81_FR_21345 81 FR 21276 - Energy Conservation Program: Energy Conservation Standards for Direct Heating Equipment

81 FR 21276 - Energy Conservation Program: Energy Conservation Standards for Direct Heating Equipment

DEPARTMENT OF ENERGY

Federal Register Volume 81, Issue 69 (April 11, 2016)

Page Range21276-21284
FR Document2016-08121

The Energy Policy and Conservation Act of 1975 (EPCA), as amended, prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including direct heating equipment (DHE). EPCA also requires the U.S. Department of Energy (DOE) to periodically determine whether more-stringent, amended standards would be technologically feasible and economically justified, and would save a significant amount of energy. In this document, DOE has tentatively determined that more stringent DHE standards would not be economically justified, and, thus, proposes not to amend its energy conservation standards for DHE.

Federal Register, Volume 81 Issue 69 (Monday, April 11, 2016)
[Federal Register Volume 81, Number 69 (Monday, April 11, 2016)]
[Proposed Rules]
[Pages 21276-21284]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08121]


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

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

========================================================================


Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / 
Proposed Rules

[[Page 21276]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket Number EERE-2016-BT-STD-0007]
RIN 1904-AD65


Energy Conservation Program: Energy Conservation Standards for 
Direct Heating Equipment

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

ACTION: Notice of proposed determination (NOPD).

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

SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as 
amended, prescribes energy conservation standards for various consumer 
products and certain commercial and industrial equipment, including 
direct heating equipment (DHE). EPCA also requires the U.S. Department 
of Energy (DOE) to periodically determine whether more-stringent, 
amended standards would be technologically feasible and economically 
justified, and would save a significant amount of energy. In this 
document, DOE has tentatively determined that more stringent DHE 
standards would not be economically justified, and, thus, proposes not 
to amend its energy conservation standards for DHE.

DATES: DOE will accept comments, data, and information regarding this 
NOPD no later than June 10, 2016. See section V, ``Public 
Participation,'' for details.

ADDRESSES: Any comments submitted must identify the NOPD on Energy 
Conservation Standards for Direct Heating Equipment, and provide docket 
number EERE-2016-BT-STD-0007 and/or regulatory information number (RIN) 
1904-AD65. 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., Room 
6094, 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 V of this document (``Public 
Participation'').
    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, some documents listed in the 
index may not be publicly available, such as those containing 
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-2016-BT-STD-0007. This Web 
page contains a link to the docket for this notice on the 
www.regulations.gov site. The www.regulations.gov Web page contains 
simple instructions on how to access all documents, including public 
comments, in the docket. See section V, ``Public Participation,'' for 
further information on how to submit comments through 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: John Cymbalsky, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, 
DC 20585-0121. Telephone: (202) 287-1692. Email: 
[email protected].
    Ms. Sarah Butler, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-1777. Email: [email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact Ms. Brenda Edwards at (202) 586-2945 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Summary of the Proposed Determination
    A. Authority
    B. Background
    1. Current Standards
    2. History of Rulemakings for Direct Heating Equipment
II. Rationale
III. Proposed Determination
IV. Procedural Issues and Regulatory Review
    A. Review Under Executive Orders 12866 and 13563
    B. Review Under the Regulatory Flexibility Act
    C. Review Under the Paperwork Reduction Act
    D. Review Under the National Environmental Policy Act of 1969
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Review Under Executive Order 13211
    L. Review Under the Information Quality Bulletin for Peer Review
V. Public Participation
    A. Public Meeting Requests
    B. Submission of Comments
    C. Issues on Which DOE Seeks Comment
VI. Approval of the Office of the Secretary

I. Summary of the Proposed Determination

    DOE proposes to determine that energy conservation standards should 
not be amended for direct heating equipment (DHE). DOE has tentatively 
determined that the DHE market characteristics are largely similar to 
those analyzed in the previous rulemaking and the technologies 
available for improving DHE energy efficiency have not advanced 
significantly since the previous

[[Page 21277]]

rulemaking analyses \1\ (concluding with the publication of a final 
rule on April 16, 2010, hereafter ``April 2010 Final Rule''). 75 FR 
20112. In addition, DOE believes the conclusions reached in the April 
2010 Final Rule regarding the benefits and burdens of more stringent 
standards for DHE are still relevant to the DHE market today. 
Therefore, DOE has tentatively determined that amended energy 
conservation standards would not be economically justified.
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    \1\ With the exception of condensing technology for fan-type 
wall furnaces, discussed in section II.
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A. Authority

    Title III, Part B \2\ of the Energy Policy and Conservation Act of 
1975 (``EPCA'' or ``the Act''), Public Law 94-163 (codified at 42 
U.S.C. 6291-6309) established the Energy Conservation Program for 
Consumer Products Other Than Automobiles.\3\ This program covers most 
major household appliances (collectively referred to as ``covered 
products'') including the DHE, which are the subject of this document. 
(42 U.S.C. 6292 (a)(9)) EPCA prescribed initial energy conservation 
standards for DHE and directs DOE to conduct future rulemakings to 
determine whether to amend these standards. (42 U.S.C. 6295(e)(3) and 
(4)) DOE is issuing this notice pursuant to that requirement, in 
addition to the requirement under 42 U.S.C. 6295(m), which states that 
DOE must periodically review its already established energy 
conservation standards for a covered product not later than six years 
after issuance of any final rule establishing or amending such 
standards. As a result of such review, DOE must either publish a notice 
of proposed rulemaking to amend the standards or publish a notice of 
determination indicating that the existing standards do not need to be 
amended. (42 U.S.C. 6295(m)(1)(A) and (B))
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    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated as Part A.
    \3\ All references to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act, Public Law 
114-11 (April 30, 2015).
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    Pursuant to the requirements set forth under EPCA, any new or 
amended standard for a covered product must be designed to achieve the 
maximum improvement in energy efficiency that is technologically 
feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) 
Furthermore, DOE may not adopt any standard that would not result in 
the significant conservation of energy. (42 U.S.C. 6295(o)(3)(B)) 
Moreover, DOE may not prescribe a standard: (1) For certain products, 
including DHE, if no test procedure has been established for the 
product,\4\ or (2) if DOE determines by rule that the standard is not 
technologically feasible or economically justified. (42 U.S.C. 
6295(o)(3)(A)(B)) In deciding whether a proposed standard is 
economically justified, DOE must determine whether the benefits of the 
standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must make 
this determination after considering, to the greatest extent 
practicable, the following seven statutory factors:
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    \4\ The DOE test procedures for DHE appear at title 10 of the 
Code of Federal Regulations (CFR) part 430, subpart B, appendix O 
and 10 CFR 430, subpart B, appendix G (Appendix G).
---------------------------------------------------------------------------

    (1) The economic impact of the standard on manufacturers and 
consumers of the products subject to the standard;
    (2) The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products that are likely to result from the standard;
    (3) The total projected amount of energy (or as applicable, water) 
savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the covered 
products likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy (Secretary) considers 
relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
    Further, EPCA, as codified, establishes a rebuttable presumption 
that a standard is economically justified if the Secretary finds that 
the additional cost to the consumer of purchasing a product complying 
with an energy conservation standard level will be less than three 
times the value of the energy savings during the first year that the 
consumer will receive as a result of the standard, as calculated under 
the applicable test procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
    EPCA, as codified, also contains what is known as an ``anti-
backsliding'' provision, which prevents the Secretary from prescribing 
any amended standard that either increases the maximum allowable energy 
use or decreases the minimum required energy efficiency of a covered 
product. (42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe 
an amended or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered product type (or 
class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6295(o)(4))
    Federal energy conservation requirements generally supersede State 
laws or regulations concerning energy conservation testing, labeling, 
and standards. (42 U.S.C. 6297(a)-(c)) DOE may, however, grant waivers 
of Federal preemption for particular State laws or regulations, in 
accordance with the procedures and other provisions set forth under 42 
U.S.C. 6297(d).
    Finally, any final rule for new or amended energy conservation 
standards promulgated after July 1, 2010, is required to address 
standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3)) 
Specifically, when DOE adopts a standard for a covered product after 
that date, it must, if justified by the criteria for adoption of 
standards under EPCA (42 U.S.C. 6295(o)), incorporate standby mode and 
off mode energy use into a single standard, or, if that is not 
feasible, adopt a separate standard for such energy use for that 
product. (42 U.S.C. 6295(gg)(3)(A)-(B)) DOE's current test procedures 
for vented home heating equipment address standby mode fossil-fuel 
energy use.

B. Background

1. Current Standards
    In the April 2010 Final Rule, DOE prescribed the current energy 
conservation standards for DHE manufactured on and after April 16, 
2013. 75 FR 20112. These standards are set forth in DOE's regulations 
at 10 CFR 430.32(i)(2) and are shown in Table I-1.\5\
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    \5\ DOE notes that DHE is defined at 10 CFR 430.2 as vented home 
heating equipment and unvented home heating equipment; however, the 
existing energy conservation standards apply only to product classes 
of vented home heating equipment. There are no existing energy 
conservation standards for unvented home heating equipment.

[[Page 21278]]



    Table I-1--Federal Energy Conservation Standards for DHE (10 CFR
                              430.32(i)(2))
------------------------------------------------------------------------
                                                            Annual fuel
                                                            utilization
                      Product class                         efficiency,
                                                          April 16, 2013
                                                             (percent)
------------------------------------------------------------------------
Gas wall fan type up to 42,000 Btu/h....................              75
Gas wall fan type over 42,000 Btu/h.....................              76
Gas wall gravity type up to 27,000 Btu/h................              65
Gas wall gravity type over 27,000 Btu/h up to 46,000 Btu/             66
 h......................................................
Gas wall gravity type over 46,000 Btu/h.................              67
Gas floor up to 37,000 Btu/h............................              57
Gas floor over 37,000 Btu/h.............................              58
Gas room up to 20,000 Btu/h.............................              61
Gas room over 20,000 Btu/h up to 27,000 Btu/h...........              66
Gas room over 27,000 Btu/h up to 46,000 Btu/h...........              67
Gas room over 46,000 Btu/h..............................              68
------------------------------------------------------------------------
 

2. History of Rulemakings for Direct Heating Equipment
    EPCA, as codified, initially set forth energy conservation 
standards for certain DHE product classes that are the subject of this 
document and directed DOE to conduct two subsequent rulemakings to 
determine whether the existing standards should be amended. (42 U.S.C. 
6295(e)(3) and (4)) The first of these two rulemakings included both 
DHE and pool heaters and concluded with the April 2010 Final Rule 
(codified at 10 CFR 430.32(i) and (k)). 75 FR 20112. With respect to 
DHE, the first rulemaking amended the energy conservation standards for 
vented home heating equipment, a subset of DHE, and consolidated some 
of the product classes from the previous standards established by EPCA. 
Compliance with the amended standards was required beginning on April 
16, 2013. Id. DOE did not issue standards for unvented home heating 
equipment, a subset of DHE, finding that such standards would produce 
insignificant energy savings. 75 FR 20112, 20130.
    This rulemaking satisfies the statutory requirement under EPCA to 
(1) conduct a second round of review of the DHE standards (42 U.S.C. 
6295(e)(4)(B)) and (2) publish either a notice of determination that 
standards for DHE do not need to be amended or a notice of proposed 
rulemaking proposing to amend the DHE energy conservation standards (42 
U.S.C. 6295(m)(1)). To initiate this rulemaking, DOE issued a Request 
for Information (RFI) in the Federal Register on March 26, 2015 
(hereafter ``March 2015 RFI''). 80 FR 15922. Through that RFI, DOE 
requested data and information pertaining to its planned technical and 
economic analyses for DHE and pool heaters. Although the March 2015 RFI 
and the previous energy conservation standards rulemaking included both 
DHE and pool heaters, going forward DOE has elected to conduct separate 
rulemakings for each of these products. This rulemaking pertains solely 
to the energy conservation standards for DHE. As such, a new docket has 
been created that pertains solely to this DHE rulemaking, which has 
been populated with relevant comments from the March 2015 RFI (the 
docket is available http://www.regulations.gov/#!docketDetail;D=EERE-
2016-BT-STD-0007).
April 2010 Final Rule
    In the most recent DOE rulemaking for DHE energy conservation 
standards, DOE initially proposed standards for vented home heating 
products in a NOPR published on December 11, 2009 (``December 2009 
NOPR'') that represented a six AFUE percentage point (weighted-average 
across all product classes) increase over the standards initially 
established by EPCA and codified at 42 U.S.C. 6295(e)(3). 74 FR 65852 
(December 11, 2009). The December 2009 NOPR proposed standard level, 
TSL 3, represented an improvement in efficiency from the previous 
baseline level of 74-percent AFUE to 77-percent for gas wall fan DHE, 
an improvement in efficiency from the previous baseline level of 64-
percent AFUE to 71-percent AFUE for gas wall gravity units, an 
improvement in efficiency from the previous baseline level of 57-
percent AFUE to 58-percent AFUE for gas floor DHE (the max-tech level), 
and an improvement in efficiency from the previous baseline level of 
64-percent AFUE to 68-percent for gas room DHE at the representative 
input rating ranges. 74 FR 65852, 65943 (December 11, 2009).
    DOE's initial analysis in the December 2009 NOPR showed that TSL 3 
could result in as much as a $6.0 million (33.54%) decrease in the 
Industry Net Present Value, or INPV, with total conversion costs (costs 
for redesigning and retooling product lines not already meeting the 
amended standards) potentially amounting to $6.39 million. 74 FR 65852, 
65942 (December 11, 2009).
    In response to the December 2009 NOPR several commenters 
recommended that DOE not adopt amended standards for DHE due to 
significant impact on manufacturers and low shipments of DHE (and 
therefore low energy savings potential). Commenters indicated that the 
manufacturer investments needed to comply with standards set at TSL 3 
would not be justified due to the large investment needed to upgrade 
product lines and the declining shipments through which DHE 
manufacturers would need to recoup their expenditures. Various comments 
also suggested that product offerings would be reduced or manufacturers 
would leave the market entirely if TSL 3 were selected. The U.S. 
Department of Justice commented that there was significant risk of 
reducing competition resulting from businesses leaving the market and 
requested that DOE consider the possible impact on competition in 
determining standards for the final rule. DOE agreed that TSL 3 posed 
the risk of reduced product lines or manufacturers exiting the market. 
Commenters also expressed concern that employment in the DHE industry 
would be negatively affected by amended energy conservation standards. 
Several manufacturers of DHE believed that the proposed standard would 
harm employment due to elimination of non-compliant product lines and/
or insufficient return on the investment necessary to meet new 
standards.

[[Page 21279]]

    After considering these comments responding to the proposed TSL 3 
in the December 2009 NOPR, DOE ultimately rejected TSL 3 and all higher 
TSLs in the final rule, on the grounds that capital conversion costs 
would lead to a large reduction in INPV and that small businesses would 
be disproportionately impacted. In the analysis for the April 2010 
Final Rule, DOE updated its estimate for the maximum decrease in INPV 
to 42.4% (or $7.0 million) from the 33.54% maximum decrease estimated 
in the December 2009 NOPR. 75 FR 20112, 20218-20219 (April 16, 2010). 
DOE also notes that the life-cycle cost (LCC) and payback period 
analyses (PBP) for TSL 4 and higher suggested that benefits to 
consumers were outweighed by initial costs. 75 FR 20112, 20215-20218 
(April 16, 2010).
    In the previous DHE rulemaking, DOE found that the DHE industry had 
undergone significant consolidation, with three manufacturers, 
including two small businesses, controlling the vast majority of the 
market. DOE determined that a steady decline in shipments drove 
industry consolidation and found that the remaining DHE manufacturers 
maintained a variety of legacy brands and product lines in order to 
meet the needs of consumers replacing their existing DHE products, 
rather than product lines for new construction. DOE determined in the 
April 2010 Final Rule that a standard above TSL 2 would have required 
manufacturers to undertake significant investments in order to upgrade 
a series of product lines intended primarily for replacement 
applications. Because the DHE market is a low-volume market, 
manufacturers would have to spread their product development costs and 
capital investments over relatively few shipments. At levels above TSL 
2, DOE determined that there would be limited opportunity for 
manufacturers to recoup these costs, leading to significant declines in 
industry profitability. Furthermore, DOE found that small business 
manufacturers could be disproportionately disadvantaged by a more 
stringent standard based on a combination of low shipment volumes and a 
high ratio of anticipated investment costs to annual earnings. As a 
result, DOE concluded that TSLs higher than TSL 2 would likely induce 
small business manufacturers to reduce their product offerings or to 
exit the market entirely. 75 FR 20112, 20217-20219 (April 16, 2010). 
DOE, therefore, adopted standards at TSL 2 for vented home heating 
equipment. Compliance with the adopted standards (codified at 10 CFR 
430.32(i)(2)) was required for all vented home heating equipment 
manufactured on or after April 16, 2013.

II. Rationale

    For this rulemaking DOE conducted a review of the current DHE 
market, including product literature and product listings in the DOE 
Compliance Certification Management System (CCMS) database and Air-
Conditioning, Heating, and Refrigeration Institute (AHRI) product 
directory.\6\ DOE contractors also analyzed current products through 
product teardowns and engaged in manufacturer interviews to obtain 
further information in support of its analysis. Through this analysis, 
DOE has determined that few changes to the industry and product 
offerings have occurred since the April 2010 Final Rule. As such, DOE 
has tentatively determined that the conclusions presented in the April 
2010 Final Rule are still valid. Furthermore, in response to the March 
2015 RFI, DOE received seven comment submissions. Only one submission, 
submitted by AHRI,\7\ contained comments pertaining to DHE.\8\ (Docket 
EERE-2016-BT-STD-0007: AHRI, No. 1 at p. 5-8) \9\ The following 
discussion addresses the status of the current DHE market as well as 
issues raised in the comments submitted by AHRI and during manufacturer 
interviews.
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    \6\ The AHRI directory for DHE can be found at: https://www.ahridirectory.org/ahridirectory/pages/dht/defaultSearch.aspx. 
The DOE CCMS database can be found at: http://www.regulations.doe.gov/certification-data/.
    \7\ AHRI's comment submission in response to the March 2015 RFI 
contained comments pertaining to DOE's standards NOPR rulemaking 
analyses, including the shipments analysis, life cycle cost (LCC) 
and payback period (PBP) analyses, and energy use analysis. DOE is 
not responding to these particular comments at this time because DOE 
is proposing not to amend its standards for DHE, and therefore is 
not conducting the analyses to which these comments apply. If, in 
response to feedback regarding this document, DOE elects to conduct 
a rulemaking that would amend DHE standards, DOE will respond to 
these comments at that time.
    \8\ The remaining six submissions contained comments only 
relevant to pool heaters.
    \9\ A notation in this form provides a reference for information 
that is in the docket of DOE's rulemaking to develop energy 
conservation standards for DHE (Docket No. EERE-2016-BT-STD-0007), 
which is maintained at www.regulations.gov. This notation indicates 
that the statement preceding the reference was made by AHRI, is from 
document number 1 in the docket, and appears at pages 5-8 of that 
document.
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    As part of the analysis for this proposed determination, DOE 
reviewed the products offered on the market by analyzing the DOE CCMS 
database \10\ and AHRI product directory \11\ for DHE. DOE found that 
the number of models offered in each of the DHE product classes has 
decreased overall since the previous rulemaking. Table II-1 presents 
the number of models for each product class in the current DOE CCMS 
database along with the number of models identified for the April 2010 
Final Rule.
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    \10\ This database can be found at: http://www.regulations.doe.gov/certification-data/.
    \11\ This database can be found at: https://www.ahridirectory.org/ahridirectory/pages/home.aspx.

               Table II-1--DHE Model Counts by Product Class for Current and Previous Rulemakings
----------------------------------------------------------------------------------------------------------------
                      Product class                           2015 model count *     2010 rulemaking model count
----------------------------------------------------------------------------------------------------------------
Gas floor type with an input capacity over 37,000 Btu/h..                       15                            15
Gas floor type with an input capacity up to 37,000 Btu/h
Gas room type with an input capacity over 20,000 Btu/h up                       28                         ** 29
 to 27,000 Btu/h.........................................
Gas room type with an input capacity over 27,000 Btu/h up
 to 46,000 Btu/h
Gas room type with an input capacity over 46,000 Btu/h
Gas room type with an input capacity up to 20,000 Btu/h
Gas wall fan type with an input capacity over 42,000 Btu/                       68                            82
 h.......................................................
Gas wall fan type with an input capacity up to 42,000 Btu/
 h
Gas wall gravity type with an input capacity over 27,000                        56                            52
 Btu/h up to 46,000 Btu/h................................
Gas wall gravity type with an input capacity over 46,000
 Btu/h
Gas wall gravity type with an input capacity up to 27,000
 Btu/h
----------------------------------------------------------------------------------------------------------------
* Using DOE CCMS database.
** The total room heater model count for the 2010 Final Rule was 123 models, however 94 of those models would no
  longer be considered DHE and, as such, have been excluded from this count.


[[Page 21280]]

    DOE also examined available technologies used to improve the 
efficiency of DHE. In the previous DHE rulemaking, DOE considered the 
following technology options in the engineering analysis for improving 
the efficiency of vented home heating equipment.

 Improved heat exchanger
 Two-speed blower (fan-type wall furnaces)
 Induced draft
 Electronic ignition

74 FR 65852, 65887 (December 11, 2009).

    AHRI commented in response to the March 2015 RFI that the current 
energy conservation standards are close to if not at the maximum 
technology level for most product classes of DHE. (Docket EERE-2016-BT-
STD-0007: AHRI, No. 1 at p. 4) During confidential manufacturer 
interviews, DOE received similar feedback regarding the small potential 
for improving efficiency over current standards for most product 
classes. Manufacturers suggested that the efficiency of these products 
is at or near the maximum attainable by improving the heat exchanger. 
Manufacturers indicated that because DHE are primarily sold as 
replacement units they are constrained by the footprint of the DHE unit 
which they are replacing, and so the opportunity to increase the heat 
exchanger size (and therefore size of the unit) is limited. They 
indicated that blowers and induced draft technologies requiring 
electricity are not currently found on the market or in any prototypes 
for gravity-type floor furnaces, room heaters, and floor furnaces 
because these products are designed to function entirely without 
electricity. Moreover, they suggested that because these units are 
primarily sold as replacement units, new designs or prototypes are 
generally not being pursued. DOE notes that the same technology options 
were considered as part of the previous DHE rulemaking analysis, and 
agrees that the technology options available for DHE likely have 
limited potential for achieving energy savings.\12\
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    \12\ DOE notes that for room heaters with input capacity up to 
20,000 Btu/h, the maximum AFUE available on the market increased 
from 59% in 2009 (only one unit at this input capacity was available 
on the market at that time) to 71% in 2015. DOE anticipates that 
this due to heat exchanger improvements only because these units do 
not use electricity. Due to the small input capacity, DOE does not 
believe that this increase in AFUE (based on heat exchanger 
improvements relative to input capacity) is representative of or 
feasible for other room heater product classes.
---------------------------------------------------------------------------

    Furthermore, the costs of these technology options are anticipated 
to be similar or higher than in the previous rulemaking analysis. As 
shipments have continued to decrease, DOE anticipates that the 
purchasing power of DHE manufacturers may have decreased because 
purchasing quantities for materials or parts (e.g. blower motors, 
electronic ignition components) have likely decreased. Therefore the 
incremental costs of manufacturing DHE units at higher efficiency 
levels may be similar or higher as compared to the previous rulemaking.
    DOE seeks comment on its conclusion that the DHE market and 
technology options (except for condensing technology, discussed below) 
are similar to the previous rulemaking. This is identified as Issue 1 
in section V.C.
    In addition to these technology options, DOE notes that a 
condensing fan-type wall furnace has become available since the last 
rulemaking. Two input capacities are available: 17,500 Btu/h with a 
90.2% AFUE rating, and 35,000 Btu/h with a 91.8% AFUE rating. DOE 
considers this basic model the maximum technology (``max-tech'') option 
for fan-type wall furnaces. By statute, DOE must set amended standards 
that result in the maximum improvement in efficiency that is 
technologically feasible (42 U.S.C. 6295(p)(1)) and economically 
justified. (42 U.S.C. 6295(o)(2)(A)) DOE generally considers 
technologies available in the market or in prototype products in its 
list of technologies for improving efficiency. Therefore, DOE considers 
91% AFUE the max-tech efficiency level for fan-type wall furnaces for 
this rulemaking. DOE notes that the max-tech efficiency level for fan-
type wall furnaces in the April 2010 Final Rule was 80% AFUE.
    With respect to the condensing max-tech efficiency level for fan-
type wall furnaces, DOE received feedback during manufacturer 
interviews regarding the manufacturer production cost for the unit, as 
well as information regarding shipments, which indicated that 
condensing models are significantly more expensive to manufacture than 
non-condensing models and that shipments are currently negligible 
compared to overall DHE shipments. DOE conducted a teardown analysis 
(``reverse engineering'') of the condensing fan-type wall furnace to 
confirm the manufacturer production cost. As anticipated, the 
manufacturer production cost for a condensing unit with 91% AFUE is the 
highest among fan-type wall furnaces, and represents a 23% incremental 
cost increase over a unit at 80% AFUE.\13\ Manufacturer feedback 
indicated that shipments of these units are so low as to be negligible, 
as consumers are not willing to pay the high initial cost for such 
products. Furthermore, only one manufacturer currently makes a 
condensing fan-type wall furnace and others would need to make 
substantial investments in order to produce these units on a scale 
large enough to support a Federal minimum standard. Therefore, DOE has 
tentatively concluded that this technology option, which was not 
considered in the analysis for the April 2010 Final Rule, would not be 
economically justified today when analyzed for the Nation as a whole. 
DOE believes that severe manufacturer impacts would be expected if an 
energy conservation standard were adopted at this level. DOE seeks 
feedback on its determination that adopting a condensing efficiency 
level for fan-type wall furnaces would not be economically justified. 
This is identified in Issue 2 in section V.C.
---------------------------------------------------------------------------

    \13\ Manufacturer production costs assumes production volumes in 
the case that 91% AFUE is the energy conservation standard for this 
product class.
---------------------------------------------------------------------------

    Since the April 2010 Final Rule, the DHE industry has seen further 
consolidation, with the total number of manufacturers declining from 
six to four. Furthermore, according to manufacturers,\14\ shipments 
have further decreased since the April 2010 Final Rule, and therefore 
it would be more difficult for manufacturers to recover capital 
expenditures resulting from increased standards. DOE acknowledges that 
DHE units continue to be produced primarily as replacements and that 
the market is small. DOE expects that shipments will continue to 
decrease and amended standards would likely accelerate the trend of 
declining shipments. Moreover, DOE anticipates small business impacts 
may be significant, as two of the four remaining manufacturers subject 
to DHE standards are small businesses. DOE believes that its 
conclusions regarding small businesses from the April 2010 Final Rule 
(i.e., that small businesses would be likely to reduce product 
offerings or leave the DHE market

[[Page 21281]]

entirely if the standard was set above the level adopted in that 
rulemaking) are still valid concerns. In addition, DOE continues to 
believe that an energy conservation standard for unvented home heating 
equipment would produce negligible energy savings, as DOE concluded in 
the April 2010 Final Rule.
---------------------------------------------------------------------------

    \14\ Information obtained during confidential manufacturer 
interviews.
---------------------------------------------------------------------------

    Shipments of DHE have continued to decrease since the last DHE 
energy conservation standards rulemaking. Low and decreasing shipments 
were cited by several commenters in response to the December 2009 NOPR 
as a reason that manufacturers would be unlikely to recoup investments 
after redeveloping product lines to meet more stringent standards. In 
the shipments analysis published in the April 2010 Final Rule, DOE 
forecasted DHE shipments would decrease 30% over the analysis period 
(30 years) from the 2005 level (see Chapter 9 of the TSD for the April 
2010 Final Rule \15\). This analysis predicted total DHE shipments of 
approximately 150,000 units in 2014. Based on feedback obtained during 
confidential manufacturer interviews in 2015, DOE believes actual 
shipments in 2014 were closer to 120,000. DOE notes that low and 
decreasing shipment volume is primarily due to these products being 
sold predominantly as replacements. AHRI commented in response to the 
March 2015 RFI that the DHE market is already shrinking due to DHE 
being a replacement product, and that less than 5 percent of industry 
sales are for new construction. (Docket EERE-2016-BT-STD-0007: AHRI, 
No. 1 at p. 4) DOE has tentatively concluded that low shipment volumes 
remains a primary concern for manufacturers in light of potentially 
amended energy conservation standards. DOE seeks information and data 
related to shipments for DHE and this identified as Issue 3 in section 
V.C.
---------------------------------------------------------------------------

    \15\ This document is available at regulations.gov, docket 
number EERE-2006-STD-0129.
---------------------------------------------------------------------------

III. Proposed Determination

    Due to the lack of advancement in the DHE industry since the April 
2010 final rule in terms of product offerings, available technology 
options and associated costs, and declining shipment volumes, DOE 
believes that amending the DHE energy conservation standards would 
impose a substantial burden on manufacturers of DHE, particularly to 
small manufacturers. DOE rejected higher TSLs during the previous DHE 
rulemaking due to significant impacts on industry profitability, risks 
of accelerated industry consolidation, and the likelihood that small 
manufacturers would experience disproportionate impacts that could lead 
them to discontinue product lines or exit the market altogether. DOE 
believes that the market and the manufacturers' circumstances are 
similar to those found when DOE last evaluated amended energy 
conservation standards for DHE for the April 2010 Final Rule. As such, 
DOE believes that amended energy conservation standards for DHE would 
not be economically justified at any level above the current standard 
level because benefits of more stringent standards would not outweigh 
the burdens. Therefore, DOE has tentatively determined not to amend the 
DHE energy conservation standards. DOE seeks comment on its tentative 
determination not to amend its energy conservation standards for DHE 
and this is identified as Issue 4 in section V.C.
    As discussed in section I.A, EPCA requires DOE to incorporate 
standby mode and off mode energy use into a single amended or new 
standard (if feasible) or prescribe a separate standard for standby 
mode and off mode energy consumption in any final rule establishing or 
revising a standard for a covered product, adopted after July 1, 2010. 
(42 U.S.C. 6295(gg)(3)(A)-(B)) Because DOE does not propose to amend 
standards for DHE in this document, DOE is not required to propose 
amended standards that include standby and off mode energy use. DOE 
notes that fossil fuel energy use in standby mode and off mode is 
already included in the AFUE metric, and DOE anticipates that electric 
standby and off mode energy use is small in comparison to fossil fuel 
energy use. DOE seeks comment on its proposal not to amend its 
standards for DHE to include electric standby and off mode energy use. 
This is identified as Issue 5 in section V.C.

IV. Procedural Issues and Regulatory Review

A. Review Under Executive Orders 12866 and 13563

    This proposed determination is not subject to review under 
Executive Order (E.O.) 12866, ``Regulatory Planning and Review.'' 58 FR 
51735 (October 4, 1993).

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (IRFA) for 
any rule that by law must be proposed for public comment, unless the 
agency certifies that the rule, if promulgated, will not have a 
significant economic impact on a substantial number of small entities. 
As required by Executive Order 13272, ``Proper Consideration of Small 
Entities in Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE 
published procedures and policies on February 19, 2003, to ensure that 
the potential impacts of its rules on small entities are properly 
considered during the rulemaking process. 68 FR 7990. DOE has made its 
procedures and policies available on the Office of the General 
Counsel's Web site (http://energy.gov/gc/office-general-counsel).
    DOE reviewed this proposed determination under the provisions of 
the Regulatory Flexibility Act and the policies and procedures 
published on February 19, 2003. In this proposed determination, DOE 
finds that amended energy conservation standards for DHE would not be 
economically justified at any level above the current standard level 
because benefits of more stringent standards would not outweigh the 
burdens. If finalized, the determination would not establish amended 
energy conservation standards for DHE. On the basis of the foregoing, 
DOE certifies that the proposed determination, if adopted, would have 
no significant economic impact on a substantial number of small 
entities. Accordingly, DOE has not prepared an IRFA for this proposed 
determination. DOE will transmit this certification and supporting 
statement of factual basis to the Chief Counsel for Advocacy of the 
Small Business Administration for review under 5 U.S.C. 605(b).

C. Review Under the Paperwork Reduction Act

    This proposed determination, which proposes to determine that 
amended energy conservation standards for DHE would not be economically 
justified at any level above the current standard level because 
benefits of more stringent standards would not outweigh the burdens, 
would impose no new information or record keeping requirements. 
Accordingly, the Office of Management and Budget (OMB) clearance is not 
required under the Paperwork Reduction Act. (44 U.S.C. 3501 et seq.)

D. Review Under the National Environmental Policy Act of 1969

    In this NOPD, DOE tentatively determines that amended energy 
conservation standards for DHE would not be economically justified at 
any level above the current standard level because benefits of more 
stringent standards would not outweigh the burdens. DOE has determined 
that review under the National

[[Page 21282]]

Environmental Policy Act of 1969 (NEPA), Public Law 91-190, codified at 
42 U.S.C. 4321 et seq. is not required at this time because standards 
are not being proposed.

E. Review Under Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 10, 
1999), imposes certain requirements on Federal agencies formulating and 
implementing policies or regulations that preempt State law or that 
have Federalism implications. The Executive Order requires agencies to 
examine the constitutional and statutory authority supporting any 
action that would limit the policymaking discretion of the States and 
to carefully assess the necessity for such actions. The Executive Order 
also requires agencies to have an accountable process to ensure 
meaningful and timely input by State and local officials in the 
development of regulatory policies that have Federalism implications. 
On March 14, 2000, DOE published a statement of policy describing the 
intergovernmental consultation process it will follow in the 
development of such regulations. 65 FR 13735. As this NOPD determines 
that amended standards are not likely to be warranted for DHE, there is 
no impact on the policymaking discretion of the states. Therefore, no 
action is required by Executive Order 13132.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' imposes on Federal agencies the general duty 
to adhere to the following requirements: (1) Eliminate drafting errors 
and ambiguity; (2) write regulations to minimize litigation; (3) 
provide a clear legal standard for affected conduct rather than a 
general standard; and (4) promote simplification and burden reduction. 
61 FR 4729 (Feb. 7, 1996). Regarding the review required by section 
3(a), section 3(b) of Executive Order 12988 specifically requires that 
Executive agencies make every reasonable effort to ensure that the 
regulation: (1) Clearly specifies the preemptive effect, if any; (2) 
clearly specifies any effect on existing Federal law or regulation; (3) 
provides a clear legal standard for affected conduct while promoting 
simplification and burden reduction; (4) specifies the retroactive 
effect, if any; (5) adequately defines key terms; and (6) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General. Section 3(c) of 
Executive Order 12988 requires Executive agencies to review regulations 
in light of applicable standards in section 3(a) and section 3(b) to 
determine whether they are met or it is unreasonable to meet one or 
more of them. DOE has completed the required review and determined 
that, to the extent permitted by law, this proposed determination meets 
the relevant standards of Executive Order 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531). 
For a proposed regulatory action likely to result in a rule that may 
cause the expenditure by State, local, and Tribal governments, in the 
aggregate, or by the private sector of $100 million or more in any one 
year (adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to 
develop an effective process to permit timely input by elected officers 
of State, local, and Tribal governments on a proposed ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them. On March 18, 1997, DOE published 
a statement of policy on its process for intergovernmental consultation 
under UMRA. 62 FR 12820. DOE's policy statement is also available at 
http://energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf. This 
proposed determination contains neither an intergovernmental mandate 
nor a mandate that may result in the expenditure of $100 million or 
more in any year, so these UMRA requirements do not apply.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This proposed determination would not have any impact on the autonomy 
or integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

I. Review Under Executive Order 12630

    Pursuant to Executive Order 12630, ``Governmental Actions and 
Interference with Constitutionally Protected Property Rights,'' 53 FR 
8859 (March 15, 1988), DOE has determined that this proposed 
determination would not result in any takings that might require 
compensation under the Fifth Amendment to the U.S. Constitution.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516 note) provides for Federal agencies to review 
most disseminations of information to the public under information 
quality guidelines established by each agency pursuant to general 
guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 
(Feb. 22, 2002), and DOE's guidelines were published at 67 FR 62446 
(Oct. 7, 2002). DOE has reviewed this NOPD under the OMB and DOE 
guidelines and has concluded that it is consistent with applicable 
policies in those guidelines.

K. Review Under Executive Order 13211

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to OIRA 
at OMB, a Statement of Energy Effects for any proposed significant 
energy action. A ``significant energy action'' is defined as any action 
by an agency that promulgates or is expected to lead to promulgation of 
a final rule, and that: (1) Is a significant regulatory action under 
Executive Order 12866, or any successor order; and (2) is likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any proposed significant energy action, 
the agency must give a detailed statement of any adverse effects on 
energy supply, distribution, or use should the proposal be implemented, 
and of reasonable alternatives to the action and their expected 
benefits on energy supply, distribution, and use.
    Because the NOPD tentatively determines that amended standards for 
DHE are not warranted, it is not a significant energy action, nor has 
it been designated as such by the Administrator

[[Page 21283]]

at OIRA. Accordingly, DOE has not prepared a Statement of Energy 
Effects.

L. Review Under the Information Quality Bulletin for Peer Review

    On December 16, 2004, OMB, in consultation with the Office of 
Science and Technology Policy (OSTP), issued its Final Information 
Quality Bulletin for Peer Review (the Bulletin). 70 FR 2664 (Jan. 14, 
2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal Government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the bulletin is to enhance the quality and credibility of 
the Government's scientific information. Under the Bulletin, the energy 
conservation standards rulemaking analyses are ``influential scientific 
information,'' which the Bulletin defines as ``scientific information 
the agency reasonably can determine will have, or does have, a clear 
and substantial impact on important public policies or private sector 
decisions.'' Id. at FR 2667.
    In response to OMB's Bulletin, DOE conducted formal in-progress 
peer reviews of the energy conservation standards development process 
and analyses and has prepared a Peer Review Report pertaining to the 
energy conservation standards rulemaking analyses. Generation of this 
report involved a rigorous, formal, and documented evaluation using 
objective criteria and qualified and independent reviewers to make a 
judgment as to the technical/scientific/business merit, the actual or 
anticipated results, and the productivity and management effectiveness 
of programs and/or projects. The ``Energy Conservation Standards 
Rulemaking Peer Review Report'' dated February 2007 has been 
disseminated and is available at the following Web site: 
www1.eere.energy.gov/buildings/appliance_standards/peer_review.html.

V. Public Participation

A. Public Meeting Requests

    Interested parties may submit comments requesting that a public 
meeting discussing this NOPD be held at DOE Headquarters. DOE will 
accept such requests no later than the date provided in the DATES 
section at the beginning of this document. As with other comments 
regarding this determination, interested parties may submit requests 
using any of the methods described in the ADDRESSES section at the 
beginning of this document.

B. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule before or after the public meeting, but no later than the 
date provided in the DATES section at the beginning of this proposed 
rule. Interested parties may submit comments, data, and other 
information using any of the methods described in the ADDRESSES section 
at the beginning of this document.
    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 that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This 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)

[[Page 21284]]

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).

C. Issues on Which DOE Seeks Comment

    Although DOE welcomes comments on any aspect of this proposal, DOE 
is particularly interested in receiving comments and views of 
interested parties concerning the following issues:
    1. DOE seeks comment on its assumptions that only minor changes to 
the DHE market have occurred since the last DOE rulemaking and that 
overall shipments of DHE have continued to decrease. See section II.
    2. DOE seeks comment on its determination that adopting a 
condensing efficiency level for fan-type wall furnaces would not be 
economically justified. See section II.
    3. DOE seeks data and information pertaining to DHE shipments. See 
section II.
    4. DOE seeks comment on its proposal not to amend energy 
conservation standards for DHE because more stringent standards would 
not be economically justified. See section III.
    5. DOE seeks comment on its proposal not to amend its standards for 
DHE to include standby and off mode electrical consumption. See section 
III.

VI. Approval of the Office of the Secretary

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

List of Subjects in 10 CFR Part 430

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

    Issued in Washington, DC, on March 25, 2016.
David Friedman,
Principal Deputy Assistant Secretary, Energy Efficiency and Renewable 
Energy.
[FR Doc. 2016-08121 Filed 4-8-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                    21276

                                                    Proposed Rules                                                                                                 Federal Register
                                                                                                                                                                   Vol. 81, No. 69

                                                                                                                                                                   Monday, April 11, 2016



                                                    This section of the FEDERAL REGISTER                       2. Email: DHE2016STD0007@                           Telephone: (202) 287–1692. Email:
                                                    contains notices to the public of the proposed          ee.doe.gov. Include the docket number                  direct_heating_equipment@ee.doe.gov.
                                                    issuance of rules and regulations. The                  and/or RIN in the subject line of the                    Ms. Sarah Butler, U.S. Department of
                                                    purpose of these notices is to give interested          message. Submit electronic comments                    Energy, Office of the General Counsel,
                                                    persons an opportunity to participate in the            in WordPerfect, Microsoft Word, PDF,                   GC–33, 1000 Independence Avenue
                                                    rule making prior to the adoption of the final
                                                    rules.
                                                                                                            or ASCII file format, and avoid the use                SW., Washington, DC 20585–0121.
                                                                                                            of special characters or any form of                   Telephone: (202) 586–1777. Email:
                                                                                                            encryption.                                            Sarah.Butler@hq.doe.gov.
                                                    DEPARTMENT OF ENERGY                                       3. Postal Mail: Ms. Brenda Edwards,                   For further information on how to
                                                                                                            U.S. Department of Energy, Building                    submit a comment, review other public
                                                    10 CFR Part 430                                         Technologies Office, Mailstop EE–5B,                   comments and the docket, or participate
                                                                                                            1000 Independence Avenue SW.,                          in the public meeting, contact Ms.
                                                    [Docket Number EERE–2016–BT–STD–                        Washington, DC 20585–0121. If                          Brenda Edwards at (202) 586–2945 or by
                                                    0007]                                                   possible, please submit all items on a                 email: Brenda.Edwards@ee.doe.gov.
                                                    RIN 1904–AD65                                           compact disc (CD), in which case it is                 SUPPLEMENTARY INFORMATION:
                                                                                                            not necessary to include printed copies.
                                                    Energy Conservation Program: Energy                        4. Hand Delivery/Courier: Ms. Brenda                Table of Contents
                                                    Conservation Standards for Direct                       Edwards, U.S. Department of Energy,                    I. Summary of the Proposed Determination
                                                    Heating Equipment                                       Building Technologies Office, 950                         A. Authority
                                                                                                            L’Enfant Plaza SW., Room 6094,                            B. Background
                                                    AGENCY: Office of Energy Efficiency and                 Washington, DC 20024. Telephone:                          1. Current Standards
                                                    Renewable Energy, Department of                         (202) 586–2945. If possible, please                       2. History of Rulemakings for Direct
                                                    Energy.                                                 submit all items on a CD, in which case                      Heating Equipment
                                                    ACTION: Notice of proposed                              it is not necessary to include printed                 II. Rationale
                                                    determination (NOPD).                                   copies.                                                III. Proposed Determination
                                                                                                                                                                   IV. Procedural Issues and Regulatory Review
                                                                                                               No telefacsimilies (faxes) will be
                                                    SUMMARY:    The Energy Policy and                                                                                 A. Review Under Executive Orders 12866
                                                                                                            accepted. For detailed instructions on                       and 13563
                                                    Conservation Act of 1975 (EPCA), as                     submitting comments and additional                        B. Review Under the Regulatory Flexibility
                                                    amended, prescribes energy                              information on the rulemaking process,                       Act
                                                    conservation standards for various                      see section V of this document (‘‘Public                  C. Review Under the Paperwork Reduction
                                                    consumer products and certain                           Participation’’).                                            Act
                                                    commercial and industrial equipment,                       Docket: The docket, which includes                     D. Review Under the National
                                                    including direct heating equipment                      Federal Register notices, comments,                          Environmental Policy Act of 1969
                                                    (DHE). EPCA also requires the U.S.                      and other supporting documents/                           E. Review Under Executive Order 13132
                                                    Department of Energy (DOE) to                           materials, is available for review at                     F. Review Under Executive Order 12988
                                                    periodically determine whether more-                                                                              G. Review Under the Unfunded Mandates
                                                                                                            www.regulations.gov. All documents in
                                                                                                                                                                         Reform Act of 1995
                                                    stringent, amended standards would be                   the docket are listed in the                              H. Review Under the Treasury and General
                                                    technologically feasible and                            www.regulations.gov index. However,                          Government Appropriations Act, 1999
                                                    economically justified, and would save                  some documents listed in the index may                    I. Review Under Executive Order 12630
                                                    a significant amount of energy. In this                 not be publicly available, such as those                  J. Review Under the Treasury and General
                                                    document, DOE has tentatively                           containing information that is exempt                        Government Appropriations Act, 2001
                                                    determined that more stringent DHE                      from public disclosure.                                   K. Review Under Executive Order 13211
                                                    standards would not be economically                        A link to the docket Web page can be                   L. Review Under the Information Quality
                                                    justified, and, thus, proposes not to                   found at: http://www.regulations.gov/                        Bulletin for Peer Review
                                                    amend its energy conservation                           #!docketDetail;D=EERE-2016-BT-STD-                     V. Public Participation
                                                                                                                                                                      A. Public Meeting Requests
                                                    standards for DHE.                                      0007. This Web page contains a link to                    B. Submission of Comments
                                                    DATES: DOE will accept comments, data,                  the docket for this notice on the                         C. Issues on Which DOE Seeks Comment
                                                    and information regarding this NOPD no                  www.regulations.gov site. The                          VI. Approval of the Office of the Secretary
                                                    later than June 10, 2016. See section V,                www.regulations.gov Web page contains
                                                    ‘‘Public Participation,’’ for details.                  simple instructions on how to access all               I. Summary of the Proposed
                                                                                                            documents, including public comments,                  Determination
                                                    ADDRESSES: Any comments submitted
                                                    must identify the NOPD on Energy                        in the docket. See section V, ‘‘Public                    DOE proposes to determine that
                                                    Conservation Standards for Direct                       Participation,’’ for further information               energy conservation standards should
                                                    Heating Equipment, and provide docket                   on how to submit comments through                      not be amended for direct heating
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    number EERE–2016–BT–STD–0007                            www.regulations.gov.                                   equipment (DHE). DOE has tentatively
                                                    and/or regulatory information number                    FOR FURTHER INFORMATION CONTACT: John                  determined that the DHE market
                                                    (RIN) 1904–AD65. Comments may be                        Cymbalsky, U.S. Department of Energy,                  characteristics are largely similar to
                                                    submitted using any of the following                    Office of Energy Efficiency and                        those analyzed in the previous
                                                    methods:                                                Renewable Energy, Building                             rulemaking and the technologies
                                                       1. Federal eRulemaking Portal:                       Technologies Office, EE–5B, 1000                       available for improving DHE energy
                                                    www.regulations.gov. Follow the                         Independence Avenue SW.,                               efficiency have not advanced
                                                    instructions for submitting comments.                   Washington, DC 20585–0121.                             significantly since the previous


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                                                                             Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules                                                   21277

                                                    rulemaking analyses 1 (concluding with                  energy. (42 U.S.C. 6295(o)(3)(B))                      from prescribing any amended standard
                                                    the publication of a final rule on April                Moreover, DOE may not prescribe a                      that either increases the maximum
                                                    16, 2010, hereafter ‘‘April 2010 Final                  standard: (1) For certain products,                    allowable energy use or decreases the
                                                    Rule’’). 75 FR 20112. In addition, DOE                  including DHE, if no test procedure has                minimum required energy efficiency of
                                                    believes the conclusions reached in the                 been established for the product,4 or (2)              a covered product. (42 U.S.C.
                                                    April 2010 Final Rule regarding the                     if DOE determines by rule that the                     6295(o)(1)) Also, the Secretary may not
                                                    benefits and burdens of more stringent                  standard is not technologically feasible               prescribe an amended or new standard
                                                    standards for DHE are still relevant to                 or economically justified. (42 U.S.C.                  if interested persons have established by
                                                    the DHE market today. Therefore, DOE                    6295(o)(3)(A)(B)) In deciding whether a                a preponderance of the evidence that
                                                    has tentatively determined that                         proposed standard is economically                      the standard is likely to result in the
                                                    amended energy conservation standards                   justified, DOE must determine whether                  unavailability in the United States in
                                                    would not be economically justified.                    the benefits of the standard exceed its                any covered product type (or class) of
                                                    A. Authority                                            burdens. (42 U.S.C. 6295(o)(2)(B)(i))                  performance characteristics (including
                                                                                                            DOE must make this determination after                 reliability), features, sizes, capacities,
                                                      Title III, Part B 2 of the Energy Policy              considering, to the greatest extent                    and volumes that are substantially the
                                                    and Conservation Act of 1975 (‘‘EPCA’’                  practicable, the following seven                       same as those generally available in the
                                                    or ‘‘the Act’’), Public Law 94–163                      statutory factors:                                     United States. (42 U.S.C. 6295(o)(4))
                                                    (codified at 42 U.S.C. 6291–6309)                          (1) The economic impact of the
                                                    established the Energy Conservation                                                                               Federal energy conservation
                                                                                                            standard on manufacturers and                          requirements generally supersede State
                                                    Program for Consumer Products Other                     consumers of the products subject to the
                                                    Than Automobiles.3 This program                                                                                laws or regulations concerning energy
                                                                                                            standard;                                              conservation testing, labeling, and
                                                    covers most major household appliances                     (2) The savings in operating costs
                                                    (collectively referred to as ‘‘covered                                                                         standards. (42 U.S.C. 6297(a)–(c)) DOE
                                                                                                            throughout the estimated average life of               may, however, grant waivers of Federal
                                                    products’’) including the DHE, which                    the covered products in the type (or
                                                    are the subject of this document. (42                                                                          preemption for particular State laws or
                                                                                                            class) compared to any increase in the                 regulations, in accordance with the
                                                    U.S.C. 6292 (a)(9)) EPCA prescribed                     price, initial charges, or maintenance
                                                    initial energy conservation standards for                                                                      procedures and other provisions set
                                                                                                            expenses for the covered products that                 forth under 42 U.S.C. 6297(d).
                                                    DHE and directs DOE to conduct future                   are likely to result from the standard;
                                                    rulemakings to determine whether to                        (3) The total projected amount of                      Finally, any final rule for new or
                                                    amend these standards. (42 U.S.C.                       energy (or as applicable, water) savings               amended energy conservation standards
                                                    6295(e)(3) and (4)) DOE is issuing this                 likely to result directly from the                     promulgated after July 1, 2010, is
                                                    notice pursuant to that requirement, in                 standard;                                              required to address standby mode and
                                                    addition to the requirement under 42                       (4) Any lessening of the utility or the             off mode energy use. (42 U.S.C.
                                                    U.S.C. 6295(m), which states that DOE                   performance of the covered products                    6295(gg)(3)) Specifically, when DOE
                                                    must periodically review its already                    likely to result from the standard;                    adopts a standard for a covered product
                                                    established energy conservation                            (5) The impact of any lessening of                  after that date, it must, if justified by the
                                                    standards for a covered product not later               competition, as determined in writing                  criteria for adoption of standards under
                                                    than six years after issuance of any final              by the Attorney General, that is likely to             EPCA (42 U.S.C. 6295(o)), incorporate
                                                    rule establishing or amending such                      result from the standard;                              standby mode and off mode energy use
                                                    standards. As a result of such review,                     (6) The need for national energy and                into a single standard, or, if that is not
                                                    DOE must either publish a notice of                     water conservation; and                                feasible, adopt a separate standard for
                                                    proposed rulemaking to amend the                           (7) Other factors the Secretary of                  such energy use for that product. (42
                                                    standards or publish a notice of                        Energy (Secretary) considers relevant.                 U.S.C. 6295(gg)(3)(A)–(B)) DOE’s current
                                                    determination indicating that the                       (42 U.S.C. 6295(o)(2)(B)(i)(I)–(VII))                  test procedures for vented home heating
                                                    existing standards do not need to be                       Further, EPCA, as codified,                         equipment address standby mode fossil-
                                                    amended. (42 U.S.C. 6295(m)(1)(A) and                   establishes a rebuttable presumption                   fuel energy use.
                                                    (B))                                                    that a standard is economically justified
                                                      Pursuant to the requirements set forth                                                                       B. Background
                                                                                                            if the Secretary finds that the additional
                                                    under EPCA, any new or amended                          cost to the consumer of purchasing a                   1. Current Standards
                                                    standard for a covered product must be                  product complying with an energy
                                                    designed to achieve the maximum                                                                                  In the April 2010 Final Rule, DOE
                                                                                                            conservation standard level will be less               prescribed the current energy
                                                    improvement in energy efficiency that is                than three times the value of the energy
                                                    technologically feasible and                                                                                   conservation standards for DHE
                                                                                                            savings during the first year that the                 manufactured on and after April 16,
                                                    economically justified. (42 U.S.C.                      consumer will receive as a result of the
                                                    6295(o)(2)(A)) Furthermore, DOE may                                                                            2013. 75 FR 20112. These standards are
                                                                                                            standard, as calculated under the                      set forth in DOE’s regulations at 10 CFR
                                                    not adopt any standard that would not                   applicable test procedure. (42 U.S.C.
                                                    result in the significant conservation of                                                                      430.32(i)(2) and are shown in Table I–
                                                                                                            6295(o)(2)(B)(iii))                                    1.5
                                                      1 With the exception of condensing technology for
                                                                                                               EPCA, as codified, also contains what
                                                    fan-type wall furnaces, discussed in section II.        is known as an ‘‘anti-backsliding’’                      5 DOE notes that DHE is defined at 10 CFR 430.2
                                                      2 For editorial reasons, upon codification in the     provision, which prevents the Secretary                as vented home heating equipment and unvented
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    U.S. Code, Part B was redesignated as Part A.                                                                  home heating equipment; however, the existing
                                                      3 All references to EPCA in this document refer         4 The DOE test procedures for DHE appear at title    energy conservation standards apply only to
                                                    to the statute as amended through the Energy            10 of the Code of Federal Regulations (CFR) part       product classes of vented home heating equipment.
                                                    Efficiency Improvement Act, Public Law 114–11           430, subpart B, appendix O and 10 CFR 430,             There are no existing energy conservation standards
                                                    (April 30, 2015).                                       subpart B, appendix G (Appendix G).                    for unvented home heating equipment.




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                                                    21278                           Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules

                                                                            TABLE I–1—FEDERAL ENERGY CONSERVATION STANDARDS FOR DHE (10 CFR 430.32(i)(2))
                                                                                                                                                                                                                                                      Annual fuel
                                                                                                                                                                                                                                                       utilization
                                                                                                                                        Product class                                                                                                 efficiency,
                                                                                                                                                                                                                                                     April 16, 2013
                                                                                                                                                                                                                                                       (percent)

                                                    Gas   wall fan type up to 42,000 Btu/h ..................................................................................................................................................                    75
                                                    Gas   wall fan type over 42,000 Btu/h ...................................................................................................................................................                    76
                                                    Gas   wall gravity type up to 27,000 Btu/h ............................................................................................................................................                      65
                                                    Gas   wall gravity type over 27,000 Btu/h up to 46,000 Btu/h ..............................................................................................................                                  66
                                                    Gas   wall gravity type over 46,000 Btu/h .............................................................................................................................................                      67
                                                    Gas   floor up to 37,000 Btu/h ...............................................................................................................................................................               57
                                                    Gas   floor over 37,000 Btu/h ................................................................................................................................................................               58
                                                    Gas   room up to 20,000 Btu/h ..............................................................................................................................................................                 61
                                                    Gas   room over 20,000 Btu/h up to 27,000 Btu/h ................................................................................................................................                             66
                                                    Gas   room over 27,000 Btu/h up to 46,000 Btu/h ................................................................................................................................                             67
                                                    Gas   room over 46,000 Btu/h ...............................................................................................................................................................                 68




                                                    2. History of Rulemakings for Direct                                    rulemaking included both DHE and pool                                    result in as much as a $6.0 million
                                                    Heating Equipment                                                       heaters, going forward DOE has elected                                   (33.54%) decrease in the Industry Net
                                                       EPCA, as codified, initially set forth                               to conduct separate rulemakings for                                      Present Value, or INPV, with total
                                                    energy conservation standards for                                       each of these products. This rulemaking                                  conversion costs (costs for redesigning
                                                    certain DHE product classes that are the                                pertains solely to the energy                                            and retooling product lines not already
                                                    subject of this document and directed                                   conservation standards for DHE. As                                       meeting the amended standards)
                                                    DOE to conduct two subsequent                                           such, a new docket has been created                                      potentially amounting to $6.39 million.
                                                    rulemakings to determine whether the                                    that pertains solely to this DHE                                         74 FR 65852, 65942 (December 11,
                                                    existing standards should be amended.                                   rulemaking, which has been populated                                     2009).
                                                    (42 U.S.C. 6295(e)(3) and (4)) The first                                with relevant comments from the March                                       In response to the December 2009
                                                    of these two rulemakings included both                                  2015 RFI (the docket is available                                        NOPR several commenters
                                                    DHE and pool heaters and concluded                                      http://www.regulations.gov/                                              recommended that DOE not adopt
                                                    with the April 2010 Final Rule (codified                                #!docketDetail;D=EERE-2016-BT-STD-                                       amended standards for DHE due to
                                                    at 10 CFR 430.32(i) and (k)). 75 FR                                     0007).                                                                   significant impact on manufacturers and
                                                    20112. With respect to DHE, the first                                   April 2010 Final Rule                                                    low shipments of DHE (and therefore
                                                    rulemaking amended the energy                                                                                                                    low energy savings potential).
                                                    conservation standards for vented home                                     In the most recent DOE rulemaking                                     Commenters indicated that the
                                                    heating equipment, a subset of DHE, and                                 for DHE energy conservation standards,                                   manufacturer investments needed to
                                                    consolidated some of the product                                        DOE initially proposed standards for                                     comply with standards set at TSL 3
                                                    classes from the previous standards                                     vented home heating products in a                                        would not be justified due to the large
                                                    established by EPCA. Compliance with                                    NOPR published on December 11, 2009                                      investment needed to upgrade product
                                                    the amended standards was required                                      (‘‘December 2009 NOPR’’) that                                            lines and the declining shipments
                                                    beginning on April 16, 2013. Id. DOE                                    represented a six AFUE percentage                                        through which DHE manufacturers
                                                    did not issue standards for unvented                                    point (weighted-average across all                                       would need to recoup their
                                                    home heating equipment, a subset of                                     product classes) increase over the                                       expenditures. Various comments also
                                                    DHE, finding that such standards would                                  standards initially established by EPCA                                  suggested that product offerings would
                                                    produce insignificant energy savings. 75                                and codified at 42 U.S.C. 6295(e)(3). 74                                 be reduced or manufacturers would
                                                    FR 20112, 20130.                                                        FR 65852 (December 11, 2009). The                                        leave the market entirely if TSL 3 were
                                                       This rulemaking satisfies the statutory                              December 2009 NOPR proposed                                              selected. The U.S. Department of Justice
                                                    requirement under EPCA to (1) conduct                                   standard level, TSL 3, represented an                                    commented that there was significant
                                                    a second round of review of the DHE                                     improvement in efficiency from the                                       risk of reducing competition resulting
                                                    standards (42 U.S.C. 6295(e)(4)(B)) and                                 previous baseline level of 74-percent                                    from businesses leaving the market and
                                                    (2) publish either a notice of                                          AFUE to 77-percent for gas wall fan                                      requested that DOE consider the
                                                    determination that standards for DHE do                                 DHE, an improvement in efficiency from                                   possible impact on competition in
                                                    not need to be amended or a notice of                                   the previous baseline level of 64-percent                                determining standards for the final rule.
                                                    proposed rulemaking proposing to                                        AFUE to 71-percent AFUE for gas wall                                     DOE agreed that TSL 3 posed the risk of
                                                    amend the DHE energy conservation                                       gravity units, an improvement in                                         reduced product lines or manufacturers
                                                    standards (42 U.S.C. 6295(m)(1)). To                                    efficiency from the previous baseline                                    exiting the market. Commenters also
                                                    initiate this rulemaking, DOE issued a                                  level of 57-percent AFUE to 58-percent                                   expressed concern that employment in
                                                    Request for Information (RFI) in the                                    AFUE for gas floor DHE (the max-tech                                     the DHE industry would be negatively
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                                                    Federal Register on March 26, 2015                                      level), and an improvement in efficiency                                 affected by amended energy
                                                    (hereafter ‘‘March 2015 RFI’’). 80 FR                                   from the previous baseline level of 64-                                  conservation standards. Several
                                                    15922. Through that RFI, DOE requested                                  percent AFUE to 68-percent for gas                                       manufacturers of DHE believed that the
                                                    data and information pertaining to its                                  room DHE at the representative input                                     proposed standard would harm
                                                    planned technical and economic                                          rating ranges. 74 FR 65852, 65943                                        employment due to elimination of non-
                                                    analyses for DHE and pool heaters.                                      (December 11, 2009).                                                     compliant product lines and/or
                                                    Although the March 2015 RFI and the                                        DOE’s initial analysis in the December                                insufficient return on the investment
                                                    previous energy conservation standards                                  2009 NOPR showed that TSL 3 could                                        necessary to meet new standards.


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                                                                                Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules                                                      21279

                                                       After considering these comments                         upgrade a series of product lines                        Heating, and Refrigeration Institute
                                                    responding to the proposed TSL 3 in the                     intended primarily for replacement                       (AHRI) product directory.6 DOE
                                                    December 2009 NOPR, DOE ultimately                          applications. Because the DHE market is                  contractors also analyzed current
                                                    rejected TSL 3 and all higher TSLs in                       a low-volume market, manufacturers                       products through product teardowns
                                                    the final rule, on the grounds that                         would have to spread their product                       and engaged in manufacturer interviews
                                                    capital conversion costs would lead to                      development costs and capital                            to obtain further information in support
                                                    a large reduction in INPV and that small                    investments over relatively few                          of its analysis. Through this analysis,
                                                    businesses would be disproportionately                      shipments. At levels above TSL 2, DOE                    DOE has determined that few changes to
                                                    impacted. In the analysis for the April                     determined that there would be limited                   the industry and product offerings have
                                                    2010 Final Rule, DOE updated its                            opportunity for manufacturers to recoup                  occurred since the April 2010 Final
                                                    estimate for the maximum decrease in                        these costs, leading to significant                      Rule. As such, DOE has tentatively
                                                    INPV to 42.4% (or $7.0 million) from                        declines in industry profitability.                      determined that the conclusions
                                                    the 33.54% maximum decrease                                 Furthermore, DOE found that small                        presented in the April 2010 Final Rule
                                                    estimated in the December 2009 NOPR.                        business manufacturers could be                          are still valid. Furthermore, in response
                                                    75 FR 20112, 20218–20219 (April 16,                         disproportionately disadvantaged by a                    to the March 2015 RFI, DOE received
                                                    2010). DOE also notes that the life-cycle                   more stringent standard based on a                       seven comment submissions. Only one
                                                    cost (LCC) and payback period analyses                      combination of low shipment volumes                      submission, submitted by AHRI,7
                                                    (PBP) for TSL 4 and higher suggested                        and a high ratio of anticipated                          contained comments pertaining to
                                                    that benefits to consumers were                             investment costs to annual earnings. As                  DHE.8 (Docket EERE–2016–BT–STD–
                                                    outweighed by initial costs. 75 FR                          a result, DOE concluded that TSLs                        0007: AHRI, No. 1 at p. 5–8) 9 The
                                                    20112, 20215–20218 (April 16, 2010).                        higher than TSL 2 would likely induce                    following discussion addresses the
                                                       In the previous DHE rulemaking, DOE                      small business manufacturers to reduce                   status of the current DHE market as well
                                                    found that the DHE industry had                             their product offerings or to exit the                   as issues raised in the comments
                                                    undergone significant consolidation,                        market entirely. 75 FR 20112, 20217–                     submitted by AHRI and during
                                                    with three manufacturers, including two                     20219 (April 16, 2010). DOE, therefore,                  manufacturer interviews.
                                                    small businesses, controlling the vast                      adopted standards at TSL 2 for vented                      As part of the analysis for this
                                                    majority of the market. DOE determined                      home heating equipment. Compliance                       proposed determination, DOE reviewed
                                                    that a steady decline in shipments drove                    with the adopted standards (codified at                  the products offered on the market by
                                                    industry consolidation and found that                       10 CFR 430.32(i)(2)) was required for all                analyzing the DOE CCMS database 10
                                                    the remaining DHE manufacturers                             vented home heating equipment                            and AHRI product directory 11 for DHE.
                                                    maintained a variety of legacy brands                       manufactured on or after April 16, 2013.                 DOE found that the number of models
                                                    and product lines in order to meet the                                                                               offered in each of the DHE product
                                                                                                                II. Rationale
                                                    needs of consumers replacing their                                                                                   classes has decreased overall since the
                                                    existing DHE products, rather than                            For this rulemaking DOE conducted a                    previous rulemaking. Table II–1
                                                    product lines for new construction. DOE                     review of the current DHE market,                        presents the number of models for each
                                                    determined in the April 2010 Final Rule                     including product literature and                         product class in the current DOE CCMS
                                                    that a standard above TSL 2 would have                      product listings in the DOE Compliance                   database along with the number of
                                                    required manufacturers to undertake                         Certification Management System                          models identified for the April 2010
                                                    significant investments in order to                         (CCMS) database and Air-Conditioning,                    Final Rule.

                                                                   TABLE II–1—DHE MODEL COUNTS BY PRODUCT CLASS FOR CURRENT AND PREVIOUS RULEMAKINGS
                                                                                               Product class                                                    2015 model count *        2010 rulemaking model count

                                                    Gas   floor type with an input capacity over 37,000 Btu/h ..............................................                         15                                 15
                                                    Gas   floor type with an input capacity up to 37,000 Btu/h
                                                    Gas   room type with an input capacity over 20,000 Btu/h up to 27,000 Btu/h ..............                                       28                               ** 29
                                                    Gas   room type with an input capacity over 27,000 Btu/h up to 46,000 Btu/h
                                                    Gas   room type with an input capacity over 46,000 Btu/h
                                                    Gas   room type with an input capacity up to 20,000 Btu/h
                                                    Gas   wall fan type with an input capacity over 42,000 Btu/h .........................................                           68                                 82
                                                    Gas   wall fan type with an input capacity up to 42,000 Btu/h
                                                    Gas   wall gravity type with an input capacity over 27,000 Btu/h up to 46,000 Btu/h ....                                         56                                 52
                                                    Gas   wall gravity type with an input capacity over 46,000 Btu/h
                                                    Gas   wall gravity type with an input capacity up to 27,000 Btu/h
                                                     * Using DOE CCMS database.
                                                     ** The total room heater model count for the 2010 Final Rule was 123 models, however 94 of those models would no longer be considered
                                                    DHE and, as such, have been excluded from this count.

                                                      6 The AHRI directory for DHE can be found at:             proposing not to amend its standards for DHE, and        standards for DHE (Docket No. EERE–2016–BT–
                                                    https://www.ahridirectory.org/ahridirectory/pages/
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                                                                                therefore is not conducting the analyses to which        STD–0007), which is maintained at
                                                    dht/defaultSearch.aspx. The DOE CCMS database               these comments apply. If, in response to feedback        www.regulations.gov. This notation indicates that
                                                    can be found at: http://www.regulations.doe.gov/            regarding this document, DOE elects to conduct a         the statement preceding the reference was made by
                                                    certification-data/.                                        rulemaking that would amend DHE standards, DOE           AHRI, is from document number 1 in the docket,
                                                      7 AHRI’s comment submission in response to the
                                                                                                                will respond to these comments at that time.             and appears at pages 5–8 of that document.
                                                    March 2015 RFI contained comments pertaining to               8 The remaining six submissions contained                10 This database can be found at: http://
                                                    DOE’s standards NOPR rulemaking analyses,
                                                    including the shipments analysis, life cycle cost           comments only relevant to pool heaters.                  www.regulations.doe.gov/certification-data/.
                                                                                                                  9 A notation in this form provides a reference for       11 This database can be found at: https://
                                                    (LCC) and payback period (PBP) analyses, and
                                                    energy use analysis. DOE is not responding to these         information that is in the docket of DOE’s               www.ahridirectory.org/ahridirectory/pages/
                                                    particular comments at this time because DOE is             rulemaking to develop energy conservation                home.aspx.



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                                                    21280                    Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules

                                                       DOE also examined available                             Furthermore, the costs of these                     cost. As anticipated, the manufacturer
                                                    technologies used to improve the                        technology options are anticipated to be               production cost for a condensing unit
                                                    efficiency of DHE. In the previous DHE                  similar or higher than in the previous                 with 91% AFUE is the highest among
                                                    rulemaking, DOE considered the                          rulemaking analysis. As shipments have                 fan-type wall furnaces, and represents a
                                                    following technology options in the                     continued to decrease, DOE anticipates                 23% incremental cost increase over a
                                                    engineering analysis for improving the                  that the purchasing power of DHE                       unit at 80% AFUE.13 Manufacturer
                                                    efficiency of vented home heating                       manufacturers may have decreased                       feedback indicated that shipments of
                                                    equipment.                                              because purchasing quantities for                      these units are so low as to be
                                                    • Improved heat exchanger                               materials or parts (e.g. blower motors,                negligible, as consumers are not willing
                                                    • Two-speed blower (fan-type wall                       electronic ignition components) have                   to pay the high initial cost for such
                                                       furnaces)                                            likely decreased. Therefore the                        products. Furthermore, only one
                                                    • Induced draft                                         incremental costs of manufacturing DHE                 manufacturer currently makes a
                                                    • Electronic ignition                                   units at higher efficiency levels may be               condensing fan-type wall furnace and
                                                                                                            similar or higher as compared to the                   others would need to make substantial
                                                    74 FR 65852, 65887 (December 11,                        previous rulemaking.                                   investments in order to produce these
                                                    2009).                                                     DOE seeks comment on its conclusion                 units on a scale large enough to support
                                                       AHRI commented in response to the                    that the DHE market and technology                     a Federal minimum standard. Therefore,
                                                    March 2015 RFI that the current energy                  options (except for condensing                         DOE has tentatively concluded that this
                                                    conservation standards are close to if                  technology, discussed below) are similar               technology option, which was not
                                                    not at the maximum technology level for                 to the previous rulemaking. This is                    considered in the analysis for the April
                                                    most product classes of DHE. (Docket                    identified as Issue 1 in section V.C.                  2010 Final Rule, would not be
                                                    EERE–2016–BT–STD–0007: AHRI, No. 1                         In addition to these technology                     economically justified today when
                                                    at p. 4) During confidential                            options, DOE notes that a condensing                   analyzed for the Nation as a whole. DOE
                                                    manufacturer interviews, DOE received                   fan-type wall furnace has become                       believes that severe manufacturer
                                                    similar feedback regarding the small                    available since the last rulemaking. Two               impacts would be expected if an energy
                                                    potential for improving efficiency over                 input capacities are available: 17,500                 conservation standard were adopted at
                                                    current standards for most product                      Btu/h with a 90.2% AFUE rating, and                    this level. DOE seeks feedback on its
                                                    classes. Manufacturers suggested that                   35,000 Btu/h with a 91.8% AFUE rating.                 determination that adopting a
                                                    the efficiency of these products is at or               DOE considers this basic model the                     condensing efficiency level for fan-type
                                                    near the maximum attainable by                          maximum technology (‘‘max-tech’’)                      wall furnaces would not be
                                                    improving the heat exchanger.                           option for fan-type wall furnaces. By                  economically justified. This is identified
                                                    Manufacturers indicated that because                    statute, DOE must set amended                          in Issue 2 in section V.C.
                                                    DHE are primarily sold as replacement                   standards that result in the maximum                      Since the April 2010 Final Rule, the
                                                    units they are constrained by the                       improvement in efficiency that is                      DHE industry has seen further
                                                    footprint of the DHE unit which they are                technologically feasible (42 U.S.C.                    consolidation, with the total number of
                                                    replacing, and so the opportunity to                    6295(p)(1)) and economically justified.                manufacturers declining from six to
                                                    increase the heat exchanger size (and                   (42 U.S.C. 6295(o)(2)(A)) DOE generally                four. Furthermore, according to
                                                    therefore size of the unit) is limited.                 considers technologies available in the                manufacturers,14 shipments have
                                                    They indicated that blowers and                         market or in prototype products in its
                                                                                                                                                                   further decreased since the April 2010
                                                    induced draft technologies requiring                    list of technologies for improving
                                                                                                                                                                   Final Rule, and therefore it would be
                                                    electricity are not currently found on                  efficiency. Therefore, DOE considers
                                                                                                                                                                   more difficult for manufacturers to
                                                    the market or in any prototypes for                     91% AFUE the max-tech efficiency level
                                                                                                                                                                   recover capital expenditures resulting
                                                    gravity-type floor furnaces, room                       for fan-type wall furnaces for this
                                                                                                                                                                   from increased standards. DOE
                                                    heaters, and floor furnaces because                     rulemaking. DOE notes that the max-
                                                                                                                                                                   acknowledges that DHE units continue
                                                    these products are designed to function                 tech efficiency level for fan-type wall
                                                                                                                                                                   to be produced primarily as
                                                    entirely without electricity. Moreover,                 furnaces in the April 2010 Final Rule
                                                                                                                                                                   replacements and that the market is
                                                    they suggested that because these units                 was 80% AFUE.
                                                                                                                                                                   small. DOE expects that shipments will
                                                    are primarily sold as replacement units,                   With respect to the condensing max-
                                                                                                            tech efficiency level for fan-type wall                continue to decrease and amended
                                                    new designs or prototypes are generally                                                                        standards would likely accelerate the
                                                                                                            furnaces, DOE received feedback during
                                                    not being pursued. DOE notes that the                                                                          trend of declining shipments. Moreover,
                                                                                                            manufacturer interviews regarding the
                                                    same technology options were                                                                                   DOE anticipates small business impacts
                                                                                                            manufacturer production cost for the
                                                    considered as part of the previous DHE                                                                         may be significant, as two of the four
                                                                                                            unit, as well as information regarding
                                                    rulemaking analysis, and agrees that the                                                                       remaining manufacturers subject to DHE
                                                                                                            shipments, which indicated that
                                                    technology options available for DHE                                                                           standards are small businesses. DOE
                                                                                                            condensing models are significantly
                                                    likely have limited potential for                                                                              believes that its conclusions regarding
                                                                                                            more expensive to manufacture than
                                                    achieving energy savings.12                                                                                    small businesses from the April 2010
                                                                                                            non-condensing models and that
                                                                                                            shipments are currently negligible                     Final Rule (i.e., that small businesses
                                                      12 DOE notes that for room heaters with input
                                                                                                            compared to overall DHE shipments.                     would be likely to reduce product
                                                    capacity up to 20,000 Btu/h, the maximum AFUE
                                                                                                                                                                   offerings or leave the DHE market
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    available on the market increased from 59% in 2009      DOE conducted a teardown analysis
                                                    (only one unit at this input capacity was available     (‘‘reverse engineering’’) of the                         13 Manufacturer production costs assumes
                                                    on the market at that time) to 71% in 2015. DOE
                                                                                                            condensing fan-type wall furnace to                    production volumes in the case that 91% AFUE is
                                                    anticipates that this due to heat exchanger
                                                    improvements only because these units do not use        confirm the manufacturer production                    the energy conservation standard for this product
                                                    electricity. Due to the small input capacity, DOE                                                              class.
                                                    does not believe that this increase in AFUE (based      capacity) is representative of or feasible for other     14 Information obtained during confidential

                                                    on heat exchanger improvements relative to input        room heater product classes.                           manufacturer interviews.




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                                                                             Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules                                            21281

                                                    entirely if the standard was set above                  would experience disproportionate                      substantial number of small entities. As
                                                    the level adopted in that rulemaking)                   impacts that could lead them to                        required by Executive Order 13272,
                                                    are still valid concerns. In addition,                  discontinue product lines or exit the                  ‘‘Proper Consideration of Small Entities
                                                    DOE continues to believe that an energy                 market altogether. DOE believes that the               in Agency Rulemaking,’’ 67 FR 53461
                                                    conservation standard for unvented                      market and the manufacturers’                          (August 16, 2002), DOE published
                                                    home heating equipment would                            circumstances are similar to those found               procedures and policies on February 19,
                                                    produce negligible energy savings, as                   when DOE last evaluated amended                        2003, to ensure that the potential
                                                    DOE concluded in the April 2010 Final                   energy conservation standards for DHE                  impacts of its rules on small entities are
                                                    Rule.                                                   for the April 2010 Final Rule. As such,                properly considered during the
                                                      Shipments of DHE have continued to                    DOE believes that amended energy                       rulemaking process. 68 FR 7990. DOE
                                                    decrease since the last DHE energy                      conservation standards for DHE would                   has made its procedures and policies
                                                    conservation standards rulemaking. Low                  not be economically justified at any                   available on the Office of the General
                                                    and decreasing shipments were cited by                  level above the current standard level                 Counsel’s Web site (http://energy.gov/
                                                    several commenters in response to the                   because benefits of more stringent                     gc/office-general-counsel).
                                                    December 2009 NOPR as a reason that                     standards would not outweigh the                          DOE reviewed this proposed
                                                    manufacturers would be unlikely to                      burdens. Therefore, DOE has tentatively                determination under the provisions of
                                                    recoup investments after redeveloping                   determined not to amend the DHE                        the Regulatory Flexibility Act and the
                                                    product lines to meet more stringent                    energy conservation standards. DOE                     policies and procedures published on
                                                    standards. In the shipments analysis                    seeks comment on its tentative                         February 19, 2003. In this proposed
                                                    published in the April 2010 Final Rule,                 determination not to amend its energy                  determination, DOE finds that amended
                                                    DOE forecasted DHE shipments would                      conservation standards for DHE and this                energy conservation standards for DHE
                                                    decrease 30% over the analysis period                   is identified as Issue 4 in section V.C.               would not be economically justified at
                                                    (30 years) from the 2005 level (see                        As discussed in section I.A, EPCA                   any level above the current standard
                                                    Chapter 9 of the TSD for the April 2010                 requires DOE to incorporate standby                    level because benefits of more stringent
                                                    Final Rule 15). This analysis predicted                 mode and off mode energy use into a                    standards would not outweigh the
                                                    total DHE shipments of approximately                    single amended or new standard (if                     burdens. If finalized, the determination
                                                    150,000 units in 2014. Based on                         feasible) or prescribe a separate standard             would not establish amended energy
                                                    feedback obtained during confidential                   for standby mode and off mode energy                   conservation standards for DHE. On the
                                                    manufacturer interviews in 2015, DOE                    consumption in any final rule                          basis of the foregoing, DOE certifies that
                                                    believes actual shipments in 2014 were                  establishing or revising a standard for a              the proposed determination, if adopted,
                                                    closer to 120,000. DOE notes that low                   covered product, adopted after July 1,                 would have no significant economic
                                                    and decreasing shipment volume is                       2010. (42 U.S.C. 6295(gg)(3)(A)–(B))                   impact on a substantial number of small
                                                    primarily due to these products being                   Because DOE does not propose to                        entities. Accordingly, DOE has not
                                                    sold predominantly as replacements.                     amend standards for DHE in this                        prepared an IRFA for this proposed
                                                    AHRI commented in response to the                       document, DOE is not required to                       determination. DOE will transmit this
                                                    March 2015 RFI that the DHE market is                   propose amended standards that                         certification and supporting statement
                                                    already shrinking due to DHE being a                    include standby and off mode energy                    of factual basis to the Chief Counsel for
                                                    replacement product, and that less than                 use. DOE notes that fossil fuel energy                 Advocacy of the Small Business
                                                    5 percent of industry sales are for new                 use in standby mode and off mode is                    Administration for review under 5
                                                    construction. (Docket EERE–2016–BT–                     already included in the AFUE metric,                   U.S.C. 605(b).
                                                    STD–0007: AHRI, No. 1 at p. 4) DOE has                  and DOE anticipates that electric                      C. Review Under the Paperwork
                                                    tentatively concluded that low shipment                 standby and off mode energy use is                     Reduction Act
                                                    volumes remains a primary concern for                   small in comparison to fossil fuel energy
                                                    manufacturers in light of potentially                                                                            This proposed determination, which
                                                                                                            use. DOE seeks comment on its proposal                 proposes to determine that amended
                                                    amended energy conservation                             not to amend its standards for DHE to
                                                    standards. DOE seeks information and                                                                           energy conservation standards for DHE
                                                                                                            include electric standby and off mode                  would not be economically justified at
                                                    data related to shipments for DHE and                   energy use. This is identified as Issue 5
                                                    this identified as Issue 3 in section V.C.                                                                     any level above the current standard
                                                                                                            in section V.C.                                        level because benefits of more stringent
                                                    III. Proposed Determination                             IV. Procedural Issues and Regulatory                   standards would not outweigh the
                                                       Due to the lack of advancement in the                Review                                                 burdens, would impose no new
                                                    DHE industry since the April 2010 final                                                                        information or record keeping
                                                                                                            A. Review Under Executive Orders                       requirements. Accordingly, the Office of
                                                    rule in terms of product offerings,
                                                                                                            12866 and 13563                                        Management and Budget (OMB)
                                                    available technology options and
                                                    associated costs, and declining                           This proposed determination is not                   clearance is not required under the
                                                    shipment volumes, DOE believes that                     subject to review under Executive Order                Paperwork Reduction Act. (44 U.S.C.
                                                    amending the DHE energy conservation                    (E.O.) 12866, ‘‘Regulatory Planning and                3501 et seq.)
                                                    standards would impose a substantial                    Review.’’ 58 FR 51735 (October 4, 1993).
                                                                                                                                                                   D. Review Under the National
                                                    burden on manufacturers of DHE,                         B. Review Under the Regulatory                         Environmental Policy Act of 1969
                                                    particularly to small manufacturers.                    Flexibility Act                                          In this NOPD, DOE tentatively
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    DOE rejected higher TSLs during the
                                                    previous DHE rulemaking due to                             The Regulatory Flexibility Act (5                   determines that amended energy
                                                    significant impacts on industry                         U.S.C. 601 et seq.) requires preparation               conservation standards for DHE would
                                                    profitability, risks of accelerated                     of an initial regulatory flexibility                   not be economically justified at any
                                                    industry consolidation, and the                         analysis (IRFA) for any rule that by law               level above the current standard level
                                                    likelihood that small manufacturers                     must be proposed for public comment,                   because benefits of more stringent
                                                                                                            unless the agency certifies that the rule,             standards would not outweigh the
                                                      15 This document is available at regulations.gov,     if promulgated, will not have a                        burdens. DOE has determined that
                                                    docket number EERE–2006–STD–0129.                       significant economic impact on a                       review under the National


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                                                    21282                    Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules

                                                    Environmental Policy Act of 1969                        General. Section 3(c) of Executive Order               of the family as an institution.
                                                    (NEPA), Public Law 91–190, codified at                  12988 requires Executive agencies to                   Accordingly, DOE has concluded that it
                                                    42 U.S.C. 4321 et seq. is not required at               review regulations in light of applicable              is not necessary to prepare a Family
                                                    this time because standards are not                     standards in section 3(a) and section                  Policymaking Assessment.
                                                    being proposed.                                         3(b) to determine whether they are met
                                                                                                                                                                   I. Review Under Executive Order 12630
                                                                                                            or it is unreasonable to meet one or
                                                    E. Review Under Executive Order 13132                                                                             Pursuant to Executive Order 12630,
                                                                                                            more of them. DOE has completed the
                                                       Executive Order 13132, ‘‘Federalism,’’               required review and determined that, to                ‘‘Governmental Actions and Interference
                                                    64 FR 43255 (August 10, 1999), imposes                  the extent permitted by law, this                      with Constitutionally Protected Property
                                                    certain requirements on Federal                         proposed determination meets the                       Rights,’’ 53 FR 8859 (March 15, 1988),
                                                    agencies formulating and implementing                   relevant standards of Executive Order                  DOE has determined that this proposed
                                                    policies or regulations that preempt                    12988.                                                 determination would not result in any
                                                    State law or that have Federalism                                                                              takings that might require compensation
                                                    implications. The Executive Order                       G. Review Under the Unfunded                           under the Fifth Amendment to the U.S.
                                                    requires agencies to examine the                        Mandates Reform Act of 1995                            Constitution.
                                                    constitutional and statutory authority                     Title II of the Unfunded Mandates
                                                                                                                                                                   J. Review Under the Treasury and
                                                    supporting any action that would limit                  Reform Act of 1995 (UMRA) requires
                                                                                                                                                                   General Government Appropriations
                                                    the policymaking discretion of the                      each Federal agency to assess the effects
                                                                                                                                                                   Act, 2001
                                                    States and to carefully assess the                      of Federal regulatory actions on State,
                                                    necessity for such actions. The                         local, and Tribal governments and the                     Section 515 of the Treasury and
                                                    Executive Order also requires agencies                  private sector. Public Law 104–4, sec.                 General Government Appropriations
                                                    to have an accountable process to                       201 (codified at 2 U.S.C. 1531). For a                 Act, 2001 (44 U.S.C. 3516 note) provides
                                                    ensure meaningful and timely input by                   proposed regulatory action likely to                   for Federal agencies to review most
                                                    State and local officials in the                        result in a rule that may cause the                    disseminations of information to the
                                                    development of regulatory policies that                 expenditure by State, local, and Tribal                public under information quality
                                                    have Federalism implications. On                        governments, in the aggregate, or by the               guidelines established by each agency
                                                    March 14, 2000, DOE published a                         private sector of $100 million or more                 pursuant to general guidelines issued by
                                                    statement of policy describing the                      in any one year (adjusted annually for                 OMB. OMB’s guidelines were published
                                                    intergovernmental consultation process                  inflation), section 202 of UMRA requires               at 67 FR 8452 (Feb. 22, 2002), and
                                                    it will follow in the development of                    a Federal agency to publish a written                  DOE’s guidelines were published at 67
                                                    such regulations. 65 FR 13735. As this                  statement that estimates the resulting                 FR 62446 (Oct. 7, 2002). DOE has
                                                    NOPD determines that amended                            costs, benefits, and other effects on the              reviewed this NOPD under the OMB
                                                    standards are not likely to be warranted                national economy. (2 U.S.C. 1532(a), (b))              and DOE guidelines and has concluded
                                                    for DHE, there is no impact on the                      The UMRA also requires a Federal                       that it is consistent with applicable
                                                    policymaking discretion of the states.                  agency to develop an effective process                 policies in those guidelines.
                                                    Therefore, no action is required by                     to permit timely input by elected
                                                                                                                                                                   K. Review Under Executive Order 13211
                                                    Executive Order 13132.                                  officers of State, local, and Tribal
                                                                                                            governments on a proposed ‘‘significant                   Executive Order 13211, ‘‘Actions
                                                    F. Review Under Executive Order 12988                                                                          Concerning Regulations That
                                                                                                            intergovernmental mandate,’’ and
                                                       With respect to the review of existing               requires an agency plan for giving notice              Significantly Affect Energy Supply,
                                                    regulations and the promulgation of                     and opportunity for timely input to                    Distribution, or Use,’’ 66 FR 28355 (May
                                                    new regulations, section 3(a) of                        potentially affected small governments                 22, 2001), requires Federal agencies to
                                                    Executive Order 12988, ‘‘Civil Justice                  before establishing any requirements                   prepare and submit to OIRA at OMB, a
                                                    Reform,’’ imposes on Federal agencies                   that might significantly or uniquely                   Statement of Energy Effects for any
                                                    the general duty to adhere to the                       affect them. On March 18, 1997, DOE                    proposed significant energy action. A
                                                    following requirements: (1) Eliminate                   published a statement of policy on its                 ‘‘significant energy action’’ is defined as
                                                    drafting errors and ambiguity; (2) write                process for intergovernmental                          any action by an agency that
                                                    regulations to minimize litigation; (3)                 consultation under UMRA. 62 FR                         promulgates or is expected to lead to
                                                    provide a clear legal standard for                      12820. DOE’s policy statement is also                  promulgation of a final rule, and that:
                                                    affected conduct rather than a general                  available at http://energy.gov/sites/                  (1) Is a significant regulatory action
                                                    standard; and (4) promote simplification                prod/files/gcprod/documents/umra_                      under Executive Order 12866, or any
                                                    and burden reduction. 61 FR 4729 (Feb.                  97.pdf. This proposed determination                    successor order; and (2) is likely to have
                                                    7, 1996). Regarding the review required                 contains neither an intergovernmental                  a significant adverse effect on the
                                                    by section 3(a), section 3(b) of Executive              mandate nor a mandate that may result                  supply, distribution, or use of energy, or
                                                    Order 12988 specifically requires that                  in the expenditure of $100 million or                  (3) is designated by the Administrator of
                                                    Executive agencies make every                           more in any year, so these UMRA                        OIRA as a significant energy action. For
                                                    reasonable effort to ensure that the                    requirements do not apply.                             any proposed significant energy action,
                                                    regulation: (1) Clearly specifies the                                                                          the agency must give a detailed
                                                    preemptive effect, if any; (2) clearly                  H. Review Under the Treasury and                       statement of any adverse effects on
                                                    specifies any effect on existing Federal                General Government Appropriations                      energy supply, distribution, or use
                                                    law or regulation; (3) provides a clear                 Act, 1999                                              should the proposal be implemented,
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    legal standard for affected conduct                       Section 654 of the Treasury and                      and of reasonable alternatives to the
                                                    while promoting simplification and                      General Government Appropriations                      action and their expected benefits on
                                                    burden reduction; (4) specifies the                     Act, 1999 (Pub. L. 105–277) requires                   energy supply, distribution, and use.
                                                    retroactive effect, if any; (5) adequately              Federal agencies to issue a Family                        Because the NOPD tentatively
                                                    defines key terms; and (6) addresses                    Policymaking Assessment for any rule                   determines that amended standards for
                                                    other important issues affecting clarity                that may affect family well-being. This                DHE are not warranted, it is not a
                                                    and general draftsmanship under any                     proposed determination would not have                  significant energy action, nor has it been
                                                    guidelines issued by the Attorney                       any impact on the autonomy or integrity                designated as such by the Administrator


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                                                                             Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules                                           21283

                                                    at OIRA. Accordingly, DOE has not                       section at the beginning of this                       Please keep the comment tracking
                                                    prepared a Statement of Energy Effects.                 document.                                              number that www.regulations.gov
                                                                                                                                                                   provides after you have successfully
                                                    L. Review Under the Information                         B. Submission of Comments
                                                                                                                                                                   uploaded your comment.
                                                    Quality Bulletin for Peer Review                           DOE will accept comments, data, and                    Submitting comments via email, hand
                                                       On December 16, 2004, OMB, in                        information regarding this proposed                    delivery/courier, or mail. Comments
                                                    consultation with the Office of Science                 rule before or after the public meeting,               and documents submitted via email,
                                                    and Technology Policy (OSTP), issued                    but no later than the date provided in                 hand delivery/courier, or mail also will
                                                                                                            the DATES section at the beginning of                  be posted to www.regulations.gov. If you
                                                    its Final Information Quality Bulletin
                                                                                                            this proposed rule. Interested parties                 do not want your personal contact
                                                    for Peer Review (the Bulletin). 70 FR
                                                                                                            may submit comments, data, and other                   information to be publicly viewable, do
                                                    2664 (Jan. 14, 2005). The Bulletin
                                                                                                            information using any of the methods                   not include it in your comment or any
                                                    establishes that certain scientific
                                                                                                            described in the ADDRESSES section at                  accompanying documents. Instead,
                                                    information shall be peer reviewed by
                                                                                                            the beginning of this document.                        provide your contact information in a
                                                    qualified specialists before it is                         Submitting comments via
                                                    disseminated by the Federal                                                                                    cover letter. Include your first and last
                                                                                                            www.regulations.gov. The                               names, email address, telephone
                                                    Government, including influential                       www.regulations.gov Web page will
                                                    scientific information related to agency                                                                       number, and optional mailing address.
                                                                                                            require you to provide your name and                   The cover letter will not be publicly
                                                    regulatory actions. The purpose of the                  contact information. Your contact                      viewable as long as it does not include
                                                    bulletin is to enhance the quality and                  information will be viewable to DOE                    any comments.
                                                    credibility of the Government’s                         Building Technologies staff only. Your                    Include contact information each time
                                                    scientific information. Under the                       contact information will not be publicly               you submit comments, data, documents,
                                                    Bulletin, the energy conservation                       viewable except for your first and last                and other information to DOE. If you
                                                    standards rulemaking analyses are                       names, organization name (if any), and                 submit via mail or hand delivery/
                                                    ‘‘influential scientific information,’’                 submitter representative name (if any).                courier, please provide all items on a
                                                    which the Bulletin defines as ‘‘scientific              If your comment is not processed                       CD, if feasible, in which case it is not
                                                    information the agency reasonably can                   properly because of technical                          necessary to submit printed copies. No
                                                    determine will have, or does have, a                    difficulties, DOE will use this                        telefacsimiles (faxes) will be accepted.
                                                    clear and substantial impact on                         information to contact you. If DOE                        Comments, data, and other
                                                    important public policies or private                    cannot read your comment due to                        information submitted to DOE
                                                    sector decisions.’’ Id. at FR 2667.                     technical difficulties and cannot contact              electronically should be provided in
                                                       In response to OMB’s Bulletin, DOE                   you for clarification, DOE may not be                  PDF (preferred), Microsoft Word or
                                                    conducted formal in-progress peer                       able to consider your comment.                         Excel, WordPerfect, or text (ASCII) file
                                                    reviews of the energy conservation                         However, your contact information                   format. Provide documents that are not
                                                    standards development process and                       will be publicly viewable if you include               secured, that are written in English, and
                                                    analyses and has prepared a Peer                        it in the comment itself or in any                     that are free of any defects or viruses.
                                                    Review Report pertaining to the energy                  documents attached to your comment.                    Documents should not contain special
                                                    conservation standards rulemaking                       Any information that you do not want                   characters or any form of encryption
                                                    analyses. Generation of this report                     to be publicly viewable should not be                  and, if possible, they should carry the
                                                    involved a rigorous, formal, and                        included in your comment, nor in any                   electronic signature of the author.
                                                    documented evaluation using objective                   document attached to your comment.                        Campaign form letters. Please submit
                                                    criteria and qualified and independent                  Otherwise, persons viewing comments                    campaign form letters by the originating
                                                    reviewers to make a judgment as to the                  will see only first and last names,                    organization in batches of between 50 to
                                                    technical/scientific/business merit, the                organization names, correspondence                     500 form letters per PDF or as one form
                                                    actual or anticipated results, and the                  containing comments, and any                           letter with a list of supporters’ names
                                                    productivity and management                             documents submitted with the                           compiled into one or more PDFs. This
                                                    effectiveness of programs and/or                        comments.                                              reduces comment processing and
                                                    projects. The ‘‘Energy Conservation                        Do not submit to www.regulations.gov                posting time.
                                                    Standards Rulemaking Peer Review                        information for which disclosure is                       Confidential Business Information.
                                                    Report’’ dated February 2007 has been                   restricted by statute, such as trade                   Pursuant to 10 CFR 1004.11, any person
                                                    disseminated and is available at the                    secrets and commercial or financial                    submitting information that he or she
                                                    following Web site:                                     information (hereinafter referred to as                believes to be confidential and exempt
                                                    www1.eere.energy.gov/buildings/                         Confidential Business Information                      by law from public disclosure should
                                                    appliance_standards/peer_review.html.                   (CBI)). Comments submitted through                     submit via email, postal mail, or hand
                                                                                                            www.regulations.gov cannot be claimed                  delivery/courier two well-marked
                                                    V. Public Participation                                 as CBI. Comments received through the                  copies: one copy of the document
                                                    A. Public Meeting Requests                              Web site will waive any CBI claims for                 marked ‘‘confidential’’ including all the
                                                                                                            the information submitted. For                         information believed to be confidential,
                                                       Interested parties may submit                        information on submitting CBI, see the                 and one copy of the document marked
                                                    comments requesting that a public                       Confidential Business Information                      ‘‘non-confidential’’ with the information
                                                    meeting discussing this NOPD be held                    section below.                                         believed to be confidential deleted.
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    at DOE Headquarters. DOE will accept                       DOE processes submissions made                      Submit these documents via email or on
                                                    such requests no later than the date                    through www.regulations.gov before                     a CD, if feasible. DOE will make its own
                                                    provided in the DATES section at the                    posting. Normally, comments will be                    determination about the confidential
                                                    beginning of this document. As with                     posted within a few days of being                      status of the information and treat it
                                                    other comments regarding this                           submitted. However, if large volumes of                according to its determination.
                                                    determination, interested parties may                   comments are being processed                              Factors of interest to DOE when
                                                    submit requests using any of the                        simultaneously, your comment may not                   evaluating requests to treat submitted
                                                    methods described in the ADDRESSES                      be viewable for up to several weeks.                   information as confidential include: (1)


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                                                    21284                    Federal Register / Vol. 81, No. 69 / Monday, April 11, 2016 / Proposed Rules

                                                    A description of the items; (2) whether                   Issued in Washington, DC, on March 25,               Operations Office between 9 a.m. and 5
                                                    and why such items are customarily                      2016.                                                  p.m., Monday through Friday, except
                                                    treated as confidential within the                      David Friedman,                                        Federal holidays. The AD docket
                                                    industry; (3) whether the information is                Principal Deputy Assistant Secretary, Energy           contains this proposed AD, the
                                                    generally known by or available from                    Efficiency and Renewable Energy.                       European Aviation Safety Agency
                                                    other sources; (4) whether the                          [FR Doc. 2016–08121 Filed 4–8–16; 8:45 am]             (EASA) AD, the economic evaluation,
                                                    information has previously been made                    BILLING CODE 6450–01–P                                 and other information. The street
                                                    available to others without obligation                                                                         address for the Docket Operations Office
                                                    concerning its confidentiality; (5) an                                                                         (telephone 800–647–5527) is in the
                                                    explanation of the competitive injury to                DEPARTMENT OF TRANSPORTATION                           ADDRESSES section. Comments will be
                                                    the submitting person that would result                                                                        available in the AD docket shortly after
                                                    from public disclosure; (6) when such                   Federal Aviation Administration                        receipt.
                                                    information might lose its confidential                                                                           For service information identified in
                                                    character due to the passage of time; and               14 CFR Part 39                                         this proposed rule, contact Airbus
                                                    (7) why disclosure of the information                   [Docket No. FAA–2015–3929; Directorate
                                                                                                                                                                   Helicopters, 2701 N. Forum Drive,
                                                    would be contrary to the public interest.               Identifier 2015–SW–031–AD]                             Grand Prairie, TX 75052; telephone
                                                       It is DOE’s policy that all comments                                                                        (972) 641–0000 or (800) 232–0323; fax
                                                    may be included in the public docket,                   RIN 2120–AA64                                          (972) 641–3775; or at http://
                                                    without change and as received,                                                                                www.airbushelicopters.com/techpub.
                                                    including any personal information                      Airworthiness Directives; Airbus                       You may review the referenced service
                                                    provided in the comments (except                        Helicopters                                            information at the FAA, Office of the
                                                    information deemed to be exempt from                    AGENCY: Federal Aviation                               Regional Counsel, Southwest Region,
                                                    public disclosure).                                     Administration (FAA), DOT.                             10101 Hillwood Pkwy., Room 6N–321,
                                                    C. Issues on Which DOE Seeks                            ACTION: Notice of proposed rulemaking                  Fort Worth, TX 76177.
                                                    Comment                                                 (NPRM).                                                FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                   Robert Grant, Aviation Safety Engineer,
                                                       Although DOE welcomes comments                       SUMMARY:   We propose to adopt a new                   Safety Management Group, FAA, 10101
                                                    on any aspect of this proposal, DOE is                  airworthiness directive (AD) for Airbus                Hillwood Pkwy., Fort Worth, TX 76177;
                                                    particularly interested in receiving                    Helicopters Model EC130B4, EC130T2,                    telephone (817) 222–5110; email
                                                    comments and views of interested                        AS350B, AS350B1, AS350B2, AS350B3,                     robert.grant@faa.gov.
                                                    parties concerning the following issues:                AS350BA, AS350C, AS350D, AS350D1,
                                                       1. DOE seeks comment on its                                                                                 SUPPLEMENTARY INFORMATION:
                                                                                                            AS355E, AS355F, AS355F1, AS355F2,
                                                    assumptions that only minor changes to                  AS355N, and AS355NP helicopters.                       Comments Invited
                                                    the DHE market have occurred since the                  This proposed AD would require
                                                    last DOE rulemaking and that overall                                                                              We invite you to participate in this
                                                                                                            inspecting each bi-directional                         rulemaking by submitting written
                                                    shipments of DHE have continued to                      suspension cross-bar (cross-bar) for a
                                                    decrease. See section II.                                                                                      comments, data, or views. We also
                                                                                                            crack. This proposed AD is prompted by                 invite comments relating to the
                                                       2. DOE seeks comment on its                          two reports of cracks in a cross-bar. The
                                                    determination that adopting a                                                                                  economic, environmental, energy, or
                                                                                                            proposed actions are intended to detect                federalism impacts that might result
                                                    condensing efficiency level for fan-type                cracks in a cross-bar and prevent failure
                                                    wall furnaces would not be                                                                                     from adopting the proposals in this
                                                                                                            of the cross-bar and subsequent loss of                document. The most helpful comments
                                                    economically justified. See section II.                 control of the helicopter.
                                                       3. DOE seeks data and information                                                                           reference a specific portion of the
                                                                                                            DATES: We must receive comments on                     proposal, explain the reason for any
                                                    pertaining to DHE shipments. See
                                                    section II.                                             this proposed AD by June 10, 2016.                     recommended change, and include
                                                       4. DOE seeks comment on its proposal                 ADDRESSES: You may send comments by                    supporting data. To ensure the docket
                                                    not to amend energy conservation                        any of the following methods:                          does not contain duplicate comments,
                                                    standards for DHE because more                            • Federal eRulemaking Docket: Go to                  commenters should send only one copy
                                                    stringent standards would not be                        http://www.regulations.gov. Follow the                 of written comments, or if comments are
                                                    economically justified. See section III.                online instructions for sending your                   filed electronically, commenters should
                                                       5. DOE seeks comment on its proposal                 comments electronically.                               submit only one time.
                                                    not to amend its standards for DHE to                     • Fax: 202–493–2251.                                    We will file in the docket all
                                                    include standby and off mode electrical                   • Mail: Send comments to the U.S.                    comments that we receive, as well as a
                                                    consumption. See section III.                           Department of Transportation, Docket                   report summarizing each substantive
                                                                                                            Operations, M–30, West Building                        public contact with FAA personnel
                                                    VI. Approval of the Office of the                       Ground Floor, Room W12–140, 1200                       concerning this proposed rulemaking.
                                                    Secretary                                               New Jersey Avenue SE., Washington,                     Before acting on this proposal, we will
                                                      The Secretary of Energy has approved                  DC 20590–0001.                                         consider all comments we receive on or
                                                    publication of this notice of proposed                    • Hand Delivery: Deliver to the                      before the closing date for comments.
                                                    rulemaking.                                             ‘‘Mail’’ address between 9 a.m. and 5                  We will consider comments filed after
                                                                                                            p.m., Monday through Friday, except                    the comment period has closed if it is
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    List of Subjects in 10 CFR Part 430
                                                                                                            Federal holidays.                                      possible to do so without incurring
                                                      Administrative practice and                                                                                  expense or delay. We may change this
                                                    procedure, Confidential business                        Examining the AD Docket
                                                                                                                                                                   proposal in light of the comments we
                                                    information, Energy conservation,                         You may examine the AD docket on                     receive.
                                                    Household appliances, Imports,                          the Internet at http://
                                                    Incorporation by reference,                             www.regulations.gov by searching for                   Discussion
                                                    Intergovernmental relations, Small                      and locating Docket No. FAA–2015–                        EASA, which is the Technical Agent
                                                    businesses.                                             3929 or in person at the Docket                        for the Member States of the European


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Document Created: 2016-04-09 00:11:14
Document Modified: 2016-04-09 00:11:14
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 proposed determination (NOPD).
DatesDOE will accept comments, data, and information regarding this NOPD no later than June 10, 2016. See section V, ``Public Participation,'' for details.
ContactJohn Cymbalsky, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 287-1692. Email: [email protected]
FR Citation81 FR 21276 
RIN Number1904-AD65
CFR AssociatedAdministrative Practice and Procedure; Confidential Business Information; Energy Conservation; Household Appliances; Imports; Incorporation by Reference; Intergovernmental Relations and Small Businesses

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