[Federal Register Volume 89, Number 11 (Wednesday, January 17, 2024)]
[Proposed Rules]
[Pages 2886-2909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28977]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / 
Proposed Rules  

[[Page 2886]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2017-BT-STD-0003]
RIN 1904-AF56


Energy Conservation Program: Energy Conservation Standards for 
Refrigerators, Refrigerator-Freezers, and Freezers

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Energy Policy and Conservation Act, as amended (``EPCA''), 
prescribes energy conservation standards for various consumer products 
and certain commercial and industrial equipment, including 
refrigerators, refrigerator-freezers, and freezers. In this notice of 
proposed rulemaking (``NOPR''), DOE proposes new energy conservation 
standards for refrigerators, refrigerator-freezers, and freezers 
identical to those set forth in a direct final rule published elsewhere 
in this issue of the Federal Register. If DOE receives adverse comment 
and determines that such comment may provide a reasonable basis for 
withdrawal of the direct final rule, DOE will publish a notice of 
withdrawal and will proceed with this proposed rule.

DATES: DOE will accept comments, data, and information regarding this 
NOPR no later than May 6, 2024. Comments regarding the likely 
competitive impact of the proposed standard should be sent to the 
Department of Justice contact listed in the ADDRESSES section on or 
before February 16, 2024.

ADDRESSES: See section IV, ``Public Participation,'' for details. If 
DOE withdraws the direct final rule published elsewhere in this issue 
of the Federal Register, DOE will hold a public meeting to allow for 
additional comment on this proposed rule. DOE will publish notice of 
any meeting in the Federal Register.
    Interested persons are encouraged to submit comments using the 
Federal eRulemaking Portal at www.regulations.gov under docket number 
EERE-2017-BT-STD-0003. Follow the instructions for submitting comments. 
Alternatively, interested persons may submit comments, identified by 
docket number EERE-2017-BT-STD-0003, by any of the following methods:
    Email: [email protected]. Include the docket 
number EERE-2017-BT-STD-0003 in the subject line of the message.
    Postal Mail: Appliance and Equipment Standards Program, U.S. 
Department of Energy, Building Technologies Office, Mailstop EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 287-1445. If possible, please submit all items on a compact disc 
(``CD''), in which case it is not necessary to include printed copies.
    Hand Delivery/Courier: Appliance and Equipment Standards Program, 
U.S. Department of Energy, Building Technologies Office, 950 L'Enfant 
Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202) 287-1445. 
If possible, please submit all items on a CD, in which case it is not 
necessary to include printed copies.
    No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, and other supporting documents/materials, 
is available for review at www.regulations.gov. All documents in the 
docket are listed in the www.regulations.gov index. However, not all 
documents listed in the index may be publicly available, such as 
information that is exempt from public disclosure.
    The docket web page can be found at www.regulations.gov/docket/EERE-2017-BT-STD-0003. The docket web page contains instructions on how 
to access all documents, including public comments, in the docket. See 
section IV of this document for information on how to submit comments 
through www.regulations.gov.
    EPCA requires the Attorney General to provide DOE a written 
determination of whether the proposed standard is likely to lessen 
competition. The U.S. Department of Justice Antitrust Division invites 
input from market participants and other interested persons with views 
on the likely competitive impact of the proposed standard. Interested 
persons may contact the Antitrust Division at 
[email protected] on or before the date specified in the DATES 
section. Please indicate in the ``Subject'' line of your email the 
title and Docket Number of this proposed rulemaking.

FOR FURTHER INFORMATION CONTACT: 
    Mr. Lucas Adin, 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: 
(202) 287-5904 Email: [email protected].
    Mr. Matthew Schneider, U.S. Department of Energy, Office of the 
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 
20585-0121. Telephone: (240) 597-6265. Email: 
[email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact the Appliance and Equipment Standards Program staff at (202) 
287-1445 or by Email: [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Synopsis of the Proposed Rule
II. Introduction
    A. Authority
    B. Background
    1. Current Standards
    2. Current Test Procedure
    3. History of Standards Rulemaking for Refrigerators, 
Refrigerator-Freezers, and Freezers, and Freezers
    4. The Joint Agreement
III. Proposed Standards
    A. Benefits and Burdens of TSLs Considered for Refrigerator, 
Refrigerator-Freezer, and Freezer Standards
    B. Annualized Benefits and Costs of the Proposed Standards
IV. Public Participation
    A. Submission of Comments
    B. Public Meeting
V. Procedural Issues and Regulatory Review
    A. Review Under the Regulatory Flexibility Act
    1. Description of Reasons Why Action Is Being Considered

[[Page 2887]]

    2. Objectives of, and Legal Basis for, Rule
    3. Description and Estimated Number of Small Entities Regulated
    4. Description and Estimate of Compliance Requirements Including 
Differences in Cost, if Any, for Different Groups of Small Entities
    5. Duplication, Overlap, and Conflict With Other Rules and 
Regulations
    6. Significant Alternatives to the Rule
    B. Materials Incorporated by Reference
VI. Approval of the Office of the Secretary

I. Synopsis of the Proposed Rule

    The Energy Policy and Conservation Act, Public Law 94-163, as 
amended (``EPCA''),\1\ authorizes DOE to regulate the energy efficiency 
of a number of consumer products and certain industrial equipment. (42 
U.S.C. 6291-6317) Title III, Part B of EPCA \2\ established the Energy 
Conservation Program for Consumer Products Other Than Automobiles. (42 
U.S.C. 6291-6309) These products include refrigerators, refrigerator-
freezers, and freezers, the subject of this proposed rulemaking.
---------------------------------------------------------------------------

    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020), which reflect the last statutory amendments that impact 
Parts A and A-1 of EPCA.
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
---------------------------------------------------------------------------

    Pursuant to EPCA, any new or amended energy conservation standard 
must, among other things, 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))
    In light of the above and under the authority provided by 42 U.S.C. 
6295(p)(4), DOE is proposing this rule establishing and amending the 
energy conservation standards for refrigerators, refrigerator-freezers, 
and freezers and is concurrently issuing a direct final rule elsewhere 
in this issue of the Federal Register. DOE will proceed with this 
notice of proposed rulemaking only if it determines it must withdraw 
the direct final rule pursuant to the criteria provided in 42 U.S.C. 
6295(p)(4). The amended standard levels in the proposed rule and the 
direct final rule were proposed in a letter submitted to DOE jointly by 
groups representing manufacturers, energy and environmental advocates, 
consumer groups, and a utility. This letter, titled ``Energy Efficiency 
Agreement of 2023'' (hereafter, the ``Joint Agreement'' \3\), 
recommends specific energy conservation standards for residential 
refrigerators, refrigerator-freezers, and freezers that, in the 
commenters' view, would satisfy the EPCA requirements in 42 U.S.C. 
6295(o). DOE subsequently received letters of support from States 
including New York, California, and Massachusetts \4\ and utilities 
including San Diego Gas and Electric and Southern California Edison \5\ 
advocating for the adoption of the recommended standards. As discussed 
in more detail in the accompanying direct final rule and in accordance 
with the provisions at 42 U.S.C. 6295(p)(4), DOE has determined that 
the recommendations contained in the Joint Agreement comply with the 
requirements of 42 U.S.C. 6295(o).
---------------------------------------------------------------------------

    \3\ This document is available in the docket at: 
www.regulations.gov/document/EERE-2017-BT-STD-0003-0103.
    \4\ This document is available in the docket at: 
www.regulations.gov/document/EERE-2017-BT-STD-0003-0104.
    \5\ This document is available in the docket at: 
www.regulations.gov/document/EERE-2017-BT-STD-0003-0105.
---------------------------------------------------------------------------

    In accordance with these and other statutory provisions discussed 
in this document, DOE proposes new and amended energy conservation 
standards for refrigerators, refrigerator-freezers, and freezers. The 
standards for refrigerators, refrigerator-freezers, and freezers are 
expressed in terms of integrated annual energy use (``AEU''), measured 
in kilowatt-hours per year (``kWh/year''), as measured according to 
DOE's current test procedure codified at title 10 of the Code of 
Federal Regulations (``CFR'') part 430, subpart B, appendices A 
(``appendix A'') and B (``appendix B'').
    Table I.1 and Table I.2 present the proposed standards for 
refrigerators, refrigerator-freezers, and freezers. The proposed 
standards the same as those recommended by the Joint Agreement. These 
standards apply to all products listed in Table I.1 and manufactured 
in, or imported into the United States starting on January 31, 2029, 
and all products listed in Table I.2 and manufactured in, or imported 
into, the United States starting on January 31, 2030, as recommended in 
the Joint Agreement.

  Table I.1--Energy Conservation Standards for Consumer Refrigerators,
 Refrigerator-Freezers, and Freezers With Corresponding Door Coefficient
                                  Table
                 [Compliance starting January 31, 2029]
------------------------------------------------------------------------
                                  Equations for maximum energy use (kWh/
                                                    yr)
     Product class (``PC'')      ---------------------------------------
                                      Based on AV
                                        (ft\3\)         Based on av (L)
------------------------------------------------------------------------
3-BI. Built-in refrigerator-      8.24AV + 238.4 +    0.291av + 238.4 +
 freezer--automatic defrost with   28I.                28I.
 top-mounted freezer.
3A-BI. Built-in All-              (7.22AV +           (0.255av +
 refrigerators--automatic          205.7)*K3ABI.       205.7)*K3ABI.
 defrost.
4-BI. Built-In Refrigerator-      (8.79AV +           (0.310av +
 freezers--automatic defrost       307.4)*K4BI + 28I.  307.4)*K4BI +
 with side-mounted freezer.                            28I.
5-BI. Built-In Refrigerator-      (8.65AV +           (0.305av +
 freezers--automatic defrost       309.9)*K5BI + 28I.  309.9)*K5BI +
 with bottom-mounted freezer.                          28I.
5A. Refrigerator-freezer--        (7.76AV +           (0.274av +
 automatic defrost with bottom-    351.9)*K5A.         351.9)*K5A.
 mounted freezer with through-
 the-door ice service.
5A-BI. Built-in refrigerator-     (8.21AV +           (0.290av +
 freezer--automatic defrost with   370.7)*K5ABI.       370.7)*K5ABI.
 bottom-mounted freezer with
 through-the-door ice service.
7-BI. Built-In Refrigerator-      (8.82AV +           (0.311av +
 freezers--automatic defrost       384.1)*K7BI.        384.1)*K7BI.
 with side-mounted freezer.
8. Upright freezers with manual   5.57AV + 193.7....  0.197av + 193.7.
 defrost.
9-BI. Built-In Upright freezers   (9.37AV +           (0.331av +
 with automatic defrost.           247.9)*K9BI + 28I.  247.9)*K9BI +
                                                       28I.
9A-BI. Built-In Upright freezers  9.86AV + 288.9....  0.348av + 288.9.
 with automatic defrost with
 through-the-door ice service.

[[Page 2888]]

 
10. Chest freezers and all other  7.29AV + 107.8....  0.257av + 107.8.
 freezers except compact
 freezers.
10A. Chest freezers with          10.24AV + 148.1...  0.362av + 148.1.
 automatic defrost.
11. Compact refrigerator-         7.68AV + 214.5....  0.271av + 214.5.
 freezers and refrigerators
 other than all-refrigerators
 with manual defrost.
11A. Compact all-refrigerators--  6.66AV + 186.2....  0.235av + 186.2.
 manual defrost.
12. Compact refrigerator-         (5.32AV +           (0.188av +
 freezers--partial automatic       302.2)*K12.         302.2)*K12.
 defrost.
13. Compact refrigerator-         10.62AV + 305.3 +   0.375av + 305.3 +
 freezers--automatic defrost       28I.                28I.
 with top-mounted freezer.
13A. Compact all-refrigerators--  (8.25AV +           (0.291av +
 automatic defrost.                233.4)*K13A.        233.4)*K13A.
14. Compact refrigerator-         6.14AV + 411.2 +    0.217av + 411.2 +
 freezers--automatic defrost       28I.                28I.
 with side-mounted freezer.
15. Compact refrigerator-         10.62AV + 305.3 +   0.375av + 305.3 +
 freezers--automatic defrost       28I.                28I.
 with bottom-mounted freezer.
16. Compact upright freezers      7.35AV + 191.8....  0.260av + 191.8.
 with manual defrost.
17. Compact upright freezers      9.15AV + 316.7....  0.323av + 316.7.
 with automatic defrost.
18. Compact chest freezers......  7.86AV + 107.8....  0.278av + 107.8.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in
  appendices A and B of subpart B of 10 CFR part 430.
av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product
  without an automatic icemaker. Door Coefficients (e.g., K3ABI) are as
  defined in the following table.


----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent    door or door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K3ABI.........................................            1.10             1.0  1.0.
K4BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5A...........................................            1.10            1.06  1 + 0.02 * (Nd-3).
K5ABI.........................................            1.10            1.06  1 + 0.02 * (Nd-3).
K7BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K9BI..........................................             1.0             1.0  1 + 0.02 * (Nd-1).
K12...........................................             1.0             1.0  1 + 0.02 * (Nd-1).
K13A..........................................            1.10             1.0  1.0.
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 2 for K12, 3 for K9BI, and 5 for all other K values.


  Table I.2--Energy Conservation Standards for Consumer Refrigerators,
 Refrigerator-Freezers, and Freezers With Corresponding Door Coefficient
                                  Table
                 [Compliance starting January 31, 2030]
------------------------------------------------------------------------
                                  Equations for maximum energy use (kWh/
                                                    yr)
          Product class          ---------------------------------------
                                      Based on AV
                                        (ft\3\)         Based on av (L)
------------------------------------------------------------------------
1. Refrigerator-freezers and      6.79AV + 191.3....  0.240av + 191.3.
 refrigerators other than all-
 refrigerators with manual
 defrost.
1A. All-refrigerators--manual     5.77AV + 164.6....  0.204av + 164.6.
 defrost.
2. Refrigerator-freezers--        (6.79AV +           (0.240av +
 partial automatic defrost.        191.3)*K2.          191.3)*K2.
3. Refrigerator-freezers--        6.86AV + 198.6 +    0.242av + 198.6 +
 automatic defrost with top-       28I.                28I.
 mounted freezer.
3A. All-refrigerators--automatic  (6.01AV +           (0.212av +
 defrost.                          171.4)*K3A.         171.4)*K3A.
4. Refrigerator-freezers--        (7.28AV +           (0.257av +
 automatic defrost with side-      254.9)*K4 + 28I.    254.9)*K4 + 28I.
 mounted freezer.
5. Refrigerator-freezers--        (7.61AV +           (0.269av +
 automatic defrost with bottom-    272.6)*K5 + 28I.    272.6)*K5 + 28I.
 mounted freezer.
6. Refrigerator-freezers--        7.14AV + 280.0....  0.252av + 280.0.
 automatic defrost with top-
 mounted freezer with through-
 the-door ice service.
7. Refrigerator-freezers--        (7.31AV +           (0.258av +
 automatic defrost with side-      322.5)*K7.          322.5)*K7.
 mounted freezer with through-
 the-door ice service.
9. Upright freezers with          (7.33AV +           (0.259av +
 automatic defrost.                194.1)*K9 + 28I.    194.1)*K9 + 28I.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in
  appendices A and B of subpart B of 10 CFR part 430.
Av = Total adjusted volume, expressed in Liters.

[[Page 2889]]

 
I = 1 for a product with an automatic icemaker and = 0 for a product
  without an automatic icemaker. Door Coefficients (e.g., K3A) are as
  defined in the following table.


----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent    door or door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K2............................................             1.0             1.0  1 + 0.02 * (Nd-1).
K4............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K3A...........................................            1.10             1.0  1.0.
K5............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K7............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K9............................................             1.0             1.0  1 + 0.02 * (Nd-1).
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 2 for K2, and 5 for all other K values.

II. Introduction

    The following section briefly discusses the statutory authority 
underlying this proposed rule, as well as some of the relevant 
historical background related to the establishment of standards for 
refrigerators, refrigerator-freezers, and freezers.

A. Authority

    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. These products include refrigerators, 
refrigerator-freezers, and freezers, the subject of this document. (42 
U.S.C. 6292(a)(1)) EPCA prescribed energy conservation standards for 
these products (42 U.S.C. 6295(b)(1)), and directs DOE to conduct 
future rulemakings to determine whether to amend these standards. (42 
U.S.C. 6295(b)(3)) EPCA further provides that, not later than 6 years 
after the issuance of any final rule establishing or amending a 
standard, DOE must publish either a 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))
    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 EPCA specifically include 
definitions (42 U.S.C. 6291), 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).
    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 for particular State laws or regulations, in accordance with 
the procedures and other provisions set forth under EPCA. (see 42 
U.S.C. 6297(d))
    Subject to certain criteria and conditions, DOE is required to 
develop test procedures to measure the energy efficiency, energy use, 
or estimated annual operating cost of each covered product. (42 U.S.C. 
6295(o)(3)(A) and (r)) Manufacturers of covered products must use the 
prescribed DOE test procedure as the basis for certifying to DOE that 
their products comply with the applicable energy conservation standards 
adopted under EPCA and when making representations to the public 
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 standards adopted pursuant 
to EPCA. (42 U.S.C. 6295(s)) The DOE test procedures for refrigerators, 
refrigerator-freezers, and freezers appear at title 10 of the Code of 
Federal Regulations (``CFR'') part 430, subpart B, appendices A 
(``appendix A'') and B (``appendix B'').
    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered products, including refrigerators, 
refrigerator-freezers, and freezer. 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) Furthermore, DOE may not adopt any standard that would 
not result in the significant conservation of energy. (42 U.S.C. 
6295(o)(3))
    Moreover, DOE may not prescribe a standard: (1) for certain 
products, including refrigerators, refrigerators-freezers, and 
freezers, 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:
    (1) The economic impact of the standard on manufacturers and 
consumers of the products subject to the standard;
    (2) The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products that are likely to result from the standard;
    (3) The total projected amount of energy (or as applicable, water) 
savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the covered 
products likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy (``Secretary'') considers 
relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

[[Page 2890]]

    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))
    EPCA, as codified also contains what is known as an ``anti-
backsliding'' provision, which prevents the Secretary from prescribing 
any amended standard that either increases the maximum allowable energy 
use or decreases the minimum required energy efficiency of a covered 
product. (42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe 
an amended or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered product type (or 
class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6295(o)(4))
    EPCA specifies requirements when promulgating an energy 
conservation standard for a covered product that has two or more 
subcategories. DOE must specify a different standard level for a type 
or class of product that has the same function or intended use, if DOE 
determines that products within such group: (A) consume a different 
kind of energy from that consumed by other covered products within such 
type (or class); or (B) have a capacity or other performance-related 
feature which other products within such type (or class) do not have 
and such feature justifies a higher or lower standard. (42 U.S.C. 
6295(q)(1)) In determining whether a performance-related feature 
justifies a different standard for a group of products, DOE must 
consider such factors as the utility to the consumer of the feature and 
other factors DOE deems appropriate. Id. Any rule prescribing such a 
standard must include an explanation of the basis on which such higher 
or lower level was established. (42 U.S.C. 6295(q)(2))
    Additionally, pursuant to the amendments contained in the Energy 
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140, any final rule for new or amended energy conservation standards 
promulgated after July 1, 2010, is required to address standby mode and 
off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE 
adopts a standard for a covered product after that date, it must, if 
justified by the criteria for adoption of standards under EPCA (42 
U.S.C. 6295(o)), incorporate standby mode and off mode energy use into 
a single standard, or, if that is not feasible, adopt a separate 
standard for such energy use for that product. (42 U.S.C. 
6295(gg)(3)(A)-(B)) DOE's current test procedures for refrigerators, 
refrigerator-freezers, and freezers address standby mode and off mode 
energy use.
    Finally, EISA 2007 amended EPCA, in relevant part, to grant DOE 
authority to directly issue a final rule (i.e., a ``direct final 
rule'') establishing an energy conservation standard on receipt of a 
statement submitted jointly by interested persons that are fairly 
representative of relevant points of view (including representatives of 
manufacturers of covered products, States, and efficiency advocates), 
as determined by the Secretary, that contains recommendations with 
respect to an energy or water conservation standard (42 U.S.C. 
6295(p)(4)) Pursuant to 42 U.S.C. 6295(p)(4), the Secretary must also 
determine whether a jointly-submitted recommendation for an energy or 
water conservation standard satisfies 42 U.S.C. 6295(o).
    A NOPR that proposes an identical energy efficiency standard must 
be published simultaneously with the direct final rule, and DOE must 
provide a public comment period of at least 110 days on this proposal. 
(42 U.S.C. 6295(p)(4)(A)-(B)) Based on the comments received during 
this period, the direct final rule will either become effective, or DOE 
will withdraw it not later than 120 days after its issuance if (1) one 
or more adverse comments is received, and (2) DOE determines that those 
comments, when viewed in light of the rulemaking record related to the 
direct final rule, may provide a reasonable basis for withdrawal of the 
direct final rule under 42 U.S.C. 6295(o). (42 U.S.C. 6295(p)(4)(C)) 
Receipt of an alternative joint recommendation may also trigger a DOE 
withdrawal of the direct final rule in the same manner. Id. After 
withdrawing a direct final rule, DOE must proceed with the notice of 
proposed rulemaking published simultaneously with the direct final rule 
and publish in the Federal Register the reasons why the direct final 
rule was withdrawn. Id.
    DOE has previously explained its interpretation of its direct final 
rule authority. In a final rule amending the Department's ``Procedures, 
Interpretations and Policies for Consideration of New or Revised Energy 
Conservation Standards for Consumer Products'' at 10 CFR part 430, 
subpart C, appendix A, DOE noted that it may issue standards 
recommended by interested persons that are fairly representative of 
relative points of view as a direct final rule when the recommended 
standards are in accordance with 42 U.S.C. 6295(o) or 6313(a)(6)(B), as 
applicable. 86 FR 70892, 70912 (Dec. 13, 2021). But the direct final 
rule provision in EPCA, under which this proposed rule is issued, does 
not impose additional requirements applicable to other standards 
rulemakings, which is consistent with the unique circumstances of rules 
issued as consensus agreements under DOE's direct final rule authority. 
Id. DOE's discretion remains bounded by its statutory mandate to adopt 
a standard that results in the maximum improvement in energy efficiency 
that is technologically feasible and economically justified--a 
requirement found in 42 U.S.C. 6295(o). Id. As such, DOE's review and 
analysis of the Joint Agreement is limited to whether the recommended 
standards satisfy the criteria in 42 U.S.C. 6295(o).

B. Background

1. Current Standards
    In a final rule published on September 15, 2011, DOE prescribed the 
current energy conservation standards for refrigerators, refrigerator-
freezers, and freezers. 76 FR 57516 (``September 2011 Final Rule''). 
These standards are set forth in DOE's regulations at 10 CFR 430.32(a) 
and are shown in Table I.2. These standards are expressed in terms of 
kilo-watt hours per year (``kWh/yr'').

[[Page 2891]]



 Table II.2--Current Federal Energy Conservation Standards for Consumer
           Refrigerators, Refrigerator-Freezers, and Freezers
------------------------------------------------------------------------
                                  Equations for maximum energy use  (kWh/
                                                    yr)
          Product class          ---------------------------------------
                                      Based on AV
                                        (ft\3\)        Based on av  (L)
------------------------------------------------------------------------
1. Refrigerator-freezers and      7.99AV + 225.0....  0.282av + 225.0.
 refrigerators other than all-
 refrigerators with manual
 defrost.
1A. All-refrigerators--manual     6.79AV + 193.6....  0.240av + 193.6.
 defrost.
2. Refrigerator-freezers--        7.99AV + 225.0....  0.282av + 225.0.
 partial automatic defrost.
3. Refrigerator-freezers--        8.07AV + 233.7....  0.285av + 233.7.
 automatic defrost with top-
 mounted freezer without an
 automatic icemaker.
3-BI. Built-in refrigerator-      9.15AV + 264.9....  0.323av + 264.9.
 freezer--automatic defrost with
 top-mounted freezer without an
 automatic icemaker.
3I. Refrigerator-freezers--       8.07AV + 317.7....  0.285av + 317.7.
 automatic defrost with top-
 mounted freezer with an
 automatic icemaker without
 through-the-door ice service.
3I-BI. Built-in refrigerator-     9.15AV + 348.9....  0.323av + 348.9.
 freezers--automatic defrost
 with top-mounted freezer with
 an automatic icemaker without
 through-the-door ice service.
3A. All-refrigerators--automatic  7.07AV + 201.6....  0.250av + 201.6.
 defrost.
3A-BI. Built-in All-              8.02AV + 228.5....  0.283av + 228.5.
 refrigerators--automatic
 defrost.
4. Refrigerator-freezers--        8.51AV + 297.8....  0.301av + 297.8.
 automatic defrost with side-
 mounted freezer without an
 automatic icemaker.
4-BI. Built-In Refrigerator-      10.22AV + 357.4...  0.361av + 357.4.
 freezers--automatic defrost
 with side-mounted freezer
 without an automatic icemaker.
4I. Refrigerator-freezers--       8.51AV + 381.8....  0.301av + 381.8.
 automatic defrost with side-
 mounted freezer with an
 automatic icemaker without
 through-the-door ice service.
4I-BI. Built-In Refrigerator-     10.22AV + 441.4...  0.361av + 441.4.
 freezers--automatic defrost
 with side-mounted freezer with
 an automatic icemaker without
 through-the-door ice service.
5. Refrigerator-freezers--        8.85AV + 317.0....  0.312av + 317.0.
 automatic defrost with bottom-
 mounted freezer without an
 automatic icemaker.
5-BI. Built-In Refrigerator-      9.40AV + 336.9....  0.332av + 336.9.
 freezers--automatic defrost
 with bottom-mounted freezer
 without an automatic icemaker.
5I. Refrigerator-freezers--       8.85AV + 401.0....  0.312av + 401.0.
 automatic defrost with bottom-
 mounted freezer with an
 automatic icemaker without
 through-the-door ice service.
5I-BI. Built-In Refrigerator-     9.40AV + 420.9....  0.332av + 420.9.
 freezers--automatic defrost
 with bottom-mounted freezer
 with an automatic icemaker
 without through-the-door ice
 service.
5A. Refrigerator-freezer--        9.25AV + 475.4....  0.327av + 475.4.
 automatic defrost with bottom-
 mounted freezer with through-
 the-door ice service.
5A-BI. Built-in refrigerator-     9.83AV + 499.9....  0.347av + 499.9.
 freezer--automatic defrost with
 bottom-mounted freezer with
 through-the-door ice service.
6. Refrigerator-freezers--        8.40AV + 385.4....  0.297av + 385.4.
 automatic defrost with top-
 mounted freezer with through-
 the-door ice service.
7. Refrigerator-freezers--        8.54AV + 432.8....  0.302av + 432.8.
 automatic defrost with side-
 mounted freezer with through-
 the-door ice service.
7-BI. Built-In Refrigerator-      10.25AV + 502.6...  0.362av + 502.6.
 freezers--automatic defrost
 with side-mounted freezer with
 through-the-door ice service.
8. Upright freezers with manual   5.57AV + 193.7....  0.197av + 193.7.
 defrost.
9. Upright freezers with          8.62AV + 228.3....  0.305av + 228.3.
 automatic defrost without an
 automatic icemaker.
9I. Upright freezers with         8.62AV + 312.3....  0.305av + 312.3.
 automatic defrost with an
 automatic icemaker.
9-BI. Built-In Upright freezers   9.86AV + 260.9....  0.348av + 260.9.
 with automatic defrost without
 an automatic icemaker.
9I-BI. Built-in upright freezers  9.86AV + 344.9....  0.348av + 344.9.
 with automatic defrost with an
 automatic icemaker.
10. Chest freezers and all other  7.29AV + 107.8....  0.257av + 107.8.
 freezers except compact
 freezers.
10A. Chest freezers with          10.24AV + 148.1...  0.362av + 148.1.
 automatic defrost.
11. Compact refrigerator-         9.03AV + 252.3....  0.319av + 252.3.
 freezers and refrigerators
 other than all-refrigerators
 with manual defrost.
11A.Compact all-refrigerators--   7.84AV + 219.1....  0.277av + 219.1.
 manual defrost.
12. Compact refrigerator-         5.91AV + 335.8....  0.209av + 335.8.
 freezers--partial automatic
 defrost.
13. Compact refrigerator-         11.80AV + 339.2...  0.417av + 339.2.
 freezers--automatic defrost
 with top-mounted freezer.
13I. Compact refrigerator-        11.80AV + 423.2...  0.417av + 423.2.
 freezers--automatic defrost
 with top-mounted freezer with
 an automatic icemaker.
13A. Compact all-refrigerators--  9.17AV + 259.3....  0.324av + 259.3.
 automatic defrost.
14. Compact refrigerator-         6.82AV + 456.9....  0.241av + 456.9.
 freezers--automatic defrost
 with side-mounted freezer.
14I. Compact refrigerator-        6.82AV + 540.9....  0.241av + 540.9.
 freezers--automatic defrost
 with side-mounted freezer with
 an automatic icemaker.
15. Compact refrigerator-         11.80AV + 339.2...  0.417av + 339.2.
 freezers--automatic defrost
 with bottom-mounted freezer.
15I. Compact refrigerator-        11.80AV + 423.2...  0.417av + 423.2.
 freezers--automatic defrost
 with bottom-mounted freezer
 with an automatic icemaker.
16. Compact upright freezers      8.65AV + 225.7....  0.306av + 225.7.
 with manual defrost.
17. Compact upright freezers      10.17AV + 351.9...  0.359av + 351.9.
 with automatic defrost.

[[Page 2892]]

 
18. Compact chest freezers......  9.25AV + 136.8....  0.327av + 136.8.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in
  appendices A and B of subpart B of this part.
av = Total adjusted volume, expressed in Liters.

2. Current Test Procedure
    On October 12, 2021, DOE published a test procedure final rule 
(``October 2021 TP Final Rule'') establishing test procedures for 
refrigerators, refrigerator-freezers, and freezers, at 10 CFR part 430, 
subpart B, appendices A (``appendix A'') and B (``appendix B''). 86 FR 
56790. The test procedure adopted the latest version of the relevant 
industry standard published by the Association of Home Appliance 
Manufacturers (``AHAM''), updated in 2019, AHAM Standard HRF-1, 
``Energy and Internal Volume of Refrigerating Appliances'' (``HRF-1-
2019''). 10 CFR 430.3(i)(4). The standard levels proposed in this NOPR 
are based on the AEU metrics as measured according to appendix A and 
appendix B.
3. History of Standards Rulemaking for Refrigerators, Refrigerator-
Freezers, and Freezers, and Freezers
    The National Appliance Energy Conservation Act of 1987 (``NAECA''), 
Public Law 100-12, amended EPCA to establish prescriptive standards for 
refrigeration products, with requirements that DOE conduct two cycles 
of rulemakings to determine whether to amend these standards (42 U.S.C. 
6295 (b)(1), (2), (3)(A)(i), and (3)(B)-(C)). DOE completed the first 
of these rulemaking cycles in 1989 and 1990 by adopting amended 
performance standards for all refrigeration products manufactured on or 
after January 1, 1993. 54 FR 47916 (November 17, 1989); 55 FR 42845 
(October 24, 1990). DOE Completed a second rulemaking cycle to amend 
the standards for refrigeration products by issuing a final rule in 
1997, which adopted the current standards for these products. 62 FR 
23102 (April 28, 1997).
    In 2005, DOE granted a petition, submitted by a coalition of state 
governments, utility companies, consumer and low-income advocacy 
groups, and environmental and energy efficiency organizations, 
requesting a rulemaking to amend the standards for residential 
refrigerator-freezers. DOE then conducted limited analyses to examine 
the technological and economic feasibility of amended standards at the 
ENERGY STAR levels that were in effect for 2005 for the two most 
popular product classes of refrigerator-freezers. These analyses not 
only identified potential energy savings, benefits, and burdens from 
such standards, but also assessed other issues related to them.
    DOE initiated a rulemaking and also published a notice announcing 
the availability of the framework document and a public meeting to 
discuss the document in September 2008. It also requested public 
comment on the published document. 73 FR 54089 (September 18, 2008). 
The framework document described the procedural and analytical 
approaches that DOE anticipated using to evaluate energy conservation 
standards for refrigeration products and identified various issues to 
resolve during the rulemaking. DOE published a final rule on September 
15, 2011, to satisfy the statutory requirement that DOE publish a final 
rule to determine whether to amend the standards for refrigeration 
products manufactured in 2014. (42 U.S.C. 6295(b)(4)) The limited 2005 
analyses served as background for the more extensive analysis conducted 
for final rule published on September 15, 2011. 76 FR 57516.
4. The Joint Agreement
    On September 25, 2023, DOE received the Joint Agreement for various 
consumer products, including refrigerators, refrigerator-freezers, and 
freezers, submitted jointly by groups representing manufacturers, 
energy and environmental advocates, consumer groups, and a utility.\6\ 
The Joint Agreement recommends amended standard levels for 
refrigerators, refrigerator-freezers, and freezers as presented in 
Table II.3. (Joint Agreement, No. 103 at p. 4) Details of the Joint 
Agreement recommendations for other products are provided in the Joint 
Agreement posted in the docket.\7\
---------------------------------------------------------------------------

    \6\ The signatories to the Joint Agreement include AHAM, 
American Council for an Energy-Efficient Economy, Alliance for Water 
Efficiency, Appliance Standards Awareness Project, Consumer 
Federation of America, Consumer Reports, Earthjustice, National 
Consumer Law Center, Natural Resources Defense Council, Northwest 
Energy Efficiency Alliance, and Pacific Gas and Electric Company. 
Members of AHAM's Major Appliance Division that manufacture the 
affected products include: Alliance Laundry Systems, LLC; Asko 
Appliances AB; Beko US Inc.; Brown Stove Works, Inc.; BSH; Danby 
Products, Ltd.; Electrolux Home Products, Inc.; Elicamex S.A. de 
C.V.; Faber; Fotile America; GEA, a Haier Company; L'Atelier Paris 
Haute Design LLG; LGEUSA; Liebherr USA, Co.; Midea America Corp.; 
Miele, Inc.; Panasonic Appliances Refrigeration Systems (PAPRSA) 
Corporation of America; Perlick Corporation; Samsung; Sharp 
Electronics Corporation; Smeg S.p.A; Sub-Zero Group, Inc.; The 
Middleby Corporation; U-Line Corporation; Viking Range, LLC; and 
Whirlpool.
    \7\ The Joint Agreement is available in the docket at: 
www.regulations.gov/document/EERE-2017-BT-STD-0003-0103.

   Table II.3--Recommended Amended Energy Conservation Standards for Residential Refrigerators, Refrigerator-
                                             freezers, and Freezers
----------------------------------------------------------------------------------------------------------------
                                                                  Level  (based on AV
            Product class                  Efficiency level             (ft\3\))             Compliance date
----------------------------------------------------------------------------------------------------------------
1. Refrigerator-freezers and           EL 3 (DOE Proposed       6.79AV + 191.3.........  January 31, 2030.
 refrigerators other than all-          Level).
 refrigerators with manual defrost.
1A. All-refrigerators--manual                                   5.77AV + 164.6.........
 defrost.
2. Refrigerator-freezers--partial                               (6.79AV + 191.3)*K2....
 automatic defrost.

[[Page 2893]]

 
3. Refrigerator-freezers--automatic                             6.86AV + 198.6 +28I....
 defrost with top-mounted freezer.
3A. All-refrigerators--automatic                                (6.01AV + 171.4)*K3A...
 defrost.
4. Refrigerator-freezers--automatic    EL 3...................  7.28AV + 254.9.........  January 31, 2030.
 defrost with side-mounted freezer.
5. Refrigerator-freezers--automatic    EL 2 (DOE Proposed       (7.61AV + 272.6)*K5 +    January 31, 2030.
 defrost with bottom-mounted freezer.   Level).                  28I.
5A. Refrigerator-freezer--automatic    EL 2...................  (7.76AV + 351.9)*K5A...  January 31, 2029.
 defrost with bottom-mounted freezer
 with through-the-door ice service.
6. Refrigerator-freezers--automatic    EL 3 (DOE Proposed       7.14AV + 280.0.........  January 31, 2030.
 defrost with top-mounted freezer       Level).
 with through-the-door ice service.
7. Refrigerator-freezers--automatic    EL 3...................  (7.31AV + 322.5)*K7....  January 31, 2030.
 defrost with side-mounted freezer
 with through-the-door ice service.
8. Upright freezers with manual        No Change (DOE Proposed  5.57AV + 193.7.........  January 31, 2029.
 defrost.                               Level).
9. Upright freezers with automatic     EL 2...................  7.33AV + 194.1 + 28I...  January 31, 2030.
 defrost.
10. Chest freezers and all other       No Change (DOE Proposed  7.29AV + 107.8.........  January 31, 2029.
 freezers except compact freezers.      Level).
10A. Chest freezers with automatic     No Change (DOE Proposed  10.24AV + 148.1........  January 31, 2029.
 defrost.                               Level).
11. Compact refrigerator-freezers and  EL 2 (DOE Proposed       7.68AV + 214.5.........  January 31, 2029.
 refrigerators other than all-          Level).
 refrigerators with manual defrost.
11A. Compact all-refrigerators--                                6.66AV + 186.2.........
 manual defrost.
12. Compact refrigerator-freezers--    10% Savings............  (5.32AV + 302.2)*K12...  January 31, 2029.
 partial automatic defrost.
13. Compact refrigerator-freezers--    EL 1 (DOE Proposed       10.62AV + 305.3 + 28I..  January 31, 2029.
 automatic defrost with top-mounted     Level).
 freezer.
13A. Compact all-refrigerators--                                (8.25AV + 233.4)*K13A..
 automatic defrost
14. Compact refrigerator-freezers--                             6.14AV + 411.2 + 28I...
 automatic defrost with side-mounted
 freezer.
15. Compact refrigerator-freezers--                             10.62AV + 305.3 + 28I..
 automatic defrost with bottom-
 mounted freezer.
16. Compact upright freezers with      EL 2 (DOE Proposed       7.35AV + 191.8.........  January 31, 2029.
 manual defrost.                        Level).
17. Compact upright freezers with      EL 1 (DOE Proposed       9.15AV + 316.7.........  January 31, 2029.
 automatic defrost.                     Level).
18. Compact chest freezers...........  EL 2 (DOE Proposed       7.86AV + 107.8.........  January 31, 2029.
                                        Level).
3-BI. Built-in refrigerator-freezer--  EL 3 (DOE Proposed       8.24AV + 238.4 + 28I...  January 31, 2029.
 automatic defrost with top-mounted     Level).
 freezer.
3A-BI. Built-in All-refrigerators--                             (7.22AV + 205.7)*K3ABI.
 automatic defrost.
4-BI. Built-In Refrigerator-freezers-- EL 4 (DOE Proposed       8.79AV + 307.4 + 28I...  January 31, 2029.
 automatic defrost with side-mounted    Level).
 freezer.
5-BI. Built-In Refrigerator-freezers-- EL 1 (DOE Proposed       (8.65AV + 309.9)*K5BI +  January 31, 2029.
 automatic defrost with bottom-         Level).                  28I.
 mounted freezer.
5A-BI. Built-in refrigerator-freezer-- EL 3 (DOE Proposed       (8.21AV + 370.7)*K5ABI.  January 31, 2029.
 automatic defrost with bottom-         Level).
 mounted freezer with through-the-
 door ice service.
7-BI. Built-In Refrigerator-freezers-- EL 4 (DOE Proposed       (8.82AV + 384.1)*K7BI..  January 31, 2029.
 automatic defrost with side-mounted    Level).
 freezer.
9-BI. Built-In Upright freezers with   EL 1 (DOE Proposed       9.37AV + 247.9 + 28I...  January 31, 2029.
 automatic defrost.                     Level).
9A-BI. NEW PRODUCT CLASS: Upright      N/A....................  9.86AV + 288.9.........  January 31, 2029.
 built-in freezer w/auto defrost and
 through-door-ice.
----------------------------------------------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in appendices A and B of subpart B of 10 CFR part
  430.
Av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product without an automatic icemaker. Door
  Coefficients (e.g., K3A) are as defined below.


----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent    door or door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K2............................................             N/A             N/A  1 + 0.02 * (Nd-1).
K3A...........................................            1.10             N/A  N/A.
K3ABI.........................................            1.10             N/A  N/A.
K13A..........................................            1.10             N/A  N/A.
K4............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K4BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5A...........................................            1.10            1.06  1 + 0.02 * (Nd-3).

[[Page 2894]]

 
K5ABI.........................................            1.10            1.06  1 + 0.02 * (Nd-3).
K7............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K7BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K9............................................             N/A             N/A  1 + 0.02 * (Nd-1).
K9BI..........................................             N/A             N/A  1 + 0.02 * (Nd-1).
K12...........................................             N/A             N/A  1 + 0.02 * (Nd-1).
----------------------------------------------------------------------------------------------------------------
Note: Nd is the number of external doors.

    DOE has evaluated the Joint Agreement and believes that it meets 
the EPCA requirements for issuance of a direct final rule. As a result, 
DOE published a direct final rule establishing energy conservation 
standards for refrigerators, refrigerator-freezers, and freezers 
elsewhere in this issue of the Federal Register. If DOE receives 
adverse comments that may provide a reasonable basis for withdrawal and 
withdraws the direct final rule, DOE will consider those comments and 
any other comments received in determining how to proceed with this 
proposed rule.
    For further background information on these proposed standards and 
the supporting analyses, please see the direct final rule published 
elsewhere in this issue of the Federal Register. That document and the 
accompanying technical support document (``TSD'') contain an in-depth 
discussion of the analyses conducted in evaluating the Joint Agreement, 
the methodologies DOE used in conducting those analyses, and the 
analytical results.
    DOE also notes that it was conducting a rulemaking to consider 
amending the standards for refrigerators, refrigerator-freezers, and 
freezers when the Joint Agreement was submitted. As part of that 
process, DOE published a NOPR and announced a public webinar to respond 
to initial comments on February 27, 2023 (``February 2023 NOPR''). 88 
FR 12452. DOE also held a public webinar on April 11, 2023, to discuss 
and receive comments on the February 2023 NOPR and NOPR TSD. The NOPR 
TSD is available at: www.regulations.gov/document/EERE-2017-BT-STD-0003-0045.

III. Proposed Standards

    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))
    DOE considered the impacts of amended standards for refrigerators, 
refrigerator-freezers, and freezers at each trial standard level 
(``TSL''), beginning with the maximum technologically feasible (``max-
tech'') 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. DOE refers to this process as the ``walk-
down'' analysis.
    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.
    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.
    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 forego 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 manufacturer impact analysis (``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, 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 direct final rule TSD \8\ available in 
the docket for this rulemaking. 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.
---------------------------------------------------------------------------

    \8\ The TSD is available in the docket for this rulemaking at 
https://www.regulations.gov/document/EERE-2017-BT-STD-0003-0046/document.
---------------------------------------------------------------------------

    While DOE is not prepared at present to provide a fuller 
quantifiable framework for estimating the benefits

[[Page 2895]]

and costs of changes in consumer purchase decisions due to an energy 
conservation standard, DOE is committed to developing a framework that 
can support empirical quantitative tools for improved assessment of the 
consumer welfare impacts of appliance standards. DOE has posted a paper 
that discusses the issue of consumer welfare impacts of appliance 
energy conservation standards, and potential enhancements to the 
methodology by which these impacts are defined and estimated in the 
regulatory process. DOE welcomes comments on how to more fully assess 
the potential impact of energy conservation standards on consumer 
choice and how to quantify this impact in its regulatory analysis in 
future rulemakings.

A. Benefits and Burdens of TSLs Considered for Refrigerator, 
Refrigerator-freezer, and Freezer Standards

    Table III.1 and Table III.2 summarize the quantitative impacts 
estimated for each TSL for refrigerators, refrigerator-freezers, and 
freezers. The national impacts are measured over the lifetime of 
refrigerators, refrigerator-freezers, and freezers purchased in the 30-
year period that begins in the anticipated year of compliance with 
amended standards (2027-2056 for all TSLs except TSL 4; for TSL 4, 
2029-2058 for the product classes listed in Table III.3 and 2030-2059 
for the product classes listed in Table IIII.4). The energy savings, 
emissions reductions, and value of emissions reductions refer to full-
fuel-cycle (``FFC'') results. The efficiency levels contained in each 
TSL are described in section V.A of the direct final rule published 
elsewhere in this issue of the Federal Register.

                  Table III.1--Summary of Analytical Results for Refrigerator, Refrigerator-Freezer, and Freezer TSLs: National Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
                        Category                               TSL 1           TSL 2           TSL 3           TSL 4           TSL 5           TSL 6
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Cumulative FFC National Energy Savings
--------------------------------------------------------------------------------------------------------------------------------------------------------
Quads...................................................            2.76            3.38            4.72            5.61            6.01            9.57
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Cumulative FFC Emissions Reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 (million metric tons)...............................           50.79           62.34           86.98          100.76          110.76          176.19
CH4 (thousand tons).....................................          419.63          514.70          717.90          846.48          914.15         1455.24
N2O (thousand tons).....................................            0.50            0.62            0.87            0.99            1.10            1.75
SO2 (thousand tons).....................................           16.00           19.64           27.40           31.57           34.89           55.49
NOX (thousand tons).....................................           93.17          114.33          159.50          186.11          203.10          323.18
Hg (tons)...............................................            0.11            0.13            0.19            0.22            0.24            0.38
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Present Value of Benefits and Costs (3% discount rate, billion 2022$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings.........................           19.68           24.06           33.21           36.36           41.23           63.08
Climate Benefits *......................................            2.67            3.29            4.60            5.02            5.87            9.29
Health Benefits **......................................            5.24            6.46            9.03            9.80           11.50           18.24
                                                         -----------------------------------------------------------------------------------------------
    Total Benefits [dagger].............................           27.60           33.81           46.85           51.18           58.60           90.61
Consumer Incremental Product Costs [Dagger].............            3.23            4.64            8.56            9.38           15.43           37.66
Consumer Net Benefits...................................           16.45           19.42           24.65           26.98           25.80           25.42
                                                         -----------------------------------------------------------------------------------------------
    Total Net Benefits..................................           24.37           29.17           38.29           41.80           43.17           52.96
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Present Value of Benefits and Costs (7% discount rate, billion 2022$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings.........................            8.36           10.25           14.17           14.00           17.60           26.88
Climate Benefits *......................................            2.67            3.29            4.60            5.02            5.87            9.29
Health Benefits **......................................            2.04            2.52            3.53            3.45            4.50            7.12
                                                         -----------------------------------------------------------------------------------------------
    Total Benefits [dagger].............................           13.07           16.06           22.31           22.47           27.97           43.29
Consumer Incremental Product Costs......................            1.92            2.75            5.00            4.96            8.96           21.65
Consumer Net Benefits...................................            6.44            7.50            9.17            9.04            8.64            5.23
                                                         -----------------------------------------------------------------------------------------------
    Total Net Benefits..................................           11.15           13.32           17.31           17.51           19.01           21.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with refrigerators, refrigerator-freezers, and freezers shipped during the period 2027-2056
  for all TSLs except TSL 4; for TSL 4, 2029-2058 for the product classes listed in Table III.3 and 2030-2059 for the product classes listed in Table
  IIII.4. These results include consumer, climate, and health benefits that accrue after 2056 from the products shipped during the period 2027-2056 for
  all TSLs except TSL 4; for TSL 4, 2029-2058 for the product classes listed in Table III.3 and 2030-2059 for the product classes listed in Table
  IIII.4.
* Climate benefits are calculated using four different estimates of the four different estimates of the social cost of carbon (SC-CO2), methane (SC-
  CH4), and nitrous oxide (SC-N2O) (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 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 Technical Support Document:
  Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990 published in February 2021 by the Interagency Working
  Group (``IWG'') on the Social Cost of Greenhouse Gases. See www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf.
** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for NOX and SO2) PM2.5 precursor
  health benefits and (for NOX) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as health
  benefits from reductions in direct PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. For more details, see
  section IV.L of the direct final rule published elsewhere in this issue of the Federal Register.

[[Page 2896]]

 
[dagger] Total and net benefits include consumer, climate, and health benefits. 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.


         Table III.2--Summary of Analytical Results for Refrigerator, Refrigerator-Freezer, and Freezer TSLs: Manufacturer and Consumer Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
               Category                       TSL 1              TSL 2              TSL 3              TSL 4              TSL 5              TSL 6
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Manufacturer Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Industry NPV (million 2022$) (No-new-          4,841.5 to         4,798.5 to         4,387.6 to         4,401.3 to         3,839.9 to         3,080.1 to
 standards case INPV = 4,905.8).......            4,891.4            4,870.1            4,514.7            4,522.3            4,061.6            3,604.0
Industry NPV (% change)...............     (1.3) to (0.3)     (2.2) to (0.7)    (10.6) to (8.0)    (10.3) to (7.8)   (21.7) to (17.2)   (37.2) to (26.5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Consumer Average LCC Savings (2022$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
PC 3..................................              30.50              40.14              40.14              50.91              43.46               0.03
PC 5..................................              46.90              46.90              45.47              55.23              45.47              20.22
PC 5BI................................              86.19              86.19              86.19              91.13              86.19            (30.73)
PC 5A.................................             127.59             127.59             124.76             133.27             122.18             122.18
PC 7..................................              52.10              70.96             134.10             142.56              73.96              69.71
PC 9..................................              62.02              62.02              62.02              56.17              62.02              26.33
PC 10.................................               5.94                N/A                N/A                N/A                N/A             (8.65)
PC 11A (residential)..................               0.00               0.00               8.11               8.35               8.11             (4.66)
PC 11A (commercial)...................               0.00               0.00               3.06               3.16               3.06            (29.11)
PC 17.................................              32.29              32.29              32.29              36.86              32.29               0.26
PC 18.................................              23.82              23.82              22.49              23.55              22.49             (5.34)
Shipment-Weighted Average *...........              47.08              55.22              63.46              70.88              55.93              27.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Consumer Simple PBP (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
PC 3..................................                1.4                4.2                4.2                4.8                5.3                9.3
PC 5..................................                4.3                4.3                6.1                5.6                6.1                8.6
PC 5BI................................                2.4                2.4                2.4                2.1                2.4                8.2
PC 5A.................................                1.9                1.9                4.4                4.1                6.0                6.0
PC 7..................................                0.7                2.9                1.9                1.6                6.2                6.8
PC 9..................................                4.1                4.1                4.1                6.6                4.1               10.7
PC 10.................................               11.2                N/A                N/A                N/A                N/A               13.4
PC 11A (residential)..................                2.1                2.1                2.1                2.1                2.1                6.0
PC 11A (commercial)...................                3.3                3.3                3.3                3.2                3.3                9.3
PC 17.................................                4.6                4.6                4.6                4.1                4.6                7.2
PC 18.................................                1.4                1.4                4.2                4.1                4.2                9.4
Shipment-Weighted Average *...........                3.0                3.6                4.3                4.5                5.4                8.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Percent of Consumers that Experience a Net Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
PC 3..................................                3.9               17.3               17.3               28.3               34.2               67.1
PC 5..................................               18.2               18.2               39.4               33.6               39.4               60.3
PC 5BI................................                1.0                1.0                1.0                0.5                1.0               61.0
PC 5A.................................                1.2                1.2               23.0               19.8               39.4               39.4
PC 7..................................                0.0                9.6                1.2                0.5               42.6               48.3
PC 9..................................               12.2               12.2               12.2               39.1               12.2               61.0
PC 10.................................               57.5                N/A                N/A                N/A                N/A               70.0
PC 11A (residential)..................                0.0                0.0                8.4                8.0                8.4               61.7
PC 11A (commercial)...................                0.0                0.0               16.1               15.7               16.1               92.7
PC 17.................................                5.6                5.6                5.6                4.5                5.6               61.5
PC 18.................................                0.8                0.8               18.9               17.6               18.9               68.5
Shipment-Weighted Average *...........               10.2               12.7               20.5               24.4               33.2               60.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values. The entry ``N/A'' means not applicable because there is no change in the standard at certain TSLs.
* Weighted by shares of each product class in total projected shipments in 2027 for all TSLs except TSL 4; for TSL 4, 2029 for PCs 5BI, 5A, 10, 11A, 17,
  and 18, and 2030 for PCs 3, 5, 7, and 9.

    DOE first considered TSL 6, which represents the max-tech 
efficiency levels. At this level, DOE expects that all product classes 
would require vacuum-insulated panels (``VIPs'') and most would require 
variable-speed compressor (``VSCs''). For most product classes, this 
represents the use of VIPs for roughly half the cabinet surface 
(typically side walls and doors for an upright cabinet), the best-
available-efficiency variable-speed compressor, forced-convection heat 
exchangers with multi-speed brush-less direct current (``BLDC'') fans, 
variable defrost, and increase in cabinet wall thickness for some 
classes (e.g., compact refrigerators and both standard-size and compact 
chest freezers). DOE estimates that less than 1 percent of annual 
shipments across all refrigerator, refrigerator-freezer, and freezer 
product classes currently meet the max-tech efficiencies required. TSL 
6 would save an estimated 9.57 quads of energy, an amount DOE considers 
significant. Under TSL 6, the net present value (``NPV'') of consumer 
benefit would be $5.23 billion using a discount rate of 7 percent, and 
$25.42 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 6 are 176 Mt of 
CO2, 55.5 thousand tons of SO2, 323 thousand tons 
of NOX, 0.38 tons of Hg, 1,455 thousand tons of 
CH4, and 1.75 thousand tons of N2O. 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 6 is $9.29 billion. The estimated monetary value of the health 
benefits from reduced SO2 and NOX emissions at 
TSL 6 is $7.12 billion using a 7-percent discount rate and $18.24 
billion using a 3-percent discount rate.
    Using a 7-percent discount rate for consumer benefits and costs, 
health benefits from reduced SO2 and NOX 
emissions, and the 3-percent discount

[[Page 2897]]

rate case for climate benefits from reduced GHG emissions, the 
estimated total NPV at TSL 6 is $21.64 billion. Using a 3-percent 
discount rate for all benefits and costs, the estimated total NPV at 
TSL 6 is $52.96 billion. The estimated total NPV is provided for 
additional information, however DOE primarily relies upon the NPV of 
consumer benefits when determining whether a standard level is 
economically justified.
    At TSL 6, for the largest product classes, which are 3, 5, 5A, and 
7 and together account for approximately 76 percent of annual 
shipments, there is a life-cycle cost (``LLC'') savings of $0.03, 
$20.22, $122.18, and $69.71 and a payback period of 9.3 years, 8.6 
years, 6.0 years and 6.8 years, respectively. However, for these 
product classes, the fraction of customers experiencing a net LCC cost 
is 67.1 percent, 60.3 percent, 39.4 percent and 48.3 percent with 
increases in first cost of $169.37, $151.75, $161.65, and $153.01, 
respectively. Overall, a majority of refrigerators, refrigerator-
freezers, and freezers consumers (60 percent) would experience a net 
cost and the average LCC savings would be negative for PC 5BI, PC 10, 
PC 11A, and PC 18. Additionally, 35 percent of low-income households 
with a side-by-side refrigerator-freezer (represented by PC 7 and used 
by 19 percent of low-income households) would experience a net cost.
    At TSL 6, the projected change in industry net present value 
(``INPV'') ranges from a decrease of $1.83 billion to a decrease of 
$1.30 billion, which corresponds to decreases of 37.2 percent and 26.5 
percent, respectively. Industry conversion costs could reach $2.39 
billion as manufacturers work to redesign their portfolio of model 
offerings and re-tool entire factories to comply with amended standards 
at TSL 6.
    DOE estimates that less than 1 percent of refrigerator, 
refrigerator-freezer, and freezer current annual shipments meet the 
max-tech levels. At TSL 6, only a few manufacturers offer any standard-
size products that meet the efficiencies required. For PC 3, which 
accounts for approximately 25 percent of annual shipments, no original 
equipment manufacturers (``OEMs'') currently offer products that meet 
the efficiency level required. For PC 5, which accounts for 
approximately 21 percent of annual shipments, DOE estimates that seven 
out of 22 OEMs currently offer products that meet the efficiency level 
required. For PC 7, which accounts for approximately 11 percent of 
annual shipments, only one out of 11 OEMs currently offers products 
that meet the efficiency level required.
    At max-tech, manufacturers would likely need to implement all the 
most efficient design options in the engineering analysis. In 
interviews, manufacturer indicated they would redesign all product 
platforms and dramatically update manufacturing facilities to meet max-
tech for all approximately 17.0 million annual shipments of 
refrigerators, refrigerator-freezers, and freezers.\9\
---------------------------------------------------------------------------

    \9\ Current shipments calculations relied on shipments in the 
year 2023.
---------------------------------------------------------------------------

    In particular, increased incorporation of VIPs could increase the 
expense of adapting manufacturing plants. As discussed in section 
IV.J.2.c of the direct final rule published elsewhere in this issue of 
the Federal Register, DOE expects manufacturers would likely adopt VIP 
technology to improve thermal insulation while minimizing loss to the 
interior volume for their products. Extensive incorporation of VIPs 
requires significant capital expenditures due to the need for more 
careful product handling and conveyor, increased warehousing 
requirements, investments in tooling necessary for the VIP installation 
process, and adding production line capacity to compensate for more 
time-intensive manufacturing associated with VIPs. Manufacturers with 
facilities that have limited space and few options to expand may 
consider greenfield projects. In interviews, several manufacturers 
expressed concerns about their ability to produce sufficient quantities 
of refrigerators, refrigerator-freezers, and freezers at max-tech given 
the required scale of investment, redesign effort, and 3-year 
compliance timeline.
    The Secretary tentatively concludes that at TSL 6 for 
refrigerators, refrigerator-freezers, and freezers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the economic burden on many consumers, and the impacts on 
manufacturers, including the large potential reduction in INPV and the 
lack of manufacturers currently offering products meeting the 
efficiency levels required at this TSL. At TSL 6, a majority of 
refrigerator, refrigerator-freezer, and freezers consumers (60 percent) 
would experience a net cost and the average LCC savings would be 
negative for PC 5BI, PC 10, PC 11A, and PC 18. Additionally, 
manufacturers would need to make significant upfront investments to 
update product lines and manufacturing facilities. Manufacturers 
expressed concern that they would not be able to complete product and 
production line updates within the 3-year conversion period. 
Consequently, the Secretary has tentatively concluded that TSL 6 is not 
economically justified.
    DOE then considered TSL 5 for refrigerators, refrigerator-freezers, 
and freezers. For classes other than refrigerator-freezers with bottom-
mounted freezers and through-the-door ice service (PC 5A), this TSL 
represents efficiency levels less than max-tech. TSL 5 represents 
similar design options as max-tech, but generally incorporates the use 
of high-efficiency compressors (single speed compressors or VSCs) 
rather than maximum efficiency VSCs, incorporates VIPs in fewer product 
classes, and incorporates less VIP surface area for the product classes 
requiring the use of VIPs as compared to TSL 6. TSL 5 would save an 
estimated 6.01 quads of energy, an amount DOE considers significant. 
Under TSL 5, the NPV of consumer benefit would be $8.64 billion using a 
discount rate of 7 percent, and $25.80 billion using a discount rate of 
3 percent.
    The cumulative emissions reductions at TSL 5 are 111 Mt of 
CO2, 34.9 thousand tons of SO2, 203 thousand tons 
of NOX, 0.24 tons of Hg, 914 thousand tons of 
CH4, and 1.10 thousand tons of N2O. 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 5 is $5.87 billion. The estimated monetary value of the health 
benefits from reduced SO2 and NOX emissions at 
TSL 5 is $4.50 billion using a 7-percent discount rate and $11.50 
billion using a 3-percent discount rate.
    Using a 7-percent discount rate for consumer benefits and costs, 
health benefits from reduced SO2 and NOX 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated total NPV at TSL 5 is $19.01 
billion. Using a 3-percent discount rate for all benefits and costs, 
the estimated total NPV at TSL 5 is $43.17 billion. The estimated total 
NPV is provided for additional information, however DOE primarily 
relies upon the NPV of consumer benefits when determining whether a 
standard level is economically justified.
    At TSL 5, for the largest product classes, which are 3, 5, 5A, and 
7, there is a life-cycle cost savings of $43.46, $45.47, $122.18, and 
$73.96 and a payback period of 5.3 years, 6.1 years, 6.0 years and 6.2 
years, respectively. For these product classes, the fraction of

[[Page 2898]]

customers experiencing a net LCC cost is 34.2 percent, 39.4 percent, 
39.4 percent and 42.6 percent with increases in first cost of $52.69, 
$69.25, $161.65, and $121.58, respectively. Overall, 33 percent of 
refrigerators, refrigerator-freezers, and freezers consumers would 
experience a net cost and the average LCC savings are positive for all 
product classes.
    At TSL 5, an estimated 16 percent of all low-income households 
experience a net cost, including 11 percent of low-income households 
with a top-mount or single-door refrigerator-freezer (represented by PC 
3 and used by 72 percent of low-income households) and 32 percent of 
low-income households with a side-by-side refrigerator-freezer 
(represented by PC 7 and used by 19 percent of low-income households). 
More than half of low-income PC 7 consumers with a net cost experience 
a net cost of at least $40 and while low-income PC 7 consumers 
experience an average LCC savings of $132.77 at TSL 5, there are larger 
average LCC savings at TSL 4 ($161.87) and substantially fewer low-
income PC 7 consumers would experience a net cost (0.6 percent) at that 
TSL. Further, the incremental increase in purchase price at TSL 5 for 
PC 7 is $121.58, which may be difficult for low-income homeowners to 
afford.
    At TSL 5, the projected change in INPV ranges from a decrease of 
$1.07 billion to a decrease of $844.2 million, which corresponds to 
decreases of 21.7 percent and 17.2 percent, respectively. DOE estimates 
that industry must invest $1.40 billion to comply with standards set at 
TSL 5.
    DOE estimates that approximately 14 percent of refrigerator, 
refrigerator-freezer, and freezer annual shipments meet the TSL 5 
efficiencies. For standard-size refrigerator-freezers, which account 
for approximately 70 percent of total annual shipments, approximately 1 
percent of shipments meet the efficiencies required at TSL 5. Compared 
to max-tech, more manufacturers offer standard-size refrigerator-
freezer products that meet the required efficiencies, however, many 
manufacturers do not offer products that meet this level. Of the 22 
OEMs offering PC 3 products, three OEMs offer models that meet the 
efficiency level required. Of the 22 OEMs offering PC 5 products, 14 
OEMs offer models that meet the efficiency level required. Of the 11 
OEMs offering PC 7 products, only one OEM offers models that meet the 
efficiency level required.
    The manufacturers that do not currently offer models that meet TSL 
5 efficiencies would need to develop new product platforms. Updates 
could include incorporating variable defrost, BLDC evaporator fan 
motors, and high-efficiency VSCs. Additionally, some product classes 
could require the use of VIPs. DOE expects manufacturers would likely 
need to incorporate some VIPs into PC 5 and PC 7 designs, but not to 
the extent required at max-tech. However, DOE expects manufacturers 
would need to incorporate the max-tech design options for PC 5A, which 
includes the use of VIPs for roughly half the cabinet surface (side 
walls and doors) to meet TSL 5 efficiencies. As discussed in section 
IV.J.2.c of the direct final rule published elsewhere in this issue of 
the Federal Register, the inclusion of VIPs in product design 
necessitates large investments in tooling and significant changes to 
production plants. Furthermore, given that only 1 percent of current 
standard-size refrigerator-freezer shipments meet TSL 5 efficiency 
levels, the manufacturers that are currently able to meet TSL 5 would 
need to scale up manufacturing capacity of compliant models. DOE 
anticipates conversion costs as high as $1.40 billion because the 
majority of product platforms in the industry would require redesign 
and investment.
    The Secretary tentatively concludes that at TSL 5 for 
refrigerators, refrigerator-freezers, and freezers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the economic burden on consumers, particularly low-income 
consumers of side-by-side refrigerator-freezers, and the impacts on 
manufacturers, including the large potential reduction in INPV and the 
lack of manufacturers currently offering standard-size refrigerator-
freezer products meeting the efficiency levels required at this TSL. 
Specifically, only one OEM currently offers any PC 7 models that meet 
the TSL 5 efficiencies. At TSL 5, 32 percent of low-income PC 7 
consumers would experience a net cost and the incremental increase in 
purchase price of $121.58 may be difficult for low-income homeowners to 
afford. Consequently, the Secretary has tentatively concluded that TSL 
5 is not economically justified.
    DOE then considered the TSL 4 which corresponds to the TSL 
recommended in the Joint Agreement (the ``Recommended TSL''). For 
representative product classes other than PC 5A, PC 7, and PC 9, this 
TSL represents the same efficiency levels as TSL 5.\10\ Thus, the 
Recommended TSL represents similar design options as TSL 5, except for 
PC 5A, PC 7, and PC 9. For PC 7, DOE expects manufacturers would not 
require the use of VIPs to meet the required efficiency level. For PC 
5A, DOE expects manufacturers would require less VIP surface area to 
meet the required efficiency level. For PC 9, DOE expects manufacturers 
to implement variable speed compressor systems to meet required 
standards. DOE estimates that approximately 14 percent of annual 
shipments across all refrigerator, refrigerator-freezer, and freezer 
product classes currently meet the efficiencies required. For the 
Recommended TSL, DOE's analysis utilized the January 31, 2029 (or 
January 31, 2030, for some product classes) compliance dates specified 
in the Joint Agreement. The Recommended TSL would save an estimated 
5.61 quads of energy, an amount DOE considers significant. Under the 
Recommended TSL, the NPV of consumer benefit would be $9.04 billion 
using a discount rate of 7 percent, and $26.98 billion using a discount 
rate of 3 percent.
---------------------------------------------------------------------------

    \10\ For all TSLs except the Recommended TSL, the efficiency 
levels required for non-representative product classes are the same 
as the efficiency levels required for the associated directly 
analyzed product classes. However, as noted in section V.A of this 
document, the Recommended TSL from the Joint Agreement includes 
standard levels for some non-representative product classes that 
differ from their associated representative product class. Thus, in 
addition to the representative PC 5A, PC 7, and PC 9, the efficiency 
levels required for non-representative PC 9A-BI and PC 12 at the 
Recommended TSL also differ from the efficiency levels required at 
TSL 5.
---------------------------------------------------------------------------

    The cumulative emissions reductions at the Recommended TSL are 101 
Mt of CO2, 31.6 thousand tons of SO2, 186 
thousand tons of NOX, 0.22 tons of Hg, 846.5 thousand tons 
of CH4, and 0.99 thousand tons of N2O. 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 the Recommended TSL is $5.02 billion. The estimated monetary 
value of the health benefits from reduced SO2 and 
NOX emissions at the Recommended TSL is $3.45 billion using 
a 7-percent discount rate and $9.80 billion using a 3-percent discount 
rate.
    Using a 7-percent discount rate for consumer benefits and costs, 
health benefits from reduced SO2 and NOX 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated total NPV at the Recommended 
TSL is $17.51 billion. Using a 3-percent discount rate for all benefits 
and costs, the estimated total NPV at the

[[Page 2899]]

Recommended TSL is $41.80 billion. The estimated total NPV is provided 
for additional information, however DOE primarily relies upon the NPV 
of consumer benefits when determining whether a standard level is 
economically justified.
    At the Recommended TSL, for the largest product classes, which are 
3, 5, 5A, and 7, there is a life-cycle cost savings of $50.91, $55.23, 
$133.27, and $142.56 and a payback period of 4.8 years, 5.6 years, 4.1 
years and 1.6 years, respectively. For these product classes, the 
fraction of customers experiencing a net LCC cost is 28.3 percent, 33.6 
percent, 19.8 percent and 0.5 percent with increases in first cost of 
$47.67, $62.72, $81.32, and $24.39, respectively. Overall, 24.4 percent 
of refrigerators, refrigerator-freezers, and freezers consumers would 
experience a net cost and the average LCC savings are positive for all 
product classes.
    At the Recommended TSL, 9 percent of low-income households with a 
top-mount or single-door refrigerator-freezer (represented by PC 3 and 
used by 72 percent of low-income households) and 0.6 percent of low-
income households with a side-by-side refrigerator-freezer (represented 
by PC 7 and used by 19 percent of low-income households) experience a 
net cost. Additionally, the incremental increase in purchase price is 
$24.39 for low-income PC 7 homeowners at the Recommended TSL, 
substantially lower than the incremental increase in purchase price of 
$121.58 at TSL 5.
    At the Recommended TSL, the projected change in INPV ranges from a 
decrease of $504.4 million to a decrease of $383.5 million, which 
correspond to decreases of 10.3 percent and 7.8 percent, respectively. 
DOE estimates that industry must invest $830.3 million comply with 
standards set at the Recommended TSL. DOE estimates that approximately 
14 percent of refrigerator, refrigerator-freezer, and freezer annual 
shipments meet the Recommended TSL efficiencies.
    Compared to TSL 5, more manufacturers offer standard-size 
refrigerator freezer products that meet the required efficiencies since 
PC 7 has a lower required efficiency level at the Recommended TSL. For 
PC 7, which accounts for 11 percent of shipments, three OEMs offer 
products that meet the efficiency level required. Furthermore, DOE does 
not expect manufacturers would need to incorporate VIPs into PC 7 
designs to meet the efficiencies required at the Recommended TSL. For 
PC 5 and PC 5A, DOE understands the two product classes often share the 
same production lines, with shared cabinet architecture and tooling. 
DOE expects manufacturers would likely need to incorporate some VIPs 
into PC 5A designs, but not to the extent required at TSL 5 and TSL 6. 
Thus, for the 10 OEMs that manufacture both PC 5 and PC 5A, DOE expects 
manufacturers could implement similar cabinet upgrades (i.e., partial 
VIP) for PC 5 and PC 5A designs to achieve the efficiencies required at 
this level.
    For all TSLs considered in this proposed rule--except for the 
Recommended TSL--DOE is bound by the 3-year lead time requirements in 
EPCA when determining compliance dates (i.e., compliance with amended 
standards required in 2027). For the Recommended TSL, DOE's analysis 
utilized the January 31, 2029 (or January 31, 2030, for some product 
classes) compliance dates specified in the Joint Agreement as they were 
an integral part of the multi-product joint recommendation. These 
compliance dates provide manufacturers the flexibility to spread 
capital requirements, engineering resources, and other conversion 
activities over a longer period of time depending on the individual 
needs of each manufacturer. Furthermore, these delayed compliance dates 
provide additional lead time and certainty for suppliers of components 
that improve efficiency. DOE believes the Recommended TSL mitigates 
risks raised by AHAM and multiple manufacturers in response to the 
February 2023 NOPR regarding the ability for VSC and VIP component 
suppliers to increase supply of these key components in the 3-year lead 
time required by EPCA.
    After considering the analysis and weighing the benefits and 
burdens, the Secretary has tentatively concluded that a standard set at 
the Recommended TSL for refrigerators, refrigerator-freezers, and 
freezers is economically justified. At this TSL, the average LCC 
savings are positive for all product classes for which an amended 
standard is considered. An estimated 24.4 percent of all refrigerator, 
refrigerator-freezer, and freezer consumers experience a net cost. An 
estimated 9 percent of low-income households with a top-mount or 
single-door refrigerator-freezer (represented by PC 3 and used by 72 
percent of low-income households) and 0.6 percent of low-income 
households with a side-by-side refrigerator-freezer (represented by PC 
7 and used by 19 percent of low-income households), experience a net 
cost, which is a significantly lower percentage than under TSL 5. DOE 
notes that for low-income PC 7 consumers, as well as across all PC 7 
consumers, the Recommended TSL represents the largest average LCC 
savings of any TSL. The FFC national energy savings are significant and 
the NPV of consumer benefits is positive at the Recommended TSL using 
both a 3-percent and 7-percent discount rate. Notably, the benefits to 
consumers vastly outweigh the cost to manufacturers. At the Recommended 
TSL, the NPV of consumer benefits, even measured at the more 
conservative discount rate of 7 percent is over 17 times higher than 
the maximum estimated manufacturers' loss in INPV. The standard levels 
at the Recommended TSL are economically justified even without weighing 
the estimated monetary value of emissions reductions. When those 
emissions reductions are included--representing $5.02 billion in 
climate benefits (associated with the average SC-GHG at a 3-percent 
discount rate), and $9.80 billion (using a 3-percent discount rate) or 
$3.45 billion (using a 7-percent discount rate) in health benefits--the 
rationale becomes stronger still.
    As stated, DOE conducts the 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. DOE notes 72 percent of low-income households have a top-mount 
refrigerator-freezer (represented by PC 3) and that an estimated 9 
percent of low-income PC 3 households experience a net cost at the 
Recommended TSL, whereas an estimated 6 percent of low-income 
households with a top-mount refrigerator-freezer experience a net cost 
at TSL 3. However, the average LCC savings for low-income PC 3 
consumers are $22.05 higher at the Recommended TSL than at TSL 3. 
Further, compared to TSL 3, it is estimated that the Recommended TSL 
would result in additional FFC national energy savings of 0.9 quads. 
These additional savings and benefits at the Recommended TSL are 
significant. DOE considers the impacts to be, as a whole, economically 
justified at the Recommended TSL.
    Although DOE considered amended standard levels for refrigerators, 
refrigerator-freezers, and freezers by grouping the efficiency levels 
for each product class into TSLs, DOE evaluates all analyzed efficiency 
levels in its analysis. In general, the standard level represents the 
maximum energy savings that does not result in a large percentage of 
consumers experiencing a net LCC cost. For example, for PC 5, more than 
half of consumers experience a net cost at EL 3. In the case of PC 7, 
for which DOE found that a relatively higher percentage of low-income 
consumers

[[Page 2900]]

may experience net costs at higher efficiency levels, at the standard 
level chosen, 0.6 percent of low-income households with side-by-side 
refrigerator-freezers will experience a potential burden. The ELs at 
the standard level result in positive LCC savings for all product 
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 tentatively concluded they are economically 
justified, as discussed for the Recommended TSL in the preceding 
paragraphs.
    Therefore, based on the previous considerations, DOE proposes to 
adopt the energy conservation standards for refrigerators, 
refrigerator-freezers, and freezers at the Recommended TSL.
    The Recommended TSL for refrigerators, refrigerator-freezers, and 
freezers proposed in this NOPR is part of a multi-product Joint 
Agreement covering six rulemakings (refrigerators, refrigerator-
freezers, and freezers; miscellaneous refrigeration products; 
conventional cooking products; residential clothes washers; consumer 
clothes dryers; and dishwashers). The signatories indicate that the 
Joint Agreement for the six rulemakings should be considered as a joint 
statement of recommended standards, to be adopted in its entirety. As 
discussed in section V.B.2.e of the direct final rule published 
elsewhere in this issue of the Federal Register, many refrigerator, 
refrigerator-freezer, and freezer OEMs also manufacture miscellaneous 
refrigeration products, conventional cooking products, residential 
clothes washers, consumer clothes dryers, and dishwashers. Rather than 
requiring compliance with five amended standards in a single year 
(2027),\11\ the negotiated multi-product Joint Agreement staggers the 
compliance dates for the five amended standards over a 4-year period 
(2027-2030). In response to the February 2023 NOPR, AHAM and individual 
manufacturers expressed concerns about the timing of ongoing home 
appliance rulemakings. Specifically, AHAM commented that the 
combination of the stringency of DOE's proposals, the short lead-in 
time required under EPCA to comply with standards, and the overlapping 
timeframe of multiple standards affecting the same manufacturers 
represents significant cumulative regulatory burden for the home 
appliance industry. (AHAM, No. 69 at pp. 20-21) AHAM has submitted 
similar comments to other ongoing consumer product rulemakings.\12\ As 
AHAM is a key signatory of the Joint Agreement, DOE understands that 
the compliance dates recommended in the Joint Agreement would help 
reduce cumulative regulatory burden. These compliance dates help 
relieve concern on the part of some manufacturers about their ability 
to allocate sufficient resources to comply with multiple concurrent 
amended standards, about the need to align compliance dates for 
products that are typically designed or sold as matched pairs, and 
about the ability of their suppliers to ramp up production of key 
components. The Joint Agreement also provides additional years of 
regulatory certainty for manufacturers and their suppliers while still 
achieving the maximum improvement in energy efficiency that is 
technologically feasible and economically justified.
---------------------------------------------------------------------------

    \11\ The refrigerators, refrigerator-freezers, and freezers (88 
FR 12452); consumer conventional cooking products (88 FR 6818); 
residential clothes washers (88 FR 13520); consumer clothes dryers 
(87 FR 51734); and dishwashers (88 FR 32514) utilized a 2027 
compliance year for analysis at the proposed rule stage. 
Miscellaneous refrigeration products (88 FR 12452) utilized a 2029 
compliance year for the NOPR analysis.
    \12\ AHAM has submitted written comments regarding cumulative 
regulatory burden for the other five rulemakings included in the 
multi-product Joint Agreement. AHAM's written comments on cumulative 
regulatory burden are available at: www.regulations.gov/comment/EERE-2020-BT-STD-0039-0031 (pp. 12-15) for miscellaneous 
refrigeration products; www.regulations.gov/comment/EERE-2014-BT-STD-0005-2285 (pp. 44-27) for consumer conventional cooking 
products; www.regulations.gov/comment/EERE-2017-BT-STD-0014-0464 
(pp. 40-44) for residential clothes washers; www.regulations.gov/comment/EERE-2014-BT-STD-0058-0046 (pp. 12-13) for consumer clothes 
dryers; and www.regulations.gov/comment/EERE-2019-BT-STD-0039-0051 
(pp. 21-24) for dishwashers.
---------------------------------------------------------------------------

    The proposed energy conservation standards for refrigerators, 
refrigerator-freezers, and freezers, which are expressed in kWh/yr, are 
shown in Table III.3 and Table IIII.4.

    Table III.3--Proposed Amended Energy Conservation Standards for Refrigerators, Refrigerator-Freezers, and
                                                    Freezers
                                     [Compliance starting January 31, 2029]
----------------------------------------------------------------------------------------------------------------
                                                    Equations for maximum energy use (kWh/yr)
         Product class          --------------------------------------------------------------------------------
                                           Based on AV (ft\3\)                       Based on av (L)
----------------------------------------------------------------------------------------------------------------
3-BI. Built-in refrigerator-     8.24AV + 238.4 + 28I..................  0.291av + 238.4 + 28I.
 freezer--automatic defrost
 with top-mounted freezer.
3A-BI. Built-in All-             (7.22AV + 205.7)*K3ABI................  (0.255av + 205.7)*K3ABI.
 refrigerators--automatic
 defrost.
4-BI. Built-In Refrigerator-     (8.79AV + 307.4)*K4BI + 28I...........  (0.310av + 307.4)*K4BI + 28I.
 freezers--automatic defrost
 with side-mounted freezer.
5-BI. Built-In Refrigerator-     (8.65AV + 309.9)*K5BI + 28I...........  (0.305av + 309.9)*K5BI + 28I.
 freezers--automatic defrost
 with bottom-mounted freezer.
5A. Refrigerator-freezer--       (7.76AV + 351.9)*K5A..................  (0.274av + 351.9)*K5A.
 automatic defrost with bottom-
 mounted freezer with through-
 the-door ice service.
5A-BI. Built-in refrigerator-    (8.21AV + 370.7)*K5ABI................  (0.290av + 370.7)*K5ABI.
 freezer--automatic defrost
 with bottom-mounted freezer
 with through-the-door ice
 service.
7-BI. Built-In Refrigerator-     (8.82AV + 384.1)*K7BI.................  (0.311av + 384.1)*K7BI.
 freezers--automatic defrost
 with side-mounted freezer.
8. Upright freezers with manual  5.57AV + 193.7........................  0.197av + 193.7.
 defrost.
9-BI. Built-In Upright freezers  (9.37AV + 247.9)*K9BI + 28I...........  (0.331av + 247.9)*K9BI + 28I.
 with automatic defrost.
9A-BI. Built-In Upright          9.86AV + 288.9........................  0.348av + 288.9.
 freezers with automatic
 defrost with through-the-door
 ice service.
10. Chest freezers and all       7.29AV + 107.8........................  0.257av + 107.8.
 other freezers except compact
 freezers.
10A. Chest freezers with         10.24AV + 148.1.......................  0.362av + 148.1.
 automatic defrost.
11. Compact refrigerator-        7.68AV + 214.5........................  0.271av + 214.5.
 freezers and refrigerators
 other than all-refrigerators
 with manual defrost.
11A. Compact all-refrigerators-- 6.66AV + 186.2........................  0.235av + 186.2.
 manual defrost.
12. Compact refrigerator-        (5.32AV + 302.2)*K12..................  (0.188av + 302.2)*K12.
 freezers--partial automatic
 defrost.

[[Page 2901]]

 
13. Compact refrigerator-        10.62AV + 305.3 + 28I.................  0.375av + 305.3 + 28I.
 freezers--automatic defrost
 with top-mounted freezer.
13A. Compact all-refrigerators-- (8.25AV + 233.4)*K13A.................  (0.291av + 233.4)*K13A.
 automatic defrost.
14. Compact refrigerator-        6.14AV + 411.2 + 28I..................  0.217av + 411.2 + 28I.
 freezers--automatic defrost
 with side-mounted freezer.
15. Compact refrigerator-        10.62AV + 305.3 + 28I.................  0.375av + 305.3 + 28I.
 freezers--automatic defrost
 with bottom-mounted freezer.
16. Compact upright freezers     7.35AV + 191.8........................  0.260av + 191.8.
 with manual defrost.
17. Compact upright freezers     9.15AV + 316.7........................  0.323av + 316.7.
 with automatic defrost.
18. Compact chest freezers.....  7.86AV + 107.8........................  0.278av + 107.8.
----------------------------------------------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in appendices A and B of subpart B of 10 CFR part
  430.
av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product without an automatic icemaker. Door
  Coefficients (e.g., K3ABI) are as defined in the following table.


----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent   door or  door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K3ABI.........................................            1.10             1.0  1.0.
K4BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5A...........................................            1.10            1.06  1 + 0.02 * (Nd-3).
K5ABI.........................................            1.10            1.06  1 + 0.02 * (Nd-3).
K7BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2).
K9BI..........................................             1.0             1.0  1 + 0.02 * (Nd-1).
K12...........................................             1.0             1.0  1 + 0.02 * (Nd-1).
K13A..........................................            1.10             1.0  1.0.
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 3 for K9BI, and 5 for all other K values.


   Table IIII.4--Proposed Amended Energy Conservation Standards for Refrigerators, Refrigerator-Freezers, and
                                                    Freezers
                                     [Compliance starting January 31, 2030]
----------------------------------------------------------------------------------------------------------------
                                                    Equations for maximum energy use (kWh/yr)
         Product class          --------------------------------------------------------------------------------
                                           Based on AV (ft\3\)                       Based on av (L)
----------------------------------------------------------------------------------------------------------------
1. Refrigerator-freezers and     6.79AV + 191.3........................  0.240av + 191.3.
 refrigerators other than all-
 refrigerators with manual
 defrost.
1A. All-refrigerators--manual    5.77AV + 164.6........................  0.204av + 164.6.
 defrost.
2. Refrigerator-freezers--       (6.79AV + 191.3)*K2...................  (0.240av + 191.3)*K2.
 partial automatic defrost.
3. Refrigerator-freezers--       6.86AV + 198.6 + 28I..................  0.242av + 198.6 + 28I.
 automatic defrost with top-
 mounted freezer.
3A. All-refrigerators--          (6.01AV + 171.4)*K3A..................  (0.212av + 171.4)*K3A.
 automatic defrost.
4. Refrigerator-freezers--       (7.28AV + 254.9)*K4 + 28I.............  (0.257av + 254.9)*K4 + 28I.
 automatic defrost with side-
 mounted freezer.
5. Refrigerator-freezers--       (7.61AV + 272.6)*K5 + 28I.............  (0.269av + 272.6)*K5 + 28I.
 automatic defrost with bottom-
 mounted freezer.
6. Refrigerator-freezers--       7.14AV + 280.0........................  0.252av + 280.0.
 automatic defrost with top-
 mounted freezer with through-
 the-door ice service.
7. Refrigerator-freezers--       (7.31AV + 322.5)*K7...................  (0.258av + 322.5)*K7.
 automatic defrost with side-
 mounted freezer with through-
 the-door ice service.
9. Upright freezers with         (7.33AV + 194.1)*K9 + 28I.............  (0.259av + 194.1)*K9 + 28I.
 automatic defrost.
----------------------------------------------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in appendices A and B of subpart B of 10 CFR part
  430.
av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product without an automatic icemaker. Door
  Coefficients (e.g., K3A) are as defined in the following table.


[[Page 2902]]


----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent   door or  door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K2............................................             1.0             1.0  1 + 0.02 * (Nd-1).
K3A...........................................            1.10             1.0  1.0.
K4............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K5............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K7............................................            1.10            1.06  1 + 0.02 * (Nd-2).
K9............................................             1.0             1.0  1 + 0.02 * (Nd-1).
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 2 for K2, and 5 for all other K values.

B. Annualized Benefits and Costs of the Proposed Standards

    The benefits and costs of the proposed standards can also be 
expressed in terms of annualized values. The annualized net benefit is 
(1) the annualized national economic value (expressed in 2022$) of the 
benefits from operating products that meet the proposed standards 
(consisting primarily of operating cost savings from using less 
energy), minus increases in product purchase costs, and (2) the 
annualized monetary value of the climate and health benefits from 
emission reductions.
    Table III.5 shows the annualized values for refrigerators, 
refrigerator-freezers, and freezers under the Recommended TSL, 
expressed in 2022$. The results under the primary estimate are as 
follows.
    Using a 7-percent discount rate for consumer benefits and costs and 
health benefits from reduced NOX and SO2 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated cost of the proposed 
standards is $590.5 million per year in increased equipment costs, 
while the estimated annual monetized benefits are $1.7 billion in 
reduced equipment operating costs, $303.8 million in climate benefits, 
and $410.6 million in health benefits. In this case, the net benefit 
would amount to $1.8 billion per year.
    Using a 3-percent discount rate for all benefits and costs, the 
estimated cost of the proposed standards is $567.5 million per year in 
increased equipment costs, while the estimated annual monetized 
benefits are $2.2 billion in reduced operating costs, $303.8 million in 
climate benefits, and $592.9 million in health benefits. In this case, 
the net benefit would amount to $2.5 billion per year.

 Table III.5--Annualized Benefits and Costs of Proposed Standards for Refrigerators, Refrigerator-Freezers, and
                                                    Freezers
----------------------------------------------------------------------------------------------------------------
                                                                                Million 2022$/year
                                                                 -----------------------------------------------
                                                                                     Low-net-        High-net-
                                                                      Primary        benefits        benefits
                                                                     estimate        estimate        estimate
----------------------------------------------------------------------------------------------------------------
                                                3% discount rate
----------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings.................................         2,200.5         2,023.9         2,326.6
Climate Benefits *..............................................           303.8           291.8           307.9
Health Benefits **..............................................           592.9           569.7           600.7
                                                                 -----------------------------------------------
    Total Benefits [dagger].....................................         3,097.2         2,885.4         3,235.2
Consumer Incremental Product Costs [Dagger].....................           567.5           666.6           547.8
                                                                 -----------------------------------------------
    Net Benefits................................................         2,529.6         2,218.8         2,687.4
Change in Producer Cashflow (INPV [Dagger][Dagger]).............    (49) to (37)    (49) to (37)    (49) to (37)
----------------------------------------------------------------------------------------------------------------
                                                7% discount rate
----------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings.................................         1,667.0         1,541.9         1,758.5
Climate Benefits * (3% discount rate)...........................           303.8           291.8           307.9
Health Benefits **..............................................           410.6           395.8           415.7
                                                                 -----------------------------------------------
    Total Benefits [dagger].....................................         2,381.4         2,229.5         2,482.0
Consumer Incremental Product Costs..............................           590.5           677.9           569.6
                                                                 -----------------------------------------------
    Net Benefits................................................         1,790.9         1,551.6         1,912.5
Change in Producer Cashflow (INPV [Dagger][Dagger]).............    (49) to (37)    (49) to (37)    (49) to (37)
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with refrigerators, refrigerator-freezers, and
  freezers shipped during the period 2029-2058 for the product classes listed in Table III.3 and shipped in 2030-
  2059 for the product classes listed in Table IIII.4. These results include benefits which accrue after 2058/9
  from the products shipped in 2029-2058 for the product classes listed in Table III.3 and shipped in 2030-2059
  for the product classes listed in Table IIII.4. The Primary, Low Net Benefits, and High Net Benefits Estimates
  utilize projections of energy prices from the AEO2023 Reference case, Low Economic Growth case, and High
  Economic Growth case, respectively. In addition, incremental equipment costs reflect a medium decline rate in
  the Primary Estimate, a low decline rate in the Low Net Benefits Estimate, and a high decline rate in the High
  Net Benefits Estimate. The methods used to derive projected price trends are explained in sections V.H.3 of
  the direct final rule published elsewhere in this issue of the Federal Register. Note that the Benefits and
  Costs may not sum to the Net Benefits due to rounding.

[[Page 2903]]

 
* Climate benefits are calculated using four different estimates of the SC-CO2, SC-CH4 and SC-N2O. For
  presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3 percent
  discount rate are shown, but 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. To
  monetize the benefits of reducing GHG emissions, this analysis uses the interim estimates presented in the
  Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under
  Executive Order 13990 published in February 2021 by the IWG.
** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing
  (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will
  continue to assess the ability to monetize other effects such as health benefits from reductions in direct
  PM2.5 emissions. See section IV.L of the direct final rule published elsewhere in this issue of the Federal
  Register for more details.
[dagger] Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-
  percent discount rate, but DOE does not have a single central SC-GHG point estimate.
[Dagger][Dagger] Operating Cost Savings are calculated based on the life cycle costs analysis and national
  impact analysis as discussed in detail below. See sections IV.F and IV.H of the direct final rule published
  elsewhere in this issue of the Federal Register. DOE's national impacts 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 (i.e., manufacturer impact analysis, or ``MIA'').
  See section IV.J of the direct final rule published elsewhere in this issue of the Federal Register. 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 9.1 percent that is estimated
  in the manufacturer impact analysis (see chapter 12 of the direct final rule TSD for a complete description of
  the industry weighted average cost of capital). For refrigerators, refrigerator-freezers, and freezers, the
  annualized change in INPV ranges from -$48.7 million to -$37.0 million. DOE accounts for that range of likely
  impacts in analyzing whether a trial standard level is economically justified. See section V.C of the direct
  final rule published elsewhere in this issue of the Federal Register. 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
  Preservation of Operating Profit scenario, where DOE assumed manufacturers would not be able to increase per-
  unit operating profit in proportion to increases in manufacturer production costs. DOE includes the range of
  estimated annual change in INPV in the above table, drawing on the MIA explained further in section IV.J of
  the direct final rule published elsewhere in this issue of the Federal Register to provide additional context
  for assessing the estimated impacts of this proposal 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 proposed rule, the annualized net benefits would range from
  $2,480.9 million to $2,492.6 million at 3-percent discount rate and would range from $1,742.2 million to
  $1,753.9 million at 7-percent discount rate.

IV. Public Participation

A. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule until the date provided in the DATES section at the 
beginning of this proposed rule. Interested parties may submit 
comments, data, and other information using any of the methods 
described in the ADDRESSES section at the beginning of this document. 
Comments relating to the direct final rule published elsewhere in this 
issue of the Federal Register, should be submitted as instructed 
therein.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (``CBI'')). Comments submitted 
through www.regulations.gov cannot be claimed as CBI. Comments received 
through the website will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to www.regulations.gov. If 
you do not want your personal contact information to be publicly 
viewable, do not include it in your comment or any accompanying 
documents. Instead, provide your contact information in a cover letter. 
Include your first and last names, email address, telephone number, and 
optional mailing address. The cover letter will not be publicly 
viewable as long as it does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
No telefacsimiles (``faxes'') will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This

[[Page 2904]]

reduces comment processing and posting time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email two well-marked copies: one copy of the document marked 
``confidential'' including all the information believed to be 
confidential, and one copy of the document marked ``non-confidential'' 
with the information believed to be confidential deleted. DOE will make 
its own determination about the confidential status of the information 
and treat it according to its determination.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

B. Public Meeting

    As stated previously, if DOE withdraws the direct final rule 
published elsewhere in this issue of the Federal Register pursuant to 
42 U.S.C. 6295(p)(4)(C), DOE will hold a public meeting to allow for 
additional comment on this proposed rule. DOE will publish notice of 
any meeting in the Federal Register.

V. Procedural Issues and Regulatory Review

    The regulatory reviews conducted for this proposed rule are 
identical to those conducted for the direct final rule published 
elsewhere in this issue of the Federal Register. Please see the direct 
final rule for further details.

A. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 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 (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 
(www.energy.gov/gc/office-general-counsel). DOE has prepared the 
following IRFA for the products that are the subject of this proposed 
rulemaking.
    For manufacturers of refrigerators, refrigerator-freezers, and 
freezers, the Small Business Administration (``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. (See 13 CFR part 121.) The 
size standards are listed by North American Industry Classification 
System (``NAICS'') code and industry description and are available at 
www.sba.gov/document/support--table-size-standards. Manufacturing of 
refrigerators, refrigerator-freezers, and freezers is classified under 
NAICS 335220, ``Major Household Appliance Manufacturing.'' The SBA sets 
a threshold of 1,500 employees or fewer for an entity to be considered 
as a small business for this category.
1. Description of Reasons Why Action Is Being Considered
    DOE is proposing amended energy conservation standards for 
refrigerators, refrigerator-freezers, and freezers. EPCA prescribed 
energy conservation standards for these products (42 U.S.C. 6295(b)(1)-
(2)), and directed DOE to conduct three cycles of future rulemakings to 
whether to amend these standards. (42 U.S.C. 6295(b)(3)(A)(i), 
(b)(3)(B), and (b)(4)). DOE has completed these rulemakings. EPCA 
further provides that, not later than 6 years after the issuance of any 
final rule establishing or amending a standard, DOE must publish either 
a 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))
    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))
    In light of the above and the requirements under 42 U.S.C. 
6295(p)(4)(A)-(B), DOE is issuing this NOPR proposing energy 
conservation standards for refrigerators, refrigerator-freezers, and 
freezers. These standard levels were submitted jointly to DOE on 
September 25, 2023, by groups representing manufacturers, energy and 
environmental advocates, consumer groups, and a utility.\13\ This 
letter, titled ``Energy Efficiency Agreement of 2023'' (hereafter, the 
``Joint Agreement'' \14\), recommends specific energy conservation 
standards for refrigerators, refrigerator-freezers, and freezers that, 
in the commenters' view, would satisfy the EPCA requirements in 42 
U.S.C. 6295(o).
---------------------------------------------------------------------------

    \13\ The signatories to the Joint Agreement include AHAM, 
American Council for an Energy-Efficient Economy, Alliance for Water 
Efficiency, Appliance Standards Awareness Project, Consumer 
Federation of America, Consumer Reports, Earthjustice, National 
Consumer Law Center, Natural Resources Defense Council, Northwest 
Energy Efficiency Alliance, and Pacific Gas and Electric Company. 
Members of AHAM's Major Appliance Division that manufacture the 
affected products include: Alliance Laundry Systems, LLC; Asko 
Appliances AB; Beko US Inc.; Brown Stove Works, Inc.; BSH; Danby 
Products, Ltd.; Electrolux Home Products, Inc.; Elicamex S.A. de 
C.V.; Faber; Fotile America; GEA, a Haier Company; L'Atelier Paris 
Haute Design LLG; LGEUSA; Liebherr USA, Co.; Midea America Corp.; 
Miele, Inc.; Panasonic Appliances Refrigeration Systems (PAPRSA) 
Corporation of America; Perlick Corporation; Samsung; Sharp 
Electronics Corporation; Smeg S.p.A; Sub-Zero Group, Inc.; The 
Middleby Corporation; U-Line Corporation; Viking Range, LLC; and 
Whirlpool.
    \14\ This document is available in the docket at: 
www.regulations.gov/document/EERE-2017-BT-STD-0003-0103.
---------------------------------------------------------------------------

2. Objectives of, and Legal Basis for, Rule
    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. These products include refrigerators, 
refrigerator-freezers, and freezers, the subject of this document. (42 
U.S.C. 6292(a)(1)) EPCA prescribed energy conservation standards for 
these products (42 U.S.C. 6295(b)(1)-(2)), and directed. DOE to conduct 
three cycles of future rulemakings to whether to amend these standards. 
(42 U.S.C. 6295(b)(3)(A)(i), (b)(3)(B), and (b)(4)). DOE has completed 
these rulemakings. EPCA further provides that, not later than 6 years 
after the issuance of any final rule establishing or amending a 
standard, DOE must publish either a 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))

[[Page 2905]]

3. Description and Estimated Number of Small Entities Regulated
    DOE reviewed this proposed 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 refrigerators, refrigerator-
freezers, and freezers. DOE conducted a market survey to identify 
potential small manufacturers of refrigerators, refrigerator-freezers, 
and freezers. DOE began its assessment by reviewing DOE's Compliance 
Certification Database,\15\ California Energy Commission's Modernized 
Appliance Efficiency Database System,\16\ individual company websites, 
and prior refrigerator, refrigerator-freezer, and freezer rulemakings 
to identify manufacturers of the covered product. DOE then consulted 
publicly available data, such as manufacturer websites, manufacturer 
specifications and product literature, import/export logs (e.g., bills 
of lading from Panjiva \17\), and basic model numbers, to identify OEMs 
of covered refrigerators, refrigerator-freezers, and freezers. DOE 
further relied on public data and subscription-based market research 
tools (e.g., Dun & Bradstreet reports \18\) to determine company, 
location, headcount, and annual revenue. DOE also asked industry 
representatives if they were aware of any small manufacturers during 
manufacturer interviews in support of the February 2023 NOPR. 88 FR 
12452. 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.
---------------------------------------------------------------------------

    \15\ U.S. Department of Energy's Compliance Certification 
Database. (last accessed May 5, 2023.) www.regulations.doe.gov/certification-data/#q=Product_Group_s%3A*.
    \16\ California Energy Commission's Modernized Appliance 
Efficiency Database System. (last accessed May 5, 2023.) 
cacertappliances.energy.ca.gov/Pages/ApplianceSearch.aspx.
    \17\ S&P Global. Panjiva Market Intelligence. (last accessed 
July 18, 2023.) panjiva.com/import-export/United-States.
    \18\ D&B Hoover. Company Profiles. Various companies. (last 
accessed July 14, 2023.) app.dnbhoovers.com.
---------------------------------------------------------------------------

    DOE identified 63 OEMs that sell refrigerators, refrigerator-
freezers, or freezers in the United States. Of the 63 OEMs identified, 
DOE tentatively determined that one company qualifies as a small 
business and is not foreign-owned and operated.
    In support of the February 2023 NOPR, DOE reached out to the small 
business and invited them to participate in a voluntary interview. The 
small business did not consent to participate in a formal MIA 
interview. DOE also requested information about small businesses and 
potential impacts on small businesses while interviewing larger 
manufacturers.
4. Description and Estimate of Compliance Requirements Including 
Differences in Cost, if Any, for Different Groups of Small Entities
    The one small business identified has 45 refrigerator, 
refrigerator-freezer, and freezer models certified in DOE's Compliance 
Certification Database (``CCD''). Of those 45 models, 43 models are 
compact-size refrigerators, refrigerator-freezers, or freezers (34 PC 
13A models, three PC 15 models, and six PC 17 models). The remaining 
two models are standard-size built-in refrigerator-freezer models (PC 
3A-BI). Of the 34 PC 13A models, 22 models meet the efficiency required 
(EL 1) at TSL. For PC 15, PC 17, and PC 3A-BI, this small manufacturer 
only offers models at the current DOE baseline efficiency and, 
therefore, does not offer any products that meet the proposed TSL 
efficiencies (i.e., 10-percent reduction in energy use from the current 
DOE baseline). To meet the required efficiencies, DOE expects this 
small manufacturer would likely need to implement variable defrost and 
higher efficiency compressors across their product platforms. For some 
PC 3A-BI, PC 13A, PC 15, and PC 17 models, variable-speed compressors 
may be necessary to meet the required efficiencies. Some capital 
conversion costs may be necessary for additional tooling and new 
stations to test more variable-speed compressors. Product conversion 
costs may be necessary for developing, qualifying, sourcing, and 
testing new components. DOE estimated conversion costs for this small 
manufacturer by using model counts to scale down the industry 
conversion costs. DOE estimates that the small manufacturer may incur 
$367,000 in capital conversion costs and $530,000 in product conversion 
costs related to redesigning their products to meet amended standards. 
Based on subscription-based market research reports, the small business 
has an annual revenue of approximately $85.3 million. The total 
conversion costs of $897,000 are approximately 0.2 percent of company 
revenue over the 5-year conversion period.
5. Duplication, Overlap, and Conflict With Other Rules and Regulations
    DOE is not aware of any rules or regulations that duplicate, 
overlap, or conflict with the proposed rule.
6. Significant Alternatives to the Rule
    The discussion in the previous section analyzes impacts on small 
businesses that would result from DOE's proposed rule, represented by 
TSL 4 (i.e., the Recommended TSL). In reviewing alternatives to the 
proposed rule, DOE examined energy conservation standards set at lower 
efficiency levels. While TSLs 3, 2, and 1 would reduce the impacts on 
small business manufacturers, it would come at the expense of a 
reduction in energy savings. TSL 1 achieves 51 percent lower energy 
savings compared to the energy savings at TSL 4. TSL 2 achieves 40 
percent lower energy savings compared to the energy savings at TSL 4. 
TSL 3 achieves 16 percent lower energy savings compared to the energy 
savings at TSL 4.
    Based on the presented discussion, establishing standards at TSL 4 
balances the benefits of the energy savings at TSL 4 with the potential 
burdens placed on refrigerators, refrigerator-freezers, and freezers 
manufacturers, including small business manufacturers. Accordingly, DOE 
does not propose 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 direct final rule TSD.
    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 efficiency 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.

B. Materials Incorporated by Reference

    The following standards appear in the amendatory text of this 
document and were previously approved for the locations in which they 
appear: AS/NZS 4474.1:2007; HRF-1-2019. No changes are proposed to the 
IBR material.

[[Page 2906]]

VI. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this notice of 
proposed rulemaking.

List of Subjects in 10 CFR Part 430

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Household appliances, Imports, 
Incorporation by reference, Intergovernmental relations, Reporting and 
recordkeeping requirements, Small businesses.

Signing Authority

    This document of the Department of Energy was signed on December 
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 Federal Register Liaison Officer has been 
authorized to sign and submit the document in electronic format for 
publication, as an official document of the Department of Energy. This 
administrative process in no way alters the legal effect of this 
document upon publication in the Federal Register.

    Signed in Washington, DC, on December 29, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

    For the reasons set forth in the preamble, DOE proposes to amend 
part 430 of chapter II, subchapter D, of title 10 of the Code of 
Federal Regulations, as set forth below:

PART 430--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS

0
1. The authority citation for part 430 continues to read as follows:

    Authority:  42 U.S.C. 6291-6309; 28 U.S.C. 2461 note.

0
2. Amend appendix A to subpart B of part 430 by:
0
a. In section 1:
0
i. In paragraph (b)(i), removing the text ``5.3(e)'' and adding in its 
place the text ``5.5''; and
0
ii. Removing the undesignated paragraph immediately following paragraph 
(b)(ii);
0
b. In section 3, adding, in alphabetical order, definitions for ``Door-
in-door'' and ``Transparent door'';
0
c. In section 5.3:
0
i. Removing paragraphs (a) and (f); and
0
ii. Redesignating paragraphs (b) through (e) as paragraphs (a) through 
(d); and
0
d. Adding new sections 5.4 and 5.5.
    The additions read as follows:

Appendix A to Subpart B of Part 430--Uniform Test Method for Measuring 
the Energy Consumption of Refrigerators, Refrigerator-Freezers, and 
Miscellaneous Refrigeration Products

* * * * *
    3. * * *
    Door-in-door means a set of doors or an outer door and inner 
drawer for which--
    (a) Both doors (or both the door and the drawer) must be opened 
to provide access to the interior through a single opening;
    (b) Gaskets for both doors (or both the door and the drawer) are 
exposed to external ambient conditions on the outside around the 
full perimeter of the respective openings; and
    (c) The space between the two doors (or between the door and the 
drawer) achieves temperature levels consistent with the temperature 
requirements of the interior compartment to which the door-in-door 
provides access.
* * * * *
    Transparent door means an external fresh food compartment door 
which meets the following criteria:
    (a) The area of the transparent portion of the door is at least 
40 percent of the area of the door.
    (b) The area of the door is at least 50 percent of the sum of 
the areas of all the external doors providing access to the fresh 
food compartments and cooler compartments.
    (c) For the purposes of this evaluation, the area of a door is 
determined as the product of the maximum height and maximum width 
dimensions of the door, not considering potential extension of flaps 
used to provide a seal to adjacent doors.
* * * * *
    5. * * *

5.4. Icemaker Energy Use

    (a) For refrigerators and refrigerator-freezers: To demonstrate 
compliance with the energy conservation standards at Sec.  430.32(a) 
applicable to products manufactured on or after September 15, 2014, 
but before the compliance date of any amended standards published 
after January 1, 2022, IET, expressed in kilowatt-hours per cycle, 
equals 0.23 for a product with one or more automatic icemakers and 
otherwise equals 0 (zero). To demonstrate compliance with any 
amended standards published after January 1, 2022, IET, expressed in 
kilowatt-hours per cycle, is as defined in section 5.9.2.1 of HRF-1-
2019.
    (b) For miscellaneous refrigeration products: To demonstrate 
compliance with the energy conservation standards at Sec.  
430.32(aa) applicable to products manufactured on or after October 
28, 2019, IET, expressed in kilowatt-hours per cycle, equals 0.23 
for a product with one or more automatic icemakers and otherwise 
equals 0 (zero).

5.5. Triangulation Method

    If the three-point interpolation method of section 5.2(b) of 
this appendix is used for setting temperature controls, the average 
per-cycle energy consumption shall be defined as follows:

E = EX + IET
Where:

E is defined in section 5.9.1.1 of HRF-1-2019;
IET is defined in section 5.4 of this appendix; and
EX is defined and calculated as described in appendix M, 
section M4(a) of AS/NZS 4474.1:2007. The target temperatures 
txA and txB defined in section M4(a)(i) of AS/
NZS 4474.1:2007 shall be the standardized temperatures defined in 
section 5.6 of HRF-1-2019.
* * * * *
0
3. Amend appendix B to subpart B of part 430 by:
0
a. In section 5.3:
0
i. Removing paragraph (a);
0
ii. Redesignating paragraphs (b) and (c) as paragraphs (a) and (b); and
0
b. Adding section 5.4.
    The addition reads as follows:

Appendix B to Subpart B of Part 430--Uniform Test Method for Measuring 
the Energy Consumption of Freezers

* * * * *
    5. * * *

5.4. Icemaker Energy Use

    For freezers: To demonstrate compliance with the energy 
conservation standards at Sec.  430.32(a) applicable to products 
manufactured on or after September 15, 2014, but before the 
compliance date of any amended standards published after January 1, 
2022, IET, expressed in kilowatt-hours per cycle, equals 0.23 for a 
product with one or more automatic icemakers and otherwise equals 0 
(zero). To demonstrate compliance with any amended standards 
published after January 1, 2022, IET, expressed in kilowatt-hours 
per cycle, is as defined in section 5.9.2.1 of HRF-1-2019.

0
4. Amend Sec.  430.32 by:
0
a. Redesignating table 3 to paragraph (b) and table 4 to paragraph 
(b)(2) as table 6 to paragraph (b)(1) and table 7 to paragraph (b)(2); 
and
0
b. Revising paragraph (a).
    The revision reads as follows:


Sec.  430.32  Energy and water conservation standards and their 
compliance dates.

* * * * *
    (a) Refrigerators/refrigerator-freezers/freezers. The standards in 
this paragraph (a) do not apply to refrigerators and refrigerator-
freezers with total refrigerated volume exceeding 39 cubic feet (1104 
liters) or freezers with total refrigerated volume exceeding

[[Page 2907]]

30 cubic feet (850 liters). The energy standards as determined by the 
equations of the following table(s) shall be rounded off to the nearest 
kWh per year. If the equation calculation is halfway between the 
nearest two kWh per year values, the standard shall be rounded up to 
the higher of these values.
    (1) The following standards apply to products manufactured on or 
before September 15, 2014, and before the 2029/2030 compliance dates 
depending on product class (see paragraphs (a)(2) and (3) of this 
section).

                                           Table 1 to Paragraph (a)(1)
----------------------------------------------------------------------------------------------------------------
                                                        Equations for maximum energy use (kWh/yr)
             Product class             -------------------------------------------------------------------------
                                                based on AV (ft\3\)                    based on av (L)
----------------------------------------------------------------------------------------------------------------
1. Refrigerators and refrigerator-      7.99AV + 225.0.....................  0.282av + 225.0.
 freezers with manual defrost.
1A. All-refrigerators--manual defrost.  6.79AV + 193.6.....................  0.240av + 193.6.
2. Refrigerator-freezers--partial       7.99AV + 225.0.....................  0.282av + 225.0.
 automatic defrost.
3. Refrigerator-freezers--automatic     8.07AV + 233.7.....................  0.285av + 233.7.
 defrost with top-mounted freezer
 without an automatic icemaker.
3-BI. Built-in refrigerator-freezer--   9.15AV + 264.9.....................  0.323av + 264.9.
 automatic defrost with top-mounted
 freezer without an automatic icemaker.
3I. Refrigerator-freezers--automatic    8.07AV + 317.7.....................  0.285av + 317.7.
 defrost with top-mounted freezer with
 an automatic icemaker without through-
 the-door ice service.
3I-BI. Built-in refrigerator-freezers-- 9.15AV + 348.9.....................  0.323av + 348.9.
 automatic defrost with top-mounted
 freezer with an automatic icemaker
 without through-the-door ice service.
3A. All-refrigerators--automatic        7.07AV + 201.6.....................  0.250av + 201.6.
 defrost.
3A-BI. Built-in All-refrigerators--     8.02AV + 228.5.....................  0.283av + 228.5.
 automatic defrost.
4. Refrigerator-freezers--automatic     8.51AV + 297.8.....................  0.301av + 297.8.
 defrost with side-mounted freezer
 without an automatic icemaker.
4-BI. Built-In Refrigerator-freezers--  10.22AV + 357.4....................  0.361av + 357.4.
 automatic defrost with side-mounted
 freezer without an automatic icemaker.
4I. Refrigerator-freezers--automatic    8.51AV + 381.8.....................  0.301av + 381.8.
 defrost with side-mounted freezer
 with an automatic icemaker without
 through-the-door ice service.
4I-BI. Built-In Refrigerator-freezers-- 10.22AV + 441.4.2..................  0.361av + 441.4.
 automatic defrost with side-mounted
 freezer with an automatic icemaker
 without through-the-door ice service.
5. Refrigerator-freezers--automatic     8.85AV + 317.0.....................  0.312av + 317.0.
 defrost with bottom-mounted freezer
 without an automatic icemaker.
5-BI. Built-In Refrigerator-freezers--  9.40AV + 336.9.....................  0.332av + 336.9.
 automatic defrost with bottom-mounted
 freezer without an automatic icemaker.
5I. Refrigerator-freezers--automatic    8.85AV + 401.0.....................  0.312av + 401.0.
 defrost with bottom-mounted freezer
 with an automatic icemaker without
 through-the-door ice service.
5I-BI. Built-In Refrigerator-freezers-- 9.40AV + 420.9.....................  0.332av + 420.9.
 automatic defrost with bottom-mounted
 freezer with an automatic icemaker
 without through-the-door ice service.
5A. Refrigerator-freezer--automatic     9.25AV + 475.4.....................  0.327av + 475.4.
 defrost with bottom-mounted freezer
 with through-the-door ice service.
5A-BI. Built-in refrigerator-freezer--  9.83AV + 499.9.....................  0.347av + 499.9.
 automatic defrost with bottom-mounted
 freezer with through-the-door ice
 service.
6. Refrigerator-freezers--automatic     8.40AV + 385.4.....................  0.297av + 385.4.
 defrost with top-mounted freezer with
 through-the-door ice service.
7. Refrigerator-freezers--automatic     8.54AV + 432.8.....................  0.302av + 431.1.
 defrost with side-mounted freezer
 with through-the-door ice service.
7-BI. Built-In Refrigerator-freezers--  10.25AV + 502.6....................  0.362av + 502.6.
 automatic defrost with side-mounted
 freezer with through-the-door ice
 service.
8. Upright freezers with manual         5.57AV + 193.7.....................  0.197av + 193.7.
 defrost.
9. Upright freezers with automatic      8.62AV + 228.3.....................  0.305av + 228.3.
 defrost without an automatic icemaker.
9I. Upright freezers with automatic     8.62AV + 312.3.....................  0.305av + 312.3.
 defrost with an automatic icemaker.
9-BI. Built-In Upright freezers with    9.86AV + 260.9.....................  0.348av + 260.6.
 automatic defrost without an
 automatic icemaker.
9I-BI. Built-In Upright freezers with   9.86AV + 344.9.....................  0.348av + 344.9.
 automatic defrost with an automatic
 icemaker.
10. Chest freezers and all other        7.29AV + 107.8.....................  0.257av + 107.8.
 freezers except compact freezers.
10A. Chest freezers with automatic      10.24AV + 148.1....................  0.362av + 148.1.
 defrost.
11. Compact refrigerators and           9.03AV + 252.3.....................  0.319av + 252.3.
 refrigerator-freezers with manual
 defrost.
11A.Compact refrigerators and           7.84AV + 219.1.....................  0.277av + 219.1.
 refrigerator-freezers with manual
 defrost.
12. Compact refrigerator-freezers--     5.91AV + 335.8.....................  0.209av + 335.8.
 partial automatic defrost.
13. Compact refrigerator-freezers--     11.80AV + 339.2....................  0.417av + 339.2.
 automatic defrost with top-mounted
 freezer..
13I. Compact refrigerator-freezers--    11.80AV + 423.2....................  0.417av + 423.2.
 automatic defrost with top-mounted
 freezer with an automatic icemaker.
13A. Compact all-refrigerator--         9.17AV + 259.3.....................  0.324av + 259.3.
 automatic defrost.
14. Compact refrigerator-freezers--     6.82AV + 456.9.....................  0.241av + 456.9.
 automatic defrost with side-mounted
 freezer.
14I. Compact refrigerator-freezers--    6.82AV + 540.9.....................  0.241av + 540.9.
 automatic defrost with side-mounted
 freezer with an automatic icemaker.
15. Compact refrigerator-freezers--     11.80AV + 339.2....................  0.417av + 339.2.
 automatic defrost with bottom-mounted
 freezer.
15I. Compact refrigerator-freezers--    11.80AV + 423.2....................  0.417av + 423.2.
 automatic defrost with bottom-mounted
 freezer with an automatic icemaker.
16. Compact upright freezers with       8.65AV + 225.7.....................  0.306av + 225.7.
 manual defrost.
17. Compact upright freezers with       10.17AV + 351.9....................  0.359av + 351.9.
 automatic defrost.

[[Page 2908]]

 
18. Compact chest freezers............  9.25AV + 136.8.....................  0.327av + 136.8.
----------------------------------------------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in appendices A and B of subpart B of this part.
av = Total adjusted volume, expressed in Liters.

    (2) The following standards apply to products manufactured on or 
after January 31, 2029.

                       Table 2 to Paragraph (a)(2)
------------------------------------------------------------------------
                                  Equations for maximum energy use (kWh/
                                                    yr)
          Product class          ---------------------------------------
                                      Based on AV
                                        (ft\3\)         Based on av (L)
------------------------------------------------------------------------
3-BI. Built-in refrigerator-      8.24AV + 238.4 +    0.291av + 238.4 +
 freezer--automatic defrost with   28I.                28I.
 top-mounted freezer.
3A-BI. Built-in All-              (7.22AV +           (0.255av +
 refrigerators--automatic          205.7)*K3ABI.       205.7)*K3ABI.
 defrost.
4-BI. Built-In Refrigerator-      (8.79AV +           (0.310av +
 freezers--automatic defrost       307.4)*K4BI + 28I.  307.4)*K4BI +
 with side-mounted freezer.                            28I.
5-BI. Built-In Refrigerator-      (8.65AV +           (0.305av +
 freezers--automatic defrost       309.9)*K5BI + 28I.  309.9)*K5BI +
 with bottom-mounted freezer.                          28I.
5A. Refrigerator-freezer--        (7.76AV +           (0.274av +
 automatic defrost with bottom-    351.9)*K5A.         351.9)*K5A.
 mounted freezer with through-
 the-door ice service.
5A-BI. Built-in refrigerator-     (8.21AV +           (0.290av +
 freezer--automatic defrost with   370.7)*K5ABI.       370.7)*K5ABI.
 bottom-mounted freezer with
 through-the-door ice service.
7-BI. Built-In Refrigerator-      (8.82AV +           (0.311av +
 freezers--automatic defrost       384.1)*K7BI.        384.1)*K7BI.
 with side-mounted freezer.
8. Upright freezers with manual   5.57AV + 193.7....  0.197av + 193.7.
 defrost.
9-BI. Built-In Upright freezers   (9.37AV +           (0.331av +
 with automatic defrost.           247.9)*K9BI + 28I.  247.9)*K9BI +
                                                       28I.
9A-BI. Built-In Upright freezers  9.86AV + 288.9....  0.348av + 288.9.
 with automatic defrost with
 through-the-door ice service.
10. Chest freezers and all other  7.29AV + 107.8....  0.257av + 107.8.
 freezers except compact
 freezers.
10A. Chest freezers with          10.24AV + 148.1...  0.362av + 148.1.
 automatic defrost.
11. Compact refrigerator-         7.68AV + 214.5....  0.271av + 214.5.
 freezers and refrigerators
 other than all-refrigerators
 with manual defrost.
11A. Compact all-refrigerators--  6.66AV + 186.2....  0.235av + 186.2.
 manual defrost.
12. Compact refrigerator-         (5.32AV +           (0.188av +
 freezers--partial automatic       302.2)*K12.         302.2)*K12.
 defrost.
13. Compact refrigerator-         10.62AV + 305.3 +   0.375av + 305.3 +
 freezers--automatic defrost       28I.                28I.
 with top-mounted freezer.
13A. Compact all-refrigerators--  (8.25AV +           (0.291av +
 automatic defrost.                233.4)*K13A.        233.4)*K13A.
14. Compact refrigerator-         6.14AV + 411.2 +    0.217av + 411.2 +
 freezers--automatic defrost       28I.                28I.
 with side-mounted freezer.
15. Compact refrigerator-         10.62AV + 305.3 +   0.375av + 305.3 +
 freezers--automatic defrost       28I.                28I.
 with bottom-mounted freezer.
16. Compact upright freezers      7.35AV + 191.8....  0.260av + 191.8.
 with manual defrost.
17. Compact upright freezers      9.15AV + 316.7....  0.323av + 316.7.
 with automatic defrost.
18. Compact chest freezers......  7.86AV + 107.8....  0.278av + 107.8.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in
  appendices A and B of subpart B of 10 CFR part 430.
av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product
  without an automatic icemaker. Door Coefficients (e.g., K3ABI) are as
  defined in the following table.


                                           Table 3 to Paragraph (a)(2)
----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent    door or door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K3ABI.........................................            1.10             1.0  1.0
K4BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2)
K5BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2)
K5A...........................................            1.10            1.06  1 + 0.02 * (Nd-3)
K5ABI.........................................            1.10            1.06  1 + 0.02 * (Nd-3)
K7BI..........................................            1.10            1.06  1 + 0.02 * (Nd-2)
K9BI..........................................             1.0             1.0  1 + 0.02 * (Nd-1)

[[Page 2909]]

 
K12...........................................             1.0             1.0  1 + 0.02 * (Nd-1)
K13A..........................................            1.10             1.0  1.0
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 2 for K12, 3 for K9BI, and 5 for all other K values.

    (3) The following standards apply to products manufactured on or 
after January 31, 2030.

                       Table 4 to Paragraph (a)(3)
------------------------------------------------------------------------
                                  Equations for maximum energy use (kWh/
                                                    yr)
          Product class          ---------------------------------------
                                      Based on AV
                                        (ft\3\)         Based on av (L)
------------------------------------------------------------------------
1. Refrigerator-freezers and      6.79AV + 191.3....  0.240av + 191.3.
 refrigerators other than all-
 refrigerators with manual
 defrost.
1A. All-refrigerators--manual     5.77AV + 164.6....  0.204av + 164.6.
 defrost.
2. Refrigerator-freezers--        (6.79AV +           (0.240av +
 partial automatic defrost.        191.3)*K2.          191.3)*K2.
3. Refrigerator-freezers--        6.86AV + 198.6 +    0.242av + 198.6 +
 automatic defrost with top-       28I.                28I.
 mounted freezer.
3A. All-refrigerators--automatic  (6.01AV +           (0.212av +
 defrost.                          171.4)*K3A.         171.4)*K3A.
4. Refrigerator-freezers--        (7.28AV +           (0.257av +
 automatic defrost with side-      254.9)*K4 + 28I.    254.9)*K4 + 28I.
 mounted freezer.
5. Refrigerator-freezers--        (7.61AV +           (0.269av +
 automatic defrost with bottom-    272.6)*K5 + 28I.    272.6)*K5 + 28I.
 mounted freezer.
6. Refrigerator-freezers--        7.14AV + 280.0....  0.252av + 280.0.
 automatic defrost with top-
 mounted freezer with through-
 the-door ice service.
7. Refrigerator-freezers--        (7.31AV +           (0.258av +
 automatic defrost with side-      322.5)*K7.          322.5)*K7.
 mounted freezer with through-
 the-door ice service.
9. Upright freezers with          (7.33AV +           (0.259av +
 automatic defrost.                194.1)*K9 + 28I.    194.1)*K9 + 28I.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as determined in
  appendices A and B of subpart B of 10 CFR part 430.
av = Total adjusted volume, expressed in Liters.
I = 1 for a product with an automatic icemaker and = 0 for a product
  without an automatic icemaker. Door Coefficients (e.g., K3A) are as
  defined in the following table.


                                           Table 5 to Paragraph (a)(3)
----------------------------------------------------------------------------------------------------------------
                                                                   Products
                                                 Products with     without a     Products without a transparent
               Door coefficient                  a transparent    transparent    door or door-in-door with added
                                                     door         door with a            external doors
                                                                 door-in-door
----------------------------------------------------------------------------------------------------------------
K2............................................             1.0             1.0  1 + 0.02 * (Nd-1)
K3A...........................................            1.10             1.0  1.0
K4............................................            1.10            1.06  1 + 0.02 * (Nd-2)
K5............................................            1.10            1.06  1 + 0.02 * (Nd-2)
K7............................................            1.10            1.06  1 + 0.02 * (Nd-2)
K9............................................             1.0             1.0  1 + 0.02 * (Nd-1)
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Nd is the number of external doors.
\2\ The maximum Nd values are 2 for K2, and 5 for all other K values.

* * * * *
[FR Doc. 2023-28977 Filed 1-16-24; 8:45 am]
BILLING CODE 6450-01-P