 at p. 1) Nortek commented that the median annual income of manufactured homeowners is below the national average, and that these individuals and families make up a larger group of America's fixed-income citizens and first-time homebuyers. Nortek stated that this makes the demographic more vulnerable to changes that could price them out of the homebuying market. (Nortek, No. 406 at p. 5) MHI similarly argued that the July 2022 NOPR could reduce the affordability of manufactured homes without providing substantial energy-efficiency or cost-saving benefits. (MHI, No. 344 at p. 1; MHI, Public Meeting Webinar Transcript, No. 363 at pp. 25-27) Also, MHI asserted that should furnaces become less affordable, some manufactured housing owners may switch to less efficient and less safe heating methods. (MHI, No. 365 at p. 1) Nortek further stated that additional regulation that increases the cost to purchase or maintain a home could prevent some financially vulnerable consumers from achieving homeownership. (Nortek, No. 406 at p. 2) The Coalition commented that, given current housing prices, many potential homebuyers have been priced out of the market. (The Coalition, No. 378 at p. 3) The Coalition also stated that these proposed standards place added pressure on households that are simultaneously struggling with rapidly rising prices for food, utilities, transportation, and other basic needs. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>In contrast, a number of other commenters supported the proposed rule based on, in part, the potential benefits to low-income households.</P>
                    <P>NCEL stated that outdated and inefficient gas furnaces generate high energy bills that particularly burden lower-income households. The State legislators commented that heating bills are one of the biggest energy expenses for most households, and those with inefficient gas furnaces face annual average heating bills of about $700. Furthermore, NCEL stated that increasing gas furnace efficiency will go a long way towards easing the burden of energy costs. (NCEL, No. 359 at p. 1)</P>
                    <P>GHHI stated that due to historic underinvestment in low-income communities of color, residents often lack the resources to fix their aging and deteriorating homes, leading to poor insulation, drafts, and outdated HVAC systems. Consequently, GHHI stated that low-income communities, disproportionately of Black, Hispanic, and Native backgrounds, end up paying three times as much of their income on energy bills compared to those with higher income. (GHHI, No. 371 at p. 2) While GHHI acknowledged that newer appliances have greater upfront costs, GGHI argued that the savings from reduced utility costs mean the payback period from low-income families averages just over two years. (GHHI, Public Meeting Webinar Transcript, No. 363 at p. 18) The State Agencies commented that a 95-percent AFUE would help to decrease the energy burden for low-income households that spend a large portion of their income on energy bills. (State Agencies, No. 375 at p. 2)</P>
                    <P>NYSERDA commented that, based on their review of DOE's LCC analysis, the commenter has concluded that for New York and the rest of the U.S., establishing a standard at TSL 8 would yield significant consumer benefits that outweigh potential costs, especially for low-income consumers and those living in disadvantaged communities. (NYSERDA, No. 379 at p. 3) The commenter stated that DOE's LCC analysis demonstrates the importance of this standard for low-income households. NYSERDA further commented that it found that adopting TSL 8 would not unfairly burden low-income or disadvantaged communities in the Northeast but instead would provide significant benefits, especially to renters who pay for utility bills. (NYSERDA, No. 379 at pp. 6-7)</P>
                    <P>NYSERDA commented that in September 2022, Con Edison reported that, for that winter, electricity bills in their territory are expected to increase by 22 percent (to an average of $116 per month), and natural gas bills are expected to increase by 32 percent (to an average of $460 per month). NYSERDA emphasized the importance of transitioning to more efficient appliances for the general New York population, especially low-income households. (NYSERDA, No. 379 at p. 6)</P>
                    <P>
                        NCLC 
                        <E T="03">et al.</E>
                         commented on a 2021 analysis by the Pew Research Center, stating that 60 percent of those in the lowest income quartile are renters and that only 10 percent of households in the highest income quartile rent. NCLC 
                        <E T="03">et al.</E>
                         added that since tenants cannot dictate the efficiency of furnaces that owners purchase, strong standards are often the only way to ensure that tenants will benefit from having efficient furnaces. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at pp. 4-5)
                    </P>
                    <P>The Pennsylvania Groups commented in support of improved efficiency standards because they expect that such standards would help reduce energy burden disparities for systematically marginalized communities across the Commonwealth. These commenters stated that communities of color and low-income families face high energy burdens and often struggle to afford and maintain energy services to their homes. (The Pennsylvania Groups, No. 396 at p. 2)</P>
                    <P>The Pennsylvania Groups stated that to achieve baseline affordability standards, a family's total housing costs—including utility costs—should account for no more than 30 percent of the household's total income. These commenters further stated that throughout Pennsylvania, families living at or below 150 percent of the Federal Poverty Line spend as much as 29 percent of their income on utility costs alone. (The Pennsylvania Groups, No. 396 at p. 2)</P>
                    <P>The Pennsylvania Groups stated that these households often forgo other basic necessities in order to pay their heating bills, and when they cannot keep up with payments, their heat is shut off. These commenters further stated that this shut-off creates serious risks to the health and well-being of family members and threatens stable employment and education. (The Pennsylvania Groups, No. 396 at p. 3)</P>
                    <P>
                        The Pennsylvania Groups commented that low-income and BIPOC (Black, Indigenous, and People of Color) residents disproportionately occupy 
                        <PRTPAGE P="87606"/>
                        older, lower-quality housing, and these homes are more likely to use less-efficient, natural gas-fueled appliances. These commenters stated that Pennsylvania has some of the oldest housing stock in the country and that 55 percent of homes are heated with gas or propane. The Pennsylvania Groups pointed out that renters may bear even more of the negative impacts of wasteful furnaces than homeowners. (The Pennsylvania Groups, No. 396 at p. 3) They stated that the increased demand for rental housing and escalating rental costs have resulted in a market with limited access to safe, healthy, and quality housing, with significant cost burdens to low-income households. (The Pennsylvania Groups, No. 396 at pp. 3-4)
                    </P>
                    <P>The Pennsylvania Groups stated that their Commonwealth has over 435,000 low-income renters whose home heating is up to their landlords. Additionally, these commenters stated that the estimated savings under DOE's proposed standard would be a significant amount to low-income families. (The Pennsylvania Groups, No. 396 at p. 4)</P>
                    <P>Climate and Health Coalition stated that high heating bills can force a terrible choice upon consumers between paying for heat and other necessities, particularly for low-income households which pay three times as much of their incomes on energy costs than non-low-income households and are disproportionately Black, Hispanic, and Native American. (Climate and Health Coalition, No. 399 at p. 4)</P>
                    <P>The NCLC commented that low-income rental properties are more likely to have less-efficient furnaces and pass the associated larger energy bill on to tenants. (NCLC, Public Meeting Webinar Transcript, No. 363 at pp. 8-10)</P>
                    <P>
                        NEEA stated that the proposals in the July 2022 NOPR will improve equitable outcomes by ensuring that rental units have efficient heating, thereby benefiting the larger portion of lower-income rental units, and better insulating lower-income households from variable energy prices. (NEEA, No. 368 at pp. 3-4) The Joint Efficiency Commenters stated that DOE's analysis shows that the majority of consumers, and especially low-income consumers, will benefit from the proposed standard level for MHGFs. (Joint Efficiency Commenters, No. 381 at p. 5) Climate Smart Missoula 
                        <E T="03">et al.</E>
                         stated that DOE's proposal would lead to health benefits through the emissions reductions and by lowering utility bills for low-to-moderate income households, thereby freeing up resources that can be spent on food and medicine. (Climate Smart Missoula 
                        <E T="03">et al.,</E>
                         No. 393 at pp. 1-2) NCLC commented that increased efficiency standards will benefit low-income families by lowering utility bills and mitigating harms caused by global warming, which provides both pocketbook savings and health benefits. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 2)
                    </P>
                    <P>
                        CFA stated that all of the conclusions about consumer benefits in the aggregate (
                        <E T="03">i.e.,</E>
                         payback period less than half the appliance lifetime, many more consumers with net benefits than with net costs, and individual who benefit having larger gains than the losses of individuals who do not) apply to low-income consumers as well. (CFA, Public Meeting Webinar Transcript, No. 363 at p. 20)
                    </P>
                    <P>PSEA stated that high-efficiency condensing furnaces dramatically reduced the energy costs of low-income Philadelphians while also reducing indoor air pollution, and stated that the proposed standards would bring tremendous financial benefits and health benefits to low-income people nationwide. (PSEA, Public Meeting Webinar Transcript, No. 363 at p. 37)</P>
                    <P>In response, DOE acknowledges the importance of considering the potential impacts on low-income households from energy conservation standards for consumer furnaces. As discussed in further detail in section V.C of this document, DOE concludes that low-income households are not disproportionately negatively impacted compared to the national average. DOE's analysis takes into account a variety of factors, as described in detail in section IV.F of this document, that are important to consider for low-income households, including typical equipment price, installation costs, furnace sizing, heating load, discount rate. DOE also considers the possibility of equipment switching to alternative options that meet all safety requirements. DOE finds no evidence that consumers are likely to switch to less-safe heating methods, and even if some consumers do so, such switching is likely to be very rare.</P>
                    <P>A significantly higher fraction of low-income households are renters compared to the national average. Renters are unlikely to be responsible for the selection and purchase of a consumer furnace but are often responsible for energy costs. The main LCC results assume all equipment costs are ultimately paid for by the household, as an upper-bound estimate of costs paid for by each household, and the low-income subgroup analysis represent a lower-bound estimate by assuming no passthrough. DOE did not make this upper-bound assumption in the low-income subgroup analysis in order to better understand the likely impacts on this specific subgroup, excluding the impact to landlords, who are not part of the low-income subgroup. There is no evidence DOE is aware of that suggests a price increase on the installation of a consumer furnace, paid for by a landlord, would be passed down to any significant extent to low-income renters. Rental markets are a separate market determined by their own supply and demand, and low-income rents can be further restricted by local requirements or subsidies. There are some indications that premium, efficient appliances can result in higher rents, but this correlation mostly applies to premium rental properties, not low-income households. Therefore, DOE assumes that landlords are very likely to bear the increased installation costs, not the low-income renter households.</P>
                    <P>The main LCC results and the low-income subgroup results provide an upper and lower bound on the likely impacts to low-income renter households, either assuming 100 percent of equipment and installation costs are passed through to renters or 0 percent of costs are passed through. Even if costs are passed through to renters to some extent in practice, DOE concludes that low-income renters are very likely to disproportionately benefit from an energy conservation standard for consumer furnaces as a result of significant operating cost savings. DOE acknowledges that for low-income owner households, there are some consumers with a net LCC cost and some households with a net LCC savings. Those are included as part of the overall low-income subgroup results. In addition, these results are all considered as part of DOE's evaluation of economic justification, balancing the various burdens and benefits of a potential standard.</P>
                    <P>
                        ACCA recommended that DOE should focus on educating and incentivizing homeowners to demand that HVAC systems are installed according to the industry's recommended minimum standards (including proper equipment sizing, duct redesign and sealing, and appropriate refrigerant charge levels). (ACCA, No. 398 at p. 2) ACCA commented that implementing such changes would result in a 25 to 30 percent efficiency improvement and would result in fewer negative consumer impacts. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        APGA asserted that to the extent that a landlord incurs net costs under the proposed rule, landlords will flow those cost increases through to their low-income tenants, but DOE's methodology intentionally excludes that negative 
                        <PRTPAGE P="87607"/>
                        impact in its analysis. APGA argued that DOE's failure even to try to consider how much of the cost will be passed down to low-income renters is unreasonable. (APGA, No. 387 at pp. 47-48)
                    </P>
                    <P>As discussed previously, DOE does not agree with comments asserting that furnace cost increases will pass through to low-income tenants. DOE is not aware of any evidence to suggest this is the case. Rental markets are a separate market and not dictated by the cost of furnace (especially low-income rental properties), particularly when all rental properties are subject to the same energy conservation standards for furnaces, and, thus, there is no differentiation between rental properties based on the installed furnace. Furthermore, even if some fraction of total installed costs were passed through to tenants through rent increases, the benefits of a higher-efficiency furnace would still vastly outweigh the costs. Any increase in rent would be averaged over many months and years, such that increases in first cost for lower income households would be constrained with higher than average discount rates.</P>
                    <P>DOE also notes that a program based on educating and incentivizing homeowners is highly unlikely to achieve the level of energy savings in this rule, as evaluated in the discussion of alternative programs to energy conservation standards, presented in chapter 17 of the final rule TSD.</P>
                    <P>AGA claimed that the reported percentage impacts for low-income consumers only include the results of low-income renters that pay their gas bills. According to the commenter, the remainder of low-income households is substantial and includes owner-occupied units and renters that do not pay their bills. AGA stated that the inclusion of fuel switching in the overall LCC savings significantly impacts the total and average LCC savings for low-income and senior households. AGA also pointed out that low-income consumers in four separate regions have negative LCC savings under a no-switching scenario. (AGA, No. 405 at pp. 98-102)</P>
                    <P>In response, DOE notes that the commenter's assertions are incorrect. The low-income subgroup results include all low-income households that meet the definition, including renters (both renters who pay and who do not pay their energy bills) and owner-occupied households. A significant fraction of low-income households are renters, as shown in section IV.I of this document. For owner-occupied low-income households, DOE acknowledges that some households will experience a net savings and that some will experience a net cost, but the Department considers this distribution of impacts, including regional variability, in its evaluation of economic justification. DOE has also considered all of the product switching sensitivity scenarios as part of its evaluation. DOE acknowledges there is a range of potential impacts across these scenarios, but as discussed in section V.C of this document, they do not alter DOE's conclusions.</P>
                    <P>NCP pointed out that in DOE's LCC analysis, savings were negative for housing types with more than five units, which are frequently occupied by consumers with lower incomes. (NCP, No. 370 at p. 2)</P>
                    <P>In response and as noted previously, DOE has conducted its main LCC analysis to assume 100 percent of total installed costs of a standards-compliant furnace are passed through to renters. Again, this is likely to provide a very conservative estimate of the impacts to renters, including those who live in housing types with more than five units. However, when assuming that the landlord is likely to bear most if not all of these costs, those households disproportionately benefit from an energy conservation standard for consumer furnaces.</P>
                    <P>Atmos Energy commented that the proposed rule burdens low-income households because of the physical differences that become more problematic in multifamily dwelling units and smaller or older homes. The commenter elaborated that when switching to a condensing furnace, there are physical design changes required in the house, such as larger cabinets, different venting/combustion air intake systems, and the addition of condensate drain systems. (Atmos Energy, No. 415 at p. 3)</P>
                    <P>As discussed in more detail in section IV.F of this document, DOE accounts for a variety of factors in its analysis, including the need for different venting/combustion air intake systems and possible alterations such as larger cabinets, and installation of condensate drain systems. These factors are considered for all households, including low-income households.</P>
                    <P>Atmos Energy commented that the proposed rule burdens low-income households because eliminating more affordable classes of furnaces that can be accommodated without renovations would make furnace replacements out of reach for many households with modest incomes. The commenter added that this would advantage wealthier households that can afford to replace less-efficient furnaces with newer models and reap the accompanying energy savings benefits. (Atmos Energy, No. 415 at p. 3)</P>
                    <P>As discussed previously, DOE acknowledges that total installed costs for a standards-compliant furnace is expected to increase, but the commenter fails to acknowledge that operating costs will decrease. DOE evaluates the full impact on households, including both the initial total installed costs and operating costs, when evaluating economic justification. DOE acknowledges that some low-income households may have a particularly high discount rate, and this is reflected in the discount rate distribution for the lowest income bin (see section IV.F.7 of this document). DOE also has no evidence that the majority of low-income households who are renters who will to be burdened with an increase in total installed costs, and, thus, DOE disagrees with the assertion that the rule is primarily advantageous to wealthier households.</P>
                    <P>The Coalition commented that regulatory requirements, including the amended standards proposed in the July 2022 NOPR, collectively create a substantial financial burden for the development and rehabilitation of housing. The commenter pointed to studies suggesting that regulatory requirements account for almost 25 percent of the average cost of a new single-family home and account for an average of 40.6 percent of the total development costs of new multi-family communities. The Coalition argued that these proposed furnace standards would add to these regulatory burdens. (The Coalition, No. 378 at pp. 3-4)</P>
                    <P>The Coalition further commented that the proposed furnace standards would have adverse impacts on housing providers, renters, and manufacturers by effectively eliminating non-condensing furnaces as an option for home heating. The Coalition added that these standards would increase the cost of a furnace, stating that condensing furnaces cost consumers approximately $1,300 more than non-condensing furnaces. The commenter predicted that this additional cost would need to be absorbed by new home buyers and would increase maintenance costs, arguing that these added costs would be significant for households with modest incomes and providers of affordable housing. (The Coalition, No. 378 at p. 4)</P>
                    <P>
                        In response, DOE notes that installation cost of a 95-percent AFUE furnace in new construction can be less expensive than the installation cost of an 80-percent AFUE furnace, as discussed in section IV.F.2 of this document. This is primarily due to 
                        <PRTPAGE P="87608"/>
                        lower costs to install venting systems in new construction, with shorter vent lengths and without the need to remove an existing venting system. Despite this, market data show that 80-percent AFUE furnaces continue to be installed in new construction. Therefore, DOE does not agree that an energy conservation standard will have an adverse impact on builders or housing providers, nor will it negatively impact the development of more affordable housing options. To the extent that an amended energy conservation standard for consumer furnaces adds to total construction costs, which are then absorbed by new home buyers, that is included in DOE's analysis. Those new home buyers would then also benefit from reduced operating costs as part of the LCC analysis. Finally, other regulatory requirements on builders and developers would apply in both the no-new-standards case as well as the new-standards case, and, therefore, such requirements do not factor in DOE's analysis.
                    </P>
                    <P>
                        NGA of Georgia stated that the proposed rule would negatively impact Georgians and reduce competition. The commenter stated that the proposal disproportionately prioritizes uncertain CO
                        <E T="52">2</E>
                         emissions reductions over the broader negative impacts to consumers. NGA of Georgia argued that affordability, end-user utility, and resiliency cannot be deprioritized in favor of increased emissions reductions. (NGA of Georgia, No. 380 at p. 1)
                    </P>
                    <P>In response, DOE acknowledges that some fraction of consumers will experience net savings, whereas others will experience net costs. DOE's analyses account for regional variation, and consumers in different States (as represented in the RECS and CBECS surveys) are represented in the LCC. Thus, DOE's evaluation of economic justification considers a distribution showing the full range of consumer impacts. DOE further notes that its conclusions would be the same even without considering the monetized benefits of emissions reductions. Accordingly, DOE concludes that affordability, end-user utility, and resiliency will not be negatively impacted by the standards being adopted in this final rule.</P>
                    <P>ACCA expressed concern that a landlord will not see a return on their cost for a more expensive but higher efficiency furnace. ACCA argued that landlords will likely turn to alternative heating options resulting in increased monthly utility bills for their tenants and additional safety concerns. (ACCA, No. 398 at p. 3) DOE notes that this comment is not specific to the low-income subgroup. In the main LCC results, the product switching analysis includes examples of households experiencing higher operating costs after switching to lower cost electric alternatives. The product switching analysis only considers alternative options that meet all safety requirements.</P>
                    <P>Joint Efficiency Commenters stated that there are other energy efficiency programs that can help offset the costs of switching to a higher-efficiency gas furnace or electric heating system, adding that there are particular programs for low- and moderate-income households. These commenters further stated that these types of programs would reduce the number of low-income consumers that may be disproportionately impacted by the proposed standard. (Joint Efficiency Commenters, No. 381 at p. 3)</P>
                    <P>
                        NCLC 
                        <E T="03">et al.</E>
                         commented that with passage of the Inflation Reduction Act, Public Law 117-169, there will be funding to help consumers install efficient heating products, as well as assistance from rebate and subsidy programs offered by many State agencies and utility companies. Furthermore, NCLC 
                        <E T="03">et al.</E>
                         agreed that there will often be programs available for mitigating the cost impact of purchasing and installing efficient furnaces, particularly for low-income households. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 7)
                    </P>
                    <P>In response, DOE acknowledges that rebate and incentive programs may assist low-income owner households with the purchase of more-efficient consumer furnaces. However, as discussed in section IV.G of this document, the implementation details of such future programs remain unknown at the time of the analysis, and DOE did not include them in its analysis. However, DOE notes that if such programs were to be deployed after the compliance date of an amended standard, the consumer benefits of the amended standards would be even higher. If such programs were implemented prior to the compliance date of an amended standard, incentivizing low-income households to adopt more efficient furnaces, such households would no longer be impacted by the amended standard.</P>
                    <P>
                        NCLC 
                        <E T="03">et al.</E>
                         commented that the proposed TSL 8 standard will significantly reduce greenhouse gas and other emissions, adding that this reduction will benefit low-income households and racial minorities. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 7) DOE agrees with this comment.
                    </P>
                    <HD SOURCE="HD2">J. Manufacturer Impact Analysis</HD>
                    <HD SOURCE="HD3">1. Overview</HD>
                    <P>DOE performed an MIA to estimate the financial impacts of amended energy conservation standards on manufacturers of NWGFs and MHGFs and to estimate the potential impacts of such standards on domestic employment, manufacturing capacity, and cumulative regulatory burden for those manufacturers. The MIA has both quantitative and qualitative aspects. The quantitative part of the MIA includes analyses of projected industry cash flows, the INPV, additional investments in research and development (R&amp;D) and manufacturing capital necessary to comply with amended standards, and the potential impact on domestic manufacturing employment. Additionally, the MIA seeks to qualitatively determine how amended energy conservation standards might affect manufacturing capacity and competition, as well as how standards contribute to manufacturers' overall regulatory burden. Finally, the MIA serves to identify any disproportionate impacts on manufacturer subgroups, including small business manufacturers.</P>
                    <P>
                        The quantitative part of the MIA primarily relies on the Government Regulatory Impact Model (GRIM),
                        <SU>254</SU>
                        <FTREF/>
                         an industry cash-flow model with inputs specific to this rulemaking. The key GRIM inputs include data on the industry cost structure, unit production costs, product shipments, manufacturer markups, and investments in R&amp;D and manufacturing capital required to produce compliant products. The key GRIM outputs are the INPV, which is the sum of industry annual cash flows over the analysis period, discounted using the industry-weighted average cost of capital, and the impact on domestic manufacturing employment. The model uses standard accounting principles to estimate the impacts of amended energy conservation standards on the NWGF and MHGF manufacturing industry by comparing changes in INPV and domestic manufacturing employment between the no-new-standards case and the various standards cases (
                        <E T="03">i.e.,</E>
                         TSLs). To capture the uncertainty relating to manufacturer pricing strategies following amended standards, the GRIM estimates a range of possible impacts under different markup scenarios.
                    </P>
                    <FTNT>
                        <P>
                            <SU>254</SU>
                             A copy of the GRIM spreadsheet tool is available on the DOE website for this rulemaking: 
                            <E T="03">www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid= 59&amp;action=viewlive.</E>
                        </P>
                    </FTNT>
                    <P>
                        The qualitative part of the MIA addresses manufacturer characteristics 
                        <PRTPAGE P="87609"/>
                        and market trends. Specifically, the MIA considers such factors as a potential standard's impact on manufacturing capacity, competition within the industry, the cumulative regulatory burden impact of other DOE and non-DOE regulations, and impacts on manufacturer subgroups. The complete MIA is outlined in chapter 12 of the final rule TSD.
                    </P>
                    <P>
                        DOE conducted the MIA for this rulemaking in three phases. In Phase 1 of the MIA, DOE prepared a profile of the NWGF and MHGF manufacturing industry based on the market and technology assessment, preliminary manufacturer interviews, and publicly-available information. This included a top-down cost analysis of NWGF and MHGF manufacturers that DOE used to derive preliminary financial inputs for the GRIM (
                        <E T="03">e.g.,</E>
                         revenues; materials, labor, overhead, and depreciation expenses; selling, general, and administrative expenses (SG&amp;A); R&amp;D expenses; and tax rates). DOE also used public sources of information to further calibrate its initial characterization of the NWGF and MHGF manufacturing industry, including company filings of form 10-K from the SEC,
                        <SU>255</SU>
                        <FTREF/>
                         corporate annual reports, the U.S. Census Bureau's 
                        <E T="03">Annual Survey of Manufactures</E>
                         (
                        <E T="03">ASM</E>
                        ),
                        <SU>256</SU>
                        <FTREF/>
                         and prior NWGF and MHGF rulemakings, as well as subscription-based market research tools (
                        <E T="03">i.e.,</E>
                         reports from Dun &amp; Bradstreet 
                        <SU>257</SU>
                        <FTREF/>
                        ).
                    </P>
                    <FTNT>
                        <P>
                            <SU>255</SU>
                             U.S. Securities and Exchange Commission's Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) database (available at: 
                            <E T="03">www.sec.gov/edgar/search/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>256</SU>
                             U.S. Census Bureau's Annual Survey of Manufactures: 2018-2021 (available at: 
                            <E T="03">www.census.gov/programs-surveys/asm/data/tables.html</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>257</SU>
                             The Dun &amp; Bradstreet Hoovers subscription login is accessible online at: 
                            <E T="03">app.dnbhoovers.com/login</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>In Phase 2 of the MIA, DOE prepared a framework industry cash-flow analysis to quantify the potential impacts of new or amended energy conservation standards. The GRIM uses several factors to determine a series of annual cash flows starting with the announcement of the standard and extending over a 30-year period following the compliance date of the standard. These factors include annual expected revenues, costs of sales, SG&amp;A and R&amp;D expenses, taxes, and capital expenditures. In general, energy conservation standards can affect manufacturer cash flow in three distinct ways: (1) creating a need for increased investment; (2) raising production costs per unit, and (3) altering revenue due to higher per-unit prices and changes in sales volumes.</P>
                    <P>In addition, during Phase 2, DOE developed interview guides to distribute to manufacturers of NWGF and MHGF in order to develop other key GRIM inputs, including product and capital conversion costs, and to gather additional information on the anticipated effects of amended energy conservation standards on revenues, direct employment, capital assets, industry competitiveness, and manufacturer subgroup impacts.</P>
                    <P>In Phase 3 of the MIA, DOE's contractor conducted structured, detailed interviews with representative NWGF and MHGF manufacturers. These interviews discussed engineering, manufacturing, procurement, and financial topics to validate assumptions used in the GRIM. The interviews also solicited information about manufacturers' views of the industry as a whole and their key concerns regarding this rulemaking. DOE's contractor conducted manufacturer interviews for the withdrawn March 2015 NOPR. DOE's contractor conducted additional abridged interviews in October 2021 for the purposes of updating analyses. As part of Phase 3, DOE also evaluated subgroups of manufacturers that may be disproportionately impacted by amended standards or that may not be accurately represented by the average cost assumptions used to develop the industry cash-flow analysis. Such manufacturer subgroups may include small business manufacturers, low-volume manufacturers, niche players, and/or manufacturers exhibiting a cost structure that largely differs from the industry average, all of whom could be more negatively affected by amended energy conservation standards. DOE identified one subgroup for a separate impact analysis: small business manufacturers. The small business subgroup is discussed in section VI.B, “Review Under the Regulatory Flexibility Act,” of this document and in chapter 12 of the final rule TSD.</P>
                    <HD SOURCE="HD3">2. Government Regulatory Impact Model and Key Inputs</HD>
                    <P>DOE uses the GRIM to quantify the changes in cash flows over time due to amended energy conservation standards that result in a higher or lower INPV for the standards cases as compared to the no-new-standards case. The GRIM uses a standard, annual discounted cash-flow analysis that incorporates manufacturer costs, manufacturer markups, shipments, and industry financial information as inputs. The GRIM models changes in costs, distribution of shipments, investments, and manufacturer margins that could result from an amended energy conservation standard. The GRIM spreadsheet uses the inputs to arrive at a series of annual cash flows, beginning in 2023 (the base year of the analysis) and continuing to 2058 (the terminal year of the analysis). DOE calculated INPVs by summing the stream of annual discounted cash flows during this period. For manufacturers of NWGFs and MHGFs, DOE used a real discount rate of 6.4 percent, which was derived from industry corporate annual reports and public filings to the Securities and Exchange Commission (SEC 10-Ks) and then modified according to feedback received during manufacturer interviews.</P>
                    <P>Many GRIM inputs came from the engineering analysis, the NIA, manufacturer interviews, and other research conducted during the MIA. The major GRIM inputs are described in detail in the following sections.</P>
                    <P>The GRIM results are presented in section V.B.2 of this document. Additional details about the GRIM, the discount rate, and other financial parameters can be found in chapter 12 of the final rule TSD.</P>
                    <HD SOURCE="HD3">a. Manufacturer Production Costs</HD>
                    <P>
                        Manufacturing more efficient products is typically more expensive than manufacturing baseline products due to the use of more complex components, which are typically more costly than baseline components. The changes in the MPCs of covered products can affect the shipments, revenue, gross margins, and cash flow of the industry. To calculate the MPCs for NWGFs and MHGFs at and above the baseline, DOE performed teardowns for representative units. The data generated from these analyses were then used to estimate the incremental materials, labor, depreciation, and overhead costs for products at each efficiency level. For a complete description of the MPCs, 
                        <E T="03">see</E>
                         section IV.C of this document or chapter 5 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD3">b. Shipments Projections</HD>
                    <P>
                        The GRIM estimates industry revenues based on total unit shipment projections and the distribution of those shipments by efficiency level and product class. Changes in sales volumes and efficiency mix over time can significantly affect manufacturer finances. For this analysis, the GRIM uses the NIA's annual shipment projections derived from the shipments analysis from 2023 (the base year) to 2058 (the end year of the analysis period). In the shipments analysis, DOE estimates the distribution of efficiencies 
                        <PRTPAGE P="87610"/>
                        in the no-new-standards case and standards cases for all product classes. To account for a regional standard at TSL 4, shipment values in the GRIM are broken down by region, North and rest of country, for the NWGF and MHGF product classes.
                    </P>
                    <P>
                        The NIA assumes that product efficiencies in the no-new-standards case that do not meet the energy conservation standard in the standards case either “roll up” to meet the amended standard or switch to another product, such as a heat pump or electric furnace. In other words, the market share of products that are below the energy conservation standard is added to the market share of products at the minimum energy efficiency level allowed under each standard case. The market share of products above the amended energy conservation standard is assumed to be unaffected by that standard in the compliance year. For a complete description of the shipments analysis, 
                        <E T="03">see</E>
                         section IV.G of this document and chapter 9 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD3">c. Capital and Product Conversion Costs</HD>
                    <P>Amended energy conservation standards could cause manufacturers to incur one-time conversion costs to bring their production facilities and product designs into compliance. DOE evaluated the level of conversion-related expenditures that would be needed to comply with each considered efficiency level in each product class. For the MIA, DOE classified these conversion costs into two major groups: (1) capital conversion costs; and (2) product conversion costs. Capital conversion costs are one-time investments in property, plant, and equipment necessary to adapt or change existing production facilities such that new, compliant product designs can be fabricated and assembled. Product conversion costs are one-time investments in research, development, testing, marketing, and other non-capitalized costs necessary to make product designs comply with amended energy conservation standards.</P>
                    <P>To evaluate the level of capital conversion costs manufacturers would likely incur to comply with amended energy conservation standards, DOE used manufacturer interviews to gather data on the anticipated level of capital investment that would be required at each efficiency level. Manufacturer data were aggregated to better reflect the industry as a whole and to protect confidential information. DOE then scaled up the capital conversion cost feedback from interviews to estimate total industry capital conversion costs.</P>
                    <P>DOE assessed the product conversion costs at each considered AFUE efficiency level by integrating data from quantitative and qualitative sources. DOE considered market-share weighted feedback regarding the potential costs at each efficiency level from multiple manufacturers to estimate product conversion costs. Once again, manufacturer data were aggregated to better reflect the industry as a whole and to protect confidential information.</P>
                    <P>DOE adjusted the conversion cost estimates developed in support of the July 2022 NOPR to 2022$ for this analysis. Industry conversion costs for the adopted standard total $162.0 million. It consists of $117.3 million in capital conversion costs and $44.8 million in product conversion costs.</P>
                    <P>In general, DOE assumes all conversion-related investments occur between the year of publication of the final rule and the year by which manufacturers must comply with the new standard. The conversion cost figures used in the GRIM can be found in section V.B.2 of this document. For additional information on the estimated capital and product conversion costs, see chapter 12 of the final rule TSD.</P>
                    <HD SOURCE="HD3">d. Manufacturer Markup Scenarios</HD>
                    <P>
                        MSPs include direct manufacturing production costs (
                        <E T="03">i.e.,</E>
                         labor, materials, and overhead estimated in DOE's MPCs) and all non-production costs (
                        <E T="03">i.e.,</E>
                         SG&amp;A, R&amp;D, and interest), along with profit. To calculate the MSPs in the GRIM, DOE applied manufacturer markups to the MPCs estimated in the engineering analysis for each product class and efficiency level. Modifying these manufacturer markups in the standards case yields different sets of impacts on manufacturers. For the MIA, DOE modeled two standards-case scenarios to represent uncertainty regarding the potential impacts on prices and profitability for manufacturers following the implementation of amended energy conservation standards: (1) a preservation of gross margin percentage scenario; and (2) a tiered scenario.
                        <SU>258</SU>
                        <FTREF/>
                         These scenarios lead to different manufacturer markup values that, when applied to the MPCs, result in varying revenue and cash flow impacts. The industry cash-flow analysis results in section V.B.2 of this document present the impacts of the upper and lower bound manufacturer markup scenarios on INPV. For the proposed AFUE standards, the preservation of gross margin percentage scenario represents the upper bound scenario, and the tiered scenario represents the lower bound scenario for INPV impacts.
                    </P>
                    <FTNT>
                        <P>
                            <SU>258</SU>
                             DOE analyzed the preservation of per-unit operating profit scenario for the proposed standby mode and off mode standards in the July 2022 NOPR. DOE is not analyzing the preservation of per-unit operating profit scenario for this final rule, as DOE is not adopting the standby mode/off mode power standards for NWGFs/MHGFs proposed in the July 2022 NOPR at this time.
                        </P>
                    </FTNT>
                    <P>
                        Under the preservation of gross margin percentage scenario, DOE applied a single uniform “gross margin percentage” markup across all efficiency levels, which assumes that following amended standards, manufacturers would be able to maintain the same amount of profit as a percentage of revenues at all efficiency levels within a product class. As production costs increase with efficiency, this scenario implies that the per-unit dollar profit will increase. Based on publicly available financial information for NWGF and MHGF manufacturers, as well as comments from manufacturer interviews, DOE assumed average gross margin percentages of 25.3 percent for NWGFs and 21.3 percent for MHGF.
                        <SU>259</SU>
                        <FTREF/>
                         Manufacturers noted that this scenario represents the upper bound of the NWGF and MHGF industry's profitability in the standards case because manufacturers can fully pass on additional costs due to standards to consumers.
                    </P>
                    <FTNT>
                        <P>
                            <SU>259</SU>
                             The gross margin percentages correspond to manufacturer markups of 1.34 for NWGFs and 1.27 for MHGFs.
                        </P>
                    </FTNT>
                    <P>
                        DOE also modeled a tiered scenario, which reflects the industry's “good, better, best” pricing structure. DOE implemented the tiered markup scenario because several manufacturers stated in interviews that they offer multiple tiers of product lines that are differentiated, in part, by efficiency level. Manufacturers further noted that tiered pricing encompasses additional differentiators such as comfort features, brand, and warranty. To account for this nuance in the GRIM, DOE's tiered mark-up structure incorporates both AFUE and combustion systems (
                        <E T="03">e.g.,</E>
                         single-stage, two-stage, and modulating combustion systems) into its “good, better, best” markup analysis.
                    </P>
                    <P>
                        Multiple manufacturers suggested that amended standards could lead to a compression of overall mark-ups and reduce the profitability of higher-efficiency products. During interviews, manufacturers provided information on the range of typical manufacturer mark-ups in the “good, better, best” tiers. DOE used this information to estimate manufacturer mark-ups for NWGFs and MHGFs under a tiered pricing strategy in the no-new-standards case. In the standards cases, DOE modeled the 
                        <PRTPAGE P="87611"/>
                        situation in which amended standards result in a reduction of product differentiation, compression of the markup tiers, and an overall reduction in profitability.
                    </P>
                    <P>A comparison of industry financial impacts under the two scenarios is presented in section V.B.2.a of this document.</P>
                    <HD SOURCE="HD2">K. Emissions Analysis</HD>
                    <P>
                        The emissions analysis consists of two components. The first component estimates the effect of potential energy conservation standards on power sector and site (where applicable) combustion emissions of CO
                        <E T="52">2</E>
                        , NO
                        <E T="52">X</E>
                        , SO
                        <E T="52">2</E>
                        , and Hg. The second component estimates the impacts of potential standards on emissions of two additional greenhouse gases, CH
                        <E T="52">4</E>
                         and N
                        <E T="52">2</E>
                        O, as well as the reductions in emissions of other gases due to “upstream” activities in the fuel production chain. These upstream activities comprise extraction, processing, and transporting fuels to the site of combustion.
                    </P>
                    <P>
                        The analysis of electric power sector emissions of CO
                        <E T="52">2</E>
                        , NO
                        <E T="52">X</E>
                        , SO
                        <E T="52">2</E>
                        , and Hg uses emissions intended to represent the marginal impacts of the change in electricity consumption associated with amended or new standards. The methodology is based on results published for the 
                        <E T="03">AEO,</E>
                         including a set of side cases that implement a variety of efficiency-related policies. The methodology is described in appendix 13A in the final rule TSD. The analysis presented in this document uses projections from 
                        <E T="03">AEO2023.</E>
                         Power sector emissions of CH
                        <E T="52">4</E>
                         and N
                        <E T="52">2</E>
                        O from fuel combustion are estimated using Emission Factors for Greenhouse Gas Inventories published by the Environmental Protection Agency (EPA).
                        <SU>260</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>260</SU>
                             Available at: 
                            <E T="03">www.epa.gov/sites/production/files/2021-04/documents/emission-factors_apr2021.pdf</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        The on-site operation of the subject consumer furnaces requires combustion of fossil fuels and results in emissions of CO
                        <E T="52">2</E>
                        , NO
                        <E T="52">X</E>
                        , SO
                        <E T="52">2,</E>
                         CH
                        <E T="52">4,</E>
                         and N
                        <E T="52">2</E>
                        O where these products are used. Site emissions of these gases were estimated using Emission Factors for Greenhouse Gas Inventories and, for NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2,</E>
                         emissions intensity factors from an EPA publication.
                        <SU>261</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>261</SU>
                             U.S. Environmental Protection Agency. External Combustion Sources. In 
                            <E T="03">Compilation of Air Pollutant Emission Factors.</E>
                             AP-42. Fifth Edition. Volume I: Stationary Point and Area Sources. Chapter 1 (available at: 
                            <E T="03">www.epa.gov/air-emissions-factors-and-quantification/ap-42-compilation-air-emissions-factors#Proposed/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        FFC upstream emissions, which include emissions from fuel combustion during extraction, processing, and transportation of fuels, and “fugitive” emissions (direct leakage to the atmosphere) of CH
                        <E T="52">4</E>
                         and CO
                        <E T="52">2</E>
                        , are estimated based on the methodology described in chapter 15 of the final rule TSD.
                    </P>
                    <P>The emissions intensity factors are expressed in terms of physical units per MWh or MMBtu of site energy savings. For power sector emissions, specific emissions intensity factors are calculated by sector and end use. Total emissions reductions are estimated using the energy savings calculated in the national impact analysis.</P>
                    <P>GHHI stated that the reductions in nitrous oxide emissions will create more than $21 billion in health benefits from reduced medical spending on treatment and improved economic productivity. (GHHI, No. 371 at p. 2)</P>
                    <P>
                        NCLC 
                        <E T="03">et al.</E>
                         commented that reducing the combustion of natural gas in furnaces would reduce emissions of CO
                        <E T="52">2,</E>
                         nitrogen oxides, and methane, which in turn would yield health benefits. NCLC 
                        <E T="03">et al.</E>
                         further commented that these benefits are important for low-income communities and racial minorities, stating that these groups already experience higher rates of negative health outcomes, have limited healthcare access, and struggle with higher amounts of medical debt. These commenters added that the reduction of heating-energy bills would further benefit low-income households who are forced to cut back on other necessities to pay energy bills. (NCLC 
                        <E T="03">et al.,</E>
                         No. 383 at p. 8)
                    </P>
                    <P>Climate and Health Coalition expressed support for the eventual elimination of gas use within the home, and during the transition, Climate and Health Coalition stated that DOE's proposed rule would reduce pollutants that harm human health, reduce climate change emissions, and save all customers (including disadvantaged and low-income communities) money. (Climate and Health Coalition, No. 399 at p. 1) Climate and Health Coalition further commented that exposure to air pollutants caused by burning natural gas contributes to premature mortality and increased risk for illness, including ischemic heart disease, stroke, chronic obstructive pulmonary disease (COPD), lung cancer, heart attack, type-2 diabetes, headache, fatigue, unconsciousness, lower-respiratory infections, and even death. (Climate and Health Coalition, No. 399 at pp. 1-3) Additionally, these commenters stated that there is a growing body of evidence showing an association between long-term exposure to air pollution and adverse birth outcomes. (Climate and Health Coalition, No. 399 at pp. 1-2) Furthermore, Climate and Health Coalition stated that air pollution can exacerbate asthma and cardiopulmonary symptoms, are associated with upper respiratory infections and cough, increase lower respiratory tract illnesses, and reduce lung function in children. (Climate and Health Coalition, No. 399 at pp. 2-3)</P>
                    <P>
                        In response, DOE acknowledges the potential health and climate benefits of reducing emissions and continues to estimate site and power plant emissions reductions for CO
                        <E T="52">2</E>
                        , CH
                        <E T="52">4</E>
                        , N
                        <E T="52">2</E>
                        O, NO
                        <E T="52">X</E>
                        , SO
                        <E T="52">2</E>
                        , and Hg in this final rule.
                    </P>
                    <P>
                        APGA expressed concerned that DOE's assumed fuel sulfur content leads to overstatements of SO
                        <E T="52">2</E>
                         emissions from on-site operation of furnaces, especially as utilities across the country can have much less total sulfur in their gas and still meet odorant requirements. (APGA, No. 387 at pp. 29-30)
                    </P>
                    <P>
                        DOE acknowledges that there is some uncertainty in the sulfur content of fuel. However, the resulting site emission reductions of SO
                        <E T="52">2</E>
                         are over an order of magnitude smaller than the corresponding increases in SO
                        <E T="52">2</E>
                         emissions due to increased electricity consumption in the amended standards case, and, therefore, any changes to the sulfur content assumptions would have very little impact on overall results and would not alter DOE's evaluation of economic justification.
                    </P>
                    <P>
                        APGA noted that EPA is in the process of promulgating regulations to impose a methane fee (
                        <E T="03">i.e.,</E>
                         a charge on methane emissions from the petroleum and natural gas sector, where methane emissions from an applicable facility (upstream of gas distribution) exceed a pre-determined waste emissions threshold). APGA argued that given that such a fee would reduce methane emissions, DOE's estimates are likely overstated and must be recalculated to account for the impact of EPA's new methane fee. (APGA, No. 387 at p. 30)
                    </P>
                    <P>
                        In response, DOE notes that its estimates of emissions reductions, including methane, are based on various projections from the latest 
                        <E T="03">AEO. AEO'</E>
                        s methodology incorporates all regulations affecting the energy sector, if they are finalized. If a rule is proposed but not yet finalized, it will not be incorporated into the reference case of 
                        <E T="03">AEO,</E>
                         as it may ultimately differ from its proposed rule (or not be finalized). Should EPA finalize a regulation regarding a methane fee, it will be incorporated into future publications of 
                        <E T="03">AEO. AEO2023</E>
                         does not incorporate this regulation. DOE notes that, even if methane emissions were lower than estimated in this final rule, the 
                        <PRTPAGE P="87612"/>
                        Department's conclusions regarding economic justification and technological feasibility of the rule would be the same.
                    </P>
                    <P>Spencer and Dayaratna cited a report from the U.S. Environmental Protection Agency indicating that U.S. air quality has been improving for decades, suggesting that this weakens DOE's finding that the air quality benefits associated with DOE's proposal would outweigh the costs. (Spencer and Dayaratna, No. 390 at pp. 5-6)</P>
                    <P>
                        In response, DOE notes that this assertion is incorrect. DOE acknowledges that air quality is generally improving, but this would occur in the no-new-standards case as well as the new-standards-case. DOE's analysis specifically considers the difference between the two cases (
                        <E T="03">i.e.,</E>
                         emissions reductions from an energy conservation standard on consumer furnaces only). This difference between the no-new-standards and new-standards cases is the same regardless of the background air quality. Furthermore, DOE incorporates projections from 
                        <E T="03">AEO</E>
                         with respect to the fuel mix of future electricity generation, which includes a greater fraction of renewable sources with no emissions. Therefore, improving emissions from the power sector are included in DOE's analysis.
                    </P>
                    <P>Atmos Energy commented that DOE's analysis should differentiate between the carbon dioxide emissions from natural gas-fueled and propane-fueled furnaces and evaluate them separately. (Atmos Energy, No. 415 at p. 7)</P>
                    <P>DOE acknowledges that propane and natural gas have different carbon dioxide emissions. However, this difference is orders of magnitude smaller than the total emissions reductions estimated in the analysis. Furthermore, as discussed in section V.C of this document, DOE comes to the same conclusions with or without taking into consideration the impact of emissions reductions, and, therefore, any adjustments to the emissions analysis for propane would not change DOE's conclusions.</P>
                    <HD SOURCE="HD3">1. Air Quality Regulations Incorporated in DOE's Analysis</HD>
                    <P>
                        DOE's no-new-standards case for the electric power sector reflects the 
                        <E T="03">AEO,</E>
                         which incorporates the projected impacts of existing air quality regulations on emissions. 
                        <E T="03">AEO2023</E>
                         generally represents current legislation and environmental regulations, including recent government actions, that were in place at the time of preparation of 
                        <E T="03">AEO2023,</E>
                         including the emissions control programs discussed in the following paragraphs.
                        <SU>262</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>262</SU>
                             For further information, see the Assumptions to 
                            <E T="03">AEO2023</E>
                             report that sets forth the major assumptions used to generate the projections in the 
                            <E T="03">Annual Energy Outlook</E>
                             (available at: 
                            <E T="03">www.eia.gov/outlooks/aeo/assumptions/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        SO
                        <E T="52">2</E>
                         emissions from affected electric generating units (“EGUs”) are subject to nationwide and regional emissions cap-and-trade programs. Title IV of the Clean Air Act sets an annual emissions cap on SO
                        <E T="52">2</E>
                         for affected EGUs in the 48 contiguous States and the District of Columbia (DC). (42 U.S.C. 7651 
                        <E T="03">et seq.</E>
                        ) SO
                        <E T="52">2</E>
                         emissions from numerous States in the eastern half of the United States are also limited under the Cross-State Air Pollution Rule (CSAPR). 76 FR 48208 (August 8, 2011). CSAPR requires these States to reduce certain emissions, including annual SO
                        <E T="52">2</E>
                         emissions, and went into effect as of January 1, 2015.
                        <SU>263</SU>
                        <FTREF/>
                          
                        <E T="03">AEO2023</E>
                         incorporates implementation of CSAPR, including the update to the CSAPR ozone season program emission budgets and target dates issued in 2016. 81 FR 74504 (Oct. 26, 2016). Compliance with CSAPR is flexible among EGUs and is enforced through the use of tradable emissions allowances. Under existing EPA regulations, for States subject to SO
                        <E T="52">2</E>
                         emissions limits under CSAPR, any excess SO
                        <E T="52">2</E>
                         emissions allowances resulting from the lower electricity demand caused by the adoption of an efficiency standard could be used to permit offsetting increases in SO
                        <E T="52">2</E>
                         emissions by another regulated EGU.
                    </P>
                    <FTNT>
                        <P>
                            <SU>263</SU>
                             CSAPR requires States to address annual emissions of SO
                            <E T="52">2</E>
                             and NO
                            <E T="52">X</E>
                            , precursors to the formation of fine particulate matter (PM
                            <E T="52">2.5</E>
                            ) pollution, in order to address the interstate transport of pollution with respect to the 1997 and 2006 PM
                            <E T="52">2.5</E>
                             National Ambient Air Quality Standards (NAAQS). CSAPR also requires certain States to address the ozone season (May-September) emissions of NO
                            <E T="52">X</E>
                            , a precursor to the formation of ozone pollution, in order to address the interstate transport of ozone pollution with respect to the 1997 ozone NAAQS. 76 FR 48208 (August 8, 2011). EPA subsequently published a supplemental rule in the 
                            <E T="04">Federal Register</E>
                             that included an additional five States in the CSAPR ozone season program, 76 FR 80760 (Dec. 27, 2011).
                        </P>
                    </FTNT>
                    <P>
                        However, beginning in 2016, SO
                        <E T="52">2</E>
                         emissions began to fall as a result of the Mercury and Air Toxics Standards (MATS) for power plants. 77 FR 9304 (Feb. 16, 2012). In the MATS final rule, EPA established a standard for hydrogen chloride as a surrogate for acid gas hazardous air pollutants (HAP), and also established a standard for SO
                        <E T="52">2</E>
                         (a non-HAP acid gas) as an alternative equivalent surrogate standard for acid gas HAP. The same controls are used to reduce HAP and non-HAP acid gas; thus, SO
                        <E T="52">2</E>
                         emissions are being reduced as a result of the control technologies installed on coal-fired power plants to comply with the MATS requirements for acid gas. In order to continue operating, coal plants must have either flue gas desulfurization or dry sorbent injection systems installed. Both technologies, which are used to reduce acid gas emissions, also reduce SO
                        <E T="52">2</E>
                         emissions. Because of the emissions reductions under the MATS, it is unlikely that excess SO
                        <E T="52">2</E>
                         emissions allowances resulting from the lower electricity demand would be needed or used to permit offsetting increases in SO
                        <E T="52">2</E>
                         emissions by another regulated EGU. Therefore, energy conservation standards that decrease electricity generation will generally reduce SO
                        <E T="52">2</E>
                         emissions. DOE estimated SO
                        <E T="52">2</E>
                         emissions reduction using emissions factors based on 
                        <E T="03">AEO2023.</E>
                    </P>
                    <P>
                        CSAPR also established limits on NO
                        <E T="52">X</E>
                         emissions for numerous States in the eastern half of the United States. Energy conservation standards would have little effect on NO
                        <E T="52">X</E>
                         emissions in those States covered by CSAPR emissions limits if excess NO
                        <E T="52">X</E>
                         emissions allowances resulting from the lower electricity demand could be used to permit offsetting increases in NO
                        <E T="52">X</E>
                         emissions from other EGUs. In such case, NO
                        <E T="52">X</E>
                         emissions would remain near the limit even if electricity generation goes down. Depending on the configuration of the power sector in the different regions and the need for allowances, however, NO
                        <E T="52">X</E>
                         emissions might not remain at the limit in the case of lower electricity demand. That would mean that standards might reduce NO
                        <E T="52">X</E>
                         emissions in covered States. Despite this possibility, DOE has chosen to be conservative in its analysis and has maintained the assumption that standards will not reduce NO
                        <E T="52">X</E>
                         emissions in States covered by CSAPR. Energy conservation standards would be expected to reduce NO
                        <E T="52">X</E>
                         emissions in the States not covered by CSAPR.
                        <SU>264</SU>
                        <FTREF/>
                         DOE used 
                        <E T="03">AEO2023</E>
                         data to derive NO
                        <E T="52">X</E>
                         emissions factors for the group of States not covered by CSAPR.
                    </P>
                    <FTNT>
                        <P>
                            <SU>264</SU>
                             See footnote 246.
                        </P>
                    </FTNT>
                    <P>
                        The MATS limit mercury emissions from power plants, but they do not include emissions caps and, as such, DOE's energy conservation standards would be expected to slightly reduce Hg emissions. DOE estimated mercury emissions reduction using emissions factors based on 
                        <E T="03">AEO2023,</E>
                         which incorporates the MATS.
                    </P>
                    <HD SOURCE="HD2">L. Monetizing Emissions Impacts</HD>
                    <P>
                        As part of the development of this final rule, for the purpose of complying with the requirements of Executive 
                        <PRTPAGE P="87613"/>
                        Order 12866, DOE considered the estimated net monetary benefits from changes in emissions of CO
                        <E T="52">2,</E>
                         CH
                        <E T="52">4</E>
                        , N
                        <E T="52">2</E>
                        O, NO
                        <E T="52">X,</E>
                         and SO
                        <E T="52">2</E>
                         that are expected to result from each of the TSLs considered. In order to make this calculation analogous to the calculation of the NPV of consumer benefit, DOE considered the reduced emissions expected to result over the lifetime of products shipped in the projection period for each TSL. This section summarizes the basis for the values used for monetizing the emissions benefits and presents the values considered in this final rule.
                    </P>
                    <HD SOURCE="HD3">1. Monetization of Greenhouse Gas Emissions</HD>
                    <P>
                        To monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the 
                        <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                         published in February 2021 by the IWG.
                        <SU>265</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>265</SU>
                             See 
                            <E T="03">www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE estimates the monetized benefits of the reductions in emissions of CO
                        <E T="52">2</E>
                        , CH
                        <E T="52">4</E>
                        , and N
                        <E T="52">2</E>
                        O by using a measure of the social cost (SC) of each pollutant (
                        <E T="03">e.g.,</E>
                         SC-CO
                        <E T="52">2</E>
                        ). These estimates represent the monetary value of the net harm to society associated with a marginal increase in emissions of these pollutants in a given year, or the benefit of avoiding that increase. These estimates are intended to include (but are not limited to) climate-change-related changes in net agricultural productivity, human health, property damages from increased flood risk, disruption of energy systems, risk of conflict, environmental migration, and the value of ecosystem services.
                    </P>
                    <P>DOE exercises its own judgment in presenting monetized climate benefits as recommended by applicable Executive orders, and DOE would reach the same conclusion presented in this final rule in the absence of the social cost of greenhouse gases. That is, the social costs of greenhouse gases, whether measured using the February 2021 interim estimates presented by the Interagency Working Group on the Social Cost of Greenhouse Gases or by another means, did not affect the rule ultimately being adopted by DOE.</P>
                    <P>
                        DOE estimated the global social benefits of CO
                        <E T="52">2</E>
                        , CH
                        <E T="52">4</E>
                        , and N
                        <E T="52">2</E>
                        O reductions (
                        <E T="03">i.e.,</E>
                         SC-GHGs) using SC-GHG values that were based on the interim values presented in the 
                        <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990,</E>
                         published in February 2021 by the IWG. The SC-GHGs is the monetary value of the net harm to society associated with a marginal increase in emissions in a given year, or the benefit of avoiding that increase. In principle, SC-GHGs includes the value of all climate change impacts, including (but not limited to) changes in net agricultural productivity, human health effects, property damage from increased flood risk and natural disasters, disruption of energy systems, risk of conflict, environmental migration, and the value of ecosystem services. The SC-GHGs, therefore, reflects the societal value of reducing emissions of the gas in question by one metric ton. The SC-GHGs is the theoretically appropriate value to use in conducting benefit-cost analyses of policies that affect CO
                        <E T="52">2</E>
                        , N
                        <E T="52">2</E>
                        O, and CH
                        <E T="52">4</E>
                         emissions. As a member of the IWG involved in the development of the February 2021 SC-GHG TSD, DOE agrees that the interim SC-GHG estimates represent the most appropriate estimate of the SC-GHG until revised estimates have been developed reflecting the latest, peer-reviewed science.
                    </P>
                    <P>
                        The SC-GHGs estimates presented here were developed over many years, using a transparent process, peer-reviewed methodologies, the best science available at the time of that process, and with input from the public. Specifically, in 2009, the IWG, which included DOE and other Executive Branch agencies and offices, was established to ensure that agencies were using the best available science and to promote consistency in the social cost of carbon (SC-CO
                        <E T="52">2</E>
                        ) values used across agencies. The IWG published SC-CO
                        <E T="52">2</E>
                         estimates in 2010 that were developed from an ensemble of three widely cited integrated assessment models (IAMs) that estimate global climate damages using highly aggregated representations of climate processes and the global economy combined into a single modeling framework. The three IAMs were run using a common set of input assumptions in each model for future population, economic, and CO
                        <E T="52">2</E>
                         emissions growth, as well as equilibrium climate sensitivity—a measure of the globally averaged temperature response to increased atmospheric CO
                        <E T="52">2</E>
                         concentrations. These estimates were updated in 2013 based on new versions of each IAM. In August 2016, the IWG published estimates of the social cost of methane (SC-CH
                        <E T="52">4</E>
                        ) and nitrous oxide (SC-N
                        <E T="52">2</E>
                        O) using methodologies that are consistent with the methodology underlying the SC-CO
                        <E T="52">2</E>
                         estimates. The modeling approach that extends the IWG SC-CO
                        <E T="52">2</E>
                         methodology to non-CO
                        <E T="52">2</E>
                         GHGs has undergone multiple stages of peer review. The SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O estimates were developed by Marten 
                        <E T="03">et al.</E>
                        <SU>266</SU>
                        <FTREF/>
                         and underwent a standard double-blind peer review process prior to journal publication. In 2015, as part of the response to public comments received to a 2013 solicitation for comments on the SC-CO
                        <E T="52">2</E>
                         estimates, the IWG announced a National Academies of Sciences, Engineering, and Medicine review of the SC-CO
                        <E T="52">2</E>
                         estimates to offer advice on how to approach future updates to ensure that the estimates continue to reflect the best available science and methodologies. In January 2017, the National Academies released their final report, “Valuing Climate Damages: Updating Estimation of the Social Cost of Carbon Dioxide,” and recommended specific criteria for future updates to the SC-CO
                        <E T="52">2</E>
                         estimates, a modeling framework to satisfy the specified criteria, and both near-term updates and longer-term research needs pertaining to various components of the estimation process (National Academies, 2017).
                        <SU>267</SU>
                        <FTREF/>
                         Shortly thereafter, in March 2017, President Trump issued Executive Order 13783, which disbanded the IWG, withdrew the previous TSDs, and directed agencies to ensure SC-CO
                        <E T="52">2</E>
                         estimates used in regulatory analyses are consistent with the guidance contained in OMB's Circular A-4, “including with respect to the consideration of domestic versus international impacts and the consideration of appropriate discount rates” (E.O. 13783, section 5(c)). Benefit-cost analyses following E.O. 13783 used SC-GHG estimates that attempted to focus on the U.S.-specific share of climate change damages as estimated by the models and were calculated using two discount rates recommended by Circular A-4, 3 percent and 7 percent. All other methodological decisions and model versions used in SC-GHG calculations remained the same as those used by the IWG in 2010 and 2013, respectively.
                    </P>
                    <FTNT>
                        <P>
                            <SU>266</SU>
                             Marten, A.L., E.A. Kopits, C.W. Griffiths, S.C. Newbold, and A. Wolverton. Incremental CH
                            <E T="52">4</E>
                             and N
                            <E T="52">2</E>
                            O mitigation benefits consistent with the U.S. Government's SC-CO
                            <E T="52">2</E>
                             estimates. 
                            <E T="03">Climate Policy</E>
                             (2015) 15(2): pp. 272-298.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>267</SU>
                             National Academies of Sciences, Engineering, and Medicine. 
                            <E T="03">Valuing Climate Damages: Updating Estimation of the Social Cost of Carbon Dioxide.</E>
                             2017. The National Academies Press: Washington, DC.
                        </P>
                    </FTNT>
                    <P>
                        On January 20, 2021, President Biden issued Executive Order 13990, which re-
                        <PRTPAGE P="87614"/>
                        established the IWG and directed it to ensure that the U.S. Government's estimates of the social cost of carbon and other greenhouse gases reflect the best available science and the recommendations of the National Academies (2017). The IWG was tasked with first reviewing the SC-GHG estimates currently used in Federal analyses and publishing interim estimates within 30 days of the E.O. that reflect the full impact of GHG emissions, including by taking global damages into account. The interim SC-GHG estimates published in February 2021 are used here to estimate the climate benefits for this rulemaking. The February 2021 SC-GHG TSD provides a complete discussion of the IWG's initial review conducted under E.O. 13990. In particular, the IWG found that the SC-GHG estimates used under E.O. 13783 fail to reflect the full impact of GHG emissions in multiple ways.
                    </P>
                    <P>First, the IWG found that the SC-GHG estimates used under E.O. 13783 fail to fully capture many climate impacts that affect the welfare of U.S. citizens and residents, and those impacts are better reflected by global measures of the SC-GHG. Examples of omitted effects from the E.O. 13783 estimates include direct effects on U.S. citizens, assets, and investments located abroad, supply chains, U.S. military assets and interests abroad, and tourism, as well as spillover pathways such as economic and political destabilization and global migration that can lead to adverse impacts on U.S. national security, public health, and humanitarian concerns. In addition, assessing the benefits of U.S. GHG mitigation activities requires consideration of how those actions may affect mitigation activities by other countries, as those international mitigation actions will provide a benefit to U.S. citizens and residents by mitigating climate impacts that affect U.S. citizens and residents. A wide range of scientific and economic experts have emphasized the issue of reciprocity as support for considering global damages of GHG emissions. If the United States does not consider impacts on other countries, it is difficult to convince other countries to consider the impacts of their emissions on the United States. The only way to achieve an efficient allocation of resources for emissions reduction on a global basis—and so benefit the U.S. and its citizens—is for all countries to base their policies on global estimates of damages. As a member of the IWG involved in the development of the February 2021 SC-GHG TSD, DOE agrees with this assessment, and, therefore, in this final rule DOE centers attention on a global measure of the SC-GHG. This approach is the same as that taken in DOE regulatory analyses from 2012 through 2016. A robust estimate of climate damages that accrue only to U.S. citizens and residents does not currently exist in the literature. As explained in the February 2021 TSD, existing estimates are both incomplete and an underestimate of total damages that accrue to the citizens and residents of the U.S. because they do not fully capture the regional interactions and spillovers discussed above, nor do they include all of the important physical, ecological, and economic impacts of climate change recognized in the climate change literature. As noted in the February 2021 SC-GHG TSD, the IWG will continue to review developments in the literature, including more robust methodologies for estimating a U.S.-specific SC-GHG value, and explore ways to better inform the public of the full range of carbon impacts. As a member of the IWG, DOE will continue to follow developments in the literature pertaining to this issue.</P>
                    <P>
                        Second, the IWG found that the use of the social rate of return on capital (7 percent under current OMB Circular A-4 guidance) to discount the future benefits of reducing GHG emissions inappropriately underestimates the impacts of climate change for the purposes of estimating the SC-GHG. Consistent with the findings of the National Academies (2017) and the economic literature, the IWG continued to conclude that the consumption rate of interest is the theoretically appropriate discount rate in an intergenerational context,
                        <SU>268</SU>
                        <FTREF/>
                         and recommended that discount rate uncertainty and relevant aspects of intergenerational ethical considerations be accounted for in selecting future discount rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>268</SU>
                             Interagency Working Group on Social Cost of Carbon. 
                            <E T="03">Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866</E>
                             (2010) United States Government (last accessed August 1, 2023) (available at: 
                            <E T="03">www.epa.gov/sites/default/files/2016-12/documents/scc_tsd_2010.pdf</E>
                            ); Interagency Working Group on Social Cost of Carbon. 
                            <E T="03">Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866</E>
                             (2013) (78 FR 70586) (last accessed August 1, 2023) (available at: 
                            <E T="03">www.federalregister.gov/documents/2013/11/26/2013-28242/technical-support-document-technical-update-of-the-social-cost-of-carbon-for-regulatory-impact</E>
                            ); Interagency Working Group on Social Cost of Greenhouse Gases, United States Government. Technical Support Document: Technical Update on the Social Cost of Carbon for Regulatory Impact Analysis-Under Executive Order 12866 (August 2016) (last accessed August 1, 2023) (available at: 
                            <E T="03">www.epa.gov/sites/default/files/2016-12/documents/sc_co2_tsd_august_2016.pdf</E>
                            ); Interagency Working Group on Social Cost of Greenhouse Gases, United States Government. Addendum to Technical Support Document on Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866: Application of the Methodology to Estimate the Social Cost of Methane and the Social Cost of Nitrous Oxide. August 2016 (last accessed August 1, 2023) (available at: 
                            <E T="03">www.epa.gov/sites/default/files/2016-12/documents/addendum_to_sc-ghg_tsd_august_2016.pdf</E>
                            ).
                        </P>
                    </FTNT>
                    <P>Furthermore, the damage estimates developed for use in the SC-GHG are estimated in consumption-equivalent terms, and so an application of OMB Circular A-4's guidance for regulatory analysis would then use the consumption discount rate to calculate the SC-GHG. DOE agrees with this assessment and will continue to follow developments in the literature pertaining to this issue. DOE also notes that while OMB Circular A-4, as published in 2003, recommends using 3 percent and 7 percent discount rates as “default” values, Circular A-4 also reminds agencies that “different regulations may call for different emphases in the analysis, depending on the nature and complexity of the regulatory issues and the sensitivity of the benefit and cost estimates to the key assumptions.” On discounting, Circular A-4 recognizes that “special ethical considerations arise when comparing benefits and costs across generations,” and Circular A-4 acknowledges that analyses may appropriately “discount future costs and consumption benefits . . . at a lower rate than for intragenerational analysis.” In the 2015 “Response to Comments on the Social Cost of Carbon for Regulatory Impact Analysis,” OMB, DOE, and the other IWG members recognized that “Circular A-4 is a living document” and “the use of 7 percent is not considered appropriate for intergenerational discounting. There is wide support for this view in the academic literature, and it is recognized in Circular A-4 itself.” Thus, DOE concludes that a 7 percent discount rate is not appropriate to apply to value the social cost of greenhouse gases in the analysis presented in this analysis.</P>
                    <P>
                        To calculate the present and annualized values of climate benefits, DOE uses the same discount rate as the rate used to discount the value of damages from future GHG emissions, for internal consistency. That approach to discounting follows the same approach that the February 2021 TSD recommends “to ensure internal consistency—
                        <E T="03">i.e.,</E>
                         future damages from climate change using the SC-GHG at 2.5 percent should be discounted to the base year of the analysis using the same 2.5 percent rate.” DOE has also consulted the National Academies' 2017 recommendations on how SC-GHG 
                        <PRTPAGE P="87615"/>
                        estimates can “be combined in RIAs with other cost and benefits estimates that may use different discount rates.” The National Academies reviewed several options, including “presenting all discount rate combinations of other costs and benefits with [SC-GHG] estimates.”
                    </P>
                    <P>As a member of the IWG involved in the development of the February 2021 SC-GHG TSD, DOE agrees with the above assessment and will continue to follow developments in the literature pertaining to this issue. While the IWG works to assess how best to incorporate the latest, peer-reviewed science to develop an updated set of SC-GHG estimates, it set the interim estimates to be the most recent estimates developed by the IWG prior to the group being disbanded in 2017. The estimates rely on the same models and harmonized inputs and are calculated using a range of discount rates. As explained in the February 2021 SC-GHG TSD, the IWG has recommended that agencies revert to the same set of four values drawn from the SC-GHG distributions based on three discount rates as were used in regulatory analyses between 2010 and 2016 and were subject to public comment. For each discount rate, the IWG combined the distributions across models and socioeconomic emissions scenarios (applying equal weight to each) and then selected a set of four values recommended for use in benefit-cost analyses: an average value resulting from the model runs for each of three discount rates (2.5 percent, 3 percent, and 5 percent), plus a fourth value, selected as the 95th percentile of estimates based on a 3-percent discount rate. The fourth value was included to provide information on potentially higher-than-expected economic impacts from climate change. As explained in the February 2021 SC-GHG TSD, and DOE agrees, this update reflects the immediate need to have an operational SC-GHG for use in regulatory benefit-cost analyses and other applications that was developed using a transparent process, peer-reviewed methodologies, and the science available at the time of that process. Those estimates were subject to public comment in the context of dozens of proposed rulemakings as well as in a dedicated public comment period in 2013.</P>
                    <P>
                        There are a number of limitations and uncertainties associated with the SC-GHG estimates. First, the current scientific and economic understanding of discounting approaches suggests discount rates appropriate for intergenerational analysis in the context of climate change are likely to be less than 3 percent, near 2 percent or lower.
                        <SU>269</SU>
                        <FTREF/>
                         Second, the IAMs used to produce these interim estimates do not include all of the important physical, ecological, and economic impacts of climate change recognized in the climate change literature and the science underlying their “damage functions” (
                        <E T="03">i.e.,</E>
                         the core parts of the IAMs that map global mean temperature changes and other physical impacts of climate change into economic—both market and nonmarket—damages) lags behind the most recent research. For example, limitations include the incomplete treatment of catastrophic and non-catastrophic impacts in the integrated assessment models, their incomplete treatment of adaptation and technological change, the incomplete way in which inter-regional and intersectoral linkages are modeled, uncertainty in the extrapolation of damages to high temperatures, and inadequate representation of the relationship between the discount rate and uncertainty in economic growth over long time horizons. Likewise, the socioeconomic and emissions scenarios used as inputs to the models do not reflect new information from the last decade of scenario generation or the full range of projections. The modeling limitations do not all work in the same direction in terms of their influence on the SC-CO
                        <E T="52">2</E>
                         estimates. However, as discussed in the February 2021 TSD, the IWG has recommended that, taken together, the limitations suggest that the interim SC-GHG estimates used in this final rule likely underestimate the damages from GHG emissions. DOE concurs with this assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>269</SU>
                             Interagency Working Group on Social Cost of Greenhouse Gases (IWG) (2021) Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990. February. United States Government (available at: 
                            <E T="03">www.whitehouse.gov/briefing-room/blog/2021/02/26/a-return-to-science-evidence-based-estimates-of-the-benefits-of-reducing-climate-pollution/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE's derivations of the SC-GHG (
                        <E T="03">i.e.,</E>
                         SC-CO
                        <E T="52">2</E>
                        , SC-N
                        <E T="52">2</E>
                        O, and SC-CH
                        <E T="52">4</E>
                        ) values used for this final rule are discussed in the following sections, and the results of DOE's analyses estimating the benefits of the reductions in emissions of these GHGs are presented in section V.B of this document.
                    </P>
                    <P>A number of commenters expressed concern over DOE's estimates of the SC-GHG, as discussed in the paragraphs that follow.</P>
                    <P>
                        The Joint Market and Consumer Organizations argued that climate change considerations do not play a role under EPCA and that DOE should not use the IWG SC-GHGs analysis to calculate net regulatory benefits. The commenters claimed that climate change is mentioned nowhere in EPCA's detailed instructions to DOE on how to set and amend appliance efficiency standards. They suggest that DOE acted extra-statutorily by relying on Executive Order 13990 to account for greenhouse gas emissions in their net benefit analysis. (Joint Market and Consumer Organizations, No. 373 at p. 6) The commenters also question how DOE attempted to calculate the net benefits, claiming the SC-GHG is too speculative and subjective, and that it is too easily manipulated to be weighed in the same scales with the near-term consumer costs of the proposed standards. They claimed the IWG estimates are biased due to reliance on overheated climate models, inflated emission scenarios, and pessimistic adaptation assumptions. These commenters concluded that using biased SC-GHG estimates to estimate net benefits is arbitrary and capricious. (
                        <E T="03">Id.</E>
                         at pp. 3, 7-10) They also claimed, even if the IWG's methodology were not biased in multiple ways, that DOE's finding that the furnace efficiency standards will deliver the estimated climate benefits would be unlikely. (
                        <E T="03">Id.</E>
                         at p. 11)
                    </P>
                    <P>APGA asserted that flaws in the interim SC-GHG values could lead to miscalculations in monetary benefits from the proposed rule for NWGFs and MHGFs. APGA claimed that the process used by the IWG to develop the estimates was inconsistent with the Administrative Procedure Act, failed to fully consider recommendations from a related National Academies of Sciences, Engineering, and Medicine review, and did not follow current Office of Management and Budget bulletins and circulars, each of which is intended to ensure the underlying data used to develop the SC-GHGs are based on the best available science and economics. Accordingly, APGA asserted that failure to ensure that these procedural shortcomings are fully addressed before applying any SC-GHG estimates in a final rule will result in inappropriately calculated and, thus, misapplied values. APGA argued that DOE's speculative projections regarding emission reductions benefits should not be part of any final rule. (APGA, No. 387 at pp. 31-32)</P>
                    <P>
                        Spencer and Dayaratna stated that the SC-GHGs obscures regulatory costs. These commenters referenced studies exploring the sensitivity of assessment models to changes in assumptions, which they said could make such models prone to user manipulation. Additionally, Spencer and Dayaratna stated that accurately accounting for costs and benefits, even those that do 
                        <PRTPAGE P="87616"/>
                        not impact DOE's final decision (such as the SC-GHGs), is important for providing transparency. The commenters also suggested that DOE's use of the SC-GHGs creates bias and is misleading. (Spencer and Dayaratna, No. 390 at pp. 6-8)
                    </P>
                    <P>The Associations urged DOE to reconsider the use of the SC-GHGs estimates in this rulemaking based on three core concerns. First, these commenters argued that before DOE considers applying the SC-GHG estimates to the proposed rule (and, likewise, to any final rule resulting from this rulemaking), the SC-GHG estimates should be subject to a proper administrative process, including a full and fair public comment process, as well as a robust independent peer review. Second, these commenters argued that there are statutory limitations on using the SC-GHG estimates, and the Associations urged DOE to fully consider the applicable limits before applying those estimates. Third, the Associations urged DOE to carefully consider whether the “major questions” doctrine precludes the application of the SC-GHG estimates in the proposed rule, given the political and economic significance of the estimates. (The Associations, No. 392 at p. 2)</P>
                    <P>
                        In response, DOE first notes that it would reach the same conclusion presented in this final rule in the absence of the social cost of greenhouse gases. DOE notes that, as stated in section III.F.1.f of this document, DOE maintains that environmental and public health benefits associated with the more efficient use of energy, including those connected to global climate change, are important to take into account when considering the “need for national energy . . . conservation,” which is one of the factors that EPCA requires DOE to evaluate in determining whether a potential energy conservation standard is economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(VI)); 
                        <E T="03">Zero Zone, Inc.</E>
                         v. 
                        <E T="03">United States DOE,</E>
                         832 F.3d 654, 677 (7th Cir. 2016) (pointing to 42 U.S.C. 6295(o)(2)(B)(i)(VI) in concluding that “[w]e have no doubt that Congress intended that DOE have the authority under the EPCA to consider the reduction in SCC.”) DOE has been analyzing the monetized emissions impacts from its rules, for over 10 years. In addition, Executive Order 13563, “Improving Regulation and Regulatory Review,” which was re-affirmed on January 20, 2021, states that each agency, among other things, must, to the extent permitted by law: “select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity).” E.O. 13563, section 1(b). Furthermore, as noted previously, E.O. 13990, “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis,” re-established the IWG and directed it to ensure that the U.S. Government's estimates of the social cost of carbon and other greenhouse gases reflect the best available science and the recommendations of the National Academies. As a member of the IWG involved in the development of the February 2021 SC-GHG TSD, DOE agrees that the interim SC-GHG estimates represent the most appropriate estimate of the SC-GHG until revised estimates have been developed reflecting the latest, peer-reviewed science. For these reasons, DOE includes monetized emissions reductions in its evaluation of potential standard levels. Finally, DOE notes that the “major questions” doctrine raised by the Associations applies only in “extraordinary cases” concerning Federal agencies claiming highly consequential regulatory authority beyond what Congress could reasonably be understood to have granted. 
                        <E T="03">West Virginia</E>
                         v. 
                        <E T="03">EPA,</E>
                         142 S. Ct. 2587, 2609 (2022); 
                        <E T="03">N.C. Coastal Fisheries Reform Grp.</E>
                         v. 
                        <E T="03">Capt. Gaston LLC,</E>
                         2023 U.S. App. LEXIS 20325, *6-8 (4th Cir., Aug. 7, 2023) (listing the hallmarks courts have recognized to invoke the major questions doctrine, such as a hesitancy “to recognize new-found powers in old statutes against a backdrop of an agency failing to invoke them previously,” “when the asserted power raises federalism concerns,” or “when the asserted authority falls outside the agency's traditional expertise, . . . or is found in an `ancillary provision.' ”). DOE has clear authorization under EPCA to regulate the energy efficiency or energy use of a variety of consumer products, including the subject furnaces. Although DOE routinely conducts an analysis of the anticipated emissions impacts of potential energy conservation standards under consideration, 
                        <E T="03">see, e.g., Zero Zone,</E>
                         832 F.3d at 677, DOE does not purport to regulate such emissions, and as stated elsewhere in this document, DOE's selection of standards would be the same without consideration of emissions. Where DOE applied the factors it was tasked to consider under EPCA and the rule is justified even absent use of the SC-GHG analysis, the major questions doctrine has no bearing.
                    </P>
                    <P>In contrast to the commenters on this topic discussed previously, The Climate Commenters stated that DOE appropriately applies the social cost estimates developed by the IWG on the SC-GHGs to its analysis of emissions reduction benefits generated by the proposed rule for NWGFs and MHGFs. These commenters stated that DOE should expand upon its rationale for adopting a global damages valuation and for the range of discount rates it applies to climate effects, as there are additional legal, economic, and policy reasons for such methodological decisions that can further bolster and support DOE's rationale for these choices. These commenters added that DOE should consider conducting sensitivity analysis using a sound domestic-only social cost estimate as a backstop, and the Department should explicitly conclude that the rule is cost-benefit justified even using a domestic-only valuation that may still undercount climate benefits. These commenters also urged DOE to consider providing additional sensitivity analysis using discount rates lower than two percent for climate impacts. (The Climate Commenters, No. 388 at pp. 1-3)</P>
                    <P>
                        In response, DOE maintains that the reasons for using global measures of the SC-GHG previously discussed are sufficient for the purposes of this rulemaking. DOE notes that further discussion of this topic is contained in the February 2021 SC-GHG TSD, and DOE agrees with the assessment therein. Regarding conducting sensitivity analysis using a domestic-only social cost estimate, climate change harms U.S. interests both domestically and abroad through (1) impacts within U.S. borders; (2) impacts outside U.S. borders that affect the welfare of U.S. citizens and residents; and (3) spillover impacts of climate actions elsewhere on U.S. interests. Focusing on climate impacts occurring solely within U.S. borders, as commenters suggest, would “underestimate” benefits of greenhouse-gas mitigation for U.S. citizens and residents and ignore the reality that a Nation's interests extend beyond its borders. See 
                        <E T="03">Zero Zone, Inc.</E>
                         v. 
                        <E T="03">U.S. Dep't of Energy,</E>
                         832 F.3d 654, 678-79 (7th Cir. 2016) (upholding consideration of global impacts in climate analysis). DOE also agrees with the assessment in the February 2021 SC-GHG TSD that the only currently available quantitative characterization of domestic damages from GHG emissions is both incomplete and an underestimate of the share of total damages that accrue to the citizens and residents of the United States. 
                        <PRTPAGE P="87617"/>
                        Therefore, it would be of questionable value to conduct the suggested sensitivity analysis at this time. DOE considered performing sensitivity analysis using discount rates lower than two percent for climate impacts, as suggested by the IWG, but it concluded that such analysis would not add meaningful information or impact the rationale in the context of this rulemaking.
                    </P>
                    <P>
                        The Climate Commenters further stated that DOE should provide additional justification for combining climate effects discounted at an appropriate consumption-based discount rate, with other costs and benefits discounted at a capital-based rate (
                        <E T="03">i.e.,</E>
                         7 percent). (The Climate Commenters, No. 388 at p. 2)
                    </P>
                    <P>
                        In response, DOE notes that the reasons for using consumption-based discount rates for future climate effects were discussed previously and are further elaborated in the February 2021 SC-GHG TSD. Combining climate benefits with health benefits and consumer economic benefits is in keeping with the guidance of OMB Circular A-4 to count all significant costs and benefits. DOE is aware that there are different approaches to combining climate benefits with other cost and benefits estimates that may use different discount rates, and the approach applied in this document (as well as in numerous other past DOE rulemaking notices) is among those discussed in the National Academies 2017 report (p. 182).
                        <SU>270</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>270</SU>
                             National Academies of Sciences, Engineering, and Medicine. Valuing Climate Damages: Updating Estimation of the Social Cost of Carbon Dioxide. 2017. The National Academies Press: Washington, DC. (Available at: 
                            <E T="03">https://nap.nationalacademies.org/catalog/24651/valuing-climate-damages-updating-estimation-of-the-social-cost-of</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>Finally, The Climate Commenters recommend that DOE should clearly state that any criticisms of the social cost of greenhouse gases are moot in this rulemaking, because the proposed rule is easily cost-justified without any climate benefits. (The Climate Commenters, No. 388 at p. 3)</P>
                    <P>In response, DOE acknowledges that its conclusions regarding economic justification and technological feasibility would be the same without including climate benefits. When those benefits are accounted for, the justification becomes stronger still.</P>
                    <P>PHCC commented that it is a mistake to include the estimated social and health cost in the rulemaking because they are currently under litigation, which could affect the rule's viability. (PHCC, No. 403 at p. 5)</P>
                    <P>
                        In response, DOE notes that on April 5, 2023, the Fifth Circuit Court of Appeals (No. 22-30087) ruled that the plaintiffs lacked standing, dismissed the case for lack of jurisdiction, and vacated the February 11, 2022, preliminary injunction issued by the District Court in 
                        <E T="03">Louisiana</E>
                         v. 
                        <E T="03">Biden,</E>
                         No. 21-cv-1074-JDC-KK (W.D. La.). As reflected in this rule, DOE has reverted to its approach prior to the injunction and presents monetized greenhouse gas abatement benefits where appropriate and permissible under law.
                    </P>
                    <P>Furthermore, DOE bases its factors on the best available estimates for both climate and health benefits. The commenter did not provide any alternative data sources for DOE's consideration, and, therefore, DOE has maintained its current approach from the NOPR for this final rule.</P>
                    <HD SOURCE="HD3">a. Social Cost of Carbon</HD>
                    <P>
                        The SC-CO
                        <E T="52">2</E>
                         values used for this final rule were based on the values developed for the IWG's February 2021 TSD, which are shown in Table IV.14 in five-year increments from 2020 to 2050. DOE notes that it has exercised its discretion in adopting the IWG's estimates, and as previously stated, DOE finds that the interim SC-GHG estimates represent the most appropriate estimate of the SC-GHG until revised estimates have been developed reflecting the latest, peer-reviewed science.
                    </P>
                    <P>
                        The set of annual values that DOE used, which was adapted from estimates published by EPA,
                        <SU>271</SU>
                        <FTREF/>
                         is presented in appendix 14A of the final rule TSD. These estimates are based on methods, assumptions, and parameters identical to the estimates published by the IWG (which were based on EPA modeling), and include values for 2051 to 2070. DOE expects additional climate benefits to accrue for products still operating after 2070, but a lack of available SC-CO
                        <E T="52">2</E>
                         estimates for emissions years beyond 2070 prevents DOE from monetizing these potential benefits in this analysis.
                    </P>
                    <FTNT>
                        <P>
                            <SU>271</SU>
                             
                            <E T="03">See</E>
                             EPA, Revised 2023 and Later Model Year Light-Duty Vehicle GHG Emissions Standards: Regulatory Impact Analysis, Washington, DC, December 2021. Available at 
                            <E T="03">nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013ORN.pdf</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>
                            Table IV.14—Annual SC-CO
                            <E T="0732">2</E>
                             Values From 2021 Interagency Update, 2020-2050
                        </TTITLE>
                        <TDESC>
                            [2020$ per metric ton CO
                            <E T="0732">2</E>
                            ]
                        </TDESC>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">Discount rate and statistic</CHED>
                            <CHED H="2">
                                5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="2">
                                3%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="2">
                                2.5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="2">
                                3%
                                <LI>95th</LI>
                                <LI>percentile</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2020</ENT>
                            <ENT>14</ENT>
                            <ENT>51</ENT>
                            <ENT>76</ENT>
                            <ENT>152</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2025</ENT>
                            <ENT>17</ENT>
                            <ENT>56</ENT>
                            <ENT>83</ENT>
                            <ENT>169</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2030</ENT>
                            <ENT>19</ENT>
                            <ENT>62</ENT>
                            <ENT>89</ENT>
                            <ENT>187</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2035</ENT>
                            <ENT>22</ENT>
                            <ENT>67</ENT>
                            <ENT>96</ENT>
                            <ENT>206</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2040</ENT>
                            <ENT>25</ENT>
                            <ENT>73</ENT>
                            <ENT>103</ENT>
                            <ENT>225</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2045</ENT>
                            <ENT>28</ENT>
                            <ENT>79</ENT>
                            <ENT>110</ENT>
                            <ENT>242</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2050</ENT>
                            <ENT>32</ENT>
                            <ENT>85</ENT>
                            <ENT>116</ENT>
                            <ENT>260</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        DOE multiplied the CO
                        <E T="52">2</E>
                         emissions reduction estimated for each year by the SC-CO
                        <E T="52">2</E>
                         value for that year in each of the four cases. DOE adjusted the values to 2022$ using the implicit price deflator for gross domestic product (GDP) from the Bureau of Economic Analysis. To calculate a present value of the stream of monetary values, DOE discounted the values in each of the four cases using the specific discount rate that had been used to obtain the SC-CO
                        <E T="52">2</E>
                         values in each case. 
                        <E T="03">See</E>
                         chapter 13 of the final rule TSD for the annual emissions reduction and 
                        <E T="03">see also</E>
                         appendix 14A of the final rule TSD for the annual SC-CO
                        <E T="52">2</E>
                         values.
                        <PRTPAGE P="87618"/>
                    </P>
                    <HD SOURCE="HD3">b. Social Cost of Methane and Nitrous Oxide</HD>
                    <P>
                        The SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O values used for this final rule were based on the values developed for the February 2021 TSD. DOE notes that it has exercised its discretion in adopting the IWG's estimates, and as previously stated, DOE finds that the interim SC-GHG estimates represent the most appropriate estimate of the SC-GHG until revised estimates have been developed reflecting the latest, peer-reviewed science. Table IV.16 shows the updated sets of SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O estimates from the latest interagency update in five-year increments from 2020 to 2050. The full set of annual values used is presented in appendix 14A of the final rule TSD. To capture the uncertainties involved in regulatory impact analysis, DOE has determined it is appropriate to include all four sets of SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O values, as recommended by the IWG. DOE derived values after 2050 using the approach described previously for the SC-CO
                        <E T="52">2</E>
                        .
                    </P>
                    <GPOTABLE COLS="9" OPTS="L2,i1" CDEF="s50,8,8,8,10,8,8,8,10">
                        <TTITLE>
                            Table IV.16—Annual SC-CH
                            <E T="0732">4</E>
                             and SC-N
                            <E T="0732">2</E>
                            O Values From 2021 Interagency Update, 2020-2050
                        </TTITLE>
                        <TDESC>[2020$ per metric ton]</TDESC>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                SC-CH
                                <E T="0732">4</E>
                            </CHED>
                            <CHED H="2">Discount rate and statistic</CHED>
                            <CHED H="3">
                                5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                3%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                2.5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                3%
                                <LI>95th</LI>
                                <LI>percentile</LI>
                            </CHED>
                            <CHED H="1">
                                SC-N
                                <E T="0732">2</E>
                                O
                            </CHED>
                            <CHED H="2">Discount rate and statistic</CHED>
                            <CHED H="3">
                                5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                3%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                2.5%
                                <LI>Average</LI>
                            </CHED>
                            <CHED H="3">
                                3%
                                <LI>95th</LI>
                                <LI>percentile </LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2020</ENT>
                            <ENT>670</ENT>
                            <ENT>1,500</ENT>
                            <ENT>2,000</ENT>
                            <ENT>3,900</ENT>
                            <ENT>5,800</ENT>
                            <ENT>18,000</ENT>
                            <ENT>27,000</ENT>
                            <ENT>48,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2025</ENT>
                            <ENT>800</ENT>
                            <ENT>1,700</ENT>
                            <ENT>2,200</ENT>
                            <ENT>4,500</ENT>
                            <ENT>6,800</ENT>
                            <ENT>21,000</ENT>
                            <ENT>30,000</ENT>
                            <ENT>54,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2030</ENT>
                            <ENT>940</ENT>
                            <ENT>2,000</ENT>
                            <ENT>2,500</ENT>
                            <ENT>5,200</ENT>
                            <ENT>7,800</ENT>
                            <ENT>23,000</ENT>
                            <ENT>33,000</ENT>
                            <ENT>60,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2035</ENT>
                            <ENT>1,100</ENT>
                            <ENT>2,200</ENT>
                            <ENT>2,800</ENT>
                            <ENT>6,000</ENT>
                            <ENT>9,000</ENT>
                            <ENT>25,000</ENT>
                            <ENT>36,000</ENT>
                            <ENT>67,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2040</ENT>
                            <ENT>1,300</ENT>
                            <ENT>2,500</ENT>
                            <ENT>3,100</ENT>
                            <ENT>6,700</ENT>
                            <ENT>10,000</ENT>
                            <ENT>28,000</ENT>
                            <ENT>39,000</ENT>
                            <ENT>74,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2045</ENT>
                            <ENT>1,500</ENT>
                            <ENT>2,800</ENT>
                            <ENT>3,500</ENT>
                            <ENT>7,500</ENT>
                            <ENT>12,000</ENT>
                            <ENT>30,000</ENT>
                            <ENT>42,000</ENT>
                            <ENT>81,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2050</ENT>
                            <ENT>1,700</ENT>
                            <ENT>3,100</ENT>
                            <ENT>3,800</ENT>
                            <ENT>8,200</ENT>
                            <ENT>13,000</ENT>
                            <ENT>33,000</ENT>
                            <ENT>45,000</ENT>
                            <ENT>88,000</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        DOE multiplied the CH
                        <E T="52">4</E>
                         and N
                        <E T="52">2</E>
                        O emissions reduction estimated for each year by the SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O estimates for that year in each of the cases. DOE adjusted the values to 2022$ using the implicit price deflator for gross domestic product (GDP) from the Bureau of Economic Analysis. To calculate a present value of the stream of monetary values, DOE discounted the values in each of the cases using the specific discount rate that had been used to obtain the SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O estimates in each case. See chapter 13 of the final rule TSD for the annual emissions reduction, and see also appendix 14A of the final rule TSD for the annual SC-CH
                        <E T="52">4</E>
                         and SC-N
                        <E T="52">2</E>
                        O values.
                    </P>
                    <HD SOURCE="HD3">2. Monetization of Other Emissions Impacts</HD>
                    <P>
                        For the final rule, DOE estimated the monetized value of NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions reductions from electricity generation using benefit-per-ton estimates for that sector from the EPA's Benefits Mapping and Analysis Program.
                        <SU>272</SU>
                        <FTREF/>
                         DOE used EPA's values for PM
                        <E T="52">2.5</E>
                        -related benefits associated with NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         and for ozone-related benefits associated with NO
                        <E T="52">X</E>
                         for 2025, 2030, and 2040, calculated with discount rates of 3 percent and 7 percent. DOE used linear interpolation to define values for the years not given in the 2025 to 2040 range; for years beyond 2040, the values are held constant. DOE combined the EPA regional benefit-per-ton estimates with regional information on electricity consumption and emissions from 
                        <E T="03">AEO2023</E>
                         to define weighted-average national values for NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         (see appendix 14B of the final rule TSD).
                    </P>
                    <FTNT>
                        <P>
                            <SU>272</SU>
                             Estimating the Benefit per Ton of Reducing PM
                            <E T="52">2.5</E>
                             Precursors from 21 Sectors (available at: 
                            <E T="03">www.epa.gov/benmap/estimating-benefit-ton-reducing-pm25-precursors-21-sectors</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE also estimated the monetized value of NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions reductions from site use of natural gas in NWGFs and MHGFs using benefit-per-ton estimates from the EPA's Benefits Mapping and Analysis Program. Although none of the sectors covered by EPA refers specifically to residential and commercial buildings, the sector called “area sources” would be a reasonable proxy for residential and commercial buildings.
                        <SU>273</SU>
                        <FTREF/>
                         The EPA document provides high and low estimates for 2025 and 2030 at 3- and 7-percent discount rates.
                        <SU>274</SU>
                        <FTREF/>
                         DOE used the same linear interpolation and extrapolation as it did with the values for electricity generation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>273</SU>
                             “Area sources” represents all emission sources for which States do not have exact (point) locations in their emissions inventories. Because exact locations would tend to be associated with larger sources, “area sources” would be fairly representative of small, dispersed sources like homes and businesses.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>274</SU>
                             “Area sources” are a category in the 2018 document from EPA, but are not used in the 2021 document cited previously. See: 
                            <E T="03">www.epa.gov/sites/default/files/2018-02/documents/sourceapportionmentbpttsd_2018.pdf</E>
                             (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>DOE multiplied the site emissions reduction (in tons) in each year by the associated $/ton values, and then discounted each series using discount rates of 3 percent and 7 percent as appropriate.</P>
                    <P>
                        GHHI stated that increasing furnace efficiency will have direct health benefits for American families, particularly in low-income and vulnerable communities. GHHI explained that fossil fuel burning furnaces release pollutants that can affect indoor air quality, including nitrogen oxides, carbon monoxide, PM
                        <E T="52">2.5</E>
                        , and formaldehyde, all of which are associated with asthma, cardiovascular disease, birth defects, and even death. (GHHI, No. 371 at p. 1) In addition, GHHI stated that hazardous air conditions in dense cities have led to disproportionately higher rates of chronic conditions such as heart disease and respiratory disease in low-income and Black and Brown communities. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>
                        GHHI also commented that older unsafe systems can lead to carbon monoxide leaks. GHHI stated that 450 Americans are killed annually from these leaks, disproportionately effecting Hispanic and black populations. (GHHI, Public Meeting Webinar Transcript, No. 363 at pp. 15-16) GHHI commented that low-income homes are twice as likely to use a gas stove or oven for heating, which results in higher indoor pollution and increased rick of fire-related death and injury. (
                        <E T="03">Id.</E>
                        ) According to GHHI, access to more-efficient furnaces may help to prevent these hazards, and that 
                        <PRTPAGE P="87619"/>
                        increasing furnace standards will directly benefit low-income communities and people of color. (
                        <E T="03">Id.</E>
                        )
                    </P>
                    <P>The Pennsylvania Groups stated that inefficient and faulty furnaces expose household members to unsafe levels of indoor air pollution. These commenters further stated that families living in homes with polluted air frequently experience more hospital visits, with causes ranging from cardiovascular disease, heart attacks, asthma attacks, and premature death, among others. Moreover, the Pennsylvania Groups stated, that individuals exposed to indoor air pollution have increased COVID-19 infection incidences, hospitalizations, and deaths. (The Pennsylvania Groups, No. 396 at p. 3)</P>
                    <P>Climate and Health Coalition commented that although gas furnaces are vented outside, that does not prevent back drafting of these pollutants back into the home when indoor air pressure is reduced due to kitchen exhaust hoods or bathroom ventilation fans. Additionally, Climate and Health Coalition stated that venting pollutants outdoors can cause community-wide harm, particularly among low-income communities and communities of color who are already saddled with increased levels of ambient air pollution. (Climate and Health Coalition, No. 399 at p. 1)</P>
                    <P>Climate and Health Coalition stated that gas heating appliances account for about two-thirds of household gas use and related emissions. The commenter added that nearly half of U.S. homes are heated with gas or propane furnaces. Additionally, Climate and Health Coalition commented that many homes use inefficient furnaces, which cause excess methane, carbon dioxide, and nitrogen dioxide emissions into the indoor and outdoor environment. (Climate and Health Coalition, No. 399 at p. 1) Climate and Health Coalition further mentioned that uncombusted methane gas, which can leak into homes, was found to contain varying levels of at least 21 different hazardous pollutants that are undetectable by smell. Additionally, Climate and Health Coalition stated that methane is a potent greenhouse gas that drives health harms related to climate change. (Climate and Health Coalition, No. 399 at p. 2)</P>
                    <P>
                        In response, DOE has not quantitatively assessed the health benefits of reducing in-home exposure to particulate matter, nitrogen dioxide, and other hazardous air pollutants. DOE acknowledges that in-home emissions may carry different health risks than the risks assumed in the monetized health benefits calculations. Such in-home emissions may be associated with a variety of serious respiratory and cardiovascular conditions and other health risks. Not all the public health and environmental benefits from the reduction of greenhouse gases, NO
                        <E T="52">X</E>
                        , and SO
                        <E T="52">2</E>
                         are captured in the values reflected in DOE's analysis, and there may be additional unquantified benefits from the reductions of those pollutants, as well as from the reduction of Hg, direct PM, and other co-pollutants. However, DOE assumes in its analysis that furnaces will be installed by licensed professionals and that all appropriate safety standards will be met, including indoor air pollutant exposure. DOE further assumes that a properly ventilated furnace will not result in any significant in-home emissions and, therefore, does not estimate any additional health benefits from reducing in-home emissions. Furnaces are not simple appliances that are purchased in stores and installed by average consumers. They require licensed gas plumbers and experienced contractors to properly size and install a system, especially in new construction. It is highly unlikely that an unlicensed individual, with little knowledge of gas plumbing, would install a furnace. However, DOE does account for site emissions that are vented outdoors and includes those emissions in its analysis.
                    </P>
                    <P>GHHI stated that the improved furnace efficiency standards would reduce use of dangerous heating methods. The commenter stated that low-income, energy insecure homes are twice as likely to use a gas stove or oven as a supplemental method to generate heat when money is short. Furthermore, GHHI stated that these practices often lead to levels of indoor pollution that are above what is recommended by public health guidelines, and accordingly, are a main risk factor for pediatric asthma. The commenter continued that children under age 6 in homes that use a gas stove or oven for heat are 80 percent more likely to have asthma than children in other homes. Additionally, GHHI commented that families that use a gas stove or oven as supplementary heat are also at an increased risk of fire-related death and injury. (GHHI, No. 371 at p. 2)</P>
                    <P>In response, DOE is not aware of any data supporting the claim that the amended standards would increase the use of gas stoves being used to supplement heating from a furnace, and accordingly, the Department has not included any emissions impact of supplemental heating in the analysis for this rule.</P>
                    <HD SOURCE="HD2">M. Utility Impact Analysis</HD>
                    <P>
                        The utility impact analysis estimates the changes in installed electrical capacity and generation projected to result for each considered TSL. The analysis is based on published output from the NEMS associated with 
                        <E T="03">AEO2023.</E>
                         NEMS produces the 
                        <E T="03">AEO</E>
                         Reference case, as well as a number of side cases that estimate the economy-wide impacts of changes to energy supply and demand. For the current analysis, impacts are quantified by comparing the levels of electricity sector generation, installed capacity, fuel consumption, and emissions in the 
                        <E T="03">AEO2023</E>
                         Reference case and various side cases. Details of the methodology are provided in the appendices to chapters 13 and 15 of the final rule TSD.
                    </P>
                    <P>The output of this analysis is a set of time-dependent coefficients that capture the change in electricity generation, primary fuel consumption, installed capacity, and power sector emissions due to a unit reduction in demand for a given end use. These coefficients are multiplied by the stream of electricity savings calculated in the NIA to provide estimates of selected utility impacts of potential new or amended energy conservation standards.</P>
                    <P>The utility analysis also estimates the impact on gas utilities in terms of projected changes in natural gas deliveries to consumers for each TSL.</P>
                    <P>APGA commented that DOE's procedures state: “The analysis of utility impacts will include estimated marginal impacts on electric and gas utility costs and revenues.” According to APGA, DOE contends that “rate decoupling” insulates gas utilities' revenues from change resulting from the actions by the Department in this proceeding. APGA pointed out that rate decoupling is not a factor in most States and that few of its over 730 members employ rate decoupling. Furthermore, APGA argued that rate decoupling does not insulate retail customers from higher rates, as fixed costs are spread across reduced volumes due to fuel switching that would be caused by the elimination of non-condensing furnaces. The commenter recommended that DOE should conduct better sensitivity analyses based on the fuel switching that its own analysis shows will occur, as well as the fuel switching that will occur if the DOE analysis is corrected as APGA has suggested. (APGA, No. 387 at p. 58)</P>
                    <P>
                        AGA similarly asserted that DOE's Process Rule requires the Department's utility impact analysis to “include estimated marginal impacts on electric and gas utility costs and revenues.” 
                        <PRTPAGE P="87620"/>
                        According to AGA, the analysis presented in the NOPR is insufficient. Consequently, AGA argued that DOE should conduct a complete impact analysis that quantifies and evaluates the marginal impacts to gas utility costs and revenues of a reduction in gas deliveries due to fuel switching driven by the proposed rule. In addition, AGA stated that DOE should evaluate whether the loss of demand for natural gas local distribution companies could lead to higher rates on remaining consumers in order to cover fixed distribution costs. (AGA, No. 405 at pp. 107-108)
                    </P>
                    <P>In response, DOE acknowledges that rate decoupling does not apply to all utilities, but for those utilities that are subject to rate decoupling, changes in natural gas deliveries will not impact revenues. Analysis of the impact of standards on rates is very difficult, given the diversity of regulatory structures in the U.S. and the many factors that go into setting utility rates. DOE notes that the Process Rule is non-binding and is intended to guide DOE in the consideration and promulgation of new or revised appliance energy conservation standards and test procedures. The analyses it describes are not necessarily those that are needed to meet EPCA's requirements for evaluating the economic justification of potential new or amended standards. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) Nevertheless, DOE includes an estimate of impacts on gas utility deliveries as part of the utility impact analysis in chapter 15 of the final rule TSD, in addition to estimates of impacts to installed capacity and generation for electric utilities. DOE notes that the impacts on gas deliveries does include the effects of product switching.</P>
                    <HD SOURCE="HD2">N. Employment Impact Analysis</HD>
                    <P>DOE considers employment impacts in the domestic economy as one factor in selecting a standard. Employment impacts from new or amended energy conservation standards include both direct and indirect impacts. Direct employment impacts are any changes in the number of employees of manufacturers of the products subject to standards. The MIA addresses those impacts. Indirect employment impacts are changes in national employment that occur due to the shift in expenditures and capital investment caused by the purchase and operation of more-efficient appliances. Indirect employment impacts from standards consist of the net jobs created or eliminated in the national economy, other than in the manufacturing sector being regulated, caused by: (1) reduced spending by consumers on energy, (2) reduced spending on new energy supply by the utility industry, (3) increased consumer spending on the products to which the new standards apply and other goods and services, and (4) the effects of those three factors throughout the economy.</P>
                    <P>
                        One method for assessing the possible effects on the demand for labor of such shifts in economic activity is to compare sector employment statistics developed by the Labor Department's Bureau of Labor Statistics (BLS). BLS regularly publishes its estimates of the number of jobs per million dollars of economic activity in different sectors of the economy, as well as the jobs created elsewhere in the economy by this same economic activity. Data from BLS indicate that expenditures in the utility sector generally create fewer jobs (both directly and indirectly) than expenditures in other sectors of the economy.
                        <SU>275</SU>
                        <FTREF/>
                         There are many reasons for these differences, including wage differences and the fact that the utility sector is more capital-intensive and less labor-intensive than other sectors. Energy conservation standards have the effect of reducing consumer utility bills. Because reduced consumer expenditures for energy likely lead to increased expenditures in other sectors of the economy, the general effect of efficiency standards is to shift economic activity from a less labor-intensive sector (
                        <E T="03">i.e.,</E>
                         the utility sector) to more labor-intensive sectors (
                        <E T="03">e.g.,</E>
                         the retail and service sectors). Thus, the BLS data suggest that net national employment may increase due to shifts in economic activity resulting from energy conservation standards.
                    </P>
                    <FTNT>
                        <P>
                            <SU>275</SU>
                             
                            <E T="03">See</E>
                             U.S. Department of Commerce-Bureau of Economic Analysis. 
                            <E T="03">Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System (RIMS II)</E>
                             (1997) U.S. Government Printing Office: Washington, DC. (Available at: 
                            <E T="03">https://www.bea.gov/resources/methodologies/RIMSII-user-guide</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        DOE estimated indirect national employment impacts for the standard levels considered in this final rule using an input/output model of the U.S. economy called Impact of Sector Energy Technologies version 4 (ImSET).
                        <SU>276</SU>
                        <FTREF/>
                         ImSET is a special-purpose version of the “U.S. Benchmark National Input-Output” (I-O) model, which was designed to estimate the national employment and income effects of energy-saving technologies. The ImSET software includes a computer- based I-O model having structural coefficients that characterize economic flows among 187 sectors most relevant to industrial, commercial, and residential building energy use.
                    </P>
                    <FTNT>
                        <P>
                            <SU>276</SU>
                             Livingston, O.V., S.R. Bender, M.J. Scott, and R.W. Schultz. 
                            <E T="03">ImSET 4.0: Impact of Sector Energy Technologies Model Description and User's Guide</E>
                             (2015), Pacific Northwest National Laboratory: Richland, WA. PNNL-24563.
                        </P>
                    </FTNT>
                    <P>DOE notes that ImSET is not a general equilibrium forecasting model, and that there are uncertainties involved in projecting employment impacts, especially changes in the later years of the analysis. Because ImSET does not incorporate price changes, the employment effects predicted by ImSET may over-estimate actual job impacts over the long run for this rule. Therefore, DOE used ImSET only to generate results for near-term timeframes (2029-2034), where these uncertainties are reduced. For more details on the employment impact analysis, see chapter 16 of the final rule TSD.</P>
                    <HD SOURCE="HD1">V. Analytical Results and Conclusions</HD>
                    <P>The following section addresses the results from DOE's analyses with respect to the considered energy conservation standards for NWGFs and MHGFs. It addresses the TSLs examined by DOE, the projected impacts of each of these levels if adopted as energy conservation standards for NWGFs and MHGFs, and the standards levels that DOE is adopting in this final rule. Additional details regarding DOE's analyses are contained in the TSD supporting this final rule.</P>
                    <HD SOURCE="HD2">A. Trial Standard Levels</HD>
                    <P>In general, DOE typically evaluates potential amended standards for products and equipment at the product class level and by grouping select individual efficiency levels for each class into TSLs. Use of TSLs allows DOE to identify and consider industry-level manufacturer cost interactions between the product classes, to the extent that there are such interactions, and national-level market cross-elasticity from consumer purchasing decisions that may change when different standard levels are set. For the subject consumer furnaces, it is particularly important to look at the aggregated impacts as characterized by TSLs due to the changes in consumer purchasing decisions as a result of the increased product and installation costs that impact the shipments model. The changes to the shipments model will drive differential national impacts both on the consumer and manufacturer side that are more realistic of how the market may change in response to amended DOE standards.</P>
                    <P>
                        For this final rule, DOE analyzed the consumer impacts of four efficiency levels for NWGFs, four efficiency levels for MHGFs, and the national impacts of 
                        <PRTPAGE P="87621"/>
                        nine TSLs for NWGFs and MHGFs. Table V.1 presents the TSLs and the corresponding efficiency levels that DOE has identified for potential amended energy conservation standards for NWGFs and MHGFs. It is noted that because the impact of a potential standard on different consumers can depend on the input capacity of the NWGF or MHGF, DOE considered certain TSLs (six cases) with an input capacity threshold, below which the amended standard would remain at the current efficiency level of 80-percent AFUE. Because the impact of a potential standard on different consumers can depend on the region of the country, for one of these six cases, DOE considered a regional TSL such that the amended standard would remain at an efficiency level of 80-percent AFUE outside the Northern region. For other TSLs (three cases), DOE examined a national standard level for NWGFs and MHGFs not differentiated by input capacity. DOE presents the results for the TSLs in this document, while the results for all efficiency levels that DOE analyzed are in the final rule TSD.
                    </P>
                    <P>The following provides a brief overview of the TSLs considered. Each TSL consists of similar efficiency levels for both NWGFs and MHGFs. TSL 9 represents the maximum technologically feasible (“max-tech”) energy efficiency for both NWGFs (98-percent AFUE) and MHGFs (96-percent AFUE) and represents the maximum energy savings possible among the specific efficiency levels analyzed by DOE (see section IV.C.1 of this final rule). TSL 8 consists of a national standard at an efficiency level of 95-percent AFUE for both NWGFs and MHGFs, which reflects a high degree of energy savings second only to the max-tech efficiency levels. TSL 7 consists of an efficiency level at 80-percent AFUE for small NWGFs and MHGFs at or below an input capacity of 55 kBtu/h and an efficiency level at 95-percent AFUE for large NWGFs and MHGFs. The threshold of 55 kBtu/h generally separates the market into larger capacity furnaces typically installed in larger single-family detached homes versus smaller capacity furnaces more likely to be installed in multi-family buildings and other households with higher potential installation costs. TSL 6 consists of the next highest efficiency levels, which would set a national standard at 92-percent AFUE for both NWGFs and MHGFs, regardless of input capacity. Similar to TSL 7, TSL 5 is constructed with an input capacity threshold. TSL 5 consists of an efficiency level at 80-percent AFUE for small NWGFs and MHGFs at or below an input capacity of 55 kBtu/h and an efficiency level at 92-percent AFUE for large NWGFs and MHGFs. TSL 4 consists of the efficiency levels that represent 95-percent AFUE for the Northern region for both NWGFs and MHGFs, but retains the baseline efficiency level (80-percent AFUE) for the rest of country. TSLs 3, 2, and 1 are similar to TSL 5, except with an increasingly higher input capacity threshold (and a correspondingly smaller fraction of the market subject to more-stringent standards). TSL 3 consists of the efficiency level that represents 80-percent AFUE for small NWGFs and MHGFs at or below an input capacity of 60 kBtu/h and the efficiency level that represents 92-percent AFUE for large NWGFs and MHGFs. TSL 2 consists of the efficiency level that represents 80-percent AFUE for small NWGFs and MHGFs at or below an input capacity of 70 kBtu/h and the efficiency level that represents 92-percent AFUE for large NWGFs and MHGFs. TSL 1 consists of the efficiency level that represents 80-percent AFUE for small NWGFs and MHGFs at or below an input capacity of 80 kBtu/h and the efficiency level that represents 92-percent AFUE for large NWGFs and MHGFs.</P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s200,r100,r100">
                        <TTITLE>Table V.1—Trial Standard Levels for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">AFUE (percent)</CHED>
                            <CHED H="2">Non-weatherized gas furnace</CHED>
                            <CHED H="2">Mobile home gas furnace</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>
                                92% (&gt;80 kBtu/h)
                                <LI>80% (≤80 kBtu/h)</LI>
                            </ENT>
                            <ENT>
                                92% (&gt;80 kBtu/h).
                                <LI>80% (≤80 kBtu/h).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>
                                92% (&gt;70 kBtu/h)
                                <LI>80% (≤70 kBtu/h)</LI>
                            </ENT>
                            <ENT>
                                92% (&gt;70 kBtu/h).
                                <LI>80% (≤70 kBtu/h).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>
                                92% (&gt;60 kBtu/h)
                                <LI>80% (≤60 kBtu/h)</LI>
                            </ENT>
                            <ENT>
                                92% (&gt;60 kBtu/h).
                                <LI>80% (≤60 kBtu/h).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>
                                95% (North)
                                <LI>80% (Rest of Country)</LI>
                            </ENT>
                            <ENT>
                                95% (North).
                                <LI>80% (Rest of Country).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>
                                92% (&gt;55 kBtu/h)
                                <LI>80% (≤55 kBtu/h)</LI>
                            </ENT>
                            <ENT>
                                92% (&gt;55 kBtu/h).
                                <LI>80% (≤55 kBtu/h).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>92%</ENT>
                            <ENT>92%.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>
                                95% (&gt;55 kBtu/h)
                                <LI>80% (≤55 kBtu/h)</LI>
                            </ENT>
                            <ENT>
                                95% (&gt;55 kBtu/h).
                                <LI>80% (≤55 kBtu/h).</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>95%</ENT>
                            <ENT>95%.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>98%</ENT>
                            <ENT>96%.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD2">B. Economic Justification and Energy Savings</HD>
                    <HD SOURCE="HD3">1. Economic Impacts on Individual Consumers</HD>
                    <P>DOE analyzed the economic impacts on NWGF and MHGF consumers by looking at the effects that potential new and amended standards at each TSL would have on the LCC and PBP. DOE also examined the impacts of potential standards on selected consumer subgroups. These analyses are discussed in the following sections.</P>
                    <HD SOURCE="HD3">a. Life-Cycle Cost and Payback Period</HD>
                    <P>In general, higher-efficiency products affect consumers in two ways: (1) purchase price increases and (2) annual operating costs decrease. In addition, for NWGFs, some consumers may choose to switch to an alternative heating system rather than purchase and install a NWGF if they judge the economics to be favorable. DOE estimated the extent of switching at each TSL using the consumer choice model discussed in section IV.F.10 of this document.</P>
                    <P>
                        Inputs used for calculating the LCC and PBP include total costs (
                        <E T="03">i.e.,</E>
                         product price plus installation costs), and operating costs (
                        <E T="03">i.e.,</E>
                         annual energy use, energy prices, energy price trends, repair costs, and maintenance costs). The LCC calculation also uses product lifetime and a discount rate. In cases 
                        <PRTPAGE P="87622"/>
                        where consumers are predicted to switch, the inputs include the total installed costs, operating costs, and product lifetime for the chosen heating system. Chapter 8 of the final rule TSD provides detailed information on the LCC and PBP analyses.
                    </P>
                    <P>For NWGFs, the LCC and PBP results at each efficiency level include consumers that would purchase and install a NWGF at that level, and also consumers that would choose to switch to an alternative heating product rather than purchase and install a NWGF at that level. The impacts for consumers that switch depend on the product that they choose (heat pump or electric furnace) and the NWGF that they would purchase in the no-new-standards case. The extent of projected product/fuel switching (in 2029) is shown in Tables V.2 and V.3 for each TSL for NWGFs and MHGFs, respectively. The degree of switching increases at higher-efficiency TSLs where the installed cost of a NWGF is very high for some consumers, making the alternative option competitive. As discussed in section IV.F.10 of this document, DOE also conducted sensitivity analyses using no-switching, high, and low switching estimates. See appendix 8J of the final rule TSD for more details. For the adopted standards (TSL 8), the total switching and repair vs. replace is 6.8 percent for NWGFs and 4.8 percent for MHGFs.</P>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s50,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.2—Results of Fuel-Switching Analysis for Non-Weatherized Gas Furnaces in 2029</TTITLE>
                        <BOXHD>
                            <CHED H="1">Consumer option</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="08">% of consumers</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Purchase NWGF at Standard Level</ENT>
                            <ENT>99.4</ENT>
                            <ENT>99.2</ENT>
                            <ENT>98.5</ENT>
                            <ENT>98.4</ENT>
                            <ENT>98.1</ENT>
                            <ENT>93.2</ENT>
                            <ENT>98.1</ENT>
                            <ENT>93.2</ENT>
                            <ENT>89.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Switch to Heat Pump *</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.7</ENT>
                            <ENT>0.8</ENT>
                            <ENT>1.0</ENT>
                            <ENT>4.1</ENT>
                            <ENT>1.0</ENT>
                            <ENT>4.2</ENT>
                            <ENT>7.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Switch to Electric Furnace *</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.8</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.8</ENT>
                            <ENT>1.2</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Repair vs. Replacing</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.5</ENT>
                            <ENT>0.6</ENT>
                            <ENT>0.8</ENT>
                            <ENT>0.7</ENT>
                            <ENT>1.9</ENT>
                            <ENT>0.7</ENT>
                            <ENT>1.8</ENT>
                            <ENT>2.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <TNOTE>* Includes switching from a gas water heater to an electric water heater.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Components may not sum due to rounding.
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s50,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.3—Results of Fuel-Switching Analysis for Mobile Home Gas Furnaces in 2029</TTITLE>
                        <BOXHD>
                            <CHED H="1">Consumer option</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="08">% of consumers</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Purchase MHGF at Standard Level</ENT>
                            <ENT>100.0</ENT>
                            <ENT>99.9</ENT>
                            <ENT>99.7</ENT>
                            <ENT>99.0</ENT>
                            <ENT>99.6</ENT>
                            <ENT>95.4</ENT>
                            <ENT>99.6</ENT>
                            <ENT>95.2</ENT>
                            <ENT>90.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Switch to Heat Pump</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.6</ENT>
                            <ENT>0.2</ENT>
                            <ENT>2.4</ENT>
                            <ENT>0.2</ENT>
                            <ENT>2.6</ENT>
                            <ENT>2.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Switch to Electric Furnace</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                            <ENT>1.4</ENT>
                            <ENT>0.1</ENT>
                            <ENT>1.5</ENT>
                            <ENT>1.5</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Repair vs. Replacing</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.7</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.7</ENT>
                            <ENT>6.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Components may not sum due to rounding.
                        </TNOTE>
                    </GPOTABLE>
                    <P>Tables V.4 through V.7 show the LCC and PBP results for the TSLs considered for each product class. In the first of each pair of tables, the simple payback is measured relative to the baseline product. In the second table, the impacts are measured relative to the efficiency distribution in the in the no-new-standards case in the compliance year (see section IV.F.8 of this document). The LCC and PBP results for NWGFs include both residential and commercial users. The LCC and PBP results are shipment-weighted and averaged over all capacities and regions. Results for all efficiency levels are reported in chapter 8 of the final rule TSD. LCC Results for the alternative product switching scenarios are reported in appendix 8J of the final rule TSD.</P>
                    <P>Because some consumers purchase products with higher efficiency in the no-new-standards case, the average savings are less than the difference between the average LCC of the baseline product and the average LCC at each TSL. The savings refer only to consumers who are affected by a standard at a given TSL. Those who already purchase a product with efficiency at or above a given TSL are not affected. Consumers for whom the LCC increases at a given TSL experience a net cost.</P>
                    <GPOTABLE COLS="8" OPTS="L2,i1" CDEF="xs48,r25,10,12,10,6,8,8">
                        <TTITLE>Table V.4—Average LCC and PBP Results for Non-Weatherized Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Average costs
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">Installed cost</CHED>
                            <CHED H="2">
                                First year's
                                <LI>operating</LI>
                                <LI>cost </LI>
                            </CHED>
                            <CHED H="2">
                                Lifetime
                                <LI>operating</LI>
                                <LI>cost</LI>
                            </CHED>
                            <CHED H="2">LCC</CHED>
                            <CHED H="1">
                                Simple
                                <LI>payback</LI>
                                <LI>(years)</LI>
                            </CHED>
                            <CHED H="1">
                                Average
                                <LI>lifetime</LI>
                                <LI>(years)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>3,733</ENT>
                            <ENT>578</ENT>
                            <ENT>9,300</ENT>
                            <ENT>13,033</ENT>
                            <ENT>6.4</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>3,786</ENT>
                            <ENT>571</ENT>
                            <ENT>9,173</ENT>
                            <ENT>12,959</ENT>
                            <ENT>6.6</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>3,810</ENT>
                            <ENT>568</ENT>
                            <ENT>9,114</ENT>
                            <ENT>12,924</ENT>
                            <ENT>6.7</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87623"/>
                            <ENT I="01">4</ENT>
                            <ENT>95/80 **</ENT>
                            <ENT>3,832</ENT>
                            <ENT>566</ENT>
                            <ENT>9,075</ENT>
                            <ENT>12,907</ENT>
                            <ENT>7.0</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>3,835</ENT>
                            <ENT>566</ENT>
                            <ENT>9,077</ENT>
                            <ENT>12,912</ENT>
                            <ENT>7.0</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>92 †</ENT>
                            <ENT>3,947</ENT>
                            <ENT>563</ENT>
                            <ENT>8,958</ENT>
                            <ENT>12,905</ENT>
                            <ENT>9.4</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>95/80 *</ENT>
                            <ENT>3,845</ENT>
                            <ENT>556</ENT>
                            <ENT>8,924</ENT>
                            <ENT>12,769</ENT>
                            <ENT>5.8</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>95 †</ENT>
                            <ENT>3,962</ENT>
                            <ENT>552</ENT>
                            <ENT>8,788</ENT>
                            <ENT>12,750</ENT>
                            <ENT>7.6</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>98 (Max-Tech) †</ENT>
                            <ENT>4,156</ENT>
                            <ENT>545</ENT>
                            <ENT>8,620</ENT>
                            <ENT>12,776</ENT>
                            <ENT>10.1</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <TNOTE>* The first number refers to the standard for large NWGFs; the second refers to the standard for small NWGFs. The input capacity threshold definitions for small NWGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h.</TNOTE>
                        <TNOTE>** The first number refers to the efficiency level for the North; the second number refers to the efficiency level for the rest of country.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The results for each TSL are calculated assuming that all consumers use products at that efficiency level. The PBP is measured relative to the baseline product.
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="xs48,r50,20,28">
                        <TTITLE>Table V.5—Average LCC Savings Relative to the No-New-Standards Case for Non-Weatherized Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Life-cycle cost savings</CHED>
                            <CHED H="2">
                                Average LCC savings
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">
                                Percentage of consumers that
                                <LI>experience net cost</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>577</ENT>
                            <ENT>3.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>571</ENT>
                            <ENT>4.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>580</ENT>
                            <ENT>5.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>95/80 **</ENT>
                            <ENT>390</ENT>
                            <ENT>5.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>551</ENT>
                            <ENT>6.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>92 †</ENT>
                            <ENT>320</ENT>
                            <ENT>19.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>95/80 *</ENT>
                            <ENT>479</ENT>
                            <ENT>6.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>95 †</ENT>
                            <ENT>350</ENT>
                            <ENT>18.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>98 (Max-Tech) †</ENT>
                            <ENT>169</ENT>
                            <ENT>62.3</ENT>
                        </ROW>
                        <TNOTE>* The first number refers to the standard for large NWGFs; the second refers to the standard for small NWGFs. The input capacity threshold definitions for small NWGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h</TNOTE>
                        <TNOTE>** The first number refers to the efficiency level for the North; the second number refers to the efficiency level for the rest of country.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The savings represent the average LCC for affected consumers.
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="8" OPTS="L2,i1" CDEF="xs48,r25,10,12,10,6,8,8">
                        <TTITLE>Table V.6—Average LCC and PBP Results for Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Average costs
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">
                                Installed
                                <LI>cost</LI>
                            </CHED>
                            <CHED H="2">
                                First year's
                                <LI>operating</LI>
                                <LI>cost</LI>
                            </CHED>
                            <CHED H="2">
                                Lifetime
                                <LI>operating</LI>
                                <LI>cost</LI>
                            </CHED>
                            <CHED H="2">LCC</CHED>
                            <CHED H="1">
                                Simple
                                <LI>payback</LI>
                                <LI>(years)</LI>
                            </CHED>
                            <CHED H="1">
                                Average
                                <LI>lifetime</LI>
                                <LI>(years)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>2,429</ENT>
                            <ENT>545</ENT>
                            <ENT>9,126</ENT>
                            <ENT>11,556</ENT>
                            <ENT>2.2</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>2,484</ENT>
                            <ENT>525</ENT>
                            <ENT>8,804</ENT>
                            <ENT>11,288</ENT>
                            <ENT>2.5</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>2,499</ENT>
                            <ENT>518</ENT>
                            <ENT>8,709</ENT>
                            <ENT>11,209</ENT>
                            <ENT>2.5</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>95/80 **</ENT>
                            <ENT>2,510</ENT>
                            <ENT>513</ENT>
                            <ENT>8,577</ENT>
                            <ENT>11,087</ENT>
                            <ENT>2.4</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>2,514</ENT>
                            <ENT>515</ENT>
                            <ENT>8,647</ENT>
                            <ENT>11,161</ENT>
                            <ENT>2.6</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>92 †</ENT>
                            <ENT>2,564</ENT>
                            <ENT>511</ENT>
                            <ENT>8,547</ENT>
                            <ENT>11,111</ENT>
                            <ENT>3.6</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>95/80 *</ENT>
                            <ENT>2,528</ENT>
                            <ENT>505</ENT>
                            <ENT>8,492</ENT>
                            <ENT>11,020</ENT>
                            <ENT>2.4</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>95 †</ENT>
                            <ENT>2,583</ENT>
                            <ENT>500</ENT>
                            <ENT>8,374</ENT>
                            <ENT>10,956</ENT>
                            <ENT>3.2</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>96 (Max-Tech) †</ENT>
                            <ENT>2,592</ENT>
                            <ENT>517</ENT>
                            <ENT>8,312</ENT>
                            <ENT>10,904</ENT>
                            <ENT>4.8</ENT>
                            <ENT>21.5</ENT>
                        </ROW>
                        <TNOTE>* The first number refers to the standard for large MHGFs; the second refers to the standard for small MHGFs. The input capacity threshold definitions for small MHGFs are as follows:</TNOTE>
                        <TNOTE>
                            TSL 1: 80 kBtu/h
                            <PRTPAGE P="87624"/>
                        </TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h.</TNOTE>
                        <TNOTE>** The first number refers to the efficiency level for the North; the second number refers to the efficiency level for the rest of country.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The results for each TSL are calculated assuming that all consumers use products at that efficiency level. The PBP is measured relative to the baseline product.
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="xs48,r25,20,28">
                        <TTITLE>Table V.7—Average LCC Savings Relative to the No-New-Standards Case for Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Life-cycle cost savings</CHED>
                            <CHED H="2">
                                Average LCC savings
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">
                                 Percentage of consumers that
                                <LI>experience net cost</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>846</ENT>
                            <ENT>0.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>805</ENT>
                            <ENT>2.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>736</ENT>
                            <ENT>3.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>95/80 **</ENT>
                            <ENT>908</ENT>
                            <ENT>3.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>92/80 *</ENT>
                            <ENT>675</ENT>
                            <ENT>5.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>92 †</ENT>
                            <ENT>532</ENT>
                            <ENT>16.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>95/80 *</ENT>
                            <ENT>760</ENT>
                            <ENT>5.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>95 †</ENT>
                            <ENT>616</ENT>
                            <ENT>15.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>96 (Max-Tech) †</ENT>
                            <ENT>529</ENT>
                            <ENT>18.6</ENT>
                        </ROW>
                        <TNOTE>* The first number refers to the standard for large MHGFs; the second refers to the standard for small MHGFs. The input capacity threshold definitions for small MHGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h</TNOTE>
                        <TNOTE>** The first number refers to the efficiency level for the North; the second number refers to the efficiency level for the rest of country.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The savings represent the average LCC for affected consumers.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD3">b. Consumer Subgroup Analysis</HD>
                    <P>
                        In the consumer subgroup analysis, DOE estimated the impact of the considered TSLs on low-income households, senior-only households, and small businesses (for NWGF only). Tables V.8 and V.9 compare the average LCC savings and PBP at each efficiency level for the consumer subgroups, along with the average LCC savings for the entire consumer sample. Because the small NWGF and MHGF efficiency levels at TSLs 1, 2, 3, 5, and 7 and the rest of country efficiency level at TSL 4 are at the baseline (
                        <E T="03">i.e.,</E>
                         the current standard), these tables only include results for large NWGFs and MHGFs or the Northern region for these TSLs. The percentage of low-income NWGF and MHGF consumers experiencing a net cost is smaller than the full LCC sample in all cases, largely due to the high proportion of renter households. The percentage of senior-only NWGF and MHGF households experiencing a net cost is either very similar to or smaller than the full LCC sample. Chapter 11 of the final rule TSD presents the complete LCC and PBP results for the subgroups.
                    </P>
                    <GPOTABLE COLS="13" OPTS="L2,p7,7/8,i1" CDEF="s25,8,8,8,8p,8,8,8,8p,8,8,8,8">
                        <TTITLE>Table V.8—Comparison of LCC Savings and PBP for Consumer Subgroups and All Households for Non-Weatherized Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                Average LCC savings
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">
                                Small
                                <LI>business</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                            <CHED H="1">
                                Simple payback period
                                <LI>(years)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">
                                Small
                                <LI>business</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                            <CHED H="1">
                                % of consumers experiencing net cost
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>Income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">
                                Small
                                <LI>business</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1 *</ENT>
                            <ENT>332</ENT>
                            <ENT>354</ENT>
                            <ENT>767</ENT>
                            <ENT>577</ENT>
                            <ENT>2.9</ENT>
                            <ENT>6.2</ENT>
                            <ENT>1.0</ENT>
                            <ENT>6.4</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.6</ENT>
                            <ENT>3.5</ENT>
                            <ENT>3.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2 *</ENT>
                            <ENT>384</ENT>
                            <ENT>394</ENT>
                            <ENT>457</ENT>
                            <ENT>571</ENT>
                            <ENT>2.6</ENT>
                            <ENT>5.8</ENT>
                            <ENT>2.2</ENT>
                            <ENT>6.6</ENT>
                            <ENT>2.6</ENT>
                            <ENT>3.6</ENT>
                            <ENT>8.2</ENT>
                            <ENT>4.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3 *</ENT>
                            <ENT>383</ENT>
                            <ENT>402</ENT>
                            <ENT>689</ENT>
                            <ENT>580</ENT>
                            <ENT>2.4</ENT>
                            <ENT>5.8</ENT>
                            <ENT>2.3</ENT>
                            <ENT>6.7</ENT>
                            <ENT>3.4</ENT>
                            <ENT>4.3</ENT>
                            <ENT>8.9</ENT>
                            <ENT>5.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4 **</ENT>
                            <ENT>277</ENT>
                            <ENT>160</ENT>
                            <ENT>298</ENT>
                            <ENT>390</ENT>
                            <ENT>1.7</ENT>
                            <ENT>6.2</ENT>
                            <ENT>1.5</ENT>
                            <ENT>7.0</ENT>
                            <ENT>4.0</ENT>
                            <ENT>4.7</ENT>
                            <ENT>2.5</ENT>
                            <ENT>5.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5 *</ENT>
                            <ENT>392</ENT>
                            <ENT>387</ENT>
                            <ENT>630</ENT>
                            <ENT>551</ENT>
                            <ENT>2.5</ENT>
                            <ENT>6.0</ENT>
                            <ENT>2.2</ENT>
                            <ENT>7.0</ENT>
                            <ENT>4.8</ENT>
                            <ENT>5.7</ENT>
                            <ENT>10.4</ENT>
                            <ENT>6.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6 †</ENT>
                            <ENT>207</ENT>
                            <ENT>321</ENT>
                            <ENT>402</ENT>
                            <ENT>320</ENT>
                            <ENT>3.0</ENT>
                            <ENT>7.1</ENT>
                            <ENT>2.4</ENT>
                            <ENT>9.4</ENT>
                            <ENT>15.4</ENT>
                            <ENT>16.5</ENT>
                            <ENT>16.1</ENT>
                            <ENT>19.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7 *</ENT>
                            <ENT>372</ENT>
                            <ENT>250</ENT>
                            <ENT>626</ENT>
                            <ENT>479</ENT>
                            <ENT>2.0</ENT>
                            <ENT>5.0</ENT>
                            <ENT>1.9</ENT>
                            <ENT>5.8</ENT>
                            <ENT>5.7</ENT>
                            <ENT>5.5</ENT>
                            <ENT>8.7</ENT>
                            <ENT>6.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8 †</ENT>
                            <ENT>254</ENT>
                            <ENT>254</ENT>
                            <ENT>460</ENT>
                            <ENT>350</ENT>
                            <ENT>2.5</ENT>
                            <ENT>6.0</ENT>
                            <ENT>2.1</ENT>
                            <ENT>7.6</ENT>
                            <ENT>15.9</ENT>
                            <ENT>15.5</ENT>
                            <ENT>13.7</ENT>
                            <ENT>18.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9 †</ENT>
                            <ENT>153</ENT>
                            <ENT>412</ENT>
                            <ENT>269</ENT>
                            <ENT>169</ENT>
                            <ENT>3.4</ENT>
                            <ENT>7.6</ENT>
                            <ENT>3.1</ENT>
                            <ENT>10.1</ENT>
                            <ENT>39.7</ENT>
                            <ENT>54.0</ENT>
                            <ENT>58.0</ENT>
                            <ENT>62.3</ENT>
                        </ROW>
                        <TNOTE>* Refers to TSLs with separate standards for small and large NWGFs. The input capacity threshold definitions for small NWGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h</TNOTE>
                        <TNOTE>** Regional standards.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The savings represent the average LCC for affected consumers. The PBP is measured relative to the baseline product.
                        </TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="87625"/>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s25,8,8,8p,8,8,8p,8,8,8">
                        <TTITLE>Table V.9—Comparison of LCC Savings and PBP for Consumer Subgroups and All Households for Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                Average LCC savings
                                <LI>(2022$)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                            <CHED H="1">
                                Simple payback period
                                <LI>(years)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                            <CHED H="1">
                                % of consumers experiencing
                                <LI>net cost</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                Low-
                                <LI>income</LI>
                            </CHED>
                            <CHED H="2">
                                Senior-
                                <LI>only</LI>
                            </CHED>
                            <CHED H="2">All</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1 *</ENT>
                            <ENT>1,175</ENT>
                            <ENT>697</ENT>
                            <ENT>846</ENT>
                            <ENT>1.2</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.2</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2 *</ENT>
                            <ENT>1055</ENT>
                            <ENT>865</ENT>
                            <ENT>805</ENT>
                            <ENT>1.4</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.5</ENT>
                            <ENT>1.0</ENT>
                            <ENT>3.2</ENT>
                            <ENT>2.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3 *</ENT>
                            <ENT>888</ENT>
                            <ENT>820</ENT>
                            <ENT>736</ENT>
                            <ENT>1.4</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.5</ENT>
                            <ENT>2.2</ENT>
                            <ENT>3.9</ENT>
                            <ENT>3.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4 **</ENT>
                            <ENT>931</ENT>
                            <ENT>764</ENT>
                            <ENT>908</ENT>
                            <ENT>1.0</ENT>
                            <ENT>1.1</ENT>
                            <ENT>2.4</ENT>
                            <ENT>3.6</ENT>
                            <ENT>3.4</ENT>
                            <ENT>3.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5 *</ENT>
                            <ENT>699</ENT>
                            <ENT>702</ENT>
                            <ENT>675</ENT>
                            <ENT>1.5</ENT>
                            <ENT>2.2</ENT>
                            <ENT>2.6</ENT>
                            <ENT>4.6</ENT>
                            <ENT>6.7</ENT>
                            <ENT>5.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6 †</ENT>
                            <ENT>472</ENT>
                            <ENT>546</ENT>
                            <ENT>532</ENT>
                            <ENT>2.0</ENT>
                            <ENT>3.0</ENT>
                            <ENT>3.6</ENT>
                            <ENT>15.9</ENT>
                            <ENT>19.1</ENT>
                            <ENT>16.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7 *</ENT>
                            <ENT>775</ENT>
                            <ENT>648</ENT>
                            <ENT>760</ENT>
                            <ENT>1.3</ENT>
                            <ENT>2.1</ENT>
                            <ENT>2.4</ENT>
                            <ENT>4.7</ENT>
                            <ENT>6.9</ENT>
                            <ENT>5.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8 †</ENT>
                            <ENT>552</ENT>
                            <ENT>537</ENT>
                            <ENT>616</ENT>
                            <ENT>1.8</ENT>
                            <ENT>2.7</ENT>
                            <ENT>3.2</ENT>
                            <ENT>15.3</ENT>
                            <ENT>19.2</ENT>
                            <ENT>15.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9 †</ENT>
                            <ENT>476</ENT>
                            <ENT>1,493</ENT>
                            <ENT>529</ENT>
                            <ENT>2.7</ENT>
                            <ENT>3.7</ENT>
                            <ENT>4.8</ENT>
                            <ENT>18.0</ENT>
                            <ENT>21.7</ENT>
                            <ENT>18.6</ENT>
                        </ROW>
                        <TNOTE>* Refers to TSLs with separate standards for small and large MHGFs. The input capacity threshold definitions for small MHGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h</TNOTE>
                        <TNOTE>** Regional standards.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The savings represent the average LCC for affected consumers. The PBP is measured relative to the baseline product.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD3">c. Rebuttable Presumption Payback</HD>
                    <P>As discussed in section III.F.2 of this document, EPCA establishes a rebuttable presumption that an energy conservation standard is economically justified if the increased purchase cost for a product that meets the standard is less than three times the value of the first-year energy savings resulting from the standard. In calculating a rebuttable presumption payback period for each of the considered TSLs, DOE used discrete values, and, as required by EPCA, based the energy use calculation on the DOE test procedures for residential furnaces and boilers. In contrast, the PBPs presented in section V.B.1.a of this document were calculated using distributions that reflect the range of energy use in the field.</P>
                    <P>Table V.10 present the rebuttable-presumption payback periods for the considered TSLs for NWGFs and MHGFs. The payback periods for most NWGF and MHGF TSLs do not meet the rebuttable-presumption criterion. While DOE examined the rebuttable-presumption criterion, it determined whether the standard levels considered for this rule are economically justified through a more detailed analysis of the economic impacts of those levels, pursuant to 42 U.S.C. 6295(o)(2)(B)(i), that considers the full range of impacts to the consumer, manufacturer, Nation, and environment. The results of that analysis serve as the basis for DOE to definitively evaluate the economic justification for a potential standard level, thereby supporting or rebutting the results of any preliminary determination of economic justification.</P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s100,15,15">
                        <TTITLE>Table V.10—Rebuttable-Presumption Payback Periods (Years) for Non-Weatherized Gas Furnace and Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                Non-weatherized
                                <LI>gas furnaces</LI>
                            </CHED>
                            <CHED H="1">
                                Mobile home
                                <LI>gas furnaces</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">1 *</ENT>
                            <ENT>2.64</ENT>
                            <ENT>1.52</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2 *</ENT>
                            <ENT>2.86</ENT>
                            <ENT>1.62</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3 *</ENT>
                            <ENT>2.94</ENT>
                            <ENT>1.68</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4 **</ENT>
                            <ENT>1.03</ENT>
                            <ENT>0.54</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5 *</ENT>
                            <ENT>3.06</ENT>
                            <ENT>1.69</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6 †</ENT>
                            <ENT>3.20</ENT>
                            <ENT>1.80</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7 *</ENT>
                            <ENT>2.92</ENT>
                            <ENT>1.56</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8 †</ENT>
                            <ENT>3.05</ENT>
                            <ENT>1.63</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9 †</ENT>
                            <ENT>3.67</ENT>
                            <ENT>1.67</ENT>
                        </ROW>
                        <TNOTE>* Refers to TSLs with separate standards for small and large NWGFs and MHGFs. The input capacity threshold definitions for small NWGFs and MHGFs are as follows:</TNOTE>
                        <TNOTE>TSL 1: 80 kBtu/h</TNOTE>
                        <TNOTE>TSL 2: 70 kBtu/h</TNOTE>
                        <TNOTE>TSL 3: 60 kBtu/h</TNOTE>
                        <TNOTE>TSL 5: 55 kBtu/h</TNOTE>
                        <TNOTE>TSL 7: 55 kBtu/h</TNOTE>
                        <TNOTE>** Regional standards.</TNOTE>
                        <TNOTE>† Refers to national standards.</TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="87626"/>
                    <HD SOURCE="HD3">2. Economic Impacts on Manufacturers</HD>
                    <P>DOE performed an MIA to estimate the impact of amended energy conservation standards on manufacturers of NWGFs and MHGFs. The next section describes the expected impacts on manufacturers at each considered TSL. Chapter 12 of the final rule TSD explains the analysis in further detail.</P>
                    <HD SOURCE="HD3">a. Industry Cash-Flow Analysis Results</HD>
                    <P>In this section, DOE provides GRIM results from the analysis, which examines changes in the industry that could result from a standard. Table V.11 presents the financial impacts of analyzed standards on NWGF and MHGF manufacturers represented by changes in INPV and free cash flow in the year before the standard would take effect, as well by the conversion costs that DOE estimates NWGF and MHGF manufacturers would incur at each TSL. To evaluate the range of cash-flow impacts on the NWGF and MHGF industry, DOE modeled two manufacturer markup scenarios that correspond to the range of anticipated market responses to amended standards. DOE modeled a preservation of gross margin percentage markup scenario and a tiered markup scenario. Each scenario results in a unique set of cash flows and corresponding industry values at each TSL.</P>
                    <P>In the following discussion, the INPV results refer to the difference in INPV between the no-new-standards case and the standards cases, calculated by summing discounted cash flows from the reference year (2023) through the end of the analysis period (2058). Changes in INPV reflect the potential impacts on the value of the industry over the course of the analysis period as a result of implementing a particular TSL. The results also discuss the difference in cash flows between the no-new-standards case and the standards cases in the year before the compliance date for analyzed standards (2028). This difference in cash flow represents the size of the required conversion costs relative to the cash flow generated by the NWGF and MHGF industry in the absence of amended energy conservation standards.</P>
                    <P>
                        To assess the upper (less severe) bound of the range of potential impacts on NWGF and MHGF manufacturers, DOE modeled a preservation of gross margin percentage scenario. This scenario assumes industry would be able to maintain its average no-new-standards case gross margin percentage in the standard case, even as MPCs increase and companies make upfront investments to bring products into compliance with amended standards. DOE assumed gross margin percentages of 25.3 percent for NWGFs and 21.3 percent for MHGFs.
                        <SU>277</SU>
                        <FTREF/>
                         Manufacturers noted in interviews that it is optimistic to assume that, as their production costs increase in response to an amended energy conservation standard, they will be able to maintain the same gross margin percentage. DOE has determined this scenario to be an upper bound to industry profitability under an energy conservation standard.
                    </P>
                    <FTNT>
                        <P>
                            <SU>277</SU>
                             The gross margin percentage values correspond to manufacturer markups of 1.34 for NWGFs and 1.27 for MHGFs.
                        </P>
                    </FTNT>
                    <P>
                        To assess the lower (more severe) bound of the range of potential impacts of AFUE standards on NWGF and MHGF manufacturers, DOE modeled a tiered scenario. DOE implemented the tiered scenario because multiple manufacturers stated in interviews that they offer multiple tiers of product lines that are differentiated, in part, by efficiency level. Manufacturers further noted that pricing tiers encompass additional differentiators, such as the combustion system (
                        <E T="03">e.g.,</E>
                         single-stage, two-stage, and modulating combustion systems). To account for this nuance, the tiered markup in the GRIM incorporates both efficiency and combustion system technology into the “good, better, best” manufacturer markup scenario.
                    </P>
                    <P>Several manufacturers suggested that amended standards would lead to a reduction in premium markups and would reduce the profitability of higher-efficiency products. During the manufacturer interviews, manufacturers provided information on the range of typical efficiency levels in those tiers and the change in profitability at each level. DOE used this information to estimate manufacturer markups for NWGFs and MHGFs under a tiered pricing strategy in the no-new-standards case. In the standards cases, DOE modeled the situation in which standards result in less product differentiation, compression of the markup tiers, and an overall reduction in profitability.</P>
                    <P>Table V.11 presents the financial impacts of the analyzed standards on NWGF and MHGF manufacturers. These impacts are represented by changes in INPV summed over the analysis period and free cash flow in the year before the standard (2028), as well as by the conversion costs that DOE estimates NWGF and MHGF manufacturers would incur at each TSL. The range of results reflect the two manufacturer markup scenarios that were modeled.</P>
                    <GPOTABLE COLS="7" OPTS="L2,p7,7/8,i1" CDEF="s25,xs54,xs68,xs68,xs68,xs68,xs68">
                        <TTITLE>Table V.11—Manufacturer Impact Analysis Results for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Units</CHED>
                            <CHED H="1">
                                No-new-standards
                                <LI>case</LI>
                            </CHED>
                            <CHED H="1">TSL 1</CHED>
                            <CHED H="1">TSL 2</CHED>
                            <CHED H="1">TSL 3</CHED>
                            <CHED H="1">TSL 4</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">INPV</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>1,371.8</ENT>
                            <ENT>1,263.7 to 1,351.3</ENT>
                            <ENT>1,226.3 to 1,345.3</ENT>
                            <ENT>1,207.2 to 1,337.0</ENT>
                            <ENT>1,088.7 to 1,342.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in INPV</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT/>
                            <ENT>(107.8) to (20.5)</ENT>
                            <ENT>(145.3) to (26.5)</ENT>
                            <ENT>(164.3) to (34.9)</ENT>
                            <ENT>(282.8) to (29.4)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>
                                <E T="03">%</E>
                            </ENT>
                            <ENT/>
                            <ENT>(7.9) to (1.5)</ENT>
                            <ENT>(10.6) to (1.9)</ENT>
                            <ENT>(12.0) to (2.5)</ENT>
                            <ENT>(20.6) to (2.1)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Free Cash Flow (2028)</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>84.6</ENT>
                            <ENT>60.3</ENT>
                            <ENT>53.8</ENT>
                            <ENT>50.7</ENT>
                            <ENT>38.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in Free Cash Flow (2028)</ENT>
                            <ENT>%</ENT>
                            <ENT/>
                            <ENT>(28.8)</ENT>
                            <ENT>(36.4)</ENT>
                            <ENT>(40.1)</ENT>
                            <ENT>(54.6)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Product Conversion Costs</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT/>
                            <ENT>28.8</ENT>
                            <ENT>28.8</ENT>
                            <ENT>28.8</ENT>
                            <ENT>44.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Capital Conversion Costs</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT/>
                            <ENT>31.6</ENT>
                            <ENT>46.0</ENT>
                            <ENT>52.9</ENT>
                            <ENT>67.7</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Total Investment Required</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT/>
                            <ENT>60.4</ENT>
                            <ENT>74.8</ENT>
                            <ENT>81.7</ENT>
                            <ENT>112.5</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="25"> </ENT>
                            <ENT>Units</ENT>
                            <ENT>TSL 5</ENT>
                            <ENT>TSL 6</ENT>
                            <ENT>TSL 7</ENT>
                            <ENT>TSL 8</ENT>
                            <ENT>TSL 9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">INPV</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>1,199.6 to 1,341.4</ENT>
                            <ENT>1,201.0 to 1,337.9</ENT>
                            <ENT>1,014.8 to 1,339.1</ENT>
                            <ENT>1,004.2 to 1,338.0</ENT>
                            <ENT>702.8 to 1,352.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in INPV</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>(172.0) to (30.4)</ENT>
                            <ENT>(170.5) to (34.0)</ENT>
                            <ENT>(356.8) to (32.7)</ENT>
                            <ENT>(367.3) to (33.8)</ENT>
                            <ENT>(668.7) to (19.1)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>
                                <E T="03">%</E>
                            </ENT>
                            <ENT>(12.5) to (2.2)</ENT>
                            <ENT>(12.4) to (2.5)</ENT>
                            <ENT>(26.0) to (2.4)</ENT>
                            <ENT>(26.8) to (2.5)</ENT>
                            <ENT>(48.7) to (1.4)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Free Cash Flow (2028)</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>47.9</ENT>
                            <ENT>40.1</ENT>
                            <ENT>28.0</ENT>
                            <ENT>16.1</ENT>
                            <ENT>(54.4)</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87627"/>
                            <ENT I="01">Change in Free Cash Flow (2028)</ENT>
                            <ENT>
                                <E T="03">%</E>
                            </ENT>
                            <ENT>(43.4)</ENT>
                            <ENT>(52.6)</ENT>
                            <ENT>(66.9)</ENT>
                            <ENT>(81.0)</ENT>
                            <ENT>(164.3)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Product Conversion Costs</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>28.8</ENT>
                            <ENT>28.8</ENT>
                            <ENT>44.8</ENT>
                            <ENT>44.8</ENT>
                            <ENT>86.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Capital Conversion Costs</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>59.2</ENT>
                            <ENT>76.4</ENT>
                            <ENT>90.8</ENT>
                            <ENT>117.3</ENT>
                            <ENT>241.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Investment Required</ENT>
                            <ENT>
                                <E T="03">2022$ millions</E>
                            </ENT>
                            <ENT>87.9</ENT>
                            <ENT>105.2</ENT>
                            <ENT>135.6</ENT>
                            <ENT>162.0</ENT>
                            <ENT>328.0</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Parentheses indicate negative values.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        The following cash flow results discussion refers to the AFUE efficiency levels and capacity threshold cutoffs detailed in section V.A of this document. Tables V.12 and V.13 present the percentage of NWGF and MHGF shipments in 2028 that are considered to be large or small, based on the input capacity threshold for each TSL. 
                        <E T="03">See</E>
                         section IV.G of this document for additional details on the shipments analysis.
                    </P>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s25,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.12—Shipments Breakdowns (2028) Representing Large and Small Non-Weatherized Gas Furnaces at Each Trial Standard Level</TTITLE>
                        <BOXHD>
                            <CHED H="1">Size</CHED>
                            <CHED H="1">Trial standard level and capacity threshold</CHED>
                            <CHED H="2">
                                TSL 1
                                <LI>80</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 2
                                <LI>70</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 3
                                <LI>60</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 4
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 5
                                <LI>55</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 6
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 7
                                <LI>55</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 8
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 9
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Large</ENT>
                            <ENT>45.4</ENT>
                            <ENT>69.5</ENT>
                            <ENT>81.1</ENT>
                            <ENT>100.0</ENT>
                            <ENT>92.5</ENT>
                            <ENT>100.0</ENT>
                            <ENT>92.5</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Small</ENT>
                            <ENT>54.6</ENT>
                            <ENT>30.5</ENT>
                            <ENT>18.9</ENT>
                            <ENT>0.0</ENT>
                            <ENT>7.5</ENT>
                            <ENT>0.0</ENT>
                            <ENT>7.5</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s25,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.13—Shipments Breakdowns (2028) Representing Large and Small Mobile Home Gas Furnaces at Each Trial Standard Level</TTITLE>
                        <BOXHD>
                            <CHED H="1">Size</CHED>
                            <CHED H="1">Trial standard level and capacity threshold</CHED>
                            <CHED H="2">
                                TSL 1
                                <LI>80</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 2
                                <LI>70</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 3
                                <LI>60</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 4
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 5
                                <LI>55</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 6
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 7
                                <LI>55</LI>
                                <LI>kBtu/h</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 8
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                TSL 9
                                <LI>No</LI>
                                <LI>cutoff</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Large</ENT>
                            <ENT>18.9</ENT>
                            <ENT>61.1</ENT>
                            <ENT>76.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>89.4</ENT>
                            <ENT>100.0</ENT>
                            <ENT>89.4</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Small</ENT>
                            <ENT>81.1</ENT>
                            <ENT>38.9</ENT>
                            <ENT>24.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>10.6</ENT>
                            <ENT>0.0</ENT>
                            <ENT>10.6</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>TSL 1, TSL 2, TSL 3, and TSL 5 all represent national standards set at 92-percent AFUE for large furnaces, while small furnaces remain at the current Federal minimum of 80-percent AFUE. However, the capacity threshold used to classify small furnaces is different at each TSL. Small NWGFs and MHGFs are defined as units having an input capacity of 80 kBtu/h or less at TSL 1, 70 kBtu/h or less at TSL 2, 60 kBtu/h or less at TSL 3, and 55 kBtu/h or less at TSL 5. As the capacity threshold decreases from 80 kBtu/h at TSL 1 down to 55 kBtu/h at TSL 5, the number of furnace shipments classified as large gas-fired consumer furnaces—and subsequently the portion of shipments that must be condensing after the standard year—increases. Capital conversion costs increase as manufacturers add additional capacity to their secondary heat exchanger production lines. Manufacturers would also incur product conversion costs as they invest resources to develop cost-optimized 92-percent AFUE models that are competitive at lower price points. Manufacturers are expected to incur $28.8 million in product conversion costs to develop such models at each of TSL 1, TSL 2, TSL 3, and TSL 5.</P>
                    <P>In addition to conversion costs, a national standard of 92-percent AFUE for large NWGFs and MHGFs could lead to a slight compression of manufacturer markups. In its manufacturer markup scenarios, DOE includes a scenario which models the industry maintaining three tiers of markups, with efficiency as one differentiating attribute. In a market where the national standard is 92-percent AFUE, DOE characterizes these markups as “good,” “better,” and “best,” and they correspond to 92-percent AFUE, 95-percent AFUE, and max-tech levels (98-percent AFUE for NWGFs and 96-percent AFUE for MHGFs), respectively.</P>
                    <P>
                        TSL 1 represents a national standard set at 92-percent AFUE for large NWGFs and MHGFs, while small NWGFs and MHGFs remain at the current Federal minimum of 80-percent AFUE. At TSL 1, small furnaces are defined as NWGFs and MHGFs with input capacities of 80 kBtu/h or less. DOE estimates the change in INPV to range from −$107.8 million to −$20.5 million, or a change of −7.9 percent to −1.5 percent. At this level, industry free cash flow in 2028 (the year before the compliance date) is estimated to decrease to $60.3 million, or a decrease of 28.8 percent compared to the no-new-standards case value of $84.6 million.
                        <PRTPAGE P="87628"/>
                    </P>
                    <P>Small furnaces with input capacities of 80 kBtu/h or less account for approximately 54.6 percent of NWGF shipments and 81.1 percent of MHGF shipments in 2028, a year before the standard goes into effect. In the no-new-standards case, approximately 60.6 percent of NWGF shipments and 33.3 percent of MHGF shipments are expected to be sold at condensing levels in the year before the standard goes into effect. At TSL 1, once the standard goes into effect, DOE expects 70.0 percent of NWGF shipments and 44.2 percent of MHGF shipments to be sold at condensing levels, requiring the industry to expand its production of secondary heat exchangers. Manufacturers will incur an estimated $31.6 million in capital conversion costs as manufacturers increase secondary heat exchanger production line capacity. Manufacturers would also incur product conversion costs driven by the development necessary to create compliant, cost-competitive products. Total industry conversion costs are expected to reach $60.4 million at TSL 1.</P>
                    <P>TSL 2 represents a national standard at 92-percent AFUE for large furnaces, while small furnaces remain at the current Federal minimum of 80-percent AFUE. Small furnaces are defined as NWGFs and MHGFS with input capacities of 70 kBtu/h or less. At TSL 2, DOE estimates the change in INPV to range from −$145.3 million to −$26.5 million, or a change in INPV of −10.6 percent to −1.9 percent. At this level, free cash flow in 2028 is estimated to decrease to $53.8 million, or a decrease of 36.4 percent compared to the no-new-standards-case value of $84.6 million in the year 2028.</P>
                    <P>Small furnaces with input capacities of 70 kBtu/h or less account for approximately 30.5 percent of NWGF shipments and 38.9 percent of MHGF shipments in the year before standards go into effect. At TSL 2, once the standard goes into effect, DOE expects 75.2 percent of NWGF shipments and 66.1 percent of MHGF shipments to be sold at condensing levels, requiring the industry to expand its production of secondary heat exchangers. Capital conversion costs increase from $31.6 million at TSL 1 to $46.0 million at TSL 2. Manufacturers would also incur product conversion costs driven by the development necessary to create compliant, cost-competitive products. Total industry conversion costs are expected to reach $74.8 million at TSL 2.</P>
                    <P>TSL 3 represents a national standard at 92-percent AFUE for large furnaces, while small furnaces remain at the current Federal minimum of 80-percent AFUE. Small furnaces are defined as NWGFs and MHGFs with input capacities of 60 kBtu/h or less. At TSL 3, DOE estimates the change in INPV to range from −$164.3 million to −$34.9 million, or a change in INPV of −12.0 percent to −2.5 percent. At this level, free cash flow is estimated to decrease to $50.7 million, or a decrease of 40.1 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>Small furnaces with input capacities of 60 kBtu/h or less account for approximately 18.9 percent of NWGF shipments and 24.0 percent of MHGF shipments in the year before standards take effect. At TSL 3, once standards go into effect, DOE expects 78.6 percent of NWGF shipments and 75.3 percent of MHGF shipments to be sold at condensing levels, requiring the industry to expand its production of secondary heat exchangers. Capital conversion costs would increase from $46.0 million at TSL 2 to $52.9 million at TSL 3 as manufacturers increase secondary heat exchanger production line capacity. Manufacturers would also incur product conversion costs driven by the development necessary to create compliant, cost-competitive products. Total industry conversion costs could reach $81.7 million at TSL 3.</P>
                    <P>TSL 4 represents a regional standard set at 95-percent AFUE for products sold in the North and 80-percent AFUE for products sold in the rest of country. TSL 4 does not have a small furnace capacity threshold. At TSL 4, DOE estimates the change in INPV to range from −$282.8 million to −$29.4 million, or a change in INPV of −20.6 percent to −2.1 percent. At this level, free cash flow is estimated to decrease to $38.4 million, or a decrease of 54.6 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>In the year before the standard goes into effect, DOE expects that the North region will account for approximately 58.8 percent of consumer furnace shipments, with the remaining shipments attributable to the rest of country region. Once the standard goes into effect, consumer furnaces sold in the North must achieve 95-percent AFUE. At TSL 4, DOE expects 74.7 percent of NWGFs and 74.5 percent of MHGFs would be sold at condensing levels in 2029. Capital conversion costs are expected to reach $67.7 million as manufacturers increase secondary heat exchanger production line capacity. Product conversion costs reach $44.8 million, as manufacturers develop cost-optimized 95-percent AFUE furnaces that are competitive at reduced markups. Total industry conversion costs would be expected to reach $112.5 million at TSL 4.</P>
                    <P>For products sold in the North that must achieve 95-percent AFUE, the industry faces a noticeable compression of markups. In the no-new-standards case, 95-percent AFUE products garner a higher markup than baseline products. At TSL 4, 95-percent AFUE products become the minimum AFUE efficiency offering and would no longer command the same premium manufacturer markup in the North. However, at this level, manufacturers can still differentiate products and offer multiple markup tiers based on “comfort” features, such as two-stage or modulating combustion technology. DOE models the industry maintaining three manufacturer markup tiers (“good, better, best”) but at a compressed range of manufacturer markup values. This approach accounts for manufacturers' continued ability to differentiate products based on combustion system technology while recognizing that manufacturer markups (and profitability) for high-efficiency products in the North may be reduced due to the higher AFUE standard.</P>
                    <P>TSL 5 represents a standard set at 92-percent AFUE for large furnaces, while small furnaces remain at the current Federal minimum of 80-percent AFUE. Small furnaces are defined as NWGFs and MHGFs with input capacities of 55 kBtu/h or less. At TSL 5, DOE estimates the change in INPV to range from −$172.0 million to −$30.4 million, or a change in INPV of −12.5 percent to −2.2 percent. At this level, free cash flow is estimated to decrease to $47.9 million, or a decrease of 43.4 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>
                        Small furnaces with input capacities of 55 kBtu/h or less account for approximately 7.5 percent of NWGFs and 10.6 percent of MHGFs in the year before the standard goes into effect. At TSL 5, 81.5 percent of NWGF shipments and 82.4 percent of MHGF shipments would be sold at condensing levels when the standard goes into effect, requiring the industry to expand its production of secondary heat exchangers. Capital conversion costs would increase from $52.9 million at TSL 3, the previous TSL with a separate standard level for small furnaces, to $59.2 million at TSL 5. Manufacturers will also incur product conversion costs driven by the development necessary to create compliant, cost-competitive products. DOE estimates total industry conversion costs could reach $87.9 million at TSL 5.
                        <PRTPAGE P="87629"/>
                    </P>
                    <P>
                        TSL 6, TSL 8, and TSL 9 represent national standards for all covered NWGFs and MHGFs. At these TSLs, there is no separate standard level based on furnace input capacity. As the TSL increases from TSL 6 to TSL 8 to TSL 9, the national standard increases, and DOE models a compression of markups in the tiered markup scenario. Compressed markups are a significant driver of negative impacts to INPV in the tiered markup scenario, particularly at TSL 9 for NWGFs, when neither efficiency nor combustion system technology (
                        <E T="03">e.g.,</E>
                         single-stage, two-stage, or modulating combustion) is a means for product differentiation.
                    </P>
                    <P>TSL 6 represents a national 92-percent AFUE standard for all covered NWGFs and MHGFs. As previously noted, TSL 6 does not have a small furnace capacity threshold. At this level, DOE estimates the change in INPV to range from −$170.5 million to −$34.0 million, or a change in INPV of −12.4 percent to −2.5 percent. At this level, free cash flow is estimated to decrease to $40.1 million, or a decrease of 52.6 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>At TSL 6, all shipments of the covered product would be at a condensing level once the standard goes into effect. Manufacturer markups at TSL 6 are slightly reduced, but the industry is still able to maintain three tiers of markups. Manufacturers would incur product conversion costs of $28.8 million at TSL 6, as manufacturers develop 92-percent AFUE furnaces that are competitive at reduced markups. Capital conversion costs would total $76.4 million, as manufacturers add production capacity to have secondary heat exchangers for all NWGF and MHGF shipments sold into the domestic market. Total conversion costs could reach $105.2 million for the industry.</P>
                    <P>TSL 7 represents a 95-percent AFUE standard for large furnaces, while small furnaces remain at the current Federal minimum of 80-percent AFUE. At TSL 7, small furnaces are defined as NWGFs and MHGFs with input capacities of 55 kBtu/h or less. DOE estimates the change in INPV to range from −$356.8 million to −$32.7 million, or a change in INPV of −26.0 percent to −2.4 percent. At this level, free cash flow is estimated to decrease to $28.0 million, or a decrease of 66.9 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>Small furnaces with input capacities of 55 kBtu/h or less account for approximately 7.5 percent of NWGF shipments and 10.6 percent of MHGF shipments before the standard goes into effect. At this level, 81.5 percent of NWGF shipments and 82.4 percent of MHGF shipments would be sold at condensing levels when the standard goes into effect, requiring the industry to expand its production of secondary heat exchangers. Capital conversion costs would total $90.8 million, as manufacturers add production capacity to have secondary heat exchangers for the majority of NWGF and MHGF shipments sold into the domestic market. Manufacturers would also incur product conversion costs of an estimated $44.8 million, driven by the development necessary to create compliant, cost-competitive products. Total conversion costs could reach $135.6 million.</P>
                    <P>For large NWGFs and MHGFs, industry faces a noticeable compression of markups due to their limited ability to differentiate products purely based on AFUE. However, as with TSL 4, manufacturers can still differentiate products subject to the 95-percent standard based on “comfort” features, such as two-stage or modulating combustion technology. DOE models the industry as maintaining three markup tiers (“good, better, best”) but at a compressed range of tiers where max-tech products do not command the same premium as they did in the no-new-standards case. This approach accounts for manufacturers' continued ability to differentiate large NWGFs and MHGFs based on combustion systems while recognizing that markups (and profitability) for high-efficiency products may be reduced for large furnaces due to the 95-percent AFUE standard. While manufacturers would not experience a compression of markups for small capacity products, most shipments qualify as large furnaces at this capacity cutoff. The reduction in premium product offerings and deterioration of markups for the majority of furnace shipments, coupled with increased conversion costs, are expected to result in a negative change in INPV at TSL 7.</P>
                    <P>TSL 8 represents a national 95-percent AFUE standard for all covered NWGFs and MHGFs. TSL 8 does not have a small capacity threshold. At TSL 8, DOE estimates the change in INPV to range from −$367.3 million to −$33.8 million, or a change in INPV of −26.8 percent to −2.5 percent. At this level, free cash flow is estimated to decrease to $16.1 million, or a decrease of 81.0 percent compared to the no-new-standards case value of $84.6 million in the year 2028.</P>
                    <P>DOE estimates that approximately 41.6 percent of the annual NWGF shipments and approximately 19.5 percent of the annual MHGF shipments currently meet or exceed the efficiencies required at TSL 8. At TSL 8, all covered furnaces would be condensing after the standard goes into effect. DOE estimates capital conversion costs would increase to $117.3 million at TSL 8, as manufacturers add production capacity to have secondary heat exchangers for all NWGF and MHGF shipments sold into the domestic market. Product conversion costs would total $44.8 million, as manufacturers develop a cost-optimized 95-percent AFUE for NWGF and MHGF models that are competitive at reduced markups. Total industry conversion costs could reach $162.0 million.</P>
                    <P>With a national standard of 95-percent AFUE, industry faces a noticeable compression of markups due to their limited ability to differentiate products purely based on AFUE. As with TSL 4 and TSL 7, manufacturers can still differentiate products based on “comfort” features such as the combustion systems. At TSL 8, DOE models the industry as maintaining three markup tiers (“good, better, best”) but at a compressed range of manufacturer markup values where max-tech products do not command the same premium as they did in the no-new-standards case. This approach accounts for manufacturers' continued ability to differentiate NWGFs and MHGFs based on combustion systems while recognizing that markups (and profitability) for high-efficiency products may be reduced due to the 95-percent AFUE standard. The compression of markups and a reduction in product offerings, coupled with increased conversion costs are expected to result in INPV losses at TSL 8.</P>
                    <P>TSL 9 represents a national max-tech standard, where NWGF products must achieve 98-percent AFUE and MHGF products must achieve 96-percent AFUE. At TSL 9, DOE estimates the change in INPV to range from −$668.7 million to −$19.1 million, or a change in INPV of −48.7 percent to −1.4 percent. At this level, the large conversion costs result in a free cash flow dropping below zero in the years before the standard year. The negative free cash flow calculation indicates manufacturers may need to access cash reserves or outside capital to finance conversion efforts.</P>
                    <P>
                        At TSL 9, approximately 1.4 percent of NWGFs and 0.9 percent of MHGFs are sold at this level today. Manufacturers would incur $86.8 million in product conversion costs as they develop cost-optimized, high-efficiency NWGF models that can 
                        <PRTPAGE P="87630"/>
                        compete in a market where efficiency and combustion systems are no longer viable options for product differentiation and MHGF models that can compete in a market where efficiency is no longer a means for product differentiation. More than half of all NWGF and MHGF OEMs do not currently offer any models that meet the efficiency levels required by TSL 9. Manufacturers would also incur capital conversion costs of $241.1 million as manufacturers add the production capacity necessary to produce all NWGFs and MHGFs sold into the domestic market at 98-percent and 96-percent AFUE, respectively. Total conversion costs would be expected to reach $328.0 million for the industry.
                    </P>
                    <P>Some manufacturers expressed great concern about the state of technology at max-tech. Specifically, those manufacturers noted uncertainty about the ability to deliver cost-effective products for their customers. They also cited high conversion costs and large investments in R&amp;D to produce all products at this level. Many OEMs do not currently manufacture any models that meet these efficiency levels. These OEMs would likely have more technical challenges in designing new models that meet max-tech levels. Furthermore, NWGF manufacturers would lose efficiency and combustion systems as differentiators between baseline and premium product offerings. The extent of conversion costs, the compression of markups, and the reduced ability to differentiate products would likely alter the consumer furnace competitive landscape.</P>
                    <HD SOURCE="HD3">b. Direct Impacts on Employment</HD>
                    <P>
                        To quantitatively assess the potential impacts of amended energy conservation standards on direct employment in the NWGF and MHGF industry, DOE used the GRIM to estimate the domestic labor expenditures and number of direct employees in the no-new-standards case and in each of the standards cases during the analysis period. DOE calculated these values using the most up-to-date statistical data from the U.S. Census Bureau's 2021 
                        <E T="03">ASM,</E>
                        <SU>278</SU>
                        <FTREF/>
                         the U.S. Bureau of Labor Statistics' (“BLS”) employee compensation data,
                        <SU>279</SU>
                        <FTREF/>
                         results of the engineering analysis, and manufacturer interviews.
                    </P>
                    <FTNT>
                        <P>
                            <SU>278</SU>
                             U.S. Census Bureau's Annual Survey of Manufactures: 2018-2021 (available at 
                            <E T="03">www.census.gov/programs-surveys/asm/data/tables.html</E>
                            ) (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>279</SU>
                             U.S. Bureau of Labor Statistics, 
                            <E T="03">Employer Costs for Employee Compensation</E>
                             (March 17, 2023) (available at: 
                            <E T="03">www.bls.gov/news.release/pdf/ecec.pdf</E>
                            ) (last accessed March 21, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Labor expenditures related to product manufacturing depend on the labor intensity of the product, the sales volume, and an assumption that wages remain fixed in real terms over time. The total labor expenditures in each year are calculated by multiplying the total MPCs by the labor percentage of MPCs. The total labor expenditures in the GRIM were then converted to domestic production employment levels by dividing production labor expenditures by the average fully burdened wage multiplied by the average number of hours worked per year per production worker. To do this, DOE relied on the 
                        <E T="03">ASM</E>
                         inputs: Production Workers Annual Wages, Production Workers Annual Hours, Production Workers for Pay Period, and Number of Employees. DOE also relied on the BLS employee compensation data to determine the fully burdened wage ratio. The fully burdened wage ratio factors in paid leave, supplemental pay, insurance, retirement and savings, and legally required benefits.
                    </P>
                    <P>The number of production employees is then multiplied by the U.S. labor percentage to convert total production employment to total domestic production employment. The U.S. labor percentage represents the industry fraction of domestic manufacturing production capacity for the covered product. This value is derived from manufacturer interviews, product database analysis, and publicly-available information. Consistent with the July 2022 NOPR, DOE estimates that 45 percent of gas-fired consumer furnaces are produced domestically.</P>
                    <P>
                        The domestic production employees estimate covers production line workers, including line supervisors, who are directly involved in fabricating, processing, or assembling products within the OEM facility. Workers performing services that are closely associated with production operations, such as handling materials using forklifts, are also included as production labor.
                        <SU>280</SU>
                        <FTREF/>
                         DOE's estimates only account for production workers who manufacture the specific products covered by this rulemaking.
                    </P>
                    <FTNT>
                        <P>
                            <SU>280</SU>
                             The comprehensive description of production and non-production workers is available online at: 
                            <E T="03">www2.census.gov/programs-surveys/asm/technical-documentation/questionnaire/2021/instructions/MA_10000_Instructions.pdf,</E>
                             “Definitions and Instructions for the Annual Survey of Manufacturers, MA-10000” (pp. 13-14). (Last accessed June 1, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Non-production workers account for the remainder of the direct employment figure. The non-production employees cover domestic workers who are not directly involved in the production process, such as sales, engineering, human resources, management, 
                        <E T="03">etc.</E>
                         Using the amount of domestic production workers calculated above, non-production domestic employees are extrapolated by multiplying the ratio of non-production workers in the industry compared to production employees. DOE assumes that this employee distribution ratio remains constant between the no-new-standards case and standards cases.
                    </P>
                    <P>Using the GRIM, DOE estimates that in the absence of new energy conservation standards, there would be 1,470 domestic production and non-production workers for NWGFs and MHGFs in 2029. Table V.14 shows the range of the impacts of potential amended energy conservation standards on U.S. manufacturing employment in the NWGF and MHGF industry. The discussion below provides a qualitative evaluation of the range of potential impacts presented in the table.</P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,xs64,xs64,xs64,xs64,xs64">
                        <TTITLE>Table V.14—Potential Changes in the Total Number of Non-Weatherized Gas Furnace and Mobile Home Gas Furnace Production and Non-Production Workers in 2029</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">
                                No-new-
                                <LI>standards</LI>
                                <LI>case</LI>
                            </CHED>
                            <CHED H="2">TSL 1</CHED>
                            <CHED H="2">TSL 2</CHED>
                            <CHED H="2">TSL 3</CHED>
                            <CHED H="2">TSL 4</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Direct Employment in 2029 (Production Workers + Non-Production Workers)</ENT>
                            <ENT>1,470</ENT>
                            <ENT>435 to 1,514</ENT>
                            <ENT>453 to 1,532</ENT>
                            <ENT>451 to 1,530</ENT>
                            <ENT>487 to 1,566.</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Potential Changes in Direct Employment Workers in 2029 *</ENT>
                            <ENT/>
                            <ENT>(1,079) to 44</ENT>
                            <ENT>(1,079) to 62</ENT>
                            <ENT>(1,079) to 60</ENT>
                            <ENT>(1,079) to 96.</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <PRTPAGE P="87631"/>
                            <ENT I="25"/>
                            <ENT>TSL 5</ENT>
                            <ENT>TSL 6</ENT>
                            <ENT>TSL 7</ENT>
                            <ENT>TSL 8</ENT>
                            <ENT>TSL 9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Direct employment in 2029 (Production Workers + Non-Production Workers)</ENT>
                            <ENT>473 to 1,552</ENT>
                            <ENT>470 to 1,549</ENT>
                            <ENT>547 to 1,626</ENT>
                            <ENT>571 to 1,650</ENT>
                            <ENT>549 to 1,628.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Potential Changes in Direct Employment Workers in 2029 *</ENT>
                            <ENT>(1,079) to 82</ENT>
                            <ENT>(1,079) to 79</ENT>
                            <ENT>(1,079) to 156</ENT>
                            <ENT>(1,079) to 180</ENT>
                            <ENT>(1,079) to 158.</ENT>
                        </ROW>
                        <TNOTE>* DOE presents a range of potential employment impacts. Numbers in parentheses indicate negative values.</TNOTE>
                    </GPOTABLE>
                    <P>The direct employment impacts shown in Table V.14 represent the potential domestic employment changes that could result following the compliance date of the amended standards for NWGFs and MHGFs. The upper end of the range estimates an increase in the number of domestic workers producing NWGFs and MHGFs after implementation of an amended energy conservation standard at each TSL. This upper bound assumes manufacturers would continue to produce the same scope of covered products within the United States and would require additional labor to produce more-efficient products. The lower bound of the range represents the estimated maximum decrease in the total number of U.S. domestic workers if all production moved to lower labor-cost countries or if domestic manufacturers left the market. Some large manufacturers are currently producing covered products in countries with lower labor costs, and an amended standard that necessitates large increases in labor content or large expenditures to re-tool facilities could cause manufacturers to re-evaluate domestic production siting options.</P>
                    <P>Additional detail on the analysis of direct employment can be found in chapter 12 of the final rule TSD. Additionally, the employment impacts discussed in this section are independent of the employment impacts from the broader U.S. economy, which are documented in chapter 15 of the final rule TSD.</P>
                    <HD SOURCE="HD3">c. Impacts on Manufacturing Capacity</HD>
                    <P>According to manufacturer feedback, production facilities are not currently equipped to supply the entire NWGF and MHGF market with condensing products. However, most manufacturers would be able to add capacity and adjust product designs in the five-year period between the announcement year of the standard and the compliance year of the standard. DOE interviewed manufacturers representing over 65 percent of industry shipments. None of the interviewed manufacturers expressed concern over the industry's ability to increase the capacity of production lines that meet required efficiency levels at TSL 1 through TSL 8 to meet consumer demand. At TSL 9, technical uncertainty was expressed by manufacturers that do not offer max-tech efficiency products today, as they were unsure of what production lines changes would be needed to meet an amended standard set at max-tech. However, because TSL 8 (the adopted level) would not require max-tech efficiencies, DOE does not expect manufacturers to face long-term capacity constraints due to the standard levels detailed in this final rule.</P>
                    <HD SOURCE="HD3">d. Impacts on Subgroups of Manufacturers</HD>
                    <P>Using average cost assumptions to develop an industry cash-flow estimate is not adequate for assessing differential impacts among subgroups of manufacturers. Small manufacturers, niche players, or manufacturers exhibiting a cost structure that differs substantially from the industry average could be affected disproportionately. DOE used the results of the industry characterization to group manufacturers exhibiting similar characteristics. Specifically, DOE identified small businesses as a manufacturer subgroup that it believes could be disproportionally impacted by energy conservation standards and would require a separate analysis in the MIA. DOE did not identify any other adversely impacted manufacturer subgroups for this rulemaking based on the results of the industry characterization.</P>
                    <P>DOE analyzes the impacts on small businesses in a separate analysis in section VI.B of this final rule as part of the Regulatory Flexibility Analysis. In summary, the Small Business Administration (SBA) defines a “small business” as having 1,250 employees or less for North American Industry Classification System (“NAICS”) code 333415, “Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing.” Based on this classification, DOE identified four domestic OEMs that certify NWGFs and/or MHGFs that qualify as a small business. For a discussion of the impacts on the small business manufacturer subgroup, see the Regulatory Flexibility Analysis in section VI.B of this final rule and chapter 12 of the final rule TSD.</P>
                    <HD SOURCE="HD3">e. Cumulative Regulatory Burden</HD>
                    <P>One aspect of assessing manufacturer burden involves examining the cumulative impact of multiple DOE standards and the product-specific regulatory actions of other Federal agencies that affect the manufacturers of a covered product or equipment. While any one regulation may not impose a significant burden on manufacturers, the combined effects of several recent or impending regulations may have serious consequences for some manufacturers, groups of manufacturers, or an entire industry. Assessing the impact of a single regulation may overlook this cumulative regulatory burden. In addition to energy conservation standards, other regulations can significantly affect manufacturers' financial operations. For these reasons, DOE conducts an analysis of cumulative regulatory burden as part of its rulemakings pertaining to appliance efficiency.</P>
                    <P>
                        For the cumulative regulatory burden analysis, DOE examines Federal, product-specific regulations that could affect NWGF and MHGF manufacturers that take effect approximately three years before or after the 2029 compliance date. Table V.15 presents the DOE energy conservation standards that would impact manufacturers of 
                        <PRTPAGE P="87632"/>
                        NWGF and MHGF products in the 2026 to 2032 timeframe.
                    </P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,9,9,9,14,13">
                        <TTITLE>Table V.15—Compliance Dates and Expected Conversion Expenses of Federal Energy Conservation Standards Affecting Gas-Fired Consumer Furnace Original Equipment Manufacturers</TTITLE>
                        <BOXHD>
                            <CHED H="1">Federal energy conservation standard</CHED>
                            <CHED H="1">
                                Number of
                                <LI>OEMs *</LI>
                            </CHED>
                            <CHED H="1">
                                Number of
                                <LI>OEMs</LI>
                                <LI>affected by this rule **</LI>
                            </CHED>
                            <CHED H="1">
                                Approx.
                                <LI>standards</LI>
                                <LI>compliance year</LI>
                            </CHED>
                            <CHED H="1">
                                Industry
                                <LI>conversion costs</LI>
                                <LI>(millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Industry
                                <LI>conversion</LI>
                                <LI>costs/product</LI>
                                <LI>revenue ***</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Consumer Clothes Dryers † 87 FR 51734 (August 23, 2022)</ENT>
                            <ENT>15</ENT>
                            <ENT>1</ENT>
                            <ENT>2027</ENT>
                            <ENT>$149.7 (2020$)</ENT>
                            <ENT>1.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Residential Clothes Washers † 88 FR 13520 (March 3, 2023)</ENT>
                            <ENT>19</ENT>
                            <ENT>1</ENT>
                            <ENT>2027</ENT>
                            <ENT>$690.8 (2021$)</ENT>
                            <ENT>5.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Refrigerators, Freezers, and Refrigerator-Freezers † 88 FR 12452 (February 27, 2023)</ENT>
                            <ENT>49</ENT>
                            <ENT>1</ENT>
                            <ENT>2027</ENT>
                            <ENT>$1,323.6 (2021$)</ENT>
                            <ENT>3.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Room Air Conditioners 88 FR 34298 (May 26, 2023)</ENT>
                            <ENT>8</ENT>
                            <ENT>2</ENT>
                            <ENT>2026</ENT>
                            <ENT>$24.8 (2021$)</ENT>
                            <ENT>0.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Miscellaneous Refrigeration Products † 88 FR 19382 (March 31, 2023)</ENT>
                            <ENT>38</ENT>
                            <ENT>1</ENT>
                            <ENT>2029</ENT>
                            <ENT>$126.9 (2021$)</ENT>
                            <ENT>3.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Dishwashers † 88 FR 32514 (May 19, 2023)</ENT>
                            <ENT>22</ENT>
                            <ENT>1</ENT>
                            <ENT>2027</ENT>
                            <ENT>$125.6 (2021$)</ENT>
                            <ENT>2.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Water Heaters † 88 FR 49058 (July 28, 2023)</ENT>
                            <ENT>22</ENT>
                            <ENT>3</ENT>
                            <ENT>2030</ENT>
                            <ENT>$228.1 (2022$)</ENT>
                            <ENT>1.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Pool Heaters 88 FR 34624 (May 30, 2023)</ENT>
                            <ENT>20</ENT>
                            <ENT>1</ENT>
                            <ENT>2028</ENT>
                            <ENT>$48.4 (2021$)</ENT>
                            <ENT>1.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Commercial Water Heating Equipment ‡</ENT>
                            <ENT>15</ENT>
                            <ENT>3</ENT>
                            <ENT>2026</ENT>
                            <ENT>$42.7 (2022$)</ENT>
                            <ENT>5.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Boilers † 88 FR 55128 (August 14, 2023)</ENT>
                            <ENT>24</ENT>
                            <ENT>4</ENT>
                            <ENT>2030</ENT>
                            <ENT>$98.0 (2022$)</ENT>
                            <ENT>3.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Walk-in Coolers and Freezers † 88 FR 60746 (September 5, 2023)</ENT>
                            <ENT>79</ENT>
                            <ENT>4</ENT>
                            <ENT>2027</ENT>
                            <ENT>$89.0 (2022$)</ENT>
                            <ENT>0.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Microwave Ovens 88 FR 39912 (June 20, 2023)</ENT>
                            <ENT>18</ENT>
                            <ENT>1</ENT>
                            <ENT>2026</ENT>
                            <ENT>$46.1 (2021$)</ENT>
                            <ENT>0.7</ENT>
                        </ROW>
                        <TNOTE>* This column presents the total number of OEMs identified in the energy conservation standard rule that is contributing to cumulative regulatory burden.</TNOTE>
                        <TNOTE>** This column presents the number of OEMs producing consumer furnaces that are also listed as OEMs in the identified energy conservation standard that is contributing to cumulative regulatory burden.</TNOTE>
                        <TNOTE>*** This column presents industry conversion costs as a percentage of product revenue during the conversion period. Industry conversion costs are the upfront investments manufacturers must make to sell compliant products/equipment. The revenue used for this calculation is the revenue from just the covered product/equipment associated with each row. The conversion period is the time frame over which conversion costs are made and lasts from the publication year of the final rule to the compliance year of the energy conservation standard. The conversion period typically ranges from three to five years, depending on the rulemaking.</TNOTE>
                        <TNOTE>† These rulemakings are at the NOPR stage, and all values are subject to change until finalized through publication of a final rule.</TNOTE>
                        <TNOTE>
                            ‡ At the time of issuance of this consumer furnaces final rule, the commercial water heating equipment energy conservation standards final rule has been issued but not yet published in the 
                            <E T="02">Federal Register</E>
                            . Once published, the commercial water heating equipment final rule will be available at: 
                            <E T="03">www.regulations.gov/docket/EERE-2021-BT-STD-0027.</E>
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD3">3. National Impact Analysis</HD>
                    <P>This section presents DOE's estimates of the national energy savings and the NPV of consumer benefits that would result from each of the TSLs considered as potential amended standards.</P>
                    <HD SOURCE="HD3">a. Significance of Energy Savings</HD>
                    <P>To estimate the energy savings attributable to potential amended standards for NWGFs and MHGFs, DOE compared their energy consumption under the no-new-standards case to their anticipated energy consumption under each TSL. The savings are measured over the entire lifetime of products purchased in the 30-year period that begins in the year of anticipated compliance with amended standards (2029-2058). Table V.16 presents DOE's projections of the national energy savings for each TSL considered for NWGFs and MHGFs. The savings were calculated using the approach described in section IV.H.2 of this document.</P>
                    <GPOTABLE COLS="11" OPTS="L2,i1" CDEF="s25,xs46,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.16—Cumulative National Energy Savings for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces; 30 Years of Shipments (2029-2058)</TTITLE>
                        <BOXHD>
                            <CHED H="1">Energy savings</CHED>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,n,s">
                            <ENT I="25"> </ENT>
                            <ENT O="xl"/>
                            <ENT A="08">(quads)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Primary Energy</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>1.33</ENT>
                            <ENT>1.81</ENT>
                            <ENT>2.06</ENT>
                            <ENT>2.60</ENT>
                            <ENT>2.24</ENT>
                            <ENT>3.00</ENT>
                            <ENT>3.09</ENT>
                            <ENT>3.98</ENT>
                            <ENT>5.17</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.02</ENT>
                            <ENT>0.07</ENT>
                            <ENT>0.08</ENT>
                            <ENT>0.11</ENT>
                            <ENT>0.09</ENT>
                            <ENT>0.10</ENT>
                            <ENT>0.12</ENT>
                            <ENT>0.13</ENT>
                            <ENT>0.15</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>1.35</ENT>
                            <ENT>1.88</ENT>
                            <ENT>2.14</ENT>
                            <ENT>2.72</ENT>
                            <ENT>2.34</ENT>
                            <ENT>3.10</ENT>
                            <ENT>3.21</ENT>
                            <ENT>4.11</ENT>
                            <ENT>5.32</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">FFC Energy</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>1.49</ENT>
                            <ENT>2.04</ENT>
                            <ENT>2.33</ENT>
                            <ENT>2.97</ENT>
                            <ENT>2.54</ENT>
                            <ENT>3.51</ENT>
                            <ENT>3.50</ENT>
                            <ENT>4.62</ENT>
                            <ENT>6.10</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.03</ENT>
                            <ENT>0.08</ENT>
                            <ENT>0.09</ENT>
                            <ENT>0.13</ENT>
                            <ENT>0.10</ENT>
                            <ENT>0.12</ENT>
                            <ENT>0.14</ENT>
                            <ENT>0.15</ENT>
                            <ENT>0.17</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>1.52</ENT>
                            <ENT>2.11</ENT>
                            <ENT>2.42</ENT>
                            <ENT>3.10</ENT>
                            <ENT>2.65</ENT>
                            <ENT>3.63</ENT>
                            <ENT>3.63</ENT>
                            <ENT>4.77</ENT>
                            <ENT>6.26</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        For the adopted standards (TSL 8), the FFC energy savings of 4.77 quads are the FFC natural gas savings minus the increase in FFC energy use associated with higher electricity use due primarily 
                        <PRTPAGE P="87633"/>
                        to some consumers switching to electric heating.
                    </P>
                    <P>The results reflect the use of the reference product switching scenario and repair vs. replace trend for NWGFs and MHGFs (as described in sections IV.F.10 and IV.F.11 of this document). DOE also conducted a sensitivity analysis that considered scenarios with lower and higher rates of product switching, as compared to the default case. The results of these alternative cases are presented in appendix 10E of the final rule TSD.</P>
                    <P>
                        OMB Circular A-4 
                        <SU>281</SU>
                        <FTREF/>
                         requires agencies to present analytical results, including separate schedules of the monetized benefits and costs that show the type and timing of benefits and costs. Circular A-4 also directs agencies to consider the variability of key elements underlying the estimates of benefits and costs. For this rulemaking, DOE undertook a sensitivity analysis using 9 years, rather than 30 years, of product shipments. The choice of a 9-year period is a proxy for the timeline in EPCA for the review of certain energy conservation standards and potential revision of and compliance with such revised standards.
                        <SU>282</SU>
                        <FTREF/>
                         The review timeframe established in EPCA is generally not synchronized with the product lifetime, product manufacturing cycles, or other factors specific to NWGFs and MHGFs. Thus, such results are presented for informational purposes only and are not indicative of any change in DOE's analytical methodology. The NES sensitivity analysis results based on a 9-year analytical period are presented in for standards. The impacts are counted over the lifetime of NWGFs and MHGFs purchased in 2029-2037.
                    </P>
                    <FTNT>
                        <P>
                            <SU>281</SU>
                             U.S. Office of Management and Budget, 
                            <E T="03">Circular A-4: Regulatory Analysis</E>
                             (Sept. 17, 2003) (available at: 
                            <E T="03">obamawhitehouse.archives.gov/omb/circulars_a004_a-4/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>282</SU>
                             Section 325(m) of EPCA requires DOE to review its standards at least once every 6 years, and requires, for certain products, a 3-year period after any new standard is promulgated before compliance is required, except that in no case may any new standards be required within 6 years of the compliance date of the previous standards. While adding a 6-year review to the 3-year compliance period adds up to 9 years, DOE notes that it may undertake reviews at any time within the 6 year period and that the 3-year compliance date may yield to the 6-year backstop. A 9-year analysis period may not be appropriate given the variability that occurs in the timing of standards reviews and the fact that for some products, the compliance period is 5 years rather than 3 years.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="11" OPTS="L2,i1" CDEF="s25,xs46,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.17—Cumulative National Energy Savings for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces; 9 Years of Shipments (2029-2037)</TTITLE>
                        <BOXHD>
                            <CHED H="1">Energy savings</CHED>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,n,s">
                            <ENT I="25"> </ENT>
                            <ENT O="xl"/>
                            <ENT A="08">(quads)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Primary Energy</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>0.35</ENT>
                            <ENT>0.50</ENT>
                            <ENT>0.57</ENT>
                            <ENT>0.69</ENT>
                            <ENT>0.62</ENT>
                            <ENT>0.85</ENT>
                            <ENT>0.87</ENT>
                            <ENT>1.14</ENT>
                            <ENT>1.56</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.01</ENT>
                            <ENT>0.02</ENT>
                            <ENT>0.03</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.03</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.05</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>0.36</ENT>
                            <ENT>0.52</ENT>
                            <ENT>0.60</ENT>
                            <ENT>0.73</ENT>
                            <ENT>0.65</ENT>
                            <ENT>0.89</ENT>
                            <ENT>0.91</ENT>
                            <ENT>1.19</ENT>
                            <ENT>1.62</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">FFC Energy</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>0.40</ENT>
                            <ENT>0.56</ENT>
                            <ENT>0.64</ENT>
                            <ENT>0.79</ENT>
                            <ENT>0.70</ENT>
                            <ENT>1.00</ENT>
                            <ENT>0.98</ENT>
                            <ENT>1.33</ENT>
                            <ENT>1.85</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.01</ENT>
                            <ENT>0.03</ENT>
                            <ENT>0.03</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.06</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>0.41</ENT>
                            <ENT>0.58</ENT>
                            <ENT>0.68</ENT>
                            <ENT>0.84</ENT>
                            <ENT>0.74</ENT>
                            <ENT>1.04</ENT>
                            <ENT>1.03</ENT>
                            <ENT>1.38</ENT>
                            <ENT>1.91</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">b. Net Present Value of Consumer Costs and Benefits</HD>
                    <P>
                        DOE estimated the cumulative NPV of the total costs and savings for consumers that would result from the TSLs considered for NWGFs and MHGFs. In accordance with OMB's guidelines on regulatory analysis,
                        <SU>283</SU>
                        <FTREF/>
                         DOE calculated NPV using both a 7-percent and a 3-percent real discount rate. Table V.18 shows the consumer NPV results for standards with impacts counted over the lifetime of products purchased in 2029-2058.
                    </P>
                    <FTNT>
                        <P>
                            <SU>283</SU>
                             U.S. Office of Management and Budget, 
                            <E T="03">Circular A-4: Regulatory Analysis</E>
                             (Sept. 17, 2003) (available at: 
                            <E T="03">obamawhitehouse.archives.gov/omb/circulars_a004_a-4/</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="11" OPTS="L2,i1" CDEF="s25,xs46,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.18—Cumulative Net Present Value of Consumer Benefits for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces; 30 Years of Shipments (2029-2058)</TTITLE>
                        <BOXHD>
                            <CHED H="1">Energy savings</CHED>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,n,s">
                            <ENT I="25"> </ENT>
                            <ENT O="xl"/>
                            <ENT A="08">(billion 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7 percent</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>1.25</ENT>
                            <ENT>1.85</ENT>
                            <ENT>2.14</ENT>
                            <ENT>2.76</ENT>
                            <ENT>2.43</ENT>
                            <ENT>2.90</ENT>
                            <ENT>3.70</ENT>
                            <ENT>4.41</ENT>
                            <ENT>3.60</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.06</ENT>
                            <ENT>0.19</ENT>
                            <ENT>0.24</ENT>
                            <ENT>0.35</ENT>
                            <ENT>0.27</ENT>
                            <ENT>0.29</ENT>
                            <ENT>0.36</ENT>
                            <ENT>0.40</ENT>
                            <ENT>0.44</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>1.31</ENT>
                            <ENT>2.04</ENT>
                            <ENT>2.38</ENT>
                            <ENT>3.11</ENT>
                            <ENT>2.70</ENT>
                            <ENT>3.20</ENT>
                            <ENT>4.06</ENT>
                            <ENT>4.81</ENT>
                            <ENT>4.04</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3 percent</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>4.31</ENT>
                            <ENT>6.21</ENT>
                            <ENT>7.20</ENT>
                            <ENT>9.05</ENT>
                            <ENT>8.18</ENT>
                            <ENT>11.06</ENT>
                            <ENT>11.76</ENT>
                            <ENT>15.28</ENT>
                            <ENT>16.03</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.17</ENT>
                            <ENT>0.50</ENT>
                            <ENT>0.63</ENT>
                            <ENT>0.92</ENT>
                            <ENT>0.71</ENT>
                            <ENT>0.78</ENT>
                            <ENT>0.94</ENT>
                            <ENT>1.06</ENT>
                            <ENT>1.17</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>4.48</ENT>
                            <ENT>6.71</ENT>
                            <ENT>7.83</ENT>
                            <ENT>9.97</ENT>
                            <ENT>8.88</ENT>
                            <ENT>11.84</ENT>
                            <ENT>12.70</ENT>
                            <ENT>16.34</ENT>
                            <ENT>17.21</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        These results reflect the use of the default product switching trend for NWGFs (as described in section IV.F.10 of this document). As previously discussed, DOE conducted a sensitivity analysis assuming higher and lower levels of product switching for NWGFs. The results of these alternative cases are 
                        <PRTPAGE P="87634"/>
                        presented in appendix 10 E of the final rule TSD.
                    </P>
                    <P>The NPV results for standards based on the aforementioned 9-year analytical period are presented in Table V.19. The impacts are counted over the lifetime of products purchased in 2029-2037. As mentioned previously, such results are presented for informational purposes only and are not indicative of any change in DOE's analytical methodology or decision criteria.</P>
                    <GPOTABLE COLS="11" OPTS="L2,i1" CDEF="s25,xs46,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.19—Cumulative Net Present Value of Consumer Benefits for Non-Weatherized Gas Furnace and Mobile Home Gas Furnace Standards; 9 Years of Shipments (2029-2037)</TTITLE>
                        <BOXHD>
                            <CHED H="1">Energy savings</CHED>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW RUL="n,n,s">
                            <ENT I="25"> </ENT>
                            <ENT O="xl"/>
                            <ENT A="08">(billion 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7 percent</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>0.57</ENT>
                            <ENT>0.90</ENT>
                            <ENT>1.06</ENT>
                            <ENT>1.48</ENT>
                            <ENT>1.19</ENT>
                            <ENT>1.43</ENT>
                            <ENT>1.99</ENT>
                            <ENT>2.41</ENT>
                            <ENT>2.01</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.11</ENT>
                            <ENT>0.15</ENT>
                            <ENT>0.21</ENT>
                            <ENT>0.16</ENT>
                            <ENT>0.18</ENT>
                            <ENT>0.22</ENT>
                            <ENT>0.24</ENT>
                            <ENT>0.27</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>0.61</ENT>
                            <ENT>1.01</ENT>
                            <ENT>1.21</ENT>
                            <ENT>1.69</ENT>
                            <ENT>1.36</ENT>
                            <ENT>1.62</ENT>
                            <ENT>2.20</ENT>
                            <ENT>2.65</ENT>
                            <ENT>2.28</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3 percent</ENT>
                            <ENT>NWGF</ENT>
                            <ENT>1.46</ENT>
                            <ENT>2.21</ENT>
                            <ENT>2.62</ENT>
                            <ENT>3.49</ENT>
                            <ENT>2.94</ENT>
                            <ENT>3.93</ENT>
                            <ENT>4.60</ENT>
                            <ENT>5.97</ENT>
                            <ENT>6.37</ENT>
                        </ROW>
                        <ROW RUL="n,n,s">
                            <ENT I="22"> </ENT>
                            <ENT>MHGF</ENT>
                            <ENT>0.08</ENT>
                            <ENT>0.24</ENT>
                            <ENT>0.30</ENT>
                            <ENT>0.44</ENT>
                            <ENT>0.34</ENT>
                            <ENT>0.38</ENT>
                            <ENT>0.45</ENT>
                            <ENT>0.50</ENT>
                            <ENT>0.56</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT O="oi3">Total</ENT>
                            <ENT>1.53</ENT>
                            <ENT>2.45</ENT>
                            <ENT>2.92</ENT>
                            <ENT>3.92</ENT>
                            <ENT>3.28</ENT>
                            <ENT>4.31</ENT>
                            <ENT>5.05</ENT>
                            <ENT>6.47</ENT>
                            <ENT>6.92</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>The previous results reflect the use of a default trend to estimate the change in price for NWGFs and MHGFs over the analysis period (see section IV.F.1 of this document). DOE also conducted a sensitivity analysis that considered one scenario with a lower rate of price decline than the reference case and one scenario with a higher rate of price decline than the reference case. The results of these alternative cases are presented in appendix 10C of the final rule TSD. In the high-price-decline case, the NPV of consumer benefits is higher than in the default case. In the low-price-decline case, the NPV of consumer benefits is lower than in the default case.</P>
                    <HD SOURCE="HD3">c. Indirect Impacts on Employment</HD>
                    <P>It is estimated that amended energy conservation standards for NWGFs and MHGFs will reduce energy expenditures for consumers of those products, with the resulting net savings being redirected to other forms of economic activity. These expected shifts in spending and economic activity could affect the demand for labor. As described in section IV.N of this document, DOE used an input/output model of the U.S. economy to estimate indirect employment impacts of the TSLs that DOE considered. There are uncertainties involved in projecting employment impacts, especially changes in the later years of the analysis. Therefore, DOE generated results for near-term timeframes (2029-2034), where these uncertainties are reduced.</P>
                    <P>The results suggest that the adopted standards are likely to have a negligible impact on the net demand for labor in the economy. The net change in jobs is so small that it would be imperceptible in national labor statistics and might be offset by other, unanticipated effects on employment. Chapter 16 of the final rule TSD presents detailed results regarding anticipated indirect employment impacts.</P>
                    <HD SOURCE="HD3">4. Impact on Utility or Performance of Products</HD>
                    <P>As discussed in section III.F.1.d of this document, DOE has concluded that the standards adopted in this final rule would not lessen the utility or performance of the NWGFs and MHGFs under consideration in this rulemaking. Manufacturers of these products currently offer units that meet or exceed the adopted standards.</P>
                    <HD SOURCE="HD3">5. Impact of Any Lessening of Competition</HD>
                    <P>DOE considered any lessening of competition that would be likely to result from new or amended standards. As discussed in section III.F.1.e of this document, EPCA directs the Attorney General of the United States (Attorney General) to determine the impact, if any, of any lessening of competition likely to result from a proposed standard and to transmit such determination in writing to the Secretary within 60 days of the publication of a proposed rule, together with an analysis of the nature and extent of the impact. DOE has provided DOJ with copies of the proposed rule and the accompanying TSD for review. DOE considered DOJ's comments on the proposed rule in determining whether to proceed to a final rule. DOE is publishing and responds to DOJ's comments in this final rule.</P>
                    <HD SOURCE="HD3">6. Need of the Nation To Conserve Energy</HD>
                    <P>Enhanced energy efficiency, where economically justified, improves the Nation's energy security, strengthens the economy, and reduces the environmental impacts (costs) of energy production. Chapter 15 in the final rule TSD presents the estimated impacts on electricity generating capacity, relative to the no-new-standards case, for the TSLs that DOE considered in this rulemaking.</P>
                    <P>
                        Energy conservation resulting from potential energy conservation standards for NWGFs and MHGFs is expected to yield environmental benefits in the form of reduced emissions of certain air pollutants and greenhouse gases. Table V.20 provides DOE's estimate of cumulative emissions reductions expected to result from the TSLs considered in this rulemaking. The increase in emissions of SO
                        <E T="52">2</E>
                         and Hg is due to a fraction of NWGF consumers that are projected to switch from gas furnaces to electric heat pumps and electric furnaces in response to the potential standards. The emissions were calculated using the multipliers discussed in section IV.K of this document. DOE reports annual emissions reductions for each TSL in chapter 13 of the final rule TSD.
                        <PRTPAGE P="87635"/>
                    </P>
                    <GPOTABLE COLS="10" OPTS="L2,i1" CDEF="s30,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.20—Cumulative Emissions Reduction for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Trial standard level</CHED>
                            <CHED H="2">1</CHED>
                            <CHED H="2">2</CHED>
                            <CHED H="2">3</CHED>
                            <CHED H="2">4</CHED>
                            <CHED H="2">5</CHED>
                            <CHED H="2">6</CHED>
                            <CHED H="2">7</CHED>
                            <CHED H="2">8</CHED>
                            <CHED H="2">9</CHED>
                        </BOXHD>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Power Sector and Site Emissions</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                CO
                                <E T="0732">2</E>
                                 (
                                <E T="03">million metric tons</E>
                                )
                            </ENT>
                            <ENT>75</ENT>
                            <ENT>106</ENT>
                            <ENT>125</ENT>
                            <ENT>173</ENT>
                            <ENT>139</ENT>
                            <ENT>234</ENT>
                            <ENT>189</ENT>
                            <ENT>290</ENT>
                            <ENT>413</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                CH
                                <E T="0732">4</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>1.5</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.3</ENT>
                            <ENT>2.9</ENT>
                            <ENT>2.5</ENT>
                            <ENT>3.1</ENT>
                            <ENT>3.4</ENT>
                            <ENT>4.2</ENT>
                            <ENT>5.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                N
                                <E T="0732">2</E>
                                O (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.3</ENT>
                            <ENT>0.3</ENT>
                            <ENT>0.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                NO
                                <E T="0732">X</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>67</ENT>
                            <ENT>95</ENT>
                            <ENT>112</ENT>
                            <ENT>157</ENT>
                            <ENT>124</ENT>
                            <ENT>218</ENT>
                            <ENT>169</ENT>
                            <ENT>268</ENT>
                            <ENT>385</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                SO
                                <E T="0732">2</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>(0)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(4)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(19)</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Hg (
                                <E T="03">tons</E>
                                )
                            </ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.03)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.15)</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Upstream Emissions</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                CO
                                <E T="0732">2</E>
                                 (
                                <E T="03">million metric tons</E>
                                )
                            </ENT>
                            <ENT>11</ENT>
                            <ENT>15</ENT>
                            <ENT>18</ENT>
                            <ENT>25</ENT>
                            <ENT>20</ENT>
                            <ENT>34</ENT>
                            <ENT>27</ENT>
                            <ENT>42</ENT>
                            <ENT>59</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                CH
                                <E T="0732">4</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>1,080</ENT>
                            <ENT>1,528</ENT>
                            <ENT>1,801</ENT>
                            <ENT>2,519</ENT>
                            <ENT>2,005</ENT>
                            <ENT>3,473</ENT>
                            <ENT>2,725</ENT>
                            <ENT>4,282</ENT>
                            <ENT>6,139</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                N
                                <E T="0732">2</E>
                                O (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                NO
                                <E T="0732">X</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>167</ENT>
                            <ENT>237</ENT>
                            <ENT>279</ENT>
                            <ENT>389</ENT>
                            <ENT>310</ENT>
                            <ENT>534</ENT>
                            <ENT>422</ENT>
                            <ENT>660</ENT>
                            <ENT>944</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                SO
                                <E T="0732">2</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.05</ENT>
                            <ENT>0.04</ENT>
                            <ENT>0.05</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>0.08</ENT>
                            <ENT>0.02</ENT>
                            <ENT>(0.04)</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Hg (
                                <E T="03">tons</E>
                                )
                            </ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.00)</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Total FFC Emissions</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                CO
                                <E T="0732">2</E>
                                 (
                                <E T="03">million metric tons</E>
                                )
                            </ENT>
                            <ENT>86</ENT>
                            <ENT>121</ENT>
                            <ENT>142</ENT>
                            <ENT>197</ENT>
                            <ENT>158</ENT>
                            <ENT>268</ENT>
                            <ENT>215</ENT>
                            <ENT>332</ENT>
                            <ENT>472</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                CH
                                <E T="0732">4</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>1,082</ENT>
                            <ENT>1,531</ENT>
                            <ENT>1,803</ENT>
                            <ENT>2,522</ENT>
                            <ENT>2,007</ENT>
                            <ENT>3,476</ENT>
                            <ENT>2,728</ENT>
                            <ENT>4,286</ENT>
                            <ENT>6,144</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                N
                                <E T="0732">2</E>
                                O (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.2</ENT>
                            <ENT>0.3</ENT>
                            <ENT>0.3</ENT>
                            <ENT>0.3</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.4</ENT>
                            <ENT>0.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                NO
                                <E T="0732">X</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>234</ENT>
                            <ENT>331</ENT>
                            <ENT>390</ENT>
                            <ENT>546</ENT>
                            <ENT>435</ENT>
                            <ENT>752</ENT>
                            <ENT>591</ENT>
                            <ENT>928</ENT>
                            <ENT>1329</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                SO
                                <E T="0732">2</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>(0)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(4)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(19)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                Hg (
                                <E T="03">tons</E>
                                )
                            </ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.03)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.15)</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Negative values (shown in parentheses) refer to an increase in emissions.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        As part of the analysis for this rulemaking, DOE estimated monetary benefits likely to result from the reduced emissions of CO
                        <E T="52">2</E>
                         that DOE estimated for each of the considered TSLs for NWGFs and MHGFs. Section IV.L.1.a of this document discusses the SC-CO
                        <E T="52">2</E>
                         values used.
                    </P>
                    <P>
                        Table V.21 presents the present value of the CO
                        <E T="52">2</E>
                         emissions reduction at each TSL.
                    </P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,14,14,14,18">
                        <TTITLE>
                            Table V.21—Present Value of CO
                            <E T="0732">2</E>
                             Emissions Reduction for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                SC-CO
                                <E T="0732">2</E>
                                 case 
                            </CHED>
                            <CHED H="2">Discount rate and statistics</CHED>
                            <CHED H="3">5%, Average</CHED>
                            <CHED H="3">3%, Average</CHED>
                            <CHED H="3">2.5%, Average</CHED>
                            <CHED H="3">3%, 95th-percentile</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="03">(million 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>676</ENT>
                            <ENT>3,059</ENT>
                            <ENT>4,860</ENT>
                            <ENT>9,253</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>965</ENT>
                            <ENT>4,357</ENT>
                            <ENT>6,917</ENT>
                            <ENT>13,181</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>1,137</ENT>
                            <ENT>5,130</ENT>
                            <ENT>8,142</ENT>
                            <ENT>15,522</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>1,543</ENT>
                            <ENT>6,989</ENT>
                            <ENT>11,104</ENT>
                            <ENT>21,139</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>1,266</ENT>
                            <ENT>5,709</ENT>
                            <ENT>9,060</ENT>
                            <ENT>17,274</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>2,165</ENT>
                            <ENT>9,735</ENT>
                            <ENT>15,433</ENT>
                            <ENT>29,464</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>1,721</ENT>
                            <ENT>7,767</ENT>
                            <ENT>12,327</ENT>
                            <ENT>23,500</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>2,684</ENT>
                            <ENT>12,076</ENT>
                            <ENT>19,149</ENT>
                            <ENT>36,550</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>3,857</ENT>
                            <ENT>17,311</ENT>
                            <ENT>27,429</ENT>
                            <ENT>52,406</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        As discussed in section IV.L.1.b of this document, DOE estimated monetary benefits likely to result from the reduced emissions of methane (CH
                        <E T="52">4</E>
                        ) and N
                        <E T="52">2</E>
                        O that DOE estimated for each of the considered TSLs for furnaces. Table V.22 presents the value of the CH
                        <E T="52">4</E>
                         emissions reduction at each TSL, and Table V.23 presents the value of the N
                        <E T="52">2</E>
                        O emissions reduction at each TSL.
                        <PRTPAGE P="87636"/>
                    </P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s25,14,14,14,18">
                        <TTITLE>Table V.22—Present Value of Methane Emissions Reduction for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                SC-CH
                                <E T="0732">4</E>
                                 case 
                            </CHED>
                            <CHED H="2">Discount rate and statistics</CHED>
                            <CHED H="3">5%, Average</CHED>
                            <CHED H="3">3%, Average</CHED>
                            <CHED H="3">2.5%, Average</CHED>
                            <CHED H="3">3%, 95th-percentile</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="03">(million 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>403</ENT>
                            <ENT>1,284</ENT>
                            <ENT>1,817</ENT>
                            <ENT>3,395</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>576</ENT>
                            <ENT>1,829</ENT>
                            <ENT>2,588</ENT>
                            <ENT>4,838</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>681</ENT>
                            <ENT>2,160</ENT>
                            <ENT>3,054</ENT>
                            <ENT>5,712</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>935</ENT>
                            <ENT>2,976</ENT>
                            <ENT>4,213</ENT>
                            <ENT>7,872</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>760</ENT>
                            <ENT>2,408</ENT>
                            <ENT>3,405</ENT>
                            <ENT>6,370</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>1,333</ENT>
                            <ENT>4,199</ENT>
                            <ENT>5,930</ENT>
                            <ENT>11,108</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>1,032</ENT>
                            <ENT>3,271</ENT>
                            <ENT>4,626</ENT>
                            <ENT>8,652</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>1,641</ENT>
                            <ENT>5,177</ENT>
                            <ENT>7,314</ENT>
                            <ENT>13,695</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>2,378</ENT>
                            <ENT>7,473</ENT>
                            <ENT>10,549</ENT>
                            <ENT>19,771</ENT>
                        </ROW>
                    </GPOTABLE>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s25,14,14,14,18">
                        <TTITLE>Table V.23—Present Value of Nitrous Oxide Emissions Reduction for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058</TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">
                                SC-N
                                <E T="0732">2</E>
                                O case
                            </CHED>
                            <CHED H="2">Discount rate and statistics</CHED>
                            <CHED H="3">5%, Average</CHED>
                            <CHED H="3">3%, Average</CHED>
                            <CHED H="3">2.5%, Average</CHED>
                            <CHED H="3">3%, 95th-percentile</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="03">(million 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>0.5</ENT>
                            <ENT>2.0</ENT>
                            <ENT>3.2</ENT>
                            <ENT>5.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>0.7</ENT>
                            <ENT>2.8</ENT>
                            <ENT>4.4</ENT>
                            <ENT>7.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>0.7</ENT>
                            <ENT>3.1</ENT>
                            <ENT>4.9</ENT>
                            <ENT>8.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>0.8</ENT>
                            <ENT>3.6</ENT>
                            <ENT>5.7</ENT>
                            <ENT>9.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>0.8</ENT>
                            <ENT>3.4</ENT>
                            <ENT>5.3</ENT>
                            <ENT>9.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>0.8</ENT>
                            <ENT>3.3</ENT>
                            <ENT>5.2</ENT>
                            <ENT>8.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>1.1</ENT>
                            <ENT>4.7</ENT>
                            <ENT>7.4</ENT>
                            <ENT>12.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>1.1</ENT>
                            <ENT>4.9</ENT>
                            <ENT>7.7</ENT>
                            <ENT>13.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>1.3</ENT>
                            <ENT>5.5</ENT>
                            <ENT>8.7</ENT>
                            <ENT>14.7</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        DOE is well aware that scientific and economic knowledge about the contribution of CO
                        <E T="52">2</E>
                         and other GHG emissions to changes in the future global climate and the potential resulting damages to the world economy continues to evolve rapidly. Thus, any value placed on reduced GHG emissions in this rulemaking is subject to change. That said, because of omitted damages, DOE agrees with the IWG that these estimates most likely underestimate the climate benefits of greenhouse gas reductions. DOE, together with other Federal agencies, will continue to review various methodologies for estimating the monetary value of reductions in CO
                        <E T="52">2</E>
                         and other GHG emissions. This ongoing review will consider the comments on this subject that are part of the public record for this and other rulemakings, as well as other methodological assumptions and issues. DOE notes that the adopted standards are economically justified even without inclusion of monetized benefits of reduced GHG emissions.
                    </P>
                    <P>
                        DOE also estimated the monetary value of the economic benefits associated with NO
                        <E T="52">X</E>
                         emissions reductions anticipated to result from the considered TSLs for NWGFs and MHGFs. The dollar-per-ton values that DOE used are discussed in section IV.L of this document. Table V.24 shows the present value for NO
                        <E T="52">X</E>
                         emissions reduction for each TSL calculated using 7-percent and 3-percent discount rates. This table presents results that use the low benefit-per-ton values, which reflect DOE's primary estimate.
                    </P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s100,16,16">
                        <TTITLE>
                            Table V.24—Present Value of NO
                            <E T="0732">X</E>
                             Emissions Reduction for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">7% Discount rate</CHED>
                            <CHED H="1">3% Discount rate</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="01">(million 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>2,195</ENT>
                            <ENT>6,868</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>3,157</ENT>
                            <ENT>9,777</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>3,735</ENT>
                            <ENT>11,520</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>5,031</ENT>
                            <ENT>15,773</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>4,164</ENT>
                            <ENT>12,822</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>7,251</ENT>
                            <ENT>21,994</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>5,651</ENT>
                            <ENT>17,432</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>8,950</ENT>
                            <ENT>27,227</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="87637"/>
                            <ENT I="01">9</ENT>
                            <ENT>12,980</ENT>
                            <ENT>39,089</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Results are based on the low benefit-per-ton values.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        DOE also estimated the monetary value of the economic impacts associated with changes in SO
                        <E T="52">2</E>
                         emissions anticipated to result from the considered TSLs for NWGFs and MHGFs. The dollar-per-ton values that DOE used are discussed in section IV.L.2 of this document. Table V.25 presents the present value of SO
                        <E T="52">2</E>
                         emission changes for each TSL calculated using 7-percent and 3-percent discount rates. This table presents results that use the low benefit-per-ton values, which reflect DOE's primary estimate.
                    </P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s100,16,16">
                        <TTITLE>
                            Table V.25—Present Value of SO
                            <E T="0732">2</E>
                             Emission Changes for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces Shipped in 2029-2058
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">TSL</CHED>
                            <CHED H="1">7% Discount rate</CHED>
                            <CHED H="1">3% Discount rate</CHED>
                        </BOXHD>
                        <ROW RUL="n,s">
                            <ENT I="25"> </ENT>
                            <ENT A="01">(million 2022$)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">1</ENT>
                            <ENT>(7)</ENT>
                            <ENT>(20)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2</ENT>
                            <ENT>(15)</ENT>
                            <ENT>(44)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3</ENT>
                            <ENT>(28)</ENT>
                            <ENT>(81)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">4</ENT>
                            <ENT>(76)</ENT>
                            <ENT>(226)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">5</ENT>
                            <ENT>(39)</ENT>
                            <ENT>(112)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">6</ENT>
                            <ENT>(214)</ENT>
                            <ENT>(608)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">7</ENT>
                            <ENT>(43)</ENT>
                            <ENT>(131)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">8</ENT>
                            <ENT>(214)</ENT>
                            <ENT>(616)</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">9</ENT>
                            <ENT>(401)</ENT>
                            <ENT>(1,142)</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Parentheses indicate negative (−) values.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        The benefits of reduced CO
                        <E T="52">2</E>
                        , CH
                        <E T="52">4</E>
                        , and N
                        <E T="52">2</E>
                        O emissions are collectively referred to as “climate benefits.” The effects of SO
                        <E T="52">2</E>
                         and NO
                        <E T="52">X</E>
                         emission changes are collectively referred to as “health benefits.” For the time series of estimated monetary values of reduced emissions, see chapter 14 of the final rule TSD.
                    </P>
                    <HD SOURCE="HD3">7. Other Factors</HD>
                    <P>The Secretary of Energy, in determining whether a standard is economically justified, may consider any other factors that the Secretary deems to be relevant. (42 U.S.C. 6295(o)(2)(B)(i)(VII)) No other factors were considered in this analysis.</P>
                    <HD SOURCE="HD3">8. Summary of National Economic Impacts</HD>
                    <P>
                        Table V.26 presents the NPV values that result from adding the monetized estimates of the potential economic, climate, and health net benefits resulting from GHG, NO
                        <E T="52">X</E>
                        , and SO
                        <E T="52">2</E>
                         emission changes to the NPV of consumer savings calculated for each TSL considered in this rulemaking. The consumer benefits are domestic U.S. monetary savings that occur as a result of purchasing the covered NWGFs and MHGFs, and are measured for the lifetime of products shipped in 2029-2058. The climate benefits associated with reduced GHG emissions resulting from the adopted standards are global benefits and are also calculated based on the lifetime of consumer furnaces shipped in 2029-2058. The climate benefits associated with four SC-GHG estimates are shown. DOE does not have a single central SC-GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
                    </P>
                    <GPOTABLE COLS="10" OPTS="L2,p7,7/8,i1" CDEF="s25,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.26—NPV of Consumer Benefits Combined With Monetized Climate and Health Benefits From Emissions Reductions</TTITLE>
                        <BOXHD>
                            <CHED H="1">Category</CHED>
                            <CHED H="1">TSL 1</CHED>
                            <CHED H="1">TSL 2</CHED>
                            <CHED H="1">TSL 3</CHED>
                            <CHED H="1">TSL 4</CHED>
                            <CHED H="1">TSL 5</CHED>
                            <CHED H="1">TSL 6</CHED>
                            <CHED H="1">TSL 7</CHED>
                            <CHED H="1">TSL 8</CHED>
                            <CHED H="1">TSL 9</CHED>
                        </BOXHD>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">3% discount rate for NPV of Consumer and Health Benefits (billion 2022$)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">5% d.r., Average SC-GHG case</ENT>
                            <ENT>12.4</ENT>
                            <ENT>18.0</ENT>
                            <ENT>21.1</ENT>
                            <ENT>28.0</ENT>
                            <ENT>23.6</ENT>
                            <ENT>36.7</ENT>
                            <ENT>32.8</ENT>
                            <ENT>47.3</ENT>
                            <ENT>61.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3% d.r., Average SC-GHG case</ENT>
                            <ENT>15.7</ENT>
                            <ENT>22.6</ENT>
                            <ENT>26.6</ENT>
                            <ENT>35.5</ENT>
                            <ENT>29.7</ENT>
                            <ENT>47.2</ENT>
                            <ENT>41.0</ENT>
                            <ENT>60.2</ENT>
                            <ENT>79.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2.5% d.r., Average SC-GHG case</ENT>
                            <ENT>18.0</ENT>
                            <ENT>26.0</ENT>
                            <ENT>30.5</ENT>
                            <ENT>40.8</ENT>
                            <ENT>34.1</ENT>
                            <ENT>54.6</ENT>
                            <ENT>47.0</ENT>
                            <ENT>69.4</ENT>
                            <ENT>93.1</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">3% d.r., 95th-percentile SC-GHG case</ENT>
                            <ENT>24.0</ENT>
                            <ENT>34.5</ENT>
                            <ENT>40.5</ENT>
                            <ENT>54.5</ENT>
                            <ENT>45.2</ENT>
                            <ENT>73.8</ENT>
                            <ENT>62.2</ENT>
                            <ENT>93.2</ENT>
                            <ENT>127.3</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">7% discount rate for NPV of Consumer and Health Benefits (billion 2022$)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">5% d.r., Average SC-GHG case</ENT>
                            <ENT>4.6</ENT>
                            <ENT>6.7</ENT>
                            <ENT>7.9</ENT>
                            <ENT>10.5</ENT>
                            <ENT>8.8</ENT>
                            <ENT>13.7</ENT>
                            <ENT>12.4</ENT>
                            <ENT>17.9</ENT>
                            <ENT>22.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3% d.r., Average SC-GHG case</ENT>
                            <ENT>7.8</ENT>
                            <ENT>11.4</ENT>
                            <ENT>13.4</ENT>
                            <ENT>18.0</ENT>
                            <ENT>14.9</ENT>
                            <ENT>24.2</ENT>
                            <ENT>20.7</ENT>
                            <ENT>30.8</ENT>
                            <ENT>41.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2.5% d.r., Average SC-GHG case</ENT>
                            <ENT>10.2</ENT>
                            <ENT>14.7</ENT>
                            <ENT>17.3</ENT>
                            <ENT>23.4</ENT>
                            <ENT>19.3</ENT>
                            <ENT>31.6</ENT>
                            <ENT>26.6</ENT>
                            <ENT>40.0</ENT>
                            <ENT>54.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">3% d.r., 95th-percentile SC-GHG case</ENT>
                            <ENT>16.2</ENT>
                            <ENT>23.2</ENT>
                            <ENT>27.3</ENT>
                            <ENT>37.1</ENT>
                            <ENT>30.5</ENT>
                            <ENT>50.8</ENT>
                            <ENT>41.8</ENT>
                            <ENT>63.8</ENT>
                            <ENT>88.8</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             “d.r.” means discount rate.
                        </TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="87638"/>
                    <HD SOURCE="HD2">C. Conclusion</HD>
                    <P>When considering new or amended energy conservation standards, the standards that DOE adopts for any type (or class) of covered product must be designed to achieve the maximum improvement in energy efficiency that the Secretary determines is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) In determining whether a standard is economically justified, the Secretary must determine whether the benefits of the standard exceed its burdens by, to the greatest extent practicable, considering the seven statutory factors discussed previously. (42 U.S.C. 6295(o)(2)(B)(i)) The new or amended standard must also result in significant conservation of energy. (42 U.S.C. 6295(o)(3)(B))</P>
                    <P>In this final rule, DOE considered the impacts of amended standards for NWGFs and MHGFs at each TSL, beginning with the maximum technologically feasible level, to determine whether that level was economically justified. Where the max-tech level was not justified, DOE then considered the next most efficient level and undertook the same evaluation until it reached the highest efficiency level that is both technologically feasible and economically justified and saves a significant amount of energy.</P>
                    <P>To aid the reader as DOE discusses the benefits and/or burdens of each TSL, tables in this section present a summary of the results of DOE's quantitative analysis for each TSL. In addition to the quantitative results presented in the tables, DOE also considers other burdens and benefits that affect economic justification. These include the impacts on identifiable subgroups of consumers who may be disproportionately affected by a national standard and impacts on employment.</P>
                    <P>DOE also notes that the economics literature provides a wide-ranging discussion of how consumers trade off upfront costs and energy savings in the absence of government intervention. Much of this literature attempts to explain why consumers appear to undervalue energy efficiency improvements. There is evidence that consumers undervalue future energy savings as a result of: (1) a lack of information; (2) a lack of sufficient salience of the long-term or aggregate benefits; (3) a lack of sufficient savings to warrant delaying or altering purchases; (4) excessive focus on the short term, in the form of inconsistent weighting of future energy cost savings relative to available returns on other investments; (5) computational or other difficulties associated with the evaluation of relevant tradeoffs; and (6) a divergence in incentives (for example, between renters and owners, or builders and purchasers). Having less than perfect foresight and a high degree of uncertainty about the future, consumers may trade off these types of investments at a higher than expected rate between current consumption and uncertain future energy cost savings.</P>
                    <P>
                        In DOE's current regulatory analysis, potential changes in the benefits and costs of a regulation due to changes in consumer purchase decisions are included in two ways. First, if consumers forgo the purchase of a product in the standards case, this decreases sales for product manufacturers, and the impact on manufacturers attributed to lost revenue is included in the MIA. Second, DOE accounts for energy savings attributable only to products actually used by consumers in the standards case; if a standard decreases the number of products purchased by consumers or increases consumer use of energy, such as through a rebound rate, this decreases the potential energy savings from an energy conservation standard. DOE provides estimates of shipments and changes in the volume of product purchases in chapter 9 of the final rule TSD. However, DOE's current analysis does not explicitly control for heterogeneity in consumer preferences, preferences across subcategories of products or specific features, or consumer price sensitivity variation according to household income.
                        <SU>284</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>284</SU>
                             P.C. Reiss and M.W. White (2005), Household Electricity Demand, Revisited. 
                            <E T="03">The Review of Economic Studies,</E>
                             72 (3), 853-883 (available at: 
                            <E T="03">academic.oup.com/restud/article/72/3/853/1557538</E>
                            ) (last accessed August 1, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">1. Benefits and Burdens of TSLs Considered for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</HD>
                    <P>Tables V.27 and V.28 summarize the quantitative impacts estimated for each TSL for NWGFs and MHGFs. The national impacts are measured over the lifetime of NWGFs and MHGFs purchased in the 30-year period that begins in the anticipated year of compliance with amended standards (2029-2058). The energy savings and emissions reductions refer to full-fuel-cycle results. The efficiency levels contained in each TSL are described further in section V.A of this document.</P>
                    <GPOTABLE COLS="10" OPTS="L2,p7,7/8,i1" CDEF="s25,6,6,6,6,6,6,6,6,6">
                        <TTITLE>Table V.27—Summary of Analytical Results for Non-Weatherized Gas Furnace and Mobile Home Gas Furnace TSLs: National Impacts</TTITLE>
                        <BOXHD>
                            <CHED H="1">Category</CHED>
                            <CHED H="1">TSL 1</CHED>
                            <CHED H="1">TSL 2</CHED>
                            <CHED H="1">TSL 3</CHED>
                            <CHED H="1">TSL 4</CHED>
                            <CHED H="1">TSL 5</CHED>
                            <CHED H="1">TSL 6</CHED>
                            <CHED H="1">TSL 7</CHED>
                            <CHED H="1">TSL 8</CHED>
                            <CHED H="1">TSL 9</CHED>
                        </BOXHD>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Cumulative FFC National Energy Savings (quads)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00" RUL="s">
                            <ENT I="01">Quads</ENT>
                            <ENT>1.52</ENT>
                            <ENT>2.11</ENT>
                            <ENT>2.42</ENT>
                            <ENT>3.10</ENT>
                            <ENT>2.65</ENT>
                            <ENT>3.63</ENT>
                            <ENT>3.63</ENT>
                            <ENT>4.77</ENT>
                            <ENT>6.26</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Cumulative FFC Emissions Reduction (total FFC emission)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                CO
                                <E T="0732">2</E>
                                 (
                                <E T="03">million metric tons</E>
                                )
                            </ENT>
                            <ENT>86</ENT>
                            <ENT>121</ENT>
                            <ENT>142</ENT>
                            <ENT>197</ENT>
                            <ENT>158</ENT>
                            <ENT>268</ENT>
                            <ENT>215</ENT>
                            <ENT>332</ENT>
                            <ENT>472</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                CH
                                <E T="0732">4</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>1,082</ENT>
                            <ENT>1,531</ENT>
                            <ENT>1,803</ENT>
                            <ENT>2,522</ENT>
                            <ENT>2,007</ENT>
                            <ENT>3,476</ENT>
                            <ENT>2,728</ENT>
                            <ENT>4,286</ENT>
                            <ENT>6,144</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                N
                                <E T="0732">2</E>
                                O (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>0.16</ENT>
                            <ENT>0.22</ENT>
                            <ENT>0.24</ENT>
                            <ENT>0.28</ENT>
                            <ENT>0.26</ENT>
                            <ENT>0.26</ENT>
                            <ENT>0.36</ENT>
                            <ENT>0.38</ENT>
                            <ENT>0.43</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                NO
                                <E T="0732">X</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>234</ENT>
                            <ENT>331</ENT>
                            <ENT>390</ENT>
                            <ENT>546</ENT>
                            <ENT>435</ENT>
                            <ENT>752</ENT>
                            <ENT>591</ENT>
                            <ENT>928</ENT>
                            <ENT>1,329</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                SO
                                <E T="0732">2</E>
                                 (
                                <E T="03">thousand tons</E>
                                )
                            </ENT>
                            <ENT>(0)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(1)</ENT>
                            <ENT>(4)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(2)</ENT>
                            <ENT>(10)</ENT>
                            <ENT>(19)</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Hg (
                                <E T="03">tons</E>
                                )
                            </ENT>
                            <ENT>(0.00)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.01)</ENT>
                            <ENT>(0.03)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.02)</ENT>
                            <ENT>(0.08)</ENT>
                            <ENT>(0.15)</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Present Value of Benefits and Costs (3% discount rate, billion 2022$)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>6.3</ENT>
                            <ENT>9.3</ENT>
                            <ENT>10.9</ENT>
                            <ENT>13.9</ENT>
                            <ENT>12.4</ENT>
                            <ENT>18.8</ENT>
                            <ENT>17.3</ENT>
                            <ENT>24.8</ENT>
                            <ENT>32.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits *</ENT>
                            <ENT>4.3</ENT>
                            <ENT>6.2</ENT>
                            <ENT>7.3</ENT>
                            <ENT>10.0</ENT>
                            <ENT>8.1</ENT>
                            <ENT>13.9</ENT>
                            <ENT>11.0</ENT>
                            <ENT>17.3</ENT>
                            <ENT>24.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Health Benefits **</ENT>
                            <ENT>6.8</ENT>
                            <ENT>9.7</ENT>
                            <ENT>11.4</ENT>
                            <ENT>15.5</ENT>
                            <ENT>12.7</ENT>
                            <ENT>21.4</ENT>
                            <ENT>17.3</ENT>
                            <ENT>26.6</ENT>
                            <ENT>37.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Benefits †</ENT>
                            <ENT>17.4</ENT>
                            <ENT>25.2</ENT>
                            <ENT>29.7</ENT>
                            <ENT>39.4</ENT>
                            <ENT>33.2</ENT>
                            <ENT>54.1</ENT>
                            <ENT>45.6</ENT>
                            <ENT>68.7</ENT>
                            <ENT>95.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>1.8</ENT>
                            <ENT>2.5</ENT>
                            <ENT>3.1</ENT>
                            <ENT>3.9</ENT>
                            <ENT>3.5</ENT>
                            <ENT>7.0</ENT>
                            <ENT>4.6</ENT>
                            <ENT>8.5</ENT>
                            <ENT>15.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Net Benefits</ENT>
                            <ENT>4.5</ENT>
                            <ENT>6.7</ENT>
                            <ENT>7.8</ENT>
                            <ENT>10.0</ENT>
                            <ENT>8.9</ENT>
                            <ENT>11.8</ENT>
                            <ENT>12.7</ENT>
                            <ENT>16.3</ENT>
                            <ENT>17.2</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Total Net Benefits</ENT>
                            <ENT>15.7</ENT>
                            <ENT>22.6</ENT>
                            <ENT>26.6</ENT>
                            <ENT>35.5</ENT>
                            <ENT>29.7</ENT>
                            <ENT>47.2</ENT>
                            <ENT>41.0</ENT>
                            <ENT>60.2</ENT>
                            <ENT>79.9</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <PRTPAGE P="87639"/>
                            <ENT I="21">
                                <E T="02">Present Value of Benefits and Costs (7% discount rate, billions 2022$)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>2.3</ENT>
                            <ENT>3.4</ENT>
                            <ENT>4.1</ENT>
                            <ENT>5.1</ENT>
                            <ENT>4.6</ENT>
                            <ENT>7.0</ENT>
                            <ENT>6.4</ENT>
                            <ENT>9.3</ENT>
                            <ENT>12.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits *</ENT>
                            <ENT>4.3</ENT>
                            <ENT>6.2</ENT>
                            <ENT>7.3</ENT>
                            <ENT>10.0</ENT>
                            <ENT>8.1</ENT>
                            <ENT>13.9</ENT>
                            <ENT>11.0</ENT>
                            <ENT>17.3</ENT>
                            <ENT>24.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Health Benefits **</ENT>
                            <ENT>2.2</ENT>
                            <ENT>3.1</ENT>
                            <ENT>3.7</ENT>
                            <ENT>5.0</ENT>
                            <ENT>4.1</ENT>
                            <ENT>7.0</ENT>
                            <ENT>5.6</ENT>
                            <ENT>8.7</ENT>
                            <ENT>12.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Benefits †</ENT>
                            <ENT>8.8</ENT>
                            <ENT>12.7</ENT>
                            <ENT>15.1</ENT>
                            <ENT>20.1</ENT>
                            <ENT>16.8</ENT>
                            <ENT>28.0</ENT>
                            <ENT>23.1</ENT>
                            <ENT>35.3</ENT>
                            <ENT>49.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>1.0</ENT>
                            <ENT>1.4</ENT>
                            <ENT>1.7</ENT>
                            <ENT>2.0</ENT>
                            <ENT>1.9</ENT>
                            <ENT>3.8</ENT>
                            <ENT>2.4</ENT>
                            <ENT>4.5</ENT>
                            <ENT>8.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Net Benefits</ENT>
                            <ENT>1.3</ENT>
                            <ENT>2.0</ENT>
                            <ENT>2.4</ENT>
                            <ENT>3.1</ENT>
                            <ENT>2.7</ENT>
                            <ENT>3.2</ENT>
                            <ENT>4.1</ENT>
                            <ENT>4.8</ENT>
                            <ENT>4.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Net Benefits</ENT>
                            <ENT>7.8</ENT>
                            <ENT>11.4</ENT>
                            <ENT>13.4</ENT>
                            <ENT>18.0</ENT>
                            <ENT>14.9</ENT>
                            <ENT>24.2</ENT>
                            <ENT>20.7</ENT>
                            <ENT>30.8</ENT>
                            <ENT>41.4</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             This table presents the costs and benefits associated with consumer furnaces shipped in 2029-2058. These results include benefits to consumers which accrue after 2058 from the products shipped in 2029-2058. Parentheses indicate negative (−) values.
                        </TNOTE>
                        <TNOTE>
                            * Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO
                            <E T="0732">2</E>
                            ), methane (SC-CH
                            <E T="0732">4</E>
                            ), and nitrous oxide (SC-N
                            <E T="0732">2</E>
                            O) (model average at 2.5-percent, 3-percent, and 5-percent discount rates; 95th-percentile at 3-percent discount rate). Together these represent the global social cost of greenhouse gases (SC-GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3-percent discount rate are shown, but the Department does not have a single, central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four sets of SC-GHG estimates. To monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the 
                            <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                             published in February 2021 by the IWG.
                        </TNOTE>
                        <TNOTE>
                            ** Net health benefits are calculated using benefit-per-ton values for NO
                            <E T="0732">X</E>
                             and SO
                            <E T="0732">2</E>
                            . DOE is currently only monetizing (for SO
                            <E T="0732">2</E>
                             and NO
                            <E T="0732">X</E>
                            ) PM
                            <E T="0732">2.5</E>
                             precursor health benefits and (for NO
                            <E T="0732">X</E>
                            ) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM
                            <E T="0732">2.5</E>
                             emissions. See section IV.L of this document for more details.
                        </TNOTE>
                        <TNOTE>† Total and net benefits include those consumer, climate, and health benefits that can be monetized. For presentation purposes, total and net benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate.</TNOTE>
                        <TNOTE>‡ Costs include incremental equipment costs as well as installation costs.</TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="10" OPTS="L2,p7,7/8,i1" CDEF="s25,xs40,xs40,xs40,xs40,xs40,xs48,xs40,xs40,xs40">
                        <TTITLE>Table V.28—Summary of Analytical Results for Non-Weatherized Gas Furnace and Mobile Home Gas Furnace TSLs: Manufacturer and Consumer Impacts</TTITLE>
                        <BOXHD>
                            <CHED H="1">Category</CHED>
                            <CHED H="1">TSL 1</CHED>
                            <CHED H="1">TSL 2</CHED>
                            <CHED H="1">TSL 3</CHED>
                            <CHED H="1">TSL 4</CHED>
                            <CHED H="1">TSL 5</CHED>
                            <CHED H="1">TSL 6</CHED>
                            <CHED H="1">TSL 7</CHED>
                            <CHED H="1">TSL 8</CHED>
                            <CHED H="1">TSL 9</CHED>
                        </BOXHD>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Manufacturer Impacts</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                Industry NPV (
                                <E T="03">million 2022$</E>
                                ) (No-new-standards case INPV = 1,371.8)
                            </ENT>
                            <ENT>1,264.0 to 1,351.3</ENT>
                            <ENT>1,226.7 to 1,345.3</ENT>
                            <ENT>1,207.5 to 1,337.0</ENT>
                            <ENT>1,089.0 to 1,342.5</ENT>
                            <ENT>1,199.9 to 1,341.4</ENT>
                            <ENT>1,201.3 to 1,337.9</ENT>
                            <ENT>1,015.1 to 1,339.1</ENT>
                            <ENT>1,004.6 to 1,338.0</ENT>
                            <ENT>703.1 to 1,352.7</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Industry NPV (
                                <E T="03">% change</E>
                                )
                            </ENT>
                            <ENT>(7.9) to (1.5)</ENT>
                            <ENT>(10.6) to (1.9)</ENT>
                            <ENT>(12.0) to (2.5)</ENT>
                            <ENT>(20.6) to (2.1)</ENT>
                            <ENT>(12.5) to (2.2)</ENT>
                            <ENT>(12.4) to (2.5)</ENT>
                            <ENT>(26.0) to (2.4)</ENT>
                            <ENT>(26.8) to (2.5)</ENT>
                            <ENT>(48.7) to (1.4)</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Consumer Average LCC Savings (2022$)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">NWGF</ENT>
                            <ENT>577</ENT>
                            <ENT>571</ENT>
                            <ENT>580</ENT>
                            <ENT>390</ENT>
                            <ENT>551</ENT>
                            <ENT>320</ENT>
                            <ENT>479</ENT>
                            <ENT>350</ENT>
                            <ENT>169</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">MHGF</ENT>
                            <ENT>846</ENT>
                            <ENT>805</ENT>
                            <ENT>736</ENT>
                            <ENT>908</ENT>
                            <ENT>675</ENT>
                            <ENT>532</ENT>
                            <ENT>760</ENT>
                            <ENT>616</ENT>
                            <ENT>529</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Shipment-Weighted Average 
                                <SU>*</SU>
                            </ENT>
                            <ENT>583</ENT>
                            <ENT>580</ENT>
                            <ENT>587</ENT>
                            <ENT>406</ENT>
                            <ENT>557</ENT>
                            <ENT>327</ENT>
                            <ENT>487</ENT>
                            <ENT>357</ENT>
                            <ENT>176</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Consumer Simple PBP (years)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">NWGF</ENT>
                            <ENT>6.4</ENT>
                            <ENT>6.6</ENT>
                            <ENT>6.7</ENT>
                            <ENT>7.0</ENT>
                            <ENT>7.0</ENT>
                            <ENT>9.4</ENT>
                            <ENT>5.8</ENT>
                            <ENT>7.6</ENT>
                            <ENT>10.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">MHGF</ENT>
                            <ENT>2.2</ENT>
                            <ENT>2.5</ENT>
                            <ENT>2.5</ENT>
                            <ENT>2.4</ENT>
                            <ENT>2.6</ENT>
                            <ENT>3.6</ENT>
                            <ENT>2.4</ENT>
                            <ENT>3.2</ENT>
                            <ENT>4.8</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Shipment-Weighted Average 
                                <SU>*</SU>
                            </ENT>
                            <ENT>6.4</ENT>
                            <ENT>6.5</ENT>
                            <ENT>6.6</ENT>
                            <ENT>6.9</ENT>
                            <ENT>7.0</ENT>
                            <ENT>9.2</ENT>
                            <ENT>5.7</ENT>
                            <ENT>7.5</ENT>
                            <ENT>10.0</ENT>
                        </ROW>
                        <ROW EXPSTB="09" RUL="s">
                            <ENT I="21">
                                <E T="02">Percentage of Consumers That Experience a Net Cost</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">NWGF</ENT>
                            <ENT>3.2</ENT>
                            <ENT>4.7</ENT>
                            <ENT>5.8</ENT>
                            <ENT>5.6</ENT>
                            <ENT>6.8</ENT>
                            <ENT>19.2</ENT>
                            <ENT>6.8</ENT>
                            <ENT>18.7</ENT>
                            <ENT>62.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">MHGF</ENT>
                            <ENT>0.6</ENT>
                            <ENT>2.5</ENT>
                            <ENT>3.7</ENT>
                            <ENT>3.9</ENT>
                            <ENT>5.0</ENT>
                            <ENT>16.2</ENT>
                            <ENT>5.0</ENT>
                            <ENT>15.3</ENT>
                            <ENT>18.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                Shipment-Weighted Average 
                                <SU>*</SU>
                            </ENT>
                            <ENT>3.1</ENT>
                            <ENT>4.6</ENT>
                            <ENT>5.8</ENT>
                            <ENT>5.6</ENT>
                            <ENT>6.8</ENT>
                            <ENT>19.2</ENT>
                            <ENT>6.8</ENT>
                            <ENT>18.7</ENT>
                            <ENT>61.4</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             Parentheses indicate negative (−) values.
                        </TNOTE>
                        <TNOTE>* Weighted by shares of each product class in total projected shipments in 2029.</TNOTE>
                    </GPOTABLE>
                    <P>
                        DOE first considered the standards at TSL 9, which represents the max-tech efficiency levels and which includes the highest efficiency commercially available for both non-weatherized gas furnaces and mobile furnaces (
                        <E T="03">i.e.,</E>
                         98-percent AFUE for NWGFs and 96-percent AFUE for MHGFs). TSL 9 would save 6.26 quads of energy, an amount DOE considers significant. Under TSL 9, the NPV of consumer benefit would be $4.0 billion using a discount rate of 7 percent, and $17.2 billion using a discount rate of 3 percent.
                    </P>
                    <P>
                        The cumulative emissions reductions at TSL 9 are 472 Mt of CO
                        <E T="52">2</E>
                        , 6.1 million tons of CH
                        <E T="52">4,</E>
                         0.4 thousand tons of N
                        <E T="52">2</E>
                        O, and 1.3 million tons of NO
                        <E T="52">X</E>
                        . Projected emissions show an increase of 19 thousand tons of SO
                        <E T="52">2</E>
                         and 0.15 tons of Hg. The increase is due to projected switching from gas furnaces to electric heat pumps and electric furnaces by some consumers under standards at TSL 9. The estimated monetary value of the climate benefits from reduced GHG emissions (associated with the average SC-GHG at a 3-percent discount rate) at TSL 9 is $24.8 billion. The estimated monetary value of the net health benefits from changes to NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions at TSL 9 is $12.6 billion using a 7-percent discount rate and $37.9 billion using a 3-percent discount rate.
                    </P>
                    <P>
                        Using a 7-percent discount rate for consumer benefits and costs, net health benefits from SO
                        <E T="52">2</E>
                         and NO
                        <E T="52">X</E>
                         emission changes, and the 3-percent discount rate case for climate benefits from reduced GHG emissions, the estimated total NPV at TSL 9 is $41.4 billion. Using a 3-percent discount rate for all benefits and 
                        <PRTPAGE P="87640"/>
                        costs, the estimated total NPV at TSL 9 is $79.9 billion.
                    </P>
                    <P>At TSL 9, the average LCC impact on affected consumers is a savings of $169 for NWGFs and $529 for MHGFs. The simple payback period is 10.1 years for NWGFs and 4.8 years for MHGFs. The fraction of consumers experiencing a net LCC cost is 62.3 percent for NWGFs and 18.3 percent for MHGFs. The fraction of low-income consumers experiencing a net LCC cost is 39.7 percent for NWGFs and 18.0 percent for MHGFs.</P>
                    <P>At TSL 9, the projected changes in INPV range from a decrease of $668.7 million to a decrease of $19.1 million. If the more severe end of this range is realized, TSL 9 could result in a net loss of 48.7 percent in INPV. Industry conversion costs could reach $328.0 million at this TSL.</P>
                    <P>
                        At TSL 9, manufacturers would need to significantly restructure their product offerings. Currently, less than half of consumer furnace manufacturers offer a product that meets the max-tech efficiencies. The models available at these efficiencies are not produced in high volumes. DOE estimates that approximately 1.4 percent of NWGF shipments and 0.9 percent of MHGF shipments are currently sold (2023) at the max-tech levels, 98-percent AFUE and 96-percent AFUE, respectively. The NWGF industry would incur significant product conversion costs to develop cost-optimized NWGF models for a marketplace where efficiency and combustion system technology are no longer viable options for product differentiation. Similarly, the MHGF industry would incur significant product conversion costs to develop cost-optimized models for a marketplace where efficiency is no longer a means for product differentiation. As noted in section IV.J.2.d of this document, manufacturers currently maintain multiple tiers of product lines, which have varying levels of profitability. DOE models the industry operating with three manufacturer markup tiers (“good, better, best”) that are primarily differentiated on AFUE and combustion system technology (
                        <E T="03">e.g.,</E>
                         single-stage, two-stage, and modulating combustion systems). Generally, higher-efficiency models and those with more advanced combustion system technology command a higher manufacturer markup than lower efficiency models. At max-tech, NWGF and MHGF manufacturers would lose the ability to charge a premium markup based on AFUE, which would lead to an overall reduction in profitability. At the NWGF max-tech level, manufacturers would also lose the ability to differentiate products based on combustion system technology, as all models would need to integrate modulating combustion. Without these differentiators, manufacturers would have a more difficult time maintaining premium product lines that command higher manufacturer markups. The reduction in product differentiation leads to a reduction in profitability, which is a key driver of loss in INPV. Even as profitability of products is expected to decline, NWGF and MHGF manufacturers would need to invest in significant capital conversion costs to update manufacturing lines to produce max-tech designs at high volume. The reduced profitability due to limited product differentiation, large upfront investments to remain in the market, and negative impacts on INPV could alter the consumer furnaces competitive landscape. Manufacturers that have lower cash reserves, more difficulty raising capital, a greater portion of products that require redesign, or fewer technical resources would experience more business risk than their competitors in the industry.
                    </P>
                    <P>Based upon the above considerations, the Secretary concludes that at TSL 9 for NWGFs and MHGFs, the benefits of energy savings, positive NPV of consumer benefits, emission reductions, and the estimated monetary value of the net health benefits of emissions reductions would be outweighed by the economic burden on many consumers, especially low-income consumers, as well as the impacts on manufacturers, including the large potential reduction in INPV. In reaching this decision, DOE notes that a large fraction of both NWGF and MHGF consumers (62.3 percent and 18.6 percent, respectively), including low-income consumers, experience a net cost at TSL 9. This is due to the high incremental cost of NWGFs and MHGFs at the max-tech efficiency levels. This is particularly pronounced for NWGFs, where the incremental production cost above baseline is more than twice as large as the next highest efficiency level (see section IV.C.2 of this document). Consumers with existing furnaces above 90-percent AFUE but below 98-percent AFUE are more likely to experience a net cost at TSL 9, given the relatively modest decrease in operating costs compared to the high incremental installed costs. DOE also notes the consumer impacts are similar across the range of sensitivity analyses performed, particularly with respect to the fraction of consumers who may switch to alternative space-heating products. A large fraction of NWGF and MHGF consumers in the sensitivity analyses experience a net cost at TSL 9 as well. Therefore, DOE's conclusions would not change if based on any of the sensitivity scenarios. At max-tech, most manufacturers would need to make significant upfront investments to update product lines and manufacturing facilities. Additionally, the companies must make those investments to remain in a less-profitable market where there is less product differentiation to maintain premium pricing tiers and where consumers are more likely to repair their existing furnaces or switch to alternative heating technologies. As result, there is risk that some manufacturers would choose to leave the market and risk that the standard would drive industry consolidation that would not otherwise have occurred. Consequently, the Secretary has concluded that TSL 9 is not economically justified.</P>
                    <P>DOE then considered the standards at TSL 8, which consists of intermediate condensing efficiency levels at 95-percent AFUE for both NWGFs and MHGFs across the Nation. TSL 8 would save 4.77 quads of energy, an amount DOE considers significant. Under TSL 8, the NPV of consumer benefit would be $4.8 billion using a discount rate of 7 percent, and $16.3 billion using a discount rate of 3 percent.</P>
                    <P>
                        The cumulative emissions reductions at TSL 8 would be expected to be 332 Mt of CO
                        <E T="52">2</E>
                        , 4.3 million tons of CH
                        <E T="52">4</E>
                        , 0.4 thousand tons of N
                        <E T="52">2</E>
                        O, and 0.9 million tons of NO
                        <E T="52">X</E>
                        . Projected emissions show an increase of 10 thousand tons of SO
                        <E T="52">2</E>
                         and 0.08 tons of Hg. The increase is due to projected switching from gas furnaces to electric heat pumps and electric furnaces by some consumers under standards at TSL 8. The estimated monetary value of the climate benefits from reduced GHG emissions (associated with the average SC-GHG at a 3-percent discount rate) at TSL 8 is $17.3 billion. The estimated monetary value of the net health benefits from changes to NO
                        <E T="52">X</E>
                         and SO
                        <E T="52">2</E>
                         emissions at TSL 8 is $8.7 billion using a 7-percent discount rate and $26.6 billion using a 3-percent discount rate.
                    </P>
                    <P>
                        Using a 7-percent discount rate for consumer benefits and costs, net health benefits from SO
                        <E T="52">2</E>
                         and NO
                        <E T="52">X</E>
                         emission changes, and the 3-percent discount rate case for climate benefits from reduced GHG emissions, the estimated total NPV at TSL 8 is $30.8 billion. Using a 3-percent discount rate for all benefits and costs, the estimated total NPV at TSL 8 is $60.2 billion.
                    </P>
                    <P>
                        At TSL 8, the average LCC impact on affected consumers is a savings of $350 for NWGFs and $616 for MHGFs. The simple payback period is 7.6 years for NWGFs and 3.2 years for MHGFs. The 
                        <PRTPAGE P="87641"/>
                        fraction of consumers experiencing a net LCC cost is 18.7 percent for NWGFs and 15.3 percent for MHGFs. The fraction of low-income consumers experiencing a net LCC cost is 15.9 percent for NWGFs and 15.3 percent for MHGFs.
                    </P>
                    <P>At TSL 8, the projected changes in INPV range from a decrease of $367.3 million to a decrease of $33.8 million. If the more severe end of this range is realized, TSL 8 could result in a net loss of 26.8 percent in INPV. Industry conversion costs would reach $162.0 million as manufacturers expand secondary heat exchanger capacity and redesign products to meet the standard.</P>
                    <P>At TSL 8, manufacturers would incur conversion costs to develop cost-optimized model offerings at the new minimum 95-percent AFUE and to expand secondary heat exchanger production capacity. However, the conversion costs at TSL 8 are substantially lower than those at TSL 9. Ninety percent of manufacturers currently have a range of compliant offerings at TSL 8. DOE estimates that approximately 41.6 percent of the annual NWGF shipments and approximately 19.5 percent of the annual MHGF shipments are already at this level. Furthermore, manufacturers would not be making the upfront investments with same level of profitability risk noted at TSL 9. With a national standard of 95-percent AFUE, both NWGF and MHGF manufacturers would maintain the ability to differentiate products based on efficiency and combustion system technology. With these options available, industry can continue to operate with three markup tiers (“good, better, best”) that enable greater industry profitability. However, the range of manufacturer markups are compressed, as max-tech products would not be expected to command the same premium as they did in the no-new-standards case.</P>
                    <P>After considering the analysis and weighing the benefits and burdens, the Secretary has concluded that a standard set at TSL 8 for NWGFs and MHGFs would be economically justified. At this TSL, the average LCC savings for both NWGF and MHGF consumers are positive. An estimated 18.7 percent of NWGF consumers and 15.3 percent of MHGF consumers experience a net cost. The reduction in the percentage of consumers experiencing a net cost at TSL 8 compared to TSL 9 is largely due to the market share of consumers already with a furnace at 95-percent AFUE (see section IV.F.8 of this document). These consumers are not impacted by a standard set at TSL 8. For the remaining consumers that are impacted, the lower incremental cost above baseline for a 95-percent AFUE furnace compared to a max-tech furnace (see section IV.C.2 of this document), particularly for NWGFs, results in fewer consumers experiencing a net cost as compared to TSL 9. DOE also notes the consumer impacts are similar across the range of sensitivity analyses performed, particularly with respect to the fraction of consumers who may switch to alternative space-heating products. A much smaller fraction of NWGF and MHGF consumers in the sensitivity analyses experience a net cost at TSL 8 as compared to TSL 9 as well. Therefore, DOE's conclusions would not change if based on any of the sensitivity scenarios. The FFC national energy savings at TSL 8 are significant, and the NPV of consumer benefits is positive using both a 3-percent and 7-percent discount rate. Notably, the benefits to consumers vastly outweigh the cost to manufacturers. At TSL 8, the NPV of consumer benefits, even measured at the more conservative discount rate of 7 percent, is 13 times higher than the maximum estimated manufacturers' loss in INPV. The shipment-weighted average LCC savings are 2 times higher than at TSL 9. The standard levels at TSL 8 are economically justified even without weighing the estimated monetary value of the net health benefits of emissions reductions. When those emissions reductions are included—representing $17.3 billion in climate benefits (associated with the average SC-GHG at a 3-percent discount rate), and $26.6 billion (using a 3-percent discount rate) or $8.7 billion (using a 7-percent discount rate) in net health benefits—the rationale becomes stronger still.</P>
                    <P>DOE further notes that there have been regulations in Canada requiring condensing furnaces with at least 90-percent AFUE for over ten years and requiring at least 95-precent AFUE since July 2019 (see section II.B.3 of this final rule). The adopted standard levels for NWGFs at TSL 8 align with the Canadian regulations. As discussed in the 2016 SNOPR (since withdrawn), some stakeholders noted that Canada has required condensing furnaces for years and stated that neither Natural Resources Canada nor its mortgage agency found any significant implementation issues. 81 FR 65720, 65779 (Sept. 23, 2016). While DOE realizes that climate and fuel prices differ between the U.S. and Canada and will yield different results in terms of costs and benefits of the standard, there are similarities in the equipment and venting materials used in both the U.S. and Canada with respect to NWGFs. Because the stock of buildings using NWGFs in Canada has many similarities to the stock using NWGFs in northern parts of the U.S., the Canadian experience in terms of installation of condensing furnaces has relevance to the U.S.</P>
                    <P>DOE acknowledges that an estimated 15.9 percent of low-income NWGF and 15.3 percent of low-income MHGF consumers experience a net cost at TSL 8, whereas an estimated 5.7 percent of low-income NWGF and 4.7 percent of low-income MHGF consumers experience a net cost at TSL 7. (TSL 7 is an AFUE standard at the same level as TSL 8 but for NWGFs and MHGFs greater than 55 kBtu/h only.) The majority of negatively impacted low-income consumers at TSL 8 have smaller capacity NWGFs or MHGFs below 55 kBtu/h and, therefore, would not be impacted by a standard set at TSL 7, since the standards for NWGFs and MHGFs below 55 kBtu/h would remain at 80-percent AFUE. However, compared to TSL 7, it is estimated that TSL 8 would result in additional FFC national energy savings of 1.14 quads and additional net health benefits of $9.3 billion (using a 3-percent discount rate) or $3.1 billion (using a 7-percent discount rate). The national consumer NPV similarly increases at TSL 8, compared to TSL 7, by $0.7 billion using a 7-percent discount rate and $3.6 billion using a 3-percent discount rate. These additional savings and benefits at TSL 8 are significant. DOE considers these impacts to be, as a whole, economically justified at TSL 8.</P>
                    <P>
                        Accordingly, the Secretary has concluded that TSL 8 would offer the maximum improvement in efficiency that is technologically feasible and economically justified and would result in the significant conservation of energy. Although results are presented here in terms of TSLs, DOE analyzes and evaluates all possible ELs for each product class in its analysis. For both NWGFs and MHGFs, TSL 8 is comprised of the highest efficiency level below max-tech. For NWGFs and MHGFs, the max-tech efficiency level results in a large percentage of consumers that experience a net LCC cost, in addition to significant manufacturer impacts. The ELs one level below max-tech, representing the adopted standard levels, result in positive LCC savings for both classes, significantly reduce the number of consumers experiencing a net cost, and reduce the decrease in INPV and conversion costs to the point where DOE has concluded they are 
                        <PRTPAGE P="87642"/>
                        economically justified, as discussed for TSL 8 in the preceding paragraphs.
                    </P>
                    <P>Therefore, based on the considerations discussed, DOE adopts the energy conservation standards for NWGFs and MHGFs at TSL 8. The adopted energy conservation standards for NWGFs and MHGFs, which are expressed as AFUE, are shown in Table V.29.</P>
                    <GPOTABLE COLS="2" OPTS="L2,i1" CDEF="s200,12">
                        <TTITLE>Table V.29—Adopted Energy Conservation Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces </TTITLE>
                        <TDESC>[Compliance starting 2029]</TDESC>
                        <BOXHD>
                            <CHED H="1">Product class</CHED>
                            <CHED H="1">
                                AFUE
                                <LI>(percent)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Non-Weatherized Gas Furnaces</ENT>
                            <ENT>95</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Mobile Home Gas Furnaces</ENT>
                            <ENT>95</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">2. Annualized Benefits and Costs of the Adopted Standards</HD>
                    <P>The benefits and costs of the adopted standards can also be expressed in terms of annualized values. The annualized net benefit is: (1) the annualized national economic value (expressed in 2022$) of the benefits from operating products that meet the adopted standards (consisting primarily of operating cost savings from using less energy, minus increases in product purchase costs), and (2) the annualized monetary value of the climate and net health benefits from emission reductions.</P>
                    <P>Table V.30 shows the annualized values under TSL 8, expressed in 2022$. The results under the primary estimate are as follows.</P>
                    <P>
                        Using a 7-percent discount rate for consumer benefits and costs and net health benefits from SO
                        <E T="52">2</E>
                         and NO
                        <E T="52">X</E>
                         emission changes, and the 3-percent discount rate case for climate benefits from reduced GHG emissions, the estimated cost of the adopted standards is $511 million per year in increased equipment costs, while the estimated annual benefits would be $1,054 million in reduced equipment operating costs, $1,021 million in climate benefits, and $987 million in net health benefits (accounting for reduced NO
                        <E T="52">X</E>
                         emissions and increased SO
                        <E T="52">2</E>
                         emissions). In this case, the net benefit amounts to $2,551 million per year.
                    </P>
                    <P>
                        Using a 3-percent discount rate for all benefits and costs, the estimated cost of the adopted standards is $500 million per year in increased equipment costs, while the estimated annual benefits would be $1,467 million in reduced operating costs, $1,021 million in climate benefits, and $1,574 million in net health benefits (accounting for reduced NO
                        <E T="52">X</E>
                         emissions and increased SO
                        <E T="52">2</E>
                         emissions). In this case, the net benefit amounts to $3,561 million per year.
                    </P>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s100,10,10,10">
                        <TTITLE>Table V.30—Annualized Monetized Benefits and Costs of Adopted Standards for Non-Weatherized Gas Furnaces and Mobile Home Gas Furnaces</TTITLE>
                        <TDESC>[TSL 8]</TDESC>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Million 2022$/year</CHED>
                            <CHED H="2">
                                Primary
                                <LI>estimate</LI>
                            </CHED>
                            <CHED H="2">
                                Low-net-
                                <LI>benefits</LI>
                                <LI>estimate</LI>
                            </CHED>
                            <CHED H="2">
                                High-net-
                                <LI>benefits</LI>
                                <LI>estimate</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="03" RUL="s">
                            <ENT I="21">
                                <E T="02">3% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>1,467</ENT>
                            <ENT>1,528</ENT>
                            <ENT>1,440</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits *</ENT>
                            <ENT>1,021</ENT>
                            <ENT>1,003</ENT>
                            <ENT>1,028</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Net Health Benefits **</ENT>
                            <ENT>1,574</ENT>
                            <ENT>1,546</ENT>
                            <ENT>1,585</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Monetized Benefits †</ENT>
                            <ENT>4,061</ENT>
                            <ENT>4,077</ENT>
                            <ENT>4,053</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>500</ENT>
                            <ENT>520</ENT>
                            <ENT>489</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Net Monetized Benefits</ENT>
                            <ENT>3,561</ENT>
                            <ENT>3,557</ENT>
                            <ENT>3,564</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                        </ROW>
                        <ROW EXPSTB="03" RUL="s">
                            <ENT I="21">
                                <E T="02">7% discount rate</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Consumer Operating Cost Savings</ENT>
                            <ENT>1,054</ENT>
                            <ENT>1,094</ENT>
                            <ENT>1,051</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Climate Benefits * (3% discount rate)</ENT>
                            <ENT>1,021</ENT>
                            <ENT>1,003</ENT>
                            <ENT>1,028</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Health Benefits **</ENT>
                            <ENT>987</ENT>
                            <ENT>972</ENT>
                            <ENT>994</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Total Monetized Benefits †</ENT>
                            <ENT>3,062</ENT>
                            <ENT>3,069</ENT>
                            <ENT>3,073</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Consumer Incremental Product Costs ‡</ENT>
                            <ENT>511</ENT>
                            <ENT>528</ENT>
                            <ENT>501</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Net Monetized Benefits</ENT>
                            <ENT>2,551</ENT>
                            <ENT>2,541</ENT>
                            <ENT>2,572</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Change in Producer Cashflow (INPV ‡‡)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                            <ENT>(27)-(2)</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             This table presents the costs and benefits associated with consumer furnaces shipped in 2029-2058. These results include benefits to consumers which accrue after 2058 from the products shipped in 2029-2058.
                        </TNOTE>
                        <TNOTE>
                            * Climate benefits are calculated using four different estimates of the global SC-GHG (
                            <E T="03">see</E>
                             section IV.L of this document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3-percent discount rate are shown, but the Department does not have a single, central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four sets of SC-GHG estimates. To monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the 
                            <E T="03">Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990</E>
                             published in February 2021 by the IWG.
                            <PRTPAGE P="87643"/>
                        </TNOTE>
                        <TNOTE>
                            ** Health benefits are calculated using benefit-per-ton values for NO
                            <E T="0732">X</E>
                             and SO
                            <E T="0732">2</E>
                            . DOE is currently only monetizing (for SO
                            <E T="0732">2</E>
                             and NO
                            <E T="0732">X</E>
                            ) PM
                            <E T="0732">2.5</E>
                             precursor health benefits and disbenefits and (for NO
                            <E T="0732">X</E>
                            ) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM
                            <E T="0732">2.5</E>
                             emissions. See section IV.L of this document for more details.
                        </TNOTE>
                        <TNOTE>† Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate.</TNOTE>
                        <TNOTE>‡ Costs include incremental equipment costs, as well as installation costs.</TNOTE>
                        <TNOTE>‡‡ Operating Cost Savings are calculated based on the LCC analysis and national impact analysis as discussed in detail below. See sections IV.F and IV.H of this document. DOE's national impact analysis includes all impacts (both costs and benefits) along the distribution chain beginning with the increased costs to the manufacturer to manufacture the product and ending with the increase in price experienced by the consumer. DOE also separately conducts a detailed analysis on the impacts on manufacturers (the MIA). See section IV.J of this document. In the detailed MIA, DOE models manufacturers' pricing decisions based on assumptions regarding investments, conversion costs, cashflow, and margins. The MIA produces a range of impacts, which is the rule's expected impact on the INPV. The change in INPV is the present value of all changes in industry cash flow, including changes in production costs, capital expenditures, and manufacturer profit margins. The annualized change in INPV is calculated using the industry weighted average cost of capital value of 6.4 percent that is estimated in the manufacturer impact analysis (see chapter 12 of the final rule TSD for a complete description of the industry weighted average cost of capital). For NWGFs and MHGFs, those values are −$27 million to −$2 million. DOE accounts for that range of likely impacts in analyzing whether a TSL is economically justified. See section V.C of this document. DOE is presenting the range of impacts to the INPV under two manufacturer markup scenarios: the Preservation of Gross Margin scenario, which is the manufacturer markup scenario used in the calculation of Consumer Operating Cost Savings in this table, and the Tiered scenario, where DOE assumed amended standards would result in a reduction of product differentiation and a compression of the markup tiers. DOE includes the range of estimated annualized change in INPV in the above table, drawing on the MIA explained further in section IV.J of this document, to provide additional context for assessing the estimated impacts of this final rule to society, including potential changes in production and consumption, which is consistent with OMB's Circular A-4 and E.O. 12866. If DOE were to include the INPV into the annualized net benefit calculation for this final rule, the annualized net benefits would range from $3,534 million to $3,559 million at 3-percent discount rate and would range from $2,524 million to $2,549 million at 7-percent discount rate. Parentheses ( ) indicate negative values.</TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD1">VI. Procedural Issues and Regulatory Review</HD>
                    <HD SOURCE="HD2">A. Review Under Executive Orders 12866, 13563, and 14094</HD>
                    <P>Executive Order (E.O.) 12866, “Regulatory Planning and Review,” 58 FR 51735 (Oct. 4, 1993), as supplemented and reaffirmed by E.O. 13563, “Improving Regulation and Regulatory Review,” 76 FR 3821 (Jan. 21, 2011), and E.O. 14094, “Modernizing Regulatory Review,” 88 FR 21879 (April 11, 2023), requires agencies, to the extent permitted by law, to: (1) propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs (recognizing that some benefits and costs are difficult to quantify); (2) tailor regulations to impose the least burden on society, consistent with obtaining regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity); (4) to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt; and (5) identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public. DOE emphasizes as well that E.O. 13563 requires agencies to use the best available techniques to quantify anticipated present and future benefits and costs as accurately as possible. In its guidance, the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB) has emphasized that such techniques may include identifying changing future compliance costs that might result from technological innovation or anticipated behavioral changes. For the reasons stated in this preamble, this final regulatory action is consistent with these principles.</P>
                    <P>Section 6(a) of E.O. 12866 also requires agencies to submit “significant regulatory actions” to OIRA for review. OIRA has determined that this final regulatory action constitutes a “significant regulatory action” under section 3(f)(1) of E.O. 12866, as amended by E.O. 14094. Accordingly, pursuant to section 6(a)(3)(C) of E.O. 12866, DOE has provided to OIRA an assessment, including the underlying analysis, of benefits and costs anticipated from the final regulatory action, together with, to the extent feasible, a quantification of those costs; and an assessment, including the underlying analysis, of costs and benefits of potentially effective and reasonably feasible alternatives to the planned regulation, and an explanation why the planned regulatory action is preferable to the identified potential alternatives. These assessments are summarized in this preamble and further detail can be found in the technical support document for this rulemaking.</P>
                    <HD SOURCE="HD2">B. Review Under the Regulatory Flexibility Act</HD>
                    <P>
                        The Regulatory Flexibility Act (5 U.S.C. 601 
                        <E T="03">et seq.</E>
                        ) requires preparation of an initial regulatory flexibility analysis (IRFA) and a final regulatory flexibility analysis (FRFA) for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. As required by E.O. 13272, “Proper Consideration of Small Entities in Agency Rulemaking,” 67 FR 53461 (August 16, 2002), DOE published procedures and policies on February 19, 2003, to ensure that the potential impacts of its rules on small entities are properly considered during the rulemaking process. 68 FR 7990. DOE has made its procedures and policies available on the Office of the General Counsel's website (
                        <E T="03">www.energy.gov/gc/office-general-counsel</E>
                        ). DOE has prepared the following FRFA for the products that are the subject of this rulemaking.
                    </P>
                    <P>
                        For manufacturers of NWGFs and MHGFs, the SBA has set a size threshold, which defines those entities classified as “small businesses” for the purposes of the statute. DOE used the SBA's small business size standards to determine whether any small entities would be subject to the requirements of the rule. (
                        <E T="03">See</E>
                         13 CFR part 121.) The size standards are listed by North American Industry Classification System (NAICS) code and industry description and are available at 
                        <E T="03">www.sba.gov/document/support-table-size-standards.</E>
                         Manufacturing of NWGFs and MHGFs is classified under NAICS 333415, “Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing.” The SBA sets a threshold of 1,250 employees or fewer for an entity to be considered as a small business for this category.
                    </P>
                    <HD SOURCE="HD3">1. Need for, and Objectives of the Rule</HD>
                    <P>
                        DOE is amending the energy conservation standards for NWGFs and MHGFs. EPCA specifically provides that DOE must conduct two rounds of energy 
                        <PRTPAGE P="87644"/>
                        conservation standard rulemakings for NWGFs and MHGFs. (42 U.S.C. 6295(f)(4)(B) and (C)) The statute also requires that not later than six years after issuance of any final rule establishing or amending a standard, 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. (42 U.S.C. 6295(m)(1)) This rulemaking is pursuant to the statutorily required second round of rulemaking for NWGFs and MHGFs and the statutorily required six-year-lookback review.
                    </P>
                    <HD SOURCE="HD3">2. Significant Issues Raised in Response to the IRFA</HD>
                    <P>In response to the July 2022 NOPR, NGA of Georgia stated that DOE's proposal fails to capture the negative effects on small businesses that manufacture venting and accessories for non-condensing furnaces. (NGA of Georgia, No. 380 at p. 2) HARDI commented that the proposed standards also do not meet the requirements under the Regulatory Flexibility Act, as DOE only assessed the impact on four small manufacturers, but not on distributors, contractors, or manufacturers of furnace supplies. HARDI stated that there are a number of small businesses that serve as furnace suppliers. (HARDI, No. 384 at pp. 3-4)</P>
                    <P>DOE conducted an IRFA in support of the July 2022 NOPR. The Regulatory Flexibility Act requires an agency to perform a regulatory flexibility analysis of small entity impacts only when a rule directly regulates the small entities. This final rule regulates manufacturers of consumer furnaces, and, as such, DOE's analysis is scoped to the original equipment manufacturers (OEMs) of the covered products directly affected by this rulemaking.</P>
                    <HD SOURCE="HD3">3. Description and Estimated Number of Small Entities Affected</HD>
                    <P>
                        DOE reviewed this final rule under the provisions of the Regulatory Flexibility Act and the procedures and policies published on February 19, 2003. 68 FR 7990. DOE conducted a market survey to identify potential small manufacturers of the covered products. DOE began its assessment by reviewing DOE's Compliance Certification Database (CCD),
                        <SU>285</SU>
                        <FTREF/>
                         California Energy Commission's Modernized Appliance Efficiency Database System (MAEDbS),
                        <SU>286</SU>
                        <FTREF/>
                         Air Conditioning, Heating, and Refrigeration Institute's (AHRI) Directory of Certified Product Performance database,
                        <SU>287</SU>
                        <FTREF/>
                         individual retailer websites, and the withdrawn September 2016 SNOPR to identify manufacturers of the covered products. 81 FR 65720. DOE then consulted publicly-available data, such as manufacturer websites, manufacturer specifications and product literature, import/export logs (
                        <E T="03">e.g.,</E>
                         bills of lading from Panjiva 
                        <SU>288</SU>
                        <FTREF/>
                        ), and basic model numbers, to identify OEMs of the products covered by this rulemaking. DOE further relied on public data and subscription-based market research tools (
                        <E T="03">e.g.,</E>
                         Dun &amp; Bradstreet reports) 
                        <SU>289</SU>
                        <FTREF/>
                         to determine company location, headcount, and annual revenue. DOE also asked industry representatives if they were aware of any other small manufacturers during manufacturer interviews. DOE screened out companies that do not offer products covered by this rulemaking, do not meet the SBA's definition of a “small business,” or are foreign-owned and operated.
                    </P>
                    <FTNT>
                        <P>
                            <SU>285</SU>
                             DOE's Compliance Certification Database is available at: 
                            <E T="03">www.regulations.doe.gov/certification-data/</E>
                             (last accessed March 8, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>286</SU>
                             California Energy Commission's MAEDbS (available at: 
                            <E T="03">cacertappliances.energy.ca.gov/Pages/Search/AdvancedSearch.aspx</E>
                            ) (last accessed July 15, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>287</SU>
                             AHRI's Directory of Certified Product Performance (available at: 
                            <E T="03">www.ahridirectory.org/Search/SearchHome</E>
                            ) (last accessed March 8, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>288</SU>
                             S&amp;P Global. Panjiva Market Intelligence is available at: 
                            <E T="03">panjiva.com/import-export/United-States</E>
                             (last accessed March 24, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>289</SU>
                             D&amp;B Hoovers subscription login is available at: 
                            <E T="03">app.dnbhoovers.com/</E>
                             (last accessed March 24, 2023).
                        </P>
                    </FTNT>
                    <P>For the IRFA, DOE identified 15 OEMs selling NWGFs and/or MHGFs in the United States. Of those 15 OEMs, DOE tentatively determined that four companies qualified as small businesses and were not foreign-owned or operated. For this FRFA, DOE refreshed its database of model listings to include the most up-to-date information on NWGF and MHGF models currently available on the market. Through its review of the updated product database and other public sources, DOE determined that one MHGF OEM and that one small domestic NWGF OEM no longer offer products covered by this rulemaking. Additionally, DOE identified a new entrant to the NWGF market that qualifies as a “small business.” Therefore, for this FRFA, DOE identified 14 OEMs that sell NWGFs and/or MHGFs in the United States. Of the 14 OEMs identified, DOE determined that four companies qualify as small businesses and are not foreign-owned or operated.</P>
                    <HD SOURCE="HD3">4. Description of Compliance Requirements</HD>
                    <P>Of the four small domestic OEMs identified, two manufacture NWGFs, one manufactures MHGFs, and one manufactures both NWGFs and MHGFs. DOE considered the impact of this rule on the four manufacturers.</P>
                    <P>DOE adjusted the small business conversion cost estimates developed in the IRFA to 2022$ for this FRFA. As previously discussed, DOE also refreshed its database of model listings to include updated information on NWGF and MHGF models currently available on the market.</P>
                    <P>One of the small NWGF manufacturers (“Company A”) sells a niche product in the NWGF market. The company offers three basic models of a through-the-wall furnace marketed for multi-family construction. The three models have identical dimensions and share many components. One model is rated at 80-percent AFUE, one model is rated at 93-percent AFUE, and the other model is rated at 95-percent AFUE. Given the product similarities and low volume of sales, DOE expects the manufacturer would likely discontinue the non-compliant models. DOE does not expect the small manufacturer would incur conversion costs due to the standard, as the company currently offers their niche product at 95-percent AFUE.</P>
                    <P>
                        The other small NWGF manufacturer (“Company B”) introduced new products into the CCD after DOE conducted its NOPR analysis. Since the July 2022 NOPR, this small NWGF manufacturer now offers approximately 10 basic models of both non-condensing and condensing NWGFs. The non-condensing models are rated at 81-percent AFUE, and the condensing models are rated between 93-percent and 96-percent AFUE. The non-condensing models and condensing models have identical dimensions and share many components. Given the product similarities, DOE expects this manufacturer would likely ramp up production of its compliant models and discontinue models that do not meet the adopted level. However, to avoid underestimating the potential investments, DOE used model counts to scale industry product conversion costs and market share estimates to scale industry capital conversion costs for this FRFA. As discussed in this final rule, capital conversion costs are one-time investments in property, plant, and equipment necessary to adapt or change existing production facilities such that new, compliant product designs can be fabricated and assembled. Product conversion costs are one-time investments in research, development, testing, marketing, and other non-capitalized costs necessary to make product designs comply with amended 
                        <PRTPAGE P="87645"/>
                        energy conservation standards. The eight NWGF models that would require redesign or retirement is an estimated 1.0 percent of the 825 NWGF models with an AFUE below 95-percent in the product database developed for this rulemaking. DOE estimates that this small business could incur approximately $0.4 million in product conversion costs and $1.1 million in capital conversion costs as they work to develop a condensing NWGF product line. The total conversion costs of $1.6 million are approximately 0.3 percent of company revenues over the 5-year conversion period.
                        <SU>290</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>290</SU>
                             According to D&amp;B Hoovers, this small business has an estimated annual revenue of $119.8 million. DOE calculated total conversion costs as a percent of revenue over the 5-year conversion period using the following calculation: ($0.4 million + $1.1 million)/(5 years × $119.8 million).
                        </P>
                    </FTNT>
                    <P>The small MHGF manufacturer, Mortex (“Company C”), sells non-condensing furnaces into the manufactured housing replacement market. DOE identified this small business through its review of DOE's CCD and the withdrawn September 2016 SNOPR. Of the six MHGF OEMs identified, Mortex is the only MHGF company that does not currently offer any condensing products. DOE analyzed the conversion costs for Mortex separately from other MHGF manufacturers since Mortex would need to make a different set of investments than the rest of the MHGF industry.</P>
                    <P>
                        To offer condensing MHGFs, Mortex would need to either source secondary heat exchangers from a vendor or set up its own manufacturing line to produce secondary heat exchangers. Setting up in-house production is the significantly more capital-intensive option. For this FRFA, DOE estimated the investments required for the company to set up in-house production. Based on DOE's engineering analysis, the main driver of additional capital conversion costs would be the production of secondary heat exchangers. Including equipment, tooling, and conveyer, DOE estimates upfront capital investments of $5.3 million to set up manufacturing of condensing MHGFs. Additionally, the design and product development (
                        <E T="03">e.g.,</E>
                         engineering resources, testing costs) of condensing products could run as high as $1.4 million. If the company has less than 15 percent market share in the MHGF market, as suggested by the percentage of industry model offerings, the cost recovery period for this investment would be in excess of 10 years. Unlike other MHGF manufacturers, which can leverage their investments in secondary heat exchanger production across other heating products, DOE is not aware of any other heating product from Mortex that could make use of the secondary heat exchanger production capacity. The total conversion costs of $6.7 million are approximately 2.2 percent of company revenues over the 5-year conversion period and are considered significant.
                        <SU>291</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>291</SU>
                             According to D&amp;B Hoovers, this small business has an estimated annual revenue of $60.4 million. DOE calculated total conversion costs as a percent of revenue over the 5-year conversion period using the following calculation: ($1.4 million + $5.3 million)/(5 years × $60.4 million).
                        </P>
                    </FTNT>
                    <P>Given the high upfront investment and long cost recovery period, the small manufacturer would likely seek options other than investing in secondary heat exchanger production capabilities. The company could source the secondary heat exchanger, which would reduce the need for capital conversion costs but would also increase the per-unit cost of the final product. DOE estimates that the secondary heat exchanger accounts for approximately 14 percent of the total manufacturer production cost, on average. Sourcing the heat exchanger could put the company at a pricing disadvantage relative to manufacturers that produce their heat exchangers in-house. Depending on the business' ability to compete on factors other than price, its willingness to invest technical resources toward designing a condensing product, and the role of MHGFs in the company's business strategy, the small manufacturer could also choose to leave the MHGF business.</P>
                    <P>The remaining small manufacturer of NWGFs and MHGFs (“Company D”) is one of the five MHGF companies that offer condensing products. Of these five companies with condensing MHGFs, one manufacturer only offers products at or above the adopted standard and would, therefore, likely incur no conversion costs. The remaining four manufacturers, which includes the small manufacturer of NWGFs and MHGFs, have some products that do not meet the standard. All MHGF conversion costs that are not directly attributed to Mortex would be borne by these four manufacturers. The small domestic business has six MHGF models that would require redesign or retirement, which is an estimated 14.6 percent of the 41 MHGF models with an AFUE below 95 percent in the product database developed for this rulemaking.</P>
                    <P>
                        DOE estimated industry conversion costs of $3.1 million for the MHGF standard when excluding the conversion costs attributable to Mortex.
                        <SU>292</SU>
                        <FTREF/>
                         For the purposes of this FRFA, DOE assumes the $3.1 million in conversion costs are evenly allocated across the four companies that may incur MHGF conversion costs. The MHGF-related conversion costs are approximately $0.8 million per company. DOE has determined this even allocation of capital and product conversion costs avoids under-estimating the investment requirements on the small, domestic manufacturer, given that this manufacturer has a small market share. For the small manufacturer, total conversion costs are approximately 0.1 percent of company revenue over the 5-year conversion period.
                        <SU>293</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>292</SU>
                             Excluding the conversion costs attributable to Mortex, DOE estimates industry MHGF capital conversion costs of $2.6 million and industry MHGF product conversion costs of $0.5 million, for a total of $3.1 million, at the adopted level (TSL 8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>293</SU>
                             According to D&amp;B Hoovers, this small business has an estimated annual revenue of $240.6 million. DOE calculated total conversion costs as a percent of revenue over the 5-year conversion period using the following calculation: ($0.1 million + $0.6 million)/(5 years × $240.6 million).
                        </P>
                    </FTNT>
                    <P>
                        As noted earlier, this small domestic manufacturer also produces NWGFs. The company offers four NWGF models, out of over 1,300 NWGFs in the product database developed for this rulemaking. All four of their NWGF offerings are at or above the adopted standard and would not likely incur conversion costs due to the standard. Therefore, the small manufacturer that produces both MHGFs and NWGFs is expected to only incur conversion costs relating to their MHGF products at TSL 8, the adopted standard level.
                        <PRTPAGE P="87646"/>
                    </P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s25,12,12,12,12,14">
                        <TTITLE>Table VI.1—Estimated Small Business Impacts</TTITLE>
                        <TDESC>[TSL 8]</TDESC>
                        <BOXHD>
                            <CHED H="1">Company</CHED>
                            <CHED H="1">
                                Product
                                <LI>conversion</LI>
                                <LI>costs</LI>
                                <LI>($ millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Capital
                                <LI>conversion</LI>
                                <LI>costs</LI>
                                <LI>($ millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Annual
                                <LI>revenue</LI>
                                <LI>($ millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Conversion
                                <LI>period</LI>
                                <LI>revenue</LI>
                                <LI>($ millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Conversion
                                <LI>costs as a %</LI>
                                <LI>of conversion</LI>
                                <LI>period revenue</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Company A</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>77.0</ENT>
                            <ENT>385.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Company B</ENT>
                            <ENT>0.4</ENT>
                            <ENT>1.1</ENT>
                            <ENT>119.8</ENT>
                            <ENT>599.0</ENT>
                            <ENT>0.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Company C</ENT>
                            <ENT>1.4</ENT>
                            <ENT>0.0</ENT>
                            <ENT>60.4</ENT>
                            <ENT>302.0</ENT>
                            <ENT>0.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Company D</ENT>
                            <ENT>0.1</ENT>
                            <ENT>0.6</ENT>
                            <ENT>240.6</ENT>
                            <ENT>1,202.8</ENT>
                            <ENT>0.1</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">5. Significant Alternatives Considered and Steps Taken To Minimize Significant Economic Impacts on Small Entities</HD>
                    <P>The discussion in the previous section analyzes impacts on small businesses that would result from the adopted standards, represented by TSL 8. In reviewing alternatives to the adopted standards, DOE examined a range of different efficiency levels and their respective impacts to both manufacturers and consumers. At TSL 9, the conversion costs were higher for small businesses and for industry overall. At TSLs 1, 2, 3, 4, 5, 6, and 7, the impacts on small manufacturers would have been potentially lower. However, those changes would have would come at the expense of reduced consumer benefits and a reduction in energy savings. In general, the consumer benefits were an order of magnitude greater than the cost to industry generally, and multiple orders of magnitude greater than the conversion costs to small manufacturers. DOE has determined that establishing standards at the adopted level, TSL 8, balances the benefits of energy savings with the potential burdens placed on manufacturers of covered products, including small business manufacturers.</P>
                    <P>DOE has determined that establishing standards at TSL 8 would deliver the highest energy savings while mitigating the potential burdens placed on NWGF and MHGF manufacturers, including small business manufacturers. Accordingly, DOE is not adopting one of the other TSLs considered in the analysis, or the other policy alternatives examined as part of the regulatory impact analysis and included in chapter 17 of the final rule TSD.</P>
                    <P>Additional compliance flexibilities may be available through other means. EPCA provides that a manufacturer whose annual gross revenue from all of its operations does not exceed $8 million may apply for an exemption from all or part of an energy conservation standard for a period not longer than 24 months after the effective date of a final rule establishing the standard. (42 U.S.C. 6295(t)) Additionally, manufacturers subject to DOE's energy conservation standards may apply to DOE's Office of Hearings and Appeals for exception relief under certain circumstances. Manufacturers should refer to 10 CFR part 430, subpart E, and 10 CFR part 1003 for additional details.</P>
                    <HD SOURCE="HD2">C. Review Under the Paperwork Reduction Act</HD>
                    <P>Manufacturers of NWGFs and MHGFs must certify to DOE that their products comply with any applicable energy conservation standards in terms of AFUE.</P>
                    <P>
                        In certifying compliance, manufacturers must test their products according to the DOE test procedures for NWGFs and MHGFs, including any amendments adopted for those test procedures. DOE has established regulations for the certification and recordkeeping requirements for all covered consumer products and commercial equipment, including NWGFs and MHGFs. (
                        <E T="03">See generally</E>
                         10 CFR part 429) These requirements were also discussed in some detail in the July 2022 NOPR. 87 FR 40590, 40702 (July 7, 2022). The collection-of-information requirement for the certification and recordkeeping is subject to review and approval by OMB under the Paperwork Reduction Act (PRA). This requirement has been approved by OMB under OMB control number 1910-1400. Public reporting burden for the certification is estimated to average 35 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
                    </P>
                    <P>DOE is not amending the existing reporting requirements or establishing new DOE reporting requirements. If determined to be necessary, DOE may consider associated reporting and certification requirements in a future rulemaking. Therefore, DOE has concluded that the amended energy conservation standards for NWGFs and MHGFs will not impose additional costs for manufacturers related to reporting and certification.</P>
                    <P>Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the PRA, unless that collection of information displays a currently valid OMB control number.</P>
                    <HD SOURCE="HD2">D. Review Under the National Environmental Policy Act of 1969</HD>
                    <P>
                        Pursuant to the National Environmental Policy Act of 1969 (NEPA), DOE has analyzed this action in accordance with NEPA and DOE's NEPA implementing regulations (10 CFR part 1021). DOE has determined that this rule qualifies for categorical exclusion under 10 CFR part 1021, subpart D, appendix B, categorical exclusion B5.1, because it is a rulemaking that establishes energy conservation standards for consumer products or industrial equipment, none of the exceptions identified in categorical exclusion B5.1(b) apply, no extraordinary circumstances exist that require further environmental analysis, and it otherwise meets the requirements for application of a categorical exclusion. 
                        <E T="03">See</E>
                         10 CFR 1021.410. Therefore, DOE has determined that promulgation of this rule is not a major Federal action significantly affecting the quality of the human environment within the meaning of NEPA, and does not require an environmental assessment or an environmental impact statement.
                    </P>
                    <HD SOURCE="HD2">E. Review Under Executive Order 13132</HD>
                    <P>
                        E.O. 13132, “Federalism,” 64 FR 43255 (August 10, 1999), imposes certain requirements on Federal agencies formulating and implementing policies or regulations that preempt State law or that have federalism implications. The Executive order requires agencies to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the 
                        <PRTPAGE P="87647"/>
                        States and to carefully assess the necessity for such actions. The Executive order also requires agencies to have an accountable process to ensure meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications. On March 14, 2000, DOE published a statement of policy describing the intergovernmental consultation process it will follow in the development of such regulations. 65 FR 13735. DOE has examined this rule and has determined that it would not have a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. EPCA governs and prescribes Federal preemption of State regulations as to energy conservation for the products that are the subject of this final rule. States can petition DOE for exemption from such preemption to the extent, and based on criteria, set forth in EPCA. (42 U.S.C. 6297(d)) Therefore, no further action is required by Executive Order 13132.
                    </P>
                    <HD SOURCE="HD2">F. Review Under Executive Order 12988</HD>
                    <P>Regarding the review of existing regulations and the promulgation of new regulations, section 3(a) of E.O. 12988, “Civil Justice Reform,” 61 FR 4729 (Feb. 7, 1996), imposes on Federal agencies the general duty to adhere to the following requirements: (1) eliminate drafting errors and ambiguity; (2) write regulations to minimize litigation; (3) provide a clear legal standard for affected conduct rather than a general standard, and (4) promote simplification and burden reduction. Regarding the review required by section 3(a), section 3(b) of E.O. 12988 specifically requires that Executive agencies make every reasonable effort to ensure that the regulation: (1) clearly specifies the preemptive effect, if any; (2) clearly specifies any effect on existing Federal law or regulation; (3) provides a clear legal standard for affected conduct while promoting simplification and burden reduction; (4) specifies the retroactive effect, if any; (5) adequately defines key terms, and (6) addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of E.O. 12988 requires Executive agencies to review regulations in light of applicable standards in sections 3(a) and 3(b) to determine whether they are met or it is unreasonable to meet one or more of them. DOE has completed the required review and determined that, to the extent permitted by law, this final rule meets the relevant standards of E.O. 12988.</P>
                    <HD SOURCE="HD2">G. Review Under the Unfunded Mandates Reform Act of 1995</HD>
                    <P>
                        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) requires each Federal agency to assess the effects of Federal regulatory actions on State, local, and Tribal governments and the private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531). For a regulatory action likely to result in a rule that may cause the expenditure by State, local, and Tribal governments, in the aggregate, or by the private sector of $100 million or more in any one year (adjusted annually for inflation), section 202 of UMRA requires a Federal agency to publish a written statement that estimates the resulting costs, benefits, and other effects on the national economy. (2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to develop an effective process to permit timely input by elected officers of State, local, and Tribal governments on a “significant intergovernmental mandate,” and requires an agency plan for giving notice and opportunity for timely input to potentially affected small governments before establishing any requirements that might significantly or uniquely affect them. On March 18, 1997, DOE published a statement of policy on its process for intergovernmental consultation under UMRA. 62 FR 12820. DOE's policy statement is also available at 
                        <E T="03">www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.</E>
                    </P>
                    <P>DOE has concluded that this final rule may require expenditures of $100 million or more in any one year by the private sector. Such expenditures may include (1) investment in research and development and in capital expenditures by NWGF and MHGF manufacturers in the years between the final rule and the compliance date for the new standards and (2) incremental additional expenditures by consumers to purchase higher-efficiency NWGFs and MHGFs starting at the compliance date for the applicable standard.</P>
                    <P>
                        Section 202 of UMRA authorizes a Federal agency to respond to the content requirements of UMRA in any other statement or analysis that accompanies the final rule. (2 U.S.C. 1532(c)) The content requirements of section 202(b) of UMRA relevant to a private sector mandate substantially overlap the economic analysis requirements that apply under section 325(o) of EPCA and Executive Order 12866. The 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document and the TSD for this final rule respond to those requirements.
                    </P>
                    <P>Under section 205 of UMRA, DOE is obligated to identify and consider a reasonable number of regulatory alternatives before promulgating a rule for which a written statement under section 202 is required. (2 U.S.C. 1535(a)) DOE is required to select from those alternatives the most cost-effective and least burdensome alternative that achieves the objectives of the rule, unless DOE publishes an explanation for doing otherwise, or the selection of such an alternative is inconsistent with law. As required by EPCA, this final rule establishes amended energy conservation standards for NWGFs and MHGFs that are designed to achieve the maximum improvement in energy efficiency that DOE has determined to be both technologically feasible and economically justified, as required by 42 U.S.C. 6295(o)(2)(A) and 6295(o)(3)(B). A full discussion of the alternatives considered by DOE is presented in chapter 17 of the TSD for this final rule.</P>
                    <HD SOURCE="HD2">H. Review Under the Treasury and General Government Appropriations Act, 1999</HD>
                    <P>Section 654 of the Treasury and General Government Appropriations Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family Policymaking Assessment for any rule that may affect family well-being. This rule would not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment.</P>
                    <HD SOURCE="HD2">I. Review Under Executive Order 12630</HD>
                    <P>Pursuant to E.O. 12630, “Governmental Actions and Interference with Constitutionally Protected Property Rights,” 53 FR 8859 (March 18, 1988), DOE has determined that this rule would not result in any takings that might require compensation under the Fifth Amendment to the U.S. Constitution.</P>
                    <HD SOURCE="HD2">J. Review Under the Treasury and General Government Appropriations Act, 2001</HD>
                    <P>
                        Section 515 of the Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to review most disseminations of information to the public under information quality guidelines established by each agency pursuant to general guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR 62446 (Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, 
                        <PRTPAGE P="87648"/>
                        “Improving Implementation of the Information Quality Act” (April 24, 2019), DOE published updated guidelines which are available at: 
                        <E T="03">www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf.</E>
                         DOE has reviewed this final rule under the OMB and DOE guidelines and has concluded that it is consistent with applicable policies in those guidelines.
                    </P>
                    <HD SOURCE="HD2">K. Review Under Executive Order 13211</HD>
                    <P>E.O. 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” 66 FR 28355 (May 22, 2001), requires Federal agencies to prepare and submit to OIRA at OMB, a Statement of Energy Effects for any significant energy action. A “significant energy action” is defined as any action by an agency that promulgates or is expected to lead to promulgation of a final rule, and that: (1) is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (3) is designated by the Administrator of OIRA as a significant energy action. For any significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use.</P>
                    <P>DOE has concluded that this regulatory action, which sets forth amended energy conservation standards for NWGFs and MHGFs, is not a significant energy action because the standards are not likely to have a significant adverse effect on the supply, distribution, or use of energy, nor has it been designated as such by the Administrator at OIRA. Accordingly, DOE has not prepared a Statement of Energy Effects on this final rule.</P>
                    <HD SOURCE="HD2">L. Review Under the Information Quality Bulletin for Peer Review</HD>
                    <P>On December 16, 2004, OMB, in consultation with the Office of Science and Technology Policy (OSTP), issued its Final Information Quality Bulletin for Peer Review (“the Bulletin”). 70 FR 2664 (Jan. 14, 2005). The Bulletin establishes that certain scientific information shall be peer reviewed by qualified specialists before it is disseminated by the Federal Government, including influential scientific information related to agency regulatory actions. The purpose of the Bulletin is to enhance the quality and credibility of the Government's scientific information. Under the Bulletin, the energy conservation standards rulemaking analyses are “influential scientific information,” which the Bulletin defines as “scientific information the agency reasonably can determine will have, or does have, a clear and substantial impact on important public policies or private sector decisions.” 70 FR 2664, 2667 (Jan. 14, 2005).</P>
                    <P>
                        In response to OMB's Bulletin, DOE conducted formal peer reviews of the energy conservation standards development process and the analyses that are typically used and prepared a report describing that peer review.
                        <SU>294</SU>
                        <FTREF/>
                         Generation of this report involved a rigorous, formal, and documented evaluation using objective criteria and qualified and independent reviewers to make a judgment as to the technical/scientific/business merit, the actual or anticipated results, and the productivity and management effectiveness of programs and/or projects. Because available data, models, and technological understanding have changed since 2007, DOE has engaged with the National Academy of Sciences to review DOE's analytical methodologies to ascertain whether modifications are needed to improve DOE's analyses. DOE is in the process of evaluating the resulting December 2021 report.
                        <SU>295</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>294</SU>
                             The 2007 “Energy Conservation Standards Rulemaking Peer Review Report” is available at the following website: 
                            <E T="03">energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0</E>
                             (last accessed Feb. 16, 2022).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>295</SU>
                             The December 2021 NAS report is available 
                            <E T="03">at www.nationalacademies.org/our-work/review-of-methods-for-setting-building-and-equipment-performance-standards</E>
                             (last accessed August 14, 2023).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">M. Congressional Notification</HD>
                    <P>As required by 5 U.S.C. 801, DOE will report to Congress on the promulgation of this rule prior to its effective date. The report will state that it has been determined that the rule falls within the scope of 5 U.S.C. 804(2).</P>
                    <HD SOURCE="HD1">VII. Approval of the Office of the Secretary</HD>
                    <P>The Secretary of Energy has approved publication of this final rule.</P>
                    <LSTSUB>
                        <HD SOURCE="HED">List of Subjects in 10 CFR Part 430</HD>
                        <P>Administrative practice and procedure, Confidential business information, Energy conservation, Household appliances, Imports, Intergovernmental relations, Small businesses.</P>
                    </LSTSUB>
                    <HD SOURCE="HD1">Signing Authority</HD>
                    <P>
                        This document of the Department of Energy was signed on September 28, 2023, by Jeffrey Marootian, Principal Deputy 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 
                        <E T="04">Federal Register</E>
                         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 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                    <SIG>
                        <DATED>Signed in Washington, DC, on November 14, 2023.</DATED>
                        <NAME>Treena V. Garrett,</NAME>
                        <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                    </SIG>
                    <P>For the reasons stated in the preamble, DOE amends part 430 of chapter II, of title 10 of the Code of Federal Regulations, as set forth below:</P>
                    <PART>
                        <HD SOURCE="HED">PART 430—ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS</HD>
                    </PART>
                    <REGTEXT TITLE="10" PART="430">
                        <AMDPAR>1. The authority citation for part 430 continues to read as follows:</AMDPAR>
                        <AUTH>
                            <HD SOURCE="HED">Authority:</HD>
                            <P> 42 U.S.C. 6291-6309; 28 U.S.C. 2461 note.</P>
                        </AUTH>
                    </REGTEXT>
                      
                    <REGTEXT TITLE="10" PART="430">
                        <AMDPAR>2. Amend § 430.32 by:</AMDPAR>
                        <AMDPAR>a. Revising paragraph (e)(1)(ii);</AMDPAR>
                        <AMDPAR>b. Redesignating paragraph (e)(1)(iii) as paragraph (e)(1)(iv); and</AMDPAR>
                        <AMDPAR>c. Adding a new paragraph (e)(1)(iii).</AMDPAR>
                        <P>The revision and addition read as follows:</P>
                        <SECTION>
                            <SECTNO>§ 430.32</SECTNO>
                            <SUBJECT>Energy and water conservation standards and their compliance dates.</SUBJECT>
                            <STARS/>
                            <P>(e) * * *</P>
                            <P>(1) * * *</P>
                            <P>
                                (ii) The AFUE for non-weatherized gas furnaces (not including mobile home gas furnaces) manufactured on or after November 19, 2015, but before December 18, 2028; mobile home gas furnaces manufactured on or after November 19, 2015, but before December 18, 2028; non-weatherized oil-fired furnaces (not including mobile home furnaces) manufactured on or after May 1, 2013, mobile home oil-fired furnaces manufactured on or after September 1, 1990; weatherized gas-fired furnaces manufactured on or after January 1, 2015; weatherized oil-fired furnaces manufactured on or after 
                                <PRTPAGE P="87649"/>
                                January 1, 1992; and electric furnaces manufactured on or after January 1, 1992; shall not be less than the following:
                            </P>
                            <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s200,12">
                                <TTITLE> </TTITLE>
                                <BOXHD>
                                    <CHED H="1">Product class</CHED>
                                    <CHED H="1">
                                        AFUE
                                        <LI>
                                            (percent) 
                                            <SU>1</SU>
                                        </LI>
                                    </CHED>
                                </BOXHD>
                                <ROW>
                                    <ENT I="01">(A) Non-weatherized gas furnaces (not including mobile home furnaces)</ENT>
                                    <ENT>80.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(B) Mobile home gas furnaces</ENT>
                                    <ENT>80.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(C) Non-weatherized oil-fired furnaces (not including mobile home furnaces)</ENT>
                                    <ENT>83.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(D) Mobile home oil-fired furnaces</ENT>
                                    <ENT>75.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(E) Weatherized gas furnaces</ENT>
                                    <ENT>81.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(F) Weatherized oil-fired furnaces</ENT>
                                    <ENT>78.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(G) Electric furnaces</ENT>
                                    <ENT>78.0</ENT>
                                </ROW>
                                <TNOTE>
                                    <SU>1</SU>
                                     Annual Fuel Utilization Efficiency, as determined in § 430.23(n)(2).
                                </TNOTE>
                            </GPOTABLE>
                            <P>(iii) The AFUE for non-weatherized gas (not including mobile home gas furnaces) manufactured on and after December 18, 2028; and mobile home gas furnaces manufactured on and after December 18, 2028, shall not be less than the following:</P>
                            <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s200,12">
                                <TTITLE> </TTITLE>
                                <BOXHD>
                                    <CHED H="1">Product class</CHED>
                                    <CHED H="1">
                                        AFUE
                                        <LI>
                                            (percent) 
                                            <SU>1</SU>
                                        </LI>
                                    </CHED>
                                </BOXHD>
                                <ROW>
                                    <ENT I="01">(A) Non-weatherized gas furnaces (not including mobile home gas furnaces)</ENT>
                                    <ENT>95.0</ENT>
                                </ROW>
                                <ROW>
                                    <ENT I="01">(B) Mobile home gas furnaces</ENT>
                                    <ENT>95.0</ENT>
                                </ROW>
                                <TNOTE>
                                    <SU>1</SU>
                                     Annual Fuel Utilization Efficiency, as determined in § 430.23(n)(2).
                                </TNOTE>
                            </GPOTABLE>
                            <STARS/>
                        </SECTION>
                    </REGTEXT>
                    <NOTE>
                        <HD SOURCE="HED">Note: </HD>
                        <P>The following appendix will not appear in the Code of Federal Regulations.</P>
                    </NOTE>
                    <APPENDIX>
                        <HD SOURCE="HED">Appendix A—Letter From the Department of Justice to the Department of Energy</HD>
                        <FP>U.S. Department of Justice</FP>
                        <FP>Antitrust Division</FP>
                        <FP>RFK Main Justice Building</FP>
                        <FP>950 Pennsylvania Avenue NW</FP>
                        <FP>Washington, DC 20530-0001</FP>
                        <FP>September 6, 2022</FP>
                        <FP>Ami Grace-Tardy</FP>
                        <FP>Assistant General Counsel for Legislation, Regulation and Energy Efficiency</FP>
                        <FP>U.S. Department of Energy</FP>
                        <FP>Washington, DC 20585</FP>
                        <FP>
                            <E T="03">Ami.Grace-Tardy@hq.doe.gov</E>
                        </FP>
                        <FP>Dear Assistant General Counsel Grace-Tardy:</FP>
                        <P>I am responding to your July 7, 2022, letter seeking the views of the Attorney General about the potential impact on competition of proposed energy conservation standards for consumer furnaces, specifically for non-weatherized gas furnaces (“NWGFs”) and mobile-home gas furnaces (“MHGFs”).</P>
                        <P>Your request was submitted under Section 325(o)(2)(B)(i)(V) of the Energy Policy and Conservation Act, as amended (EPCA), 42 U.S.C. 6295(o)(2)(B)(i)(V) and 42 U.S.C. 6316(a), which requires the Attorney General to make a determination of the impact of any lessening of competition that is likely to result from the imposition of proposed energy conservation standards. The Attorney General's responsibility for responding to requests from other departments about the effect of a program on competition has been delegated to the Assistant Attorney General for the Antitrust Division in 28 CFR 0.40(g). The Assistant Attorney General for the Antitrust Division has authorized me, as the Policy Director for the Antitrust Division, to provide the Antitrust Division's views regarding the potential impact on competition of proposed energy conservation standards on his behalf.</P>
                        <P>In conducting its analysis, the Antitrust Division examines whether a proposed standard may lessen competition, for example, by substantially limiting consumer choice or increasing industry concentration. A lessening of competition could result in higher prices to manufacturers and consumers. We have reviewed the proposed standards contained in the Notice of Proposed Rulemaking (87 FR 40591, July 7, 2022). We have also interviewed industry participants, reviewed public comments and information provided by industry participants, reviewed comments submitted to DOJ, have spoken with DOE staff, and have listened to the Webinar of the Public Meeting held on August 3, 2022.</P>
                        <P>Based on our review of the information currently available, we do not believe that the proposed energy conservation standards for consumer furnaces are likely to substantially lessen competition in any particular product or geographic market. In the course of our review, we were told that the MHGF market may be more highly concentrated than DOE's analysis suggests. Given the necessarily short time-frame for our review, we are not in a position to confirm the level of concentration increase that may be caused by the rule, but encourage DOE to closely examine and consider potential competitive issues that commenters may raise with respect to this rulemaking.</P>
                        <FP>Sincerely,</FP>
                        <FP>/s/</FP>
                        <FP>David G.B. Lawrence,</FP>
                        <FP>
                            <E T="03">Director of Policy.</E>
                        </FP>
                    </APPENDIX>
                </SUPLINF>
                <FRDOC>[FR Doc. 2023-25514 Filed 12-15-23; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 6450-01-P</BILCOD>
            </RULE>
        </RULES>
    </NEWPART>
</FEDREG>
