80_FR_52373 80 FR 52206 - Energy Conservation Standards for Central Air Conditioners and Heat Pumps: Availability of Provisional Analysis Tools

80 FR 52206 - Energy Conservation Standards for Central Air Conditioners and Heat Pumps: Availability of Provisional Analysis Tools

DEPARTMENT OF ENERGY

Federal Register Volume 80, Issue 167 (August 28, 2015)

Page Range52206-52210
FR Document2015-21321

The U.S. Department of Energy (DOE) has completed a provisional analysis of the potential economic impacts and energy savings that could result from promulgating amended energy conservation standards for central air conditioners and heat pumps. At this time, DOE is not proposing any energy conservation standards for central air conditioners and heat pumps. Instead, this analysis will be used in support of the Appliance Standards Federal Rulemaking Advisory Committee (ASRAC) central air conditioners and heat pumps working group, which has been established to negotiate potential proposed amended energy conservation standards for central air conditioners and heat pumps standards and to discuss certain aspects of the proposed Federal test procedure. The analysis for this NODA is available at: https://www1.eere.energy.gov/buildings/appliance_standards/ rulemaking.aspx?ruleid=104. DOE encourages stakeholders to provide any additional data or information that may improve the analysis during the course of the working group meetings.

Federal Register, Volume 80 Issue 167 (Friday, August 28, 2015)
[Federal Register Volume 80, Number 167 (Friday, August 28, 2015)]
[Proposed Rules]
[Pages 52206-52210]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21321]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / 
Proposed Rules

[[Page 52206]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2014-BT-STD-0048]
RIN 1904-AD37


Energy Conservation Standards for Central Air Conditioners and 
Heat Pumps: Availability of Provisional Analysis Tools

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

ACTION: Notice of data availability.

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

SUMMARY: The U.S. Department of Energy (DOE) has completed a 
provisional analysis of the potential economic impacts and energy 
savings that could result from promulgating amended energy conservation 
standards for central air conditioners and heat pumps. At this time, 
DOE is not proposing any energy conservation standards for central air 
conditioners and heat pumps. Instead, this analysis will be used in 
support of the Appliance Standards Federal Rulemaking Advisory 
Committee (ASRAC) central air conditioners and heat pumps working 
group, which has been established to negotiate potential proposed 
amended energy conservation standards for central air conditioners and 
heat pumps standards and to discuss certain aspects of the proposed 
Federal test procedure. The analysis for this NODA is available at: 
https://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=104. DOE encourages stakeholders to provide any 
additional data or information that may improve the analysis during the 
course of the working group meetings.

DATES: DOE will accept comments, data, and other information regarding 
this NODA and its related analyses no later than December 31, 2015. See 
section IV, ``Submission of Comments,'' of this NODA for further 
details.

ADDRESSES: Any comments submitted must identify the NODA on Energy 
Conservation Standards for Central Air Conditioners and Heat Pumps, and 
provide docket number EERE-2014-BT-STD-0048 and/or Regulatory 
Identification Number (RIN) 1904-AD37. Comments may be submitted using 
any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: [email protected]. Include the docket number and/or RIN in 
the subject line of the message. Submit electronic comments in 
WordPerfect, Microsoft Word, PDF, or ASCII file format, and avoid the 
use of special characters or any form of encryption.
    3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Office, Mailstop EE-5B, 1000 Independence Avenue 
SW., Washington, DC 20585-0121. If possible, please submit all items on 
a compact disc (CD), in which case it is not necessary to include 
printed copies.
    4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Office, 950 L'Enfant Plaza SW., Suite 
600, Washington, DC 20024. Telephone: (202) 586-2945. If possible, 
please submit all items on a CD, in which case it is not necessary to 
include printed copies.
    No telefacsimilies (faxes) will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section IV of this document (Submission of 
Comments).
    Docket: The docket, 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.
    A link to the docket Web page can be found at: http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0048. The 
www.regulations.gov Web page contains instructions on how to access all 
documents in the docket, including public comments.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section IV, ``Submission of 
Comments,'' of this document. For further information on how to submit 
a comment or review other public comments and the docket, contact Ms. 
Brenda Edwards at (202) 586-2945 or by email: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Mr. Antonio Bouza, 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) 586-4563. Email: central air 
conditioners and heat [email protected].
    Mr. Eric Stas or Ms. Johanna Hariharan, U.S. Department of Energy, 
Office of the General Counsel, GC-33, 1000 Independence Avenue SW., 
Washington, DC 20585-0121. Telephone: (202) 5869507 or (202) 287-6307. 
Email: [email protected] or [email protected].
    For further information on how to review other public comments and 
the docket, contact Ms. Brenda Edwards at (202) 586-2945 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Authority
II. History of the Energy Conservation Standards Rulemaking for 
Central Air Conditioners and Heat Pumps
    A. Background
    B. Current Status
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Life-Cycle Cost and Payback Period Analyses
    C. National Impact Analysis
    D. Manufacturer Impact Analysis
IV. Submission of Comments
V. Approval of the Office of the Secretary

I. Authority

    Title III, Part B \1\ of the Energy Policy and Conservation Act of 
1975, as amended, (EPCA or the Act), Public Law 94-163 (42 U.S.C. 6291-
6309, as codified) sets forth a variety of provisions designed to 
improve energy efficiency and established the Energy Conservation 
Program for Consumer Products Other Than Automobiles, a program 
covering most major household appliances (collectively referred to as 
``covered products''), which includes the residential central air 
conditioners

[[Page 52207]]

and heat pumps that are the subject of this rulemaking.\2\ (42 U.S.C. 
6292(a)(3))
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    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \2\ All referenced to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act of 2015 
(EEIA 2015), Public Law 114-11 (April 30, 2015).
---------------------------------------------------------------------------

    The National Appliance Energy Conservation Act of 1987 (NAECA), 
Public Law 100-12, included amendments to EPCA that established the 
original energy conservation standards for central air conditioners and 
heat pumps. (42 U.S.C. 6295(d)(1)-(2))
    EPCA, as amended, also requires DOE to conduct two cycles of 
rulemakings to determine whether to amend the energy conservation 
standards for central air conditioners and heat pumps. (42 U.S.C. 
6295(d)(3)) More recently, EPCA was amended to require DOE to review 
the standards for each of its consumer products not later than every 
six years to determine whether such standards should be amended. (42 
U.S.C. 6295(m)(1)) Under this ``six-year-lookback'' authority, DOE must 
publish a notice of proposed rulemaking (NOPR) to propose amended 
standards for residential central air conditioners and heat pumps, or a 
notice of determination that the existing standards do not need to be 
amended. Id.
    EPCA provides criteria for prescribing amended energy conservation 
standards for residential central air conditioners and heat pumps. More 
specifically, DOE is required to consider standards that: (1) Achieve 
the maximum improvement in energy efficiency that is technologically 
feasible and economically justified; and (2) result in significant 
conservation of energy. (42 U.S.C. 6295(o)(2)(A) and (o)(3)(B)) To 
determine whether a proposed standard is economically justified, DOE 
will, after receiving comments on the proposed standard, determine 
whether the benefits of the standard exceed its burdens by, to the 
greatest extent practicable, considering the following seven factors:

1. The economic impact of the standard on manufacturers and 
consumers of 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 which are likely to result from the standard;
3. The total projected amount of energy 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 conservation; and
7. Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6295(o)(2)(B)(i))

    EPCA also directs that DOE may not prescribe an amended or new 
standard if the standard is likely to result in the unavailability in 
the United States in any covered product type (or class) of performance 
characteristics (including reliability), features, sizes, capacities, 
and volumes that are substantially the same as those generally 
available in the United States at the time that the standard is 
prescribed. (42 U.S.C. 6295(o)(4))
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that DOE will use to 
evaluate standards for the product at issue and the results of 
preliminary analyses DOE performed for the product. This notice 
announces the availability of the preliminary analysis of the economic 
impacts and energy savings of potential amended energy conservation 
standards.

II. History of the Energy Conservation Standards Rulemaking for Central 
Air Conditioners and Heat Pumps

A. Background

    As noted above, EPCA, as amended, established energy conservation 
standards for central air conditioners and heat pumps, as well as 
requirements for DOE to conduct two cycles of rulemaking to determine 
whether these standards should be amended. (42 U.S.C. 6295(d)(1)-(3)) 
The first cycle culminated in a final rule published in the Federal 
Register on August 17, 2004 (the August 2004 Rule), which prescribed 
energy conservation standards for central air conditioners and heat 
pumps manufactured or imported on and after January 23, 2006. 69 FR 
50997. DOE completed the second of the two rulemaking cycles by 
publishing a direct final rule on June 27, 2011 (2011 Direct Final 
Rule). 76 FR 37408. The 2011 Direct Final Rule (2011 DFR) amended 
standards for central air conditioners and heat pumps manufactured or 
imported on or after January 1, 2015.
    Pursuant to the EPCA's six-year review requirement under 42 U.S.C. 
6295(m)(1), DOE must publish a notice of proposed rulemaking to propose 
amended standards for residential air conditioners and heat pumps, or a 
notice of determination that the existing standards do not need to be 
amended, by June 6, 2017 (i.e., the date six years after issuance of 
the last amended standards for these products). In furtherance of this 
process, DOE published a request for information (``the RFI'') 
regarding central air conditioners and heat pumps on November 5, 2014. 
79 FR 65603. DOE published the RFI to solicit comments on whether to 
amend the current energy conservation standards for residential central 
air conditioner and heat pump products. The RFI also described the 
procedural and analytical approaches that DOE anticipated to use in 
order to evaluate energy conservation standards for central air 
conditioners and heat pumps.

B. Current Status

    The analyses described in this NODA were developed to support a 
potential energy conservation standard for central air conditioners and 
heat pumps. The Appliance Standards and Rulemaking Federal Advisory 
Committee (ASRAC) recently established a working group in accordance 
with the Federal Advisory Committee Act (FACA) and the Negotiated 
Rulemaking Act (NRA) to negotiate proposed amended energy conservation 
standards for central air conditioners and heat pumps standards and to 
discuss certain aspects of the proposed Federal test procedure. 80 FR 
40938 (July 14, 2015) The purpose of the working group will be to 
discuss and, if possible, reach consensus on a proposed rule for 
amended energy conservation standards for central air conditioners and 
heat pumps and provide recommendations to DOE regarding certain aspects 
of the proposed test procedure. The working group consists of 
representatives of parties having a defined stake in the outcome of the 
proposed standards and amended test procedure, and will consult as 
appropriate with a range of experts on technical issues.
    To examine these issues, and others as necessary, DOE will provide 
to all parties in the negotiation data and an analytical framework 
complete and accurate enough to support their deliberations. DOE is 
publishing this analysis to inform a prospective negotiation.
    In this NODA, DOE is not proposing any energy conservation 
standards for central air conditioners and heat pumps. DOE may revise 
the analyses presented in this NODA based on any new or updated 
information or data it obtains during the course of the negotiations. 
DOE encourages interested parties to provide any additional data or 
information that may improve the analysis.

[[Page 52208]]

III. Summary of the Analyses Performed by DOE

    DOE conducted provisional analyses of central air conditioners and 
heat pumps in the following areas: (1) Engineering; (2) consumer 
impacts (life-cycle cost and payback period); (3) national impacts 
(including energy savings); and (4) manufacturer impacts. The tools 
used in preparing these analyses and their respective results are 
available at: http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-
STD-0048. Each individual spreadsheet includes an introduction that 
provides an overview of the contents of the spreadsheet. These 
spreadsheets present the various inputs and outputs to the analysis 
and, where necessary, instructions. Brief descriptions of the 
provisional analyses and of the supporting spreadsheet tools are 
provided below.
    DOE also prepared a technical support document (TSD) containing a 
detailed written account of the provisional analyses and the results 
generated from these analyses, which are described for the four major 
anlyses below. The TSD is available at: http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0048.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer production cost (MPC) and efficiency levels of central air 
conditioners and heat pumps. This relationship serves as the basis for 
calculations performed in the other analytical tools to estimate the 
costs and benefits to individual consumers, manufacturers, and the 
Nation. The engineering analysis identifies representative baseline 
products, which is the starting point for analyzing technologies that 
provide energy efficiency improvements. ``Baseline product'' refers to 
a model or models having features and technologies typically found in 
minimally-efficient products currently available on the market and, for 
products already subject to energy conservation standards, a model that 
just meets the current standard. After identifying the baseline models, 
DOE estimated manufacturer selling prices by using a consistent 
methodology and pricing scheme that includes material costs and 
manufacturer markups.

B. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers, starting in the compliance year. The 
LCC is the total cost of purchasing, installing, and operating a 
central air conditioner or heat pump over the course of its lifetime. 
The LCC analysis compares the LCCs of products designed to meet 
possible energy conservation standards with the LCC of the product 
likely to be installed in the absence of standards. DOE determines the 
LCC by considering: (1) The total installed cost to the consumer (which 
consists of manufacturer selling price, distribution channel markups, 
installation costs, and sales taxes); (2) the range of annual energy 
consumption of central air conditioners and heat pumps as they are used 
in the field; (3) the operating and maintenance costs of central air 
conditioners and heat pumps (e.g., energy cost); (4) product lifetime; 
and (5) a discount rate that reflects the real consumer cost of capital 
and puts the LCC in present-value terms.
    The PBP represents the number of years needed to recover the 
increase in purchase price (including installation costs) of higher-
efficiency central air conditioners and heat pumps through savings in 
the operating cost. PBP is calculated by dividing the incremental 
increase in installed cost of the higher-efficiency product, compared 
to the baseline product, by the annual savings in operating costs.
    For each considered standards case corresponding to each efficiency 
level, DOE measures the change in LCC relative to the no-standards 
case, which reflects the market in the absence of amended energy 
conservation standards, including market trends for products that 
exceed the current energy conservation standards.
    DOE developed nationally-representative household samples for 
central air conditioners and heat pumps from the 2009 residential 
energy consumption survey (RECS). DOE analyzed the net effect of 
potential amended central air conditioner and heat pump standards on 
consumers by calculating the LCC savings and PBP for each household by 
efficiency level. Inputs to the LCC calculation include the installed 
cost to the consumer (purchase price, including sales tax where 
appropriate, plus installation cost), operating costs (energy expenses, 
repair costs, and maintenance costs), the lifetime of the product, and 
a discount rate. Inputs to the payback period calculation include the 
installed cost to the consumer and first-year operating costs.
    DOE performed the LCC and PBP analyses using a spreadsheet model 
combined with Crystal Ball \3\ to account for uncertainty and 
variability among the input variables. Each Monte Carlo simulation 
consists of 10,000 LCC and PBP calculations using input values that are 
either sampled from probability distributions and household samples or 
characterized with single-point values. The analytical results include 
a distribution of 10,000 data points showing the range of LCC savings 
for a given efficiency level relative to the no-standards-case 
efficiency distribution. In performing an iteration of the Monte Carlo 
simulation for a given consumer, product efficiency is chosen based on 
its probability. If the chosen product efficiency is greater than or 
equal to the efficiency of the standard level under consideration, the 
LCC and PBP calculation reveals that a consumer is not impacted by the 
standard level. By accounting for consumers who already purchase more-
efficient products, DOE avoids overstating the potential benefits from 
increasing product efficiency through amended energy conservation 
standards.
---------------------------------------------------------------------------

    \3\ Crystal Ball is a commercial software program used to 
conduct stochastic analysis using Monte Carlo simulation. A Monte 
Carlo simulation uses random sampling over many iterations of the 
simulation to obtain a probability distribution of results. Certain 
key inputs to the analysis are defined as probability distributions 
rather than single-point values.
---------------------------------------------------------------------------

    For each potential standard level, the primary outputs of the LCC 
and PBP analyses are: (1) Average LCC; (2) average PBPs; (3) average 
LCC savings relative to the no-new-standards case; and (4) the 
percentage of consumers that experience a net cost.

C. National Impact Analysis

    The national impacts analysis (NIA) estimates the national energy 
savings (NES) and the net present value (NPV) of total consumer costs 
and savings expected to result from potential amended standards. DOE 
calculated NES and NPV for central air conditioners and heat pumps as 
the difference between a case without amended standards and each 
standards case.
    DOE calculated the national annual energy consumption for each case 
using the appropriate per-unit annual energy use data multiplied by the 
projected central air conditioner and heat pump shipments for each 
year. Cumulative energy savings are the sum of the annual NES 
determined for the lifetime of central air conditioner or heat pumps 
shipped during a 30-year period assumed to start in the expected 
compliance year. The analysis period is 30 years, which is consistent 
with other

[[Page 52209]]

rulemakings and sufficiently long to cover the expected life of the 
product. Energy savings include the full-fuel-cycle energy savings 
(i.e., the energy needed to extract, process, and deliver primary fuel 
sources such as coal and natural gas, and the conversion and 
distribution losses of generating electricity from those fuel sources).
    To develop the national NPV of consumer benefits from potential 
energy conservation standards, DOE calculated projected annual 
operating costs (energy costs and repair and maintenance costs) and 
annual installation costs for the no-new-standards case and the 
standards cases. DOE calculated annual energy expenditures from annual 
energy consumption using forecasted energy prices (based on the Energy 
Information Administration's most recent Annual Energy Outlook) in each 
year. DOE calculated annual product expenditures by multiplying the 
price per unit times the projected shipments in each year.
    The aggregate difference each year between operating cost savings 
and increased installation costs is the net savings or net costs. DOE 
multiplies the net savings in future years by a discount factor to 
determine their present value. The national NPV is the sum over time of 
the discounted net savings each year. Critical inputs to this analysis 
include shipments projections, estimated product lifetimes, product 
installed costs and operating costs, product annual energy consumption, 
the no-new-standard-case efficiency projection, and discount rates. DOE 
estimates the NPV of consumer benefits using both a 3-percent and a 7-
percent real discount rate, in accordance with guidance provided by the 
Office of Management and Budget (OMB) to Federal agencies on the 
development of regulatory analysis.\4\
---------------------------------------------------------------------------

    \4\ Office of Management and Budget, OMB Circular A-4, section 
E, Identifying and Measuring Benefits and Costs (2003) (Available 
at: http://www.whitehouse.gov/omb/memoranda/m03-21.html).
---------------------------------------------------------------------------

D. Manufacturer Impact Analysis

    DOE performed a manufacturer impact analysis (MIA) to estimate the 
potential financial impact of potential amended energy conservation 
standards on manufacturers of central air conditioners and heat pumps. 
The MIA relied on the Government Regulatory Impact Model (GRIM), an 
industry cash-flow model used to estimate changes in industry value as 
a result of amended energy conservation standards. The primary 
quantitative output of this model is the industry net present value 
(INPV), which DOE calculates as the sum of industry annual cash flows, 
discounted to the present day using an industry-specific weighted 
average cost of capital, or manufacturer discount rate. The GRIM 
estimates the impacts of more-stringent energy conservation standards 
on the industry by comparing changes in INPV between a no-new-standards 
case and standards cases.
    Key GRIM inputs include manufacturer production cost estimates from 
the Engineering Analysis and annual shipments forecast estimates from 
the National Impact Analysis. As part of the MIA, DOE also develops an 
analysis of industry financial parameters (e.g., average industry tax 
rate, working capital rate, research and development expense rate, 
depreciation rate) and estimates conversion costs manufacturers would 
likely incur in order to comply with amended standards.
    Additionally, DOE develops multiple manufacturer markup scenarios 
in order to capture uncertainty surrounding manufacturer pricing 
strategy following amended standards. For the central air conditioner 
and heat pump industry, DOE modeled three standards-case markup 
scenarios: (1) A preservation of baseline markup scenario; (2) a 
preservation of per-unit operating profit markup scenario; and (3) a 
tiered markup scenario. These scenarios result in varying revenue and 
cash flow impacts.

IV. Submission of Comments

    DOE will accept comments, data, and information regarding all of 
the analyses described above, but no later than the date provided in 
the DATES section at the beginning of this NODA. Interested parties may 
submit comments, data, and any other information using any of the 
methods described in the ADDRESSES section at the beginning of this 
document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov Web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (CBI)). Comments submitted through 
www.regulations.gov cannot be claimed as CBI. Comments received through 
the Web site will waive any CBI claims for the information submitted. 
For information on submitting CBI, see the Confidential Business 
Information section below.
    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 mail. 
Comments and documents submitted via email, hand delivery/courier, or 
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 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

[[Page 52210]]

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 latter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email, postal mail, or hand delivery/courier two well-marked copies: 
one copy of the document marked ``confidential'' including all the 
information believed to be confidential, and one copy of the document 
marked ``non-confidential'' with the information believed to be 
confidential deleted. Submit these documents via email or on a CD, if 
feasible. DOE will make its own determination about the confidential 
status of the information and treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by or available from other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person that would result from 
public disclosure; (6) when such information might lose its 
confidential character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this NODA.

    Issued in Washington, DC, on August 21, 2015.
 Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2015-21321 Filed 8-27-15; 8:45 am]
 BILLING CODE 6450-01-P



                                               52206

                                               Proposed Rules                                                                                                Federal Register
                                                                                                                                                             Vol. 80, No. 167

                                                                                                                                                             Friday, August 28, 2015



                                               This section of the FEDERAL REGISTER                    Conditioners and Heat Pumps, and                      further information on how to submit a
                                               contains notices to the public of the proposed          provide docket number EERE–2014–                      comment or review other public
                                               issuance of rules and regulations. The                  BT–STD–0048 and/or Regulatory                         comments and the docket, contact Ms.
                                               purpose of these notices is to give interested          Identification Number (RIN) 1904–                     Brenda Edwards at (202) 586–2945 or by
                                               persons an opportunity to participate in the            AD37. Comments may be submitted                       email: Brenda.Edwards@ee.doe.gov.
                                               rule making prior to the adoption of the final
                                               rules.
                                                                                                       using any of the following methods:                   FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                          1. Federal eRulemaking Portal:                     Antonio Bouza, U.S. Department of
                                                                                                       www.regulations.gov. Follow the                       Energy, Office of Energy Efficiency and
                                               DEPARTMENT OF ENERGY                                    instructions for submitting comments.                 Renewable Energy, Building
                                                                                                          2. Email: ASRAC@ee.doe.gov. Include                Technologies Office, EE–5B, 1000
                                               10 CFR Part 430                                         the docket number and/or RIN in the                   Independence Avenue SW.,
                                               [Docket No. EERE–2014–BT–STD–0048]
                                                                                                       subject line of the message. Submit                   Washington, DC 20585–0121.
                                                                                                       electronic comments in WordPerfect,                   Telephone: (202) 586–4563. Email:
                                               RIN 1904–AD37                                           Microsoft Word, PDF, or ASCII file                    central air conditioners and heat
                                                                                                       format, and avoid the use of special                  pumps@ee.doe.gov.
                                               Energy Conservation Standards for                       characters or any form of encryption.                   Mr. Eric Stas or Ms. Johanna
                                               Central Air Conditioners and Heat                          3. Postal Mail: Ms. Brenda Edwards,                Hariharan, U.S. Department of Energy,
                                               Pumps: Availability of Provisional                      U.S. Department of Energy, Building                   Office of the General Counsel, GC–33,
                                               Analysis Tools                                          Technologies Office, Mailstop EE–5B,                  1000 Independence Avenue SW.,
                                               AGENCY: Office of Energy Efficiency and                 1000 Independence Avenue SW.,                         Washington, DC 20585–0121.
                                               Renewable Energy, Department of                         Washington, DC 20585–0121. If                         Telephone: (202) 5869507 or (202) 287–
                                               Energy.                                                 possible, please submit all items on a                6307. Email: Eric.Stas@hq.doe.gov or
                                               ACTION: Notice of data availability.                    compact disc (CD), in which case it is                Johanna.Hariharan@hq.doe.gov.
                                                                                                       not necessary to include printed copies.                For further information on how to
                                               SUMMARY:    The U.S. Department of                         4. Hand Delivery/Courier: Ms. Brenda               review other public comments and the
                                               Energy (DOE) has completed a                            Edwards, U.S. Department of Energy,                   docket, contact Ms. Brenda Edwards at
                                               provisional analysis of the potential                   Building Technologies Office, 950                     (202) 586–2945 or by email:
                                               economic impacts and energy savings                     L’Enfant Plaza SW., Suite 600,                        Brenda.Edwards@ee.doe.gov.
                                               that could result from promulgating                     Washington, DC 20024. Telephone:                      SUPPLEMENTARY INFORMATION:
                                               amended energy conservation standards                   (202) 586–2945. If possible, please
                                               for central air conditioners and heat                   submit all items on a CD, in which case               Table of Contents
                                               pumps. At this time, DOE is not                         it is not necessary to include printed                I. Authority
                                               proposing any energy conservation                       copies.                                               II. History of the Energy Conservation
                                               standards for central air conditioners                     No telefacsimilies (faxes) will be                       Standards Rulemaking for Central Air
                                               and heat pumps. Instead, this analysis                  accepted. For detailed instructions on                      Conditioners and Heat Pumps
                                               will be used in support of the Appliance                                                                         A. Background
                                                                                                       submitting comments and additional                       B. Current Status
                                               Standards Federal Rulemaking Advisory                   information on the rulemaking process,                III. Summary of the Analyses Performed by
                                               Committee (ASRAC) central air                           see section IV of this document                             DOE
                                               conditioners and heat pumps working                     (Submission of Comments).                                A. Engineering Analysis
                                               group, which has been established to                       Docket: The docket, which includes                    B. Life-Cycle Cost and Payback Period
                                               negotiate potential proposed amended                    Federal Register notices, comments,                         Analyses
                                               energy conservation standards for                       and other supporting documents/                          C. National Impact Analysis
                                               central air conditioners and heat pumps                 materials, is available for review at                    D. Manufacturer Impact Analysis
                                               standards and to discuss certain aspects                                                                      IV. Submission of Comments
                                                                                                       www.regulations.gov. All documents in                 V. Approval of the Office of the Secretary
                                               of the proposed Federal test procedure.                 the docket are listed in the
                                               The analysis for this NODA is available                 www.regulations.gov index. However,                   I. Authority
                                               at: https://www1.eere.energy.gov/                       not all documents listed in the index                    Title III, Part B 1 of the Energy Policy
                                               buildings/appliance_standards/                          may be publicly available, such as                    and Conservation Act of 1975, as
                                               rulemaking.aspx?ruleid=104. DOE                         information that is exempt from public                amended, (EPCA or the Act), Public Law
                                               encourages stakeholders to provide any                  disclosure.                                           94–163 (42 U.S.C. 6291–6309, as
                                               additional data or information that may                    A link to the docket Web page can be               codified) sets forth a variety of
                                               improve the analysis during the course                  found at: http://www.regulations.gov/                 provisions designed to improve energy
                                               of the working group meetings.                          #!docketDetail;D=EERE-2014-BT-STD-                    efficiency and established the Energy
                                               DATES: DOE will accept comments, data,                  0048. The www.regulations.gov Web                     Conservation Program for Consumer
Lhorne on DSK5TPTVN1PROD with PROPOSALS




                                               and other information regarding this                    page contains instructions on how to                  Products Other Than Automobiles, a
                                               NODA and its related analyses no later                  access all documents in the docket,                   program covering most major household
                                               than December 31, 2015. See section IV,                 including public comments.                            appliances (collectively referred to as
                                               ‘‘Submission of Comments,’’ of this                        For detailed instructions on                       ‘‘covered products’’), which includes
                                               NODA for further details.                               submitting comments and additional                    the residential central air conditioners
                                               ADDRESSES: Any comments submitted                       information on the rulemaking process,
                                               must identify the NODA on Energy                        see section IV, ‘‘Submission of                         1 For editorial reasons, upon codification in the

                                               Conservation Standards for Central Air                  Comments,’’ of this document. For                     U.S. Code, Part B was redesignated Part A.



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                                                                       Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules                                         52207

                                               and heat pumps that are the subject of                  5. The impact of any lessening of                     by June 6, 2017 (i.e., the date six years
                                               this rulemaking.2 (42 U.S.C. 6292(a)(3))                    competition, as determined in writing by          after issuance of the last amended
                                                  The National Appliance Energy                            the Attorney General, that is likely to           standards for these products). In
                                                                                                           result from the standard;
                                               Conservation Act of 1987 (NAECA),                                                                             furtherance of this process, DOE
                                                                                                       6. The need for national energy conservation;
                                               Public Law 100–12, included                                 and                                               published a request for information
                                               amendments to EPCA that established                     7. Other factors the Secretary of Energy              (‘‘the RFI’’) regarding central air
                                               the original energy conservation                            considers relevant.                               conditioners and heat pumps on
                                               standards for central air conditioners                  (42 U.S.C. 6295(o)(2)(B)(i))                          November 5, 2014. 79 FR 65603. DOE
                                               and heat pumps. (42 U.S.C. 6295(d)(1)–                     EPCA also directs that DOE may not                 published the RFI to solicit comments
                                               (2))                                                    prescribe an amended or new standard                  on whether to amend the current energy
                                                  EPCA, as amended, also requires DOE                  if the standard is likely to result in the            conservation standards for residential
                                               to conduct two cycles of rulemakings to                 unavailability in the United States in                central air conditioner and heat pump
                                               determine whether to amend the energy                   any covered product type (or class) of                products. The RFI also described the
                                               conservation standards for central air                  performance characteristics (including                procedural and analytical approaches
                                               conditioners and heat pumps. (42 U.S.C.                 reliability), features, sizes, capacities,            that DOE anticipated to use in order to
                                               6295(d)(3)) More recently, EPCA was                     and volumes that are substantially the                evaluate energy conservation standards
                                               amended to require DOE to review the                    same as those generally available in the              for central air conditioners and heat
                                               standards for each of its consumer                      United States at the time that the                    pumps.
                                               products not later than every six years                 standard is prescribed. (42 U.S.C.                    B. Current Status
                                               to determine whether such standards                     6295(o)(4))
                                               should be amended. (42 U.S.C.                                                                                   The analyses described in this NODA
                                                                                                          Before proposing a standard, DOE
                                                                                                                                                             were developed to support a potential
                                               6295(m)(1)) Under this ‘‘six-year-                      typically seeks public input on the
                                                                                                                                                             energy conservation standard for central
                                               lookback’’ authority, DOE must publish                  analytical framework, models, and tools
                                                                                                                                                             air conditioners and heat pumps. The
                                               a notice of proposed rulemaking (NOPR)                  that DOE will use to evaluate standards
                                                                                                                                                             Appliance Standards and Rulemaking
                                               to propose amended standards for                        for the product at issue and the results
                                                                                                                                                             Federal Advisory Committee (ASRAC)
                                               residential central air conditioners and                of preliminary analyses DOE performed
                                                                                                                                                             recently established a working group in
                                               heat pumps, or a notice of                              for the product. This notice announces
                                                                                                                                                             accordance with the Federal Advisory
                                               determination that the existing                         the availability of the preliminary
                                                                                                                                                             Committee Act (FACA) and the
                                               standards do not need to be amended.                    analysis of the economic impacts and
                                                                                                                                                             Negotiated Rulemaking Act (NRA) to
                                               Id.                                                     energy savings of potential amended
                                                                                                                                                             negotiate proposed amended energy
                                                  EPCA provides criteria for prescribing               energy conservation standards.
                                                                                                                                                             conservation standards for central air
                                               amended energy conservation standards                   II. History of the Energy Conservation                conditioners and heat pumps standards
                                               for residential central air conditioners                Standards Rulemaking for Central Air                  and to discuss certain aspects of the
                                               and heat pumps. More specifically, DOE                  Conditioners and Heat Pumps                           proposed Federal test procedure. 80 FR
                                               is required to consider standards that:                                                                       40938 (July 14, 2015) The purpose of the
                                               (1) Achieve the maximum improvement                     A. Background
                                                                                                                                                             working group will be to discuss and, if
                                               in energy efficiency that is                               As noted above, EPCA, as amended,                  possible, reach consensus on a proposed
                                               technologically feasible and                            established energy conservation                       rule for amended energy conservation
                                               economically justified; and (2) result in               standards for central air conditioners                standards for central air conditioners
                                               significant conservation of energy. (42                 and heat pumps, as well as                            and heat pumps and provide
                                               U.S.C. 6295(o)(2)(A) and (o)(3)(B)) To                  requirements for DOE to conduct two                   recommendations to DOE regarding
                                               determine whether a proposed standard                   cycles of rulemaking to determine                     certain aspects of the proposed test
                                               is economically justified, DOE will, after              whether these standards should be                     procedure. The working group consists
                                               receiving comments on the proposed                      amended. (42 U.S.C. 6295(d)(1)–(3)) The               of representatives of parties having a
                                               standard, determine whether the                         first cycle culminated in a final rule                defined stake in the outcome of the
                                               benefits of the standard exceed its                     published in the Federal Register on                  proposed standards and amended test
                                               burdens by, to the greatest extent                      August 17, 2004 (the August 2004 Rule),               procedure, and will consult as
                                               practicable, considering the following                  which prescribed energy conservation                  appropriate with a range of experts on
                                               seven factors:                                          standards for central air conditioners                technical issues.
                                               1. The economic impact of the standard on               and heat pumps manufactured or                          To examine these issues, and others
                                                   manufacturers and consumers of                      imported on and after January 23, 2006.               as necessary, DOE will provide to all
                                                   products subject to the standard;                   69 FR 50997. DOE completed the                        parties in the negotiation data and an
                                               2. The savings in operating costs throughout            second of the two rulemaking cycles by                analytical framework complete and
                                                   the estimated average life of the covered
                                                   products in the type (or class) compared
                                                                                                       publishing a direct final rule on June 27,            accurate enough to support their
                                                   to any increase in the price, initial               2011 (2011 Direct Final Rule). 76 FR                  deliberations. DOE is publishing this
                                                   charges, or maintenance expenses for the            37408. The 2011 Direct Final Rule (2011               analysis to inform a prospective
                                                   covered products which are likely to                DFR) amended standards for central air                negotiation.
                                                   result from the standard;                           conditioners and heat pumps                             In this NODA, DOE is not proposing
                                               3. The total projected amount of energy                 manufactured or imported on or after                  any energy conservation standards for
                                                   savings likely to result directly from the          January 1, 2015.                                      central air conditioners and heat pumps.
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                                                   standard;                                              Pursuant to the EPCA’s six-year                    DOE may revise the analyses presented
                                               4. Any lessening of the utility or the                  review requirement under 42 U.S.C.                    in this NODA based on any new or
                                                   performance of the covered products                 6295(m)(1), DOE must publish a notice                 updated information or data it obtains
                                                   likely to result from the standard;
                                                                                                       of proposed rulemaking to propose                     during the course of the negotiations.
                                                 2 All referenced to EPCA in this document refer
                                                                                                       amended standards for residential air                 DOE encourages interested parties to
                                               to the statute as amended through the Energy
                                                                                                       conditioners and heat pumps, or a                     provide any additional data or
                                               Efficiency Improvement Act of 2015 (EEIA 2015),         notice of determination that the existing             information that may improve the
                                               Public Law 114–11 (April 30, 2015).                     standards do not need to be amended,                  analysis.


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                                               52208                   Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules

                                               III. Summary of the Analyses                            standards on individual consumers,                    combined with Crystal Ball 3 to account
                                               Performed by DOE                                        starting in the compliance year. The                  for uncertainty and variability among
                                                 DOE conducted provisional analyses                    LCC is the total cost of purchasing,                  the input variables. Each Monte Carlo
                                               of central air conditioners and heat                    installing, and operating a central air               simulation consists of 10,000 LCC and
                                               pumps in the following areas: (1)                       conditioner or heat pump over the                     PBP calculations using input values that
                                               Engineering; (2) consumer impacts (life-                course of its lifetime. The LCC analysis              are either sampled from probability
                                               cycle cost and payback period); (3)                     compares the LCCs of products designed                distributions and household samples or
                                               national impacts (including energy                      to meet possible energy conservation                  characterized with single-point values.
                                               savings); and (4) manufacturer impacts.                 standards with the LCC of the product                 The analytical results include a
                                               The tools used in preparing these                       likely to be installed in the absence of              distribution of 10,000 data points
                                               analyses and their respective results are               standards. DOE determines the LCC by                  showing the range of LCC savings for a
                                               available at: http://www.regulations.gov/               considering: (1) The total installed cost             given efficiency level relative to the no-
                                               #!docketDetail;D=EERE-2014-BT-STD-                      to the consumer (which consists of                    standards-case efficiency distribution.
                                               0048. Each individual spreadsheet                       manufacturer selling price, distribution              In performing an iteration of the Monte
                                               includes an introduction that provides                  channel markups, installation costs, and              Carlo simulation for a given consumer,
                                               an overview of the contents of the                      sales taxes); (2) the range of annual                 product efficiency is chosen based on its
                                               spreadsheet. These spreadsheets present                 energy consumption of central air                     probability. If the chosen product
                                               the various inputs and outputs to the                   conditioners and heat pumps as they are               efficiency is greater than or equal to the
                                               analysis and, where necessary,                          used in the field; (3) the operating and              efficiency of the standard level under
                                               instructions. Brief descriptions of the                 maintenance costs of central air                      consideration, the LCC and PBP
                                               provisional analyses and of the                         conditioners and heat pumps (e.g.,                    calculation reveals that a consumer is
                                               supporting spreadsheet tools are                        energy cost); (4) product lifetime; and               not impacted by the standard level. By
                                               provided below.                                         (5) a discount rate that reflects the real            accounting for consumers who already
                                                 DOE also prepared a technical                         consumer cost of capital and puts the                 purchase more-efficient products, DOE
                                               support document (TSD) containing a                     LCC in present-value terms.                           avoids overstating the potential benefits
                                               detailed written account of the                            The PBP represents the number of                   from increasing product efficiency
                                               provisional analyses and the results                    years needed to recover the increase in               through amended energy conservation
                                               generated from these analyses, which                    purchase price (including installation                standards.
                                                                                                       costs) of higher-efficiency central air                  For each potential standard level, the
                                               are described for the four major anlyses
                                                                                                       conditioners and heat pumps through                   primary outputs of the LCC and PBP
                                               below. The TSD is available at: http://
                                                                                                       savings in the operating cost. PBP is                 analyses are: (1) Average LCC; (2)
                                               www.regulations.gov/
                                                                                                       calculated by dividing the incremental                average PBPs; (3) average LCC savings
                                               #!docketDetail;D=EERE-2014-BT-STD-
                                                                                                       increase in installed cost of the higher-             relative to the no-new-standards case;
                                               0048.
                                                                                                       efficiency product, compared to the                   and (4) the percentage of consumers that
                                               A. Engineering Analysis                                 baseline product, by the annual savings               experience a net cost.
                                                  The engineering analysis establishes                 in operating costs.                                   C. National Impact Analysis
                                               the relationship between the                               For each considered standards case
                                                                                                       corresponding to each efficiency level,                 The national impacts analysis (NIA)
                                               manufacturer production cost (MPC)                                                                            estimates the national energy savings
                                               and efficiency levels of central air                    DOE measures the change in LCC
                                                                                                       relative to the no-standards case, which              (NES) and the net present value (NPV)
                                               conditioners and heat pumps. This                                                                             of total consumer costs and savings
                                               relationship serves as the basis for                    reflects the market in the absence of
                                                                                                       amended energy conservation                           expected to result from potential
                                               calculations performed in the other                                                                           amended standards. DOE calculated
                                               analytical tools to estimate the costs and              standards, including market trends for
                                                                                                       products that exceed the current energy               NES and NPV for central air
                                               benefits to individual consumers,                                                                             conditioners and heat pumps as the
                                               manufacturers, and the Nation. The                      conservation standards.
                                                                                                          DOE developed nationally-                          difference between a case without
                                               engineering analysis identifies                                                                               amended standards and each standards
                                               representative baseline products, which                 representative household samples for
                                                                                                       central air conditioners and heat pumps               case.
                                               is the starting point for analyzing                                                                             DOE calculated the national annual
                                               technologies that provide energy                        from the 2009 residential energy
                                                                                                       consumption survey (RECS). DOE                        energy consumption for each case using
                                               efficiency improvements. ‘‘Baseline                                                                           the appropriate per-unit annual energy
                                               product’’ refers to a model or models                   analyzed the net effect of potential
                                                                                                       amended central air conditioner and                   use data multiplied by the projected
                                               having features and technologies                                                                              central air conditioner and heat pump
                                               typically found in minimally-efficient                  heat pump standards on consumers by
                                                                                                       calculating the LCC savings and PBP for               shipments for each year. Cumulative
                                               products currently available on the                                                                           energy savings are the sum of the annual
                                               market and, for products already subject                each household by efficiency level.
                                                                                                       Inputs to the LCC calculation include                 NES determined for the lifetime of
                                               to energy conservation standards, a                                                                           central air conditioner or heat pumps
                                               model that just meets the current                       the installed cost to the consumer
                                                                                                       (purchase price, including sales tax                  shipped during a 30-year period
                                               standard. After identifying the baseline                                                                      assumed to start in the expected
                                               models, DOE estimated manufacturer                      where appropriate, plus installation
                                                                                                       cost), operating costs (energy expenses,              compliance year. The analysis period is
                                               selling prices by using a consistent                                                                          30 years, which is consistent with other
                                                                                                       repair costs, and maintenance costs), the
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                                               methodology and pricing scheme that
                                               includes material costs and                             lifetime of the product, and a discount                 3 Crystal Ball is a commercial software program
                                               manufacturer markups.                                   rate. Inputs to the payback period                    used to conduct stochastic analysis using Monte
                                                                                                       calculation include the installed cost to             Carlo simulation. A Monte Carlo simulation uses
                                               B. Life-Cycle Cost and Payback Period                   the consumer and first-year operating                 random sampling over many iterations of the
                                               Analyses                                                costs.                                                simulation to obtain a probability distribution of
                                                                                                                                                             results. Certain key inputs to the analysis are
                                                 The LCC and PBP analyses determine                       DOE performed the LCC and PBP                      defined as probability distributions rather than
                                               the economic impact of potential                        analyses using a spreadsheet model                    single-point values.



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                                                                       Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules                             52209

                                               rulemakings and sufficiently long to                    discounted to the present day using an    it in the comment itself or in any
                                               cover the expected life of the product.                 industry-specific weighted average cost   documents attached to your comment.
                                               Energy savings include the full-fuel-                   of capital, or manufacturer discount      Any information that you do not want
                                               cycle energy savings (i.e., the energy                  rate. The GRIM estimates the impacts of   to be publicly viewable should not be
                                               needed to extract, process, and deliver                 more-stringent energy conservation        included in your comment, nor in any
                                               primary fuel sources such as coal and                   standards on the industry by comparing    document attached to your comment.
                                               natural gas, and the conversion and                     changes in INPV between a no-new-         Otherwise, persons viewing comments
                                               distribution losses of generating                       standards case and standards cases.       will see only first and last names,
                                               electricity from those fuel sources).                     Key GRIM inputs include                 organization names, correspondence
                                                 To develop the national NPV of                        manufacturer production cost estimates    containing comments, and any
                                               consumer benefits from potential energy                 from the Engineering Analysis and         documents submitted with the
                                               conservation standards, DOE calculated                  annual shipments forecast estimates       comments.
                                               projected annual operating costs (energy                from the National Impact Analysis. As        Do not submit to www.regulations.gov
                                               costs and repair and maintenance costs)                 part of the MIA, DOE also develops an     information for which disclosure is
                                               and annual installation costs for the no-               analysis of industry financial            restricted by statute, such as trade
                                               new-standards case and the standards                    parameters (e.g., average industry tax    secrets and commercial or financial
                                               cases. DOE calculated annual energy                     rate, working capital rate, research and  information (hereinafter referred to as
                                               expenditures from annual energy                         development expense rate, depreciation    Confidential Business Information
                                               consumption using forecasted energy                     rate) and estimates conversion costs      (CBI)). Comments submitted through
                                               prices (based on the Energy Information                 manufacturers would likely incur in       www.regulations.gov cannot be claimed
                                               Administration’s most recent Annual                     order to comply with amended              as CBI. Comments received through the
                                               Energy Outlook) in each year. DOE                       standards.                                Web site will waive any CBI claims for
                                               calculated annual product expenditures                    Additionally, DOE develops multiple     the information submitted. For
                                               by multiplying the price per unit times                 manufacturer markup scenarios in order    information on submitting CBI, see the
                                               the projected shipments in each year.                   to capture uncertainty surrounding        Confidential Business Information
                                                 The aggregate difference each year                    manufacturer pricing strategy following   section below.
                                               between operating cost savings and                      amended standards. For the central air       DOE processes submissions made
                                               increased installation costs is the net                 conditioner and heat pump industry,       through www.regulations.gov before
                                               savings or net costs. DOE multiplies the                DOE modeled three standards-case          posting. Normally, comments will be
                                               net savings in future years by a discount               markup scenarios: (1) A preservation of   posted within a few days of being
                                               factor to determine their present value.                baseline markup scenario; (2) a           submitted. However, if large volumes of
                                               The national NPV is the sum over time                   preservation of per-unit operating profit comments are being processed
                                               of the discounted net savings each year.                markup scenario; and (3) a tiered         simultaneously, your comment may not
                                               Critical inputs to this analysis include                markup scenario. These scenarios result   be viewable for up to several weeks.
                                               shipments projections, estimated                        in varying revenue and cash flow          Please keep the comment tracking
                                               product lifetimes, product installed                    impacts.                                  number that www.regulations.gov
                                               costs and operating costs, product                                                                provides after you have successfully
                                                                                                       IV. Submission of Comments                uploaded your comment.
                                               annual energy consumption, the no-
                                               new-standard-case efficiency projection,                   DOE will accept comments, data, and       Submitting comments via email, hand
                                               and discount rates. DOE estimates the                   information regarding all of the analyses delivery/courier, or mail. Comments and
                                               NPV of consumer benefits using both a                   described above, but no later than the    documents submitted via email, hand
                                               3-percent and a 7-percent real discount                 date provided in the DATES section at the delivery/courier, or mail also will be
                                               rate, in accordance with guidance                       beginning of this NODA. Interested        posted to www.regulations.gov. If you
                                               provided by the Office of Management                    parties may submit comments, data, and do not want your personal contact
                                               and Budget (OMB) to Federal agencies                    any other information using any of the    information to be publicly viewable, do
                                               on the development of regulatory                        methods described in the ADDRESSES        not include it in your comment or any
                                               analysis.4                                              section at the beginning of this          accompanying documents. Instead,
                                                                                                       document.                                 provide your contact information in a
                                               D. Manufacturer Impact Analysis                            Submitting comments via                cover letter. Include your first and last
                                                  DOE performed a manufacturer                         www.regulations.gov. The                  names, email address, telephone
                                               impact analysis (MIA) to estimate the                   www.regulations.gov Web page will         number, and optional mailing address.
                                               potential financial impact of potential                 require you to provide your name and      The cover letter will not be publicly
                                               amended energy conservation standards                   contact information. Your contact         viewable as long as it does not include
                                               on manufacturers of central air                         information will be viewable to DOE       any comments.
                                               conditioners and heat pumps. The MIA                    Building Technologies staff only. Your       Include contact information each time
                                               relied on the Government Regulatory                     contact information will not be publicly you submit comments, data, documents,
                                               Impact Model (GRIM), an industry cash-                  viewable except for your first and last   and other information to DOE. If you
                                               flow model used to estimate changes in                  names, organization name (if any), and    submit via mail or hand delivery/
                                               industry value as a result of amended                   submitter representative name (if any).   courier, please provide all items on a
                                               energy conservation standards. The                      If your comment is not processed          CD, if feasible, in which case it is not
                                               primary quantitative output of this                     properly because of technical             necessary to submit printed copies. No
Lhorne on DSK5TPTVN1PROD with PROPOSALS




                                               model is the industry net present value                 difficulties, DOE will use this           telefacsimiles (faxes) will be accepted.
                                               (INPV), which DOE calculates as the                     information to contact you. If DOE           Comments, data, and other
                                               sum of industry annual cash flows,                      cannot read your comment due to           information submitted to DOE
                                                                                                       technical difficulties and cannot contact electronically should be provided in
                                                 4 Office of Management and Budget, OMB
                                                                                                       you for clarification, DOE may not be     PDF (preferred), Microsoft Word or
                                               Circular A–4, section E, Identifying and Measuring
                                               Benefits and Costs (2003) (Available at: http://        able to consider your comment.            Excel, WordPerfect, or text (ASCII) file
                                               www.whitehouse.gov/omb/memoranda/m03-                      However, your contact information      format. Provide documents that are not
                                               21.html).                                               will be publicly viewable if you include secured, that are written in English, and


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                                               52210                   Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules

                                               that are free of any defects or viruses.                  Issued in Washington, DC, on August 21,             1904–AD31, 1000 Independence
                                               Documents should not contain special                    2015.                                                 Avenue SW., Washington, DC 20585–
                                               characters or any form of encryption                    Kathleen B. Hogan,                                    0121. Phone: (202) 586–2945. If
                                               and, if possible, they should carry the                 Deputy Assistant Secretary for Energy                 possible, please submit all items on a
                                               electronic signature of the author.                     Efficiency, Energy Efficiency and Renewable           compact disc (CD), in which case it is
                                                                                                       Energy.                                               not necessary to include printed copies.
                                                  Campaign form letters. Please submit                 [FR Doc. 2015–21321 Filed 8–27–15; 8:45 am]           (Please note that comments sent by mail
                                               campaign form letters by the originating
                                                                                                       BILLING CODE 6450–01–P                                are often delayed and may be damaged
                                               organization in batches of between 50 to                                                                      by mail screening processes.)
                                               500 form letters per PDF or as one form                                                                          • Hand Delivery/Courier: Ms. Brenda
                                               latter with a list of supporters’ names                 DEPARTMENT OF ENERGY                                  Edwards, U.S. Department of Energy,
                                               compiled into one or more PDFs. This                                                                          Building Technologies Office, 6th Floor,
                                               reduces comment processing and                          10 CFR Part 431                                       950 L’Enfant Plaza SW., Washington,
                                               posting time.                                           [Docket Number EERE–2014–BT–STD–                      DC 20024. Phone: (202) 586–2945. If
                                                  Confidential Business Information.                   0027]                                                 possible, please submit all items on a
                                               Pursuant to 10 CFR 1004.11, any person                                                                        CD, in which case it is not necessary to
                                                                                                       RIN 1904–AD31
                                               submitting information that he or she                                                                         include printed copies.
                                               believes to be confidential and exempt                  Energy Conservation Program for                          All submissions received must
                                               by law from public disclosure should                    Consumer Products: Energy                             include docket number EERE–2014–BT–
                                               submit via email, postal mail, or hand                  Conservation Standards for                            STD–0027 and/or regulatory
                                               delivery/courier two well-marked                        Commercial Prerinse Spray Valves                      identification number (RIN) 1904–
                                                                                                                                                             AD31.
                                               copies: one copy of the document
                                                                                                       AGENCY:  Office of Energy Efficiency and                 Docket: The docket is available for
                                               marked ‘‘confidential’’ including all the
                                                                                                       Renewable Energy, Department of                       review at http://www.regulations.gov,
                                               information believed to be confidential,                Energy.                                               and will include Federal Register
                                               and one copy of the document marked                                                                           notices, framework document, notice of
                                                                                                       ACTION: Extension of public comment
                                               ‘‘non-confidential’’ with the information                                                                     proposed rulemaking, public meeting
                                                                                                       period.
                                               believed to be confidential deleted.                                                                          attendee lists and transcripts,
                                               Submit these documents via email or on                  SUMMARY:   This document announces an                 comments, and other supporting
                                               a CD, if feasible. DOE will make its own                extension of the time period for                      documents/materials throughout the
                                               determination about the confidential                    submitting comments, data, and                        rulemaking process. The regulations.gov
                                               status of the information and treat it                  information concerning the notice of                  Web page contains simple instructions
                                               according to its determination.                         proposed rulemaking for commercial                    about how to access all documents,
                                                  Factors of interest to DOE when                      prerinse spray valves, published on July              including public comments, in the
                                               evaluating requests to treat submitted                  9, 2015. The comment period is                        docket. The docket can be accessed by
                                               information as confidential include: (1)                extended to September 22, 2015.                       searching for docket number EERE–
                                               A description of the items; (2) whether                 DATES: The comment period for the                     2014–BT–STD–0027 on the
                                               and why such items are customarily                      notice of proposed rulemaking for                     regulations.gov Web site. All documents
                                               treated as confidential within the                      commercial prerinse spray valves,                     in the docket are listed in the http://
                                                                                                       published on July 9, 2015 (80 FR 39486)               www.regulations.gov index. However,
                                               industry; (3) whether the information is
                                                                                                       is extended to September 22, 2015.                    not all documents listed in the index
                                               generally known by or available from
                                                                                                       ADDRESSES: Interested persons may                     may be publicly available, such as
                                               other sources; (4) whether the
                                                                                                       submit comments by any of the                         information that is exempt from public
                                               information has previously been made                                                                          disclosure.
                                               available to others without obligation                  following methods:
                                               concerning its confidentiality; (5) an                     • Federal eRulemaking Portal: http://              FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                       www.regulations.gov. Follow the                       James Raba, U.S. Department of Energy,
                                               explanation of the competitive injury to
                                                                                                       instructions for submitting comments.                 Office of Energy Efficiency and
                                               the submitting person that would result
                                                                                                          • Email:                                           Renewable Energy, Building
                                               from public disclosure; (6) when such                                                                         Technologies Office, EE–5B, 1000
                                                                                                       SprayValves20104STD0027@ee.doe.gov.
                                               information might lose its confidential                                                                       Independence Avenue SW.,
                                                                                                       Include EERE–2014–BT–STD–0027
                                               character due to the passage of time; and                                                                     Washington, DC 20585–0121.
                                                                                                       and/or regulation identifier number
                                               (7) why disclosure of the information                   (RIN) 1904–AD31 in the subject line of                Telephone: (202) 586–8654. Email:
                                               would be contrary to the public interest.               the message. All comments should                      commercial_pre-rinse-spray_valves@
                                                  It is DOE’s policy that all comments                 clearly identify the name, address, and,              ee.doe.gov.
                                               may be included in the public docket,                   if appropriate, organization of the                     In the Office of General Counsel,
                                               without change and as received,                         commenter. Submit electronic                          contact Mr. Peter Cochran, U.S.
                                               including any personal information                      comments in WordPerfect, Microsoft                    Department of Energy, Office of the
                                               provided in the comments (except                        Word, portable data format (PDF), or                  General Counsel, GC–33, 1000
                                               information deemed to be exempt from                    American Standard Code for                            Independence Avenue SW.,
                                               public disclosure).                                     Information Interchange (ASCII) file                  Washington, DC 20585–0121.
                                                                                                                                                             Telephone: (202) 586–9496. Email:
Lhorne on DSK5TPTVN1PROD with PROPOSALS




                                                                                                       format, and avoid the use of special
                                               V. Approval of the Office of the                        characters or any form of encryption.                 Peter.Cochran@hq.doe.gov.
                                               Secretary                                                  • Mail: Ms. Brenda Edwards, U.S.                   SUPPLEMENTARY INFORMATION: On July 9,
                                                                                                       Department of Energy, Building                        2015, the U.S. Department of Energy
                                                 The Secretary of Energy has approved
                                                                                                       Technologies Office, Mailstop EE–5B,                  (DOE) published a document in the
                                               publication of this NODA.                               Notice of Proposed Rulemaking for                     Federal Register proposing amended
                                                                                                       Commercial Prerinse Spray Valves,                     energy conservation standards for
                                                                                                       EERE–2014–BT–STD–0027 and/or RIN                      commercial prerinse spray valves. The


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Document Created: 2015-12-15 11:04:09
Document Modified: 2015-12-15 11:04:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of data availability.
DatesDOE will accept comments, data, and other information regarding this NODA and its related analyses no later than December 31, 2015. See section IV, ``Submission of Comments,'' of this NODA for further details.
ContactMr. Antonio Bouza, 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) 586-4563. Email: central air conditioners and heat [email protected]
FR Citation80 FR 52206 
RIN Number1904-AD37

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