81_FR_75159 81 FR 74950 - Energy Conservation Program: Energy Conservation Standards for Miscellaneous Refrigeration Products

81 FR 74950 - Energy Conservation Program: Energy Conservation Standards for Miscellaneous Refrigeration Products

DEPARTMENT OF ENERGY

Federal Register Volume 81, Issue 209 (October 28, 2016)

Page Range74950-74962
FR Document2016-24758

The Energy Policy and Conservation Act of 1975 (``EPCA''), as amended, established the Energy Conservation Program for Consumer Products Other Than Automobiles. Based on provisions in EPCA that enable the Secretary of Energy to classify additional types of consumer products as covered products, the U.S. Department of Energy (``DOE'') classified miscellaneous refrigeration products (``MREFs'') as covered consumer products under EPCA. In determining whether to set standards for products, DOE must evaluate whether new standards would be technologically feasible and economically justified, and would save a significant amount of energy. In this proposed rule, DOE proposes new energy conservation standards for MREFs identical to those set forth in a direct final rule published elsewhere in this Federal Register. If DOE receives adverse comment and determines that such comment may provide a reasonable basis for withdrawal, DOE will publish a notice withdrawing the final rule and will proceed with this proposed rule.

Federal Register, Volume 81 Issue 209 (Friday, October 28, 2016)
[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Proposed Rules]
[Pages 74950-74962]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24758]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / 
Proposed Rules

[[Page 74950]]


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DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket Number EERE-2011-BT-STD-0043]
RIN 1904-AC51


Energy Conservation Program: Energy Conservation Standards for 
Miscellaneous Refrigeration Products

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Energy Policy and Conservation Act of 1975 (``EPCA''), as 
amended, established the Energy Conservation Program for Consumer 
Products Other Than Automobiles. Based on provisions in EPCA that 
enable the Secretary of Energy to classify additional types of consumer 
products as covered products, the U.S. Department of Energy (``DOE'') 
classified miscellaneous refrigeration products (``MREFs'') as covered 
consumer products under EPCA. In determining whether to set standards 
for products, DOE must evaluate whether new standards would be 
technologically feasible and economically justified, and would save a 
significant amount of energy. In this proposed rule, DOE proposes new 
energy conservation standards for MREFs identical to those set forth in 
a direct final rule published elsewhere in this Federal Register. If 
DOE receives adverse comment and determines that such comment may 
provide a reasonable basis for withdrawal, DOE will publish a notice 
withdrawing the final rule and will proceed with this proposed rule.

DATES: DOE will accept comments, data, and information regarding the 
proposed standards no later than February 15, 2017.
    Comments regarding the likely competitive impact of the proposed 
standard should be sent to the Department of Justice contact listed in 
the ADDRESSES section before November 28, 2016.

ADDRESSES: See section III, ``Public Participation,'' for details. If 
DOE withdraws the direct final rule published elsewhere in this Federal 
Register, DOE will hold a public meeting to allow for additional 
comment on this proposed rule. DOE will publish notice of any meeting 
in the Federal Register.
    Any comments submitted must identify the proposed rule for Energy 
Conservation Standards for Miscellaneous Refrigeration Products, and 
provide docket number EERE-2011-BT-STD-0043 and/or regulatory 
information number (RIN) number 1904-AC51. 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: Appliance and Equipment Standards Program, 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: Appliance and Equipment Standards 
Program, U.S. Department of Energy, Building Technologies Office, 950 
L'Enfant Plaza SW., 6th Floor, Washington, DC 20024. Telephone: (202) 
586-6636. 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 III of this document (``Public 
Participation'').
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to Office of Energy Efficiency and 
Renewable Energy through the methods listed above and by email to 
[email protected].
    EPCA requires the Attorney General to provide DOE a written 
determination of whether the proposed standard is likely to lessen 
competition. The U.S. Department of Justice Antitrust Division invites 
input from market participants and other interested persons with views 
on the likely competitive impact of the proposed standard. Interested 
persons may contact the Division at [email protected] before 
November 28, 2016. Please indicate in the ``Subject'' line of your 
email the title and Docket Number of this rulemaking notice.
    Docket: The docket, which includes Federal Register notices, public 
meeting attendee lists and transcripts, 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-2011-BT-STD-0043. 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 III, ``Public Participation,'' for 
further information on how to submit comments through 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Joseph Hagerman, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, 
DC, 20585-0121. Telephone: (202) 586-6590. Email: 
[email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact the Appliance and Equipment Standards Program staff at (202) 
586-6636 or by email: [email protected].

SUPPLEMENTARY INFORMATION:

[[Page 74951]]

Table of Contents

I. Introduction and Legal Authority
    A. Legal Authority
    B. Rulemaking History
II. Proposed Standards
    A. TSLs Considered for Coolers
    B. TSLs Considered for Combination Cooler Refrigeration Products
    C. Summary of Benefits and Costs of the Proposed Standards
III. Public Participation
    A. Submission of Comments
    B. Public Meeting
IV. Procedural Issues and Regulatory Review
V. Approval of the Office of the Secretary

I. Introduction and Legal Authority

A. Legal Authority

    The Energy Policy and Conservation Act of 1975, as amended 
(``EPCA'') (Public Law 94-163 (December 22, 1975)) includes provisions 
covering the products addressed by this notice. EPCA addresses, among 
other things, the energy efficiency of certain types of consumer 
products. Relevant provisions of the Act specifically include 
definitions (42 U.S.C. 6291), energy conservation standards (42 U.S.C. 
6295), test procedures (42 U.S.C. 6293), labeling provisions (42 U.S.C. 
6294), and the authority to require information and reports from 
manufacturers (42 U.S.C. 6296).
    Under 42 U.S.C. 6292(a)(20), DOE may extend coverage over a 
particular type of consumer product provided that DOE determines that 
classifying products of such type as covered products is necessary or 
appropriate to carry out the purposes of EPCA and that the average 
annual per-household energy use by products of such type is likely to 
exceed 100 kilowatt-hours (``kWh'') or its British thermal unit 
(``Btu'') equivalent per year. See 42 U.S.C. 6292(b)(1). EPCA sets out 
the following additional requirements to establish energy conservation 
standards for a newly covered product: (1) The average per household 
domestic energy use by such products exceeded 150 kWh or its Btu 
equivalent for any 12-month period ending before such determination; 
(2) the aggregate domestic household energy use by such products 
exceeded 4.2 million kWh or its Btu equivalent for any such 12-month 
period; (3) substantial energy efficiency of the products is 
technologically feasible; and (4) applying a labeling rule is unlikely 
to be sufficient to induce manufacturers to produce, and consumers and 
other persons to purchase, products of such type that achieve the 
maximum level of energy efficiency. See 42 U.S.C. 6295(l)(1).
    Pursuant to EPCA, DOE's energy conservation program for covered 
products consists essentially of four parts: (1) Testing; (2) labeling; 
(3) the establishment of Federal energy conservation standards; and (4) 
certification and enforcement procedures. The Federal Trade Commission 
(``FTC'') is primarily responsible for labeling, and DOE implements the 
remainder of the program. Subject to certain criteria and conditions, 
DOE is required to develop test procedures to measure the energy 
efficiency, energy use, or estimated annual operating cost of each 
covered product. (42 U.S.C. 6295(o)(3)(A) and (r)) Manufacturers of 
covered products must use the prescribed DOE test procedure as the 
basis for certifying to DOE that their products comply with the 
applicable energy conservation standards adopted under EPCA and when 
making representations to the public regarding the energy use or 
efficiency of those products. (42 U.S.C. 6293(c) and 6295(s)) 
Similarly, DOE must use these test procedures to determine whether the 
products comply with standards adopted pursuant to EPCA. (42 U.S.C. 
6295(s)) The DOE test procedure for MREFs currently appears at title 10 
of the Code of Federal Regulations (``CFR'') part 430, subpart B, 
appendix A (appendix A).
    DOE follows specific criteria when prescribing new or amended 
standards for covered products. As indicated above, 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) and (3)(B)) 
Furthermore, DOE may not adopt any standard that would not result in 
the significant conservation of energy. (42 U.S.C. 6295(o)(3)) 
Moreover, DOE may not prescribe a standard: (1) for certain products, 
including MREFs, if no test procedure has been established for the 
product, or (2) if DOE determines by rule that the new or amended 
standard is not technologically feasible or economically justified. (42 
U.S.C. 6295(o)(3)(A)-(B)) In deciding whether a new or amended standard 
is economically justified, DOE must determine whether the benefits of 
the standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must 
make this determination after receiving comments on the proposed 
standard and considering, to the greatest extent practicable, the 
following seven factors:
    1. The economic impact of the standard on manufacturers and 
consumers of the products subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products that are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy, or as applicable, water, 
savings likely to result directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the covered 
products likely to result from the imposition of 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 
imposition of 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 also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered product. 
(42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe an amended 
or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered product type (or 
class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6295(o)(4))
    Additionally, DOE may set energy conservation standards for a 
covered product that has two or more subcategories. In those instances, 
DOE must specify a different standard level for a type or class of 
products that has the same function or intended use if DOE determines 
that products within such group: (A) Consume a different

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kind of energy from that consumed by other covered products within such 
type (or class); or (B) have a capacity or other performance-related 
feature which other products within such type (or class) do not have 
and such feature justifies a higher or lower standard. (42 U.S.C. 
6295(q)(1)) In determining whether a performance-related feature 
justifies a different standard for a group of products, DOE must 
consider such factors as the utility to the consumer of such a feature 
and other factors DOE deems appropriate. Id. Any rule prescribing such 
a standard must include an explanation of the basis on which such 
higher or lower level was established. (42 U.S.C. 6295(q)(2))
    Federal energy conservation requirements generally supersede State 
laws or regulations concerning energy conservation testing, labeling, 
and standards. (42 U.S.C. 6297(a) through (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).
    DOE is also 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 the 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) and (B)) 
DOE's test procedures for MREFs address standby mode and off mode 
energy use, as do the new standards adopted in this notice of proposed 
rulemaking.
    With particular regard to direct final rules, the Energy 
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140 (December 19, 2007), amended EPCA, in relevant part, to grant DOE 
authority to issue a type of final rule (i.e., a ``direct final rule'') 
establishing an energy conservation standard for a product on receipt 
of a statement that is submitted jointly by interested persons that are 
fairly representative of relevant points of view (including 
representatives of manufacturers of covered products, States, and 
efficiency advocates), as determined by the Secretary, and that 
contains recommendations with respect to an energy or water 
conservation standard. In the context of consumer products, if the 
Secretary determines that the recommended standard contained in the 
statement is in accordance with 42 U.S.C. 6295(o), the Secretary may 
issue a final rule establishing the recommended standard. A notice of 
proposed rulemaking (``NOPR'') that proposes an identical energy 
efficiency standard is published simultaneously with the direct final 
rule. A public comment period of at least 110 days is provided. See 42 
U.S.C. 6295(p)(4). Not later than 120 days after the date on which a 
direct final rule issued under this authority is published in the 
Federal Register, the Secretary shall withdraw the direct final rule if 
the Secretary receives one or more adverse public comments relating to 
the direct final rule or any alternative joint recommendation and based 
on the rulemaking record relating to the direct final rule, the 
Secretary determines that such adverse public comments or alternative 
joint recommendation may provide a reasonable basis for withdrawing the 
direct final rule under subsection 42 U.S.C. 6295(o) or any other 
applicable law. On withdrawal of a direct final rule, the Secretary 
shall proceed with the NOPR published simultaneously with the direct 
final rule and publish in the Federal Register the reasons why the 
direct final rule was withdrawn. This direct final rule provision 
applies to the products at issue in the direct final rule published 
simultaneously with this NOPR. See 42 U.S.C. 6295(p)(4).
    DOE also notes that it typically finalizes its test procedures for 
a given regulated product or equipment prior to proposing new or 
amended energy conservation standards for that product or equipment, 
see 10 CFR part 430, subpart C, Appendix A, sec. 7(c) (``Procedures, 
Interpretations and Policies for Consideration of New or Revised Energy 
Conservation Standards for Consumer Products'' or ``Process Rule''). In 
this instance, although DOE has finalized its test procedure for MREFs, 
rather than issue a notice of proposed rulemaking to set standards for 
these products, DOE is moving forward with a direct final rule. As part 
of the negotiated rulemaking that led to the Term Sheet setting out the 
standards that DOE is proposing, Working Group members recommended 
(with ASRAC's approval) that DOE implement the test procedure that DOE 
recently finalized. See 81 FR 46768 (July 18, 2016). The approach laid 
out in that final rule is consistent with the approach agreed upon by 
the various Working Group members who participated in the negotiated 
rulemaking. Accordingly, in accordance with section 14 of the Process 
Rule, DOE tentatively concludes that deviation from the Process Rule is 
appropriate here.

B. Rulemaking History

    DOE has not previously established energy conservation standards 
for MREFs. Consistent with its statutory obligations, DOE sought to 
establish regulatory coverage over these products prior to establishing 
energy conservation standards to regulate MREF efficiency. On November 
8, 2011, DOE published a notice of proposed determination of coverage 
(``NOPD'') to address the potential coverage of those refrigeration 
products that do not use a compressor-based refrigeration system. 76 FR 
69147. Rather than employing a compressor/condenser-based system 
typically installed in the refrigerators, refrigerator-freezers, and 
freezers found in most U.S. homes, these ``non-compressor-based'' 
refrigeration products use a variety of other means to introduce 
chilled air into the interior of the storage cabinet of the product. 
Two systems that DOE specifically examined were thermoelectric- and 
absorption-based systems.\1\ The former of these systems is used in 
some wine chiller applications. With respect to the latter group of 
products, DOE indicated its belief that these types of products were 
used primarily in mobile applications and would likely fall outside of 
DOE's scope of coverage. See 42 U.S.C. 6292(a) (excluding from coverage 
``those consumer products designed solely for use in recreational 
vehicles and other mobile equipment'').
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    \1\ Chapter 3 of the direct final rule technical support 
document provides a detailed description of each of these 
refrigeration technologies.
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    On February 13, 2012, DOE published a notice announcing the 
availability of the framework document, ``Energy Conservation Standards 
Rulemaking Framework Document for Wine Chillers and Miscellaneous 
Refrigeration Products,'' and a public meeting to discuss the proposed 
analytical framework for the energy conservation standards rulemaking. 
77 FR 7547. In the framework document, DOE described the procedural and 
analytical approaches it anticipated using to evaluate potential energy 
conservation standards for four types of consumer refrigeration 
products: Wine chillers, non-compressor refrigerators, hybrid 
refrigerators (i.e., a wine chiller combined with a refrigerator), and 
ice makers.
    DOE held a public meeting on February 22, 2012, to present the 
framework document, describe the analyses DOE planned to conduct during 
the rulemaking, seek comments from interested parties on these 
subjects, and inform the public about, and facilitate public 
participation in, the

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rulemaking. At the public meeting and during the comment period, DOE 
received multiple comments that addressed issues raised in the 
framework document and identified additional issues relevant to the 
rulemaking.
    On October 31, 2013, DOE published in the Federal Register a 
supplemental notice of proposed determination of coverage (the 
``October 2013 SNOPD''), in which it tentatively determined that the 
four categories of consumer products addressed in the framework 
document (wine chillers, non-compressor refrigeration products, hybrid 
refrigerators, and ice makers) satisfy the provisions of 42 U.S.C. 
6292(b)(1). 78 FR 65223.
    DOE published a notice announcing a public meeting and the 
availability of the preliminary technical support document (``TSD'') 
for the MREF energy conservation standards rulemaking on December 3, 
2014. 79 FR 71705. The preliminary analysis considered potential 
standards for the products proposed for coverage in the October 2013 
SNOPD. The preliminary TSD included the results of the following DOE 
preliminary analyses: (1) Market and technology assessment; (2) 
screening analysis; (3) engineering analysis; (4) markups analysis; (5) 
energy use analysis; (6) LCC and PBP analyses; (7) shipments analysis; 
(8) national impact analysis (``NIA''); and (9) preliminary 
manufacturer impact analysis (``MIA'').
    DOE held a public meeting on January 9, 2015, during which it 
presented preliminary results for the engineering and downstream 
economic analyses and sought comments from interested parties on these 
subjects. At the public meeting and during the comment period, DOE 
received comments that addressed issues raised in the preliminary 
analysis and identified additional issues relevant to this rulemaking. 
After reviewing the comments received in response to both the 
preliminary analysis and a test procedure NOPR published on December 
16, 2014 (the ``December 2014 Test Procedure NOPR,'' 79 FR 74894), DOE 
ultimately determined that the development of test procedures and 
potential energy conservation standards for MREFs would benefit from a 
negotiated rulemaking process.
    On April 1, 2015, DOE published a notice of intent to establish an 
Appliance Standards and Rulemaking Federal Advisory Committee 
(``ASRAC'') negotiated rulemaking working group for MREFs (the ``MREF 
Working Group'' or in context, the ``Working Group'') to discuss and, 
if possible, reach consensus on a recommended scope of coverage, 
definitions, test procedures, and energy conservation standards. 80 FR 
17355. The MREF Working Group consisted of 15 members, including two 
members from ASRAC and one DOE representative. The MREF Working Group 
met in person during six sets of meetings in 2015: May 4-5, June 11-12, 
July 15-16, August 11-12, September 16-17, and October 20.
    On August 11, 2015, the MREF Working Group reached consensus on a 
term sheet to recommend a scope of coverage, set of definitions, and 
test procedures for MREFs (``Term Sheet #1'').\2\ That document laid 
out the scope of products that the Working Group recommended that DOE 
adopt with respect to MREFs, the definitions that would apply to MREFs 
and certain other refrigeration products, and the test procedure that 
manufacturers of MREFs would need to use when evaluating the energy 
usage of these products. On October 20, 2015, the MREF Working Group 
reached consensus on a second term sheet embodying its recommended 
energy conservation standards for coolers and combination cooler 
refrigeration products (``Term Sheet #2''). ASRAC approved Term Sheet 
#1 during an open meeting on December 18, 2015, and Term Sheet #2 
during an open meeting on January 20, 2016. ASRAC subsequently sent 
both term sheets to the Secretary for consideration.
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    \2\ The MREF Working Group term sheets are available in docket 
ID EERE-2011-BT-STD-0043 at http://regulations.gov.
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    In addition to these steps, DOE sought to ensure that it had 
obtained complete information and input regarding certain aspects 
related to manufacturers of thermoelectric refrigeration products. To 
this end, on December 15, 2015, DOE published a notice of data 
availability (the ``December 2015 NODA'') in which it requested 
additional public feedback on the methods and information used in the 
development of the MREF Working Group Term Sheets. 80 FR 77589. DOE 
noted in particular its interest in information related to 
manufacturers of thermoelectric refrigeration products. Id. at 77590.
    After considering the MREF Working Group recommendations and 
comments received in response to the December 2015 NODA, DOE published 
an SNOPD and notice of proposed rulemaking (the ``March 2016 SNOPD'') 
on March 4, 2016. 81 FR 11454. The March 2016 SNOPD proposed 
establishing coverage, definitions, and terminology consistent with 
Term Sheet #1. It also proposed to determine that coolers and 
combination cooler refrigeration products--as defined under the 
proposal--would meet the requirements under EPCA to be considered 
covered products. Id. at 11456-11459.
    On July 18, 2016, DOE published a final coverage determination and 
final rule (the ``July 2016 Final Coverage Determination'') to 
establish coolers and combination cooler refrigeration products as 
covered products under EPCA. Because DOE did not receive any comments 
in response to the March 2016 SNOPD that would substantively alter its 
proposals, the findings of the final determination were unchanged from 
those presented in the March 2016 SNOPD. Moreover, DOE determined in 
the July 2016 Final Coverage Determination that MREFs, on average, 
consume more than 150 kWh/yr, and that the aggregate annual national 
energy use of these products exceeds 4.2 TWh. Accordingly, these data 
indicate that MREFs satisfy at least two of the four criteria required 
under EPCA in order for the Secretary to set standards for a product 
whose coverage is added pursuant to 42 U.S.C. 6292(b). See 42 U.S.C. 
6295(l)(1)(A)-(D). 81 FR 46768. With respect to the remaining two 
criteria, as indicated in substantial detail in its accompanying direct 
final rule, DOE's analysis indicates that these two criteria are 
satisfied as well.
    In addition to establishing coverage, the July 2016 Final Coverage 
Determination established definitions for ``miscellaneous refrigeration 
products,'' ``coolers,'' and ``combination cooler refrigeration 
products'' in title 10 of the Code of Federal Regulations (``CFR'') 
Sec.  430.2. The July 2016 Final Coverage Determination also amended 
the existing definitions for ``refrigerator,'' ``refrigerator-
freezer,'' and ``freezer'' for consistency with the newly established 
MREF definitions. These definitions were generally consistent with the 
March 2016 SNOPD. Id.
    DOE has considered the recommended energy conservation standards 
from the MREF Working Group and believes that they meet the EPCA 
requirements for issuance of a direct final rule. As a result, DOE has 
published a direct final rule establishing energy conservation 
standards for MREFs elsewhere in this Federal Register. If DOE receives 
adverse comments that may provide a reasonable basis for withdrawal and 
withdraws the direct final rule, DOE will consider those comments and 
any other comments received in determining how to proceed with this 
proposed rule.
    For further background information on these proposed standards and 
the

[[Page 74954]]

supporting analyses, please see the direct final rule published 
elsewhere in this Federal Register. That document includes additional 
discussion on the EPCA requirements for promulgation of energy 
conservation standards, the history of the standards rulemakings 
establishing such standards, as well as information on the test 
procedures used to measure the energy efficiency of MREFs. The document 
also contains an in-depth discussion of the analyses conducted in 
support of this rulemaking, the methodologies DOE used in conducting 
those analyses, and the analytical results.

II. Proposed Standards

    When considering proposed standards, the new or amended energy 
conservation standard that DOE adopts for any type (or class) of 
covered product shall be designed to achieve the maximum improvement in 
energy efficiency that DOE determines is technologically feasible and 
economically justified. (42 U.S.C. 6295(o)(2)(A)) In determining 
whether a standard is economically justified, DOE must determine 
whether the benefits of the standard exceed its burdens, considering to 
the greatest extent practicable the seven statutory factors set forth 
in EPCA. (42 U.S.C. 6295(o)(2)(B)(i)) The new or amended standard must 
also result in a significant conservation of energy. (42 U.S.C. 
6295(o)(3)(B))
    DOE considered the impacts of standards at each trial standard 
level (``TSL'') considered, beginning with maximum technologically 
feasible (max-tech) level, to determine whether that level was 
economically justified. Where the max-tech level was not economically 
justified, DOE then considered the next most efficient level and 
undertook the same evaluation until it reached the highest efficiency 
level that is both technologically feasible and economically justified 
and saves a significant amount of energy.
    To aid the reader as DOE discusses the benefits and burdens of each 
TSL, DOE has included tables that present a summary of the results of 
DOE's quantitative analysis for each TSL. In addition to the 
quantitative results presented in the tables, DOE also considers other 
burdens and benefits that affect economic justification. These include 
the impacts on identifiable subgroups of consumers, such as low-income 
households and seniors, who may be disproportionately affected by a 
national standard. Section V.B.1.b of the direct final rule published 
elsewhere in this Federal Register presents the estimated impacts of 
each TSL for these subgroups.

A. TSLs Considered for Coolers

    Table II.1 and Table II.2 summarize the quantitative impacts 
estimated for each TSL for coolers. The national impacts are measured 
over the lifetime of coolers purchased in the 30-year period that 
begins in the anticipated year of compliance with new standards (2019-
2048 for TSL 2, and 2021-2050 for the other TSLs). The energy savings, 
emissions reductions, and value of emissions reductions refer to full-
fuel-cycle (``FFC'') results. The efficiency levels contained in each 
TSL are described in section V.A of the direct final rule published 
elsewhere in this Federal Register.

                     Table II.1--Summary of Analytical Results for Coolers: National Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                 Cumulative FFC National Energy Savings (quads)
----------------------------------------------------------------------------------------------------------------
Quads...................................              1.13              1.51              1.84             2.02.
----------------------------------------------------------------------------------------------------------------
                               NPV of Consumer Costs and Benefits (2015$ billion)
----------------------------------------------------------------------------------------------------------------
3% discount rate........................              8.34             11.02             12.19             6.83.
7% discount rate........................              3.41              4.78              4.81             1.81.
----------------------------------------------------------------------------------------------------------------
                            Cumulative FFC Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (million metric tons).........             67.91             91.76            110.61           121.30.
SO[ihel2] (thousand tons)...............             39.38             54.04             64.13            70.26.
NOX (thousand tons).....................            122.38            163.86            199.36           218.79.
Hg (tons)...............................              0.15              0.20              0.24             0.26.
CH4 (thousand tons).....................            291.14            387.12            474.33           520.85.
CH4 (thousand tons CO2eq)**.............           8151.79          10839.31          13281.37         14583.83.
N2O (thousand tons).....................              0.82              1.12              1.33             1.46.
N2O (thousand tons CO2eq)**.............            217.02            296.92            353.41           387.24.
----------------------------------------------------------------------------------------------------------------
                               Value of Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (2015$ billion) [dagger]......    0.478 to 6.673    0.679 to 9.266   0.777 to 10.856  0.849 to 11.882.
NOX-3% discount rate (2015$ million)....    229.6 to 523.5     326.1 to743.4    373.3 to 851.2   407.9 to 929.9.
NOX-7% discount rate (2015$ million)....     92.5 to 208.7    141.9 to 319.9    150.2 to 338.7   163.1 to 367.8.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 2, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** CO[ihel2]eq is the quantity of CO[ihel2] that would have the same global warming potential (``GWP'').
[dagger] Range of the economic value of CO[ihel2] reductions is based on estimates of the global benefit of
  reduced CO[ihel2] emissions.


[[Page 74955]]


            Table II.2--Summary of Analytical Results for Coolers: Manufacturer and Consumer Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                              Manufacturer Impacts
----------------------------------------------------------------------------------------------------------------
Industry NPV (2015$ million) (No-new-       244.3 to 264.0    208.5 to 253.3    168.4 to 226.5   110.5 to 283.8.
 standards case INPV = 263.3)...........
Industry NPV (% change).................       -7.2 to 0.3     -20.8 to -3.8    -36.0 to -14.0     -58.0 to 7.8.
----------------------------------------------------------------------------------------------------------------
                                      Consumer Average LCC Savings (2015$)
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............               279               265               288              123.
Built-in Compact Coolers................           ** n.a.                28                60            (230).
Freestanding Coolers....................               648               153               240            (121).
Built-in Coolers........................              n.a.                77               187            (254).
----------------------------------------------------------------------------------------------------------------
                                           Consumer Simple PBP (years)
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............               1.1               1.4               1.6              3.5.
Built-in Compact Coolers................              n.a.               4.6               4.4             14.8.
Freestanding Coolers....................               1.0               1.8               1.8              4.8.
Built-in Coolers........................              n.a.               6.1               4.7             17.7.
----------------------------------------------------------------------------------------------------------------
                                     % of Consumers that Experience Net Cost
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............                 6                 9                12               51.
Built-in Compact Coolers................                 0                29                27               93.
Freestanding Coolers....................                 0                22                 9               78.
Built-in Coolers........................                 0                22                 7               86.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 2, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or
  exceeded in the MREF market.

    DOE first considered TSL 4, which represents the max-tech 
efficiency levels. TSL 4 would save 2.02 quads of energy, an amount DOE 
considers significant. Under TSL 4, the net present value (``NPV'') of 
consumer benefit would be $1.81 billion using a discount rate of 7 
percent, and $6.83 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 121.3 million 
metric tons (``Mt'') of CO2, 70.3 thousand tons of 
SO2, 218.8 thousand tons of NOX, 0.26 ton of Hg, 
520.9 thousand tons of CH4, and 1.5 thousand tons of 
N2O. The estimated monetary value of the CO2 
emissions reduction at TSL 4 ranges from $849 million to $11,882 
million.
    At TSL 4, the average LCC savings range from -$254 to $123. The 
simple payback period ranges from 3.5 years to 17.7 years. The fraction 
of consumers experiencing a net LCC cost ranges from 51 percent to 93 
percent.
    At TSL 4, the projected change in industry net present value 
(``INPV'') ranges from a decrease of $152.8 million to an increase of 
$20.5 million, which correspond to a decrease of 58.0 percent to an 
increase of 7.8 percent, respectively. Manufacturer feedback during 
confidential interviews indicated that all cooler segments are highly 
price-sensitive, and therefore the lower bound of INPV impacts is more 
likely to occur. Additionally, at TSL 4, disproportionate impacts on 
low-volume manufacturers (``LVMs'') of MREFs may be severe. This could 
have a direct impact on domestic manufacturing capacity and production 
employment in the cooler industry.
    The Secretary concludes that at TSL 4 for coolers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the economic burden on some consumers, and the impacts on 
manufacturers, including the conversion costs and profit margin impacts 
that could result in a large reduction in INPV. Consequently, the 
Secretary has concluded that TSL 4 is not economically justified.
    DOE then considered TSL 3, which would save an estimated 1.84 quads 
of energy, an amount DOE considers significant. Under TSL 3, the NPV of 
consumer benefit would be $4.81 billion using a discount rate of 7 
percent, and $12.19 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 3 are 110.6 Mt of 
CO2, 64.1 thousand tons of SO2, 199.4 thousand 
tons of NOX, 0.24 tons of Hg, 474.3 thousand tons of 
CH4, and 1.33 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 3 
ranges from $777 million to $10,856 million.
    At TSL 3, the average LCC savings range from $60 to $288. The 
simple payback period ranges from 1.6 years to 4.7 years. The fraction 
of consumers experiencing a net LCC cost ranges from 7 percent to 27 
percent.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$94.8 million to a decrease of $36.8 million, which correspond to 
decreases of 36.0 percent and 14.0 percent, respectively. Manufacturer 
feedback from confidential interviews indicated that all cooler 
segments are highly price sensitive, and therefore the lower bound of 
INPV impacts is more likely to occur. Again, at TSL 3, disproportionate 
impacts on the LVMs may be severe. This could have a direct impact on 
domestic manufacturing capacity and production employment in the cooler 
industry.
    The Secretary concludes that at TSL 3 for coolers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a large reduction 
in INPV. Consequently, the Secretary has concluded that TSL 3 is not 
economically justified.

[[Page 74956]]

    DOE then considered TSL 2, which reflects the standard levels 
recommended by the MREF Working Group. TSL 2 would save an estimated 
1.51 quads of energy, an amount DOE considers significant. Under TSL 2, 
the NPV of consumer benefit would be $4.78 billion using a discount 
rate of 7 percent, and $11.02 billion using a discount rate of 3 
percent.
    The cumulative emissions reductions at TSL 2 are 91.8 Mt of 
CO2, 54.0 thousand tons of SO2, 163.9 thousand 
tons of NOX, 0.20 tons of Hg, 387.1 thousand tons of 
CH4, and 1.12 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 2 
ranges from $679 million to $9,266 million.
    At TSL 2, the average LCC savings range from $28 to $265. The 
simple payback period ranges from 1.4 years to 6.1 years. The fraction 
of consumers experiencing a net LCC cost ranges from 9 percent to 29 
percent.
    At TSL 2, the projected change in INPV ranges from a decrease of 
$54.8 million to a decrease of $10.0 million, which represent decreases 
of 20.8 percent and 3.8 percent, respectively. Feedback from the LVMs 
indicated that TSL 2 would not impede their ability to maintain their 
current MREF product offerings.
    After considering the analysis and weighing the benefits and 
burdens, DOE has determined that the recommended standards for coolers 
are in accordance with 42 U.S.C. 6295(o). Specifically, the Secretary 
has determined the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, the estimated monetary value of the 
emissions reductions, and positive average LCC savings would outweigh 
the negative impacts on some consumers and on manufacturers, including 
the conversion costs that could result in a reduction in INPV for 
manufacturers. Accordingly, the Secretary has concluded that TSL 2 
would offer the maximum improvement in efficiency that is 
technologically feasible and economically justified, and would result 
in the significant conservation of energy.
    Therefore, DOE proposes to adopt TSL 2 as the energy conservation 
standard for coolers. The proposed new energy conservation standards 
which are expressed as maximum annual energy use, in kWh/yr, as a 
function of adjusted volume (``AV''), in cubic feet (``ft\3\''), are 
shown in Table II.3.

   Table II.3--Proposed New Energy Conservation Standards for Coolers
------------------------------------------------------------------------
             Product class              Maximum allowable AEU * (kWh/yr)
------------------------------------------------------------------------
Built-in Compact......................  7.88AV [dagger] + 155.8
Built-in..............................
Freestanding Compact..................
Freestanding..........................
------------------------------------------------------------------------
[dagger] AV = Adjusted volume, in ft\3\, as calculated according to
  title 10 CFR part 430, subpart B, appendix A.

B. TSLs Considered for Combination Cooler Refrigeration Products.

    Table II.4 and Table II.5 summarize the quantitative impacts 
estimated for each TSL for combination cooler refrigeration products. 
The national impacts are measured over the lifetime of products 
purchased in the 30-year period that begins in the anticipated year of 
compliance with new standards (2019-2048 for TSL 1, and 2021-2050 for 
the other TSLs). The energy savings, emissions reductions, and value of 
emissions reductions refer to FFC results. The efficiency levels 
contained in each TSL are described in section V.A of the direct final 
rule published elsewhere in this Federal Register.

 Table II.4--Summary of Analytical Results for Combination Cooler Refrigeration Products TSLs: National Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                 Cumulative FFC National Energy Savings (quads)
----------------------------------------------------------------------------------------------------------------
Quads...................................           0.00084             0.007             0.012            0.016.
----------------------------------------------------------------------------------------------------------------
                               NPV of Consumer Costs and Benefits (2015$ billion)
----------------------------------------------------------------------------------------------------------------
3% discount rate........................            0.0045             0.035            (0.06)           (0.14).
7% discount rate........................            0.0017             0.011            (0.04)           (0.09).
----------------------------------------------------------------------------------------------------------------
                            Cumulative FFC Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (million metric tons).........              0.05              0.44              0.73             0.96.
SO[ihel2] (thousand tons)...............              0.03              0.25              0.42             0.55.
NOX (thousand tons).....................              0.09              0.80              1.32             1.73.
Hg (tons)...............................              0.00              0.00              0.00             0.00.
CH4 (thousand tons).....................              0.21              1.90              3.16             4.13.
CH4 (thousand tons CO2eq) **............              6.02             53.24             88.46           115.75.
N2O (thousand tons).....................              0.00              0.01              0.01             0.01.
N2O (thousand tons CO2eq) **............              0.16              1.40              2.34             3.05.
----------------------------------------------------------------------------------------------------------------
                               Value of Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (2015$ billion) [dagger]......    0.000 to 0.005    0.003 to 0.042    0.005 to 0.071   0.007 to 0.092.
NOX - 3% discount rate (2015$ million)..        0.2 to 0.4        1.4 to 3.3        2.4 to 5.5       3.1 to 7.1.

[[Page 74957]]

 
NOX - 7% discount rate (2015$ million)..        0.1 to 0.2        0.6 to 1.3        0.9 to 2.1       1.2 to 2.7.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 1, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** CO[ihel2]eq is the quantity of CO[ihel2] that would have the same global warming potential (GWP).
[dagger] Range of the economic value of CO[ihel2] reductions is based on estimates of the global benefit of
  reduced CO[ihel2] emissions.


 Table II.5--Summary of Analytical Results for Combination Cooler Refrigeration Products TSLs: Manufacturer and
                                                Consumer Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                              Manufacturer Impacts
----------------------------------------------------------------------------------------------------------------
Industry NPV (2015$ million) (No-new-       107.4 to 107.6    103.7 to 107.5    101.6 to 117.7   100.1 to 128.5.
 standards case INPV = 108.2)...........
Industry NPV (% change).................      -0.7 to -0.5      -4.1 to -0.6       -6.0 to 8.9     -7.5 to 18.8.
----------------------------------------------------------------------------------------------------------------
                                      Consumer Average LCC Savings (2015$)
----------------------------------------------------------------------------------------------------------------
C-3A....................................            n.a.**                58                53            (209).
C-3A-BI.................................               n.a                66                59            (237).
C-9.....................................              n.a.                89                 3            (182).
C-9-BI..................................              n.a.               102                 4            (205).
C-13A...................................                32                17             (123)            (194).
C-13A-BI................................              n.a.                 8             (151)            (232).
----------------------------------------------------------------------------------------------------------------
                                           Consumer Simple PBP (years)
----------------------------------------------------------------------------------------------------------------
C-3A....................................              n.a.               4.1               6.8             25.3.
C-3A-BI.................................              n.a.               4.1               6.8             25.4.
C-9.....................................              n.a.               2.6              12.1             23.3.
C-9-BI..................................              n.a.               2.6              12.0             23.2.
C-13A...................................               4.3               5.0              13.3             16.0.
C-13A-BI................................              n.a.               6.5              21.6             24.6.
----------------------------------------------------------------------------------------------------------------
                                     % of Consumers that Experience Net Cost
----------------------------------------------------------------------------------------------------------------
C-3A....................................                 0                 4                26               92.
C-3A-BI.................................                 0                 4                26               92.
C-9.....................................                 0                 0                62               90.
C-9-BI..................................                 0                 0                63               90.
C-13A...................................                 6                44                94               96.
C-13A-BI................................                 0                49                97               98.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 1, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or
  exceeded in the MREF market.

    DOE first considered TSL 4, which represents the max-tech 
efficiency levels. TSL 4 would save 0.016 quads of energy, an amount 
DOE considers significant. Under TSL 4, the NPV of consumer benefit 
would be -$0.09 billion using a discount rate of 7 percent, and -$0.14 
billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 0.96 Mt of 
CO2, 0.55 thousand tons of SO2, 1.73 thousand 
tons of NOX, 0.0 ton of Hg, 4.13 thousand tons of 
CH4, and 0.01 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 4 
ranges from $7 million to $92 million.
    At TSL 4, the average LCC savings range from -$237 to -$182. The 
simple payback period ranges from 16.0 years to 25.4 years. The 
fraction of consumers experiencing a net LCC cost ranges from 90 
percent to 98 percent.
    Also at TSL 4, the projected change in INPV ranges from a decrease 
of $8.1 million to an increase of $20.3 million, which correspond to a 
decrease of 7.5 percent to an increase of 18.8 percent, respectively. 
Similar to coolers, detailed feedback from manufacturer interviews 
indicated that combination cooler refrigeration products are highly 
price sensitive, and therefore the lower bound of INPV impacts is more 
likely to occur. Additionally, in the context of new standards for 
coolers and other cumulative regulatory burdens, at TSL 4, 
disproportionate impacts on domestic LVMs of combination cooler 
refrigeration products may be severe. This could have a direct impact 
on the availability of certain niche combination cooler refrigeration 
products, as well as on competition, domestic manufacturing capacity, 
and production employment related to the combination cooler 
refrigeration product industry.
    The Secretary concludes that at TSL 4 for combination cooler 
refrigeration products, the benefits of energy savings, emission 
reductions, and the estimated monetary value of the emissions 
reductions would be outweighed by the

[[Page 74958]]

negative NPV of consumer benefits, the economic burden on some 
consumers, and the disproportionate impacts on the LVMs, which could 
directly impact the availability of certain niche combination cooler 
products. Consequently, the Secretary has concluded that TSL 4 is not 
economically justified.
    DOE then considered TSL 3, which would save an estimated 0.012 
quads of energy, an amount DOE considers significant. Under TSL 3, the 
NPV of consumer benefit would be -$0.04 billion using a discount rate 
of 7 percent, and -$0.06 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 3 are 0.73 Mt of 
CO2, 0.42 thousand tons of SO2, 1.32 thousand 
tons of NOX, 0.00 tons of Hg, 3.16 thousand tons of 
CH4, and 0.01 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 3 
ranges from $5 million to $71 million.
    At TSL 3, the average LCC savings range from -$151 to $59. The 
simple payback period ranges from 6.8 years to 21.6 years. The fraction 
of consumers experiencing a net LCC cost ranges from 26 percent to 97 
percent.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$6.5 million to an increase of $9.6 million, which represent a decrease 
of 6.0 percent and an increase of 8.9 percent, respectively. Again, 
manufacturers indicated that combination cooler refrigeration products 
are highly price sensitive, and therefore the lower bound of INPV 
impacts is more likely to occur. In the context of new standards for 
coolers and other cumulative regulatory burdens, at TSL 3, 
disproportionate impacts on domestic LVMs of combination cooler 
refrigeration products may be severe. This could have a direct impact 
on the availability of certain niche combination cooler refrigeration 
products, as well as on competition, domestic manufacturing capacity 
and production employment related to the combination cooler 
refrigeration product industry.
    The Secretary concludes that at TSL 3 for combination cooler 
refrigeration products, the benefits of energy savings, emission 
reductions, and the estimated monetary value of the emissions 
reductions would be outweighed by the negative NPV of consumer benefits 
and disproportionate impacts on the LVMs, which could directly impact 
the availability of certain niche combination cooler products. 
Consequently, the Secretary has concluded that TSL 3 is not 
economically justified.
    DOE then considered TSL 2, which reflects the efficiency levels 
with maximum consumer NPV at seven percent discount rate. TSL 2 would 
save an estimated 0.007 quads of energy, an amount DOE considers 
significant. Under TSL 2, the NPV of consumer benefit would be $0.011 
billion using a discount rate of 7 percent, and $0.035 billion using a 
discount rate of 3 percent.
    The cumulative emissions reductions at TSL 2 are 0.44 Mt of 
CO2, 0.25 thousand tons of SO2, 0.8 thousand tons 
of NOX, 0.00 tons of Hg, 1.90 thousand tons of 
CH4, and 0.013 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 2 ranges from $3 million to $42 million.
    At TSL 2, the average LCC savings range from $8 to $102. The simple 
payback period ranges from 2.6 years to 6.5 years. The fraction of 
consumers experiencing a net LCC cost ranges from zero percent to 49 
percent.
    At TSL 2, the projected change in INPV ranges from a decrease of 
$4.4 million to a decrease of $0.6 million, which represent decreases 
of 4.1 percent and 0.6 percent, respectively. Again, in the context of 
new standards for coolers and other cumulative regulatory burdens, at 
TSL 2, disproportionate impacts on domestic LVMs may be severe. This 
could have a direct impact on the availability of certain niche 
combination cooler refrigeration products, as well as on competition, 
domestic manufacturing capacity and production employment related to 
the combination cooler refrigeration product industry.
    The Secretary concludes that at TSL 2 for combination cooler 
refrigeration products, the benefits of energy savings, positive NPV of 
consumer benefits, emission reductions, and the estimated monetary 
value of the emissions reductions would again be outweighed by the 
disproportionate impacts on the domestic LVMs, which could directly 
impact the availability of certain niche combination cooler products. 
Consequently, the Secretary has concluded that TSL 2 is not 
economically justified.
    DOE then considered TSL 1, which reflects the standard levels 
recommended by the MREF Working Group. TSL 1 would save an estimated 
0.00084 quads of energy, an amount DOE considers significant. Under TSL 
1, the NPV of consumer benefit would be $0.0017 billion using a 
discount rate of 7 percent, and $0.0045 billion using a discount rate 
of 3 percent.
    The cumulative emissions reductions at TSL 1 are 0.05 Mt of 
CO2, 0.03 thousand tons of SO2, 0.09 thousand 
tons of NOX, 0.00 tons of Hg, 0.21 thousand tons of 
CH4, and 0.00 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 1 
ranges from $0 million to $5 million.
    At TSL 1, the combination cooler refrigeration products currently 
available on the market already meet or exceed the corresponding 
efficiency levels in all product classes except for C-13A. As a result, 
for five of the product classes, no consumers experience a net cost, 
and the LCC savings and simple payback period are not applicable. For 
product class C-13A, the average LCC savings is $32, the simple payback 
period is 4.3 years, and the fraction of consumers experiencing a net 
LCC cost is 6 percent.
    At TSL 1, the projected change in INPV ranges from a decrease of 
$0.8 million to a decrease of $0.5 million, which represent decreases 
of 0.7 percent and 0.5 percent, respectively. DOE estimated that all 
combination cooler refrigeration products manufactured domestically by 
LVMs currently meet the standard levels corresponding to TSL 1. 
Therefore, at TSL 1, DOE believes that domestic manufacturers will 
continue to offer the same combination cooler refrigeration products as 
those they currently offer.
    After considering the analysis and weighing the benefits and 
burdens, DOE has determined that the recommended standards for 
combination cooler refrigeration products are in accordance with 42 
U.S.C. 6295(o). Specifically, the Secretary has determined the benefits 
of energy savings, positive NPV of consumer benefits, emission 
reductions, the estimated monetary value of the emissions reductions, 
and positive average LCC savings would outweigh the negative impacts on 
some consumers and on manufacturers, including the conversion costs 
that could result in a reduction in INPV for manufacturers. 
Accordingly, the Secretary has concluded that TSL 1 would offer the 
maximum improvement in efficiency that is technologically feasible and 
economically justified, and would result in the significant 
conservation of energy.
    Therefore, DOE proposes to adopt TSL 1 as the energy conservation 
standard for combination cooler refrigeration products. The proposed 
new energy conservation standards, which are expressed as maximum 
annual energy use, in kWh/yr, as a function of AV, in ft\3\, are shown 
in Table II.6.

[[Page 74959]]



        Table II.6--Proposed Energy Conservation Standards for combination Cooler Refrigeration Products
----------------------------------------------------------------------------------------------------------------
        Product class description             Product class designation       Maximum  allowable AEU  (kWh/yr)
----------------------------------------------------------------------------------------------------------------
Cooler with all-refrigerator--automatic    C-3A                             4.57AV [dagger] + 130.4
 defrost.
Built-in cooler with all-refrigerator--    C-3A-BI                          5.19AV + 147.8
 automatic defrost.
Cooler with upright freezers with          C-9                              5.58AV + 147.7
 automatic defrost without an automatic
 icemaker.
Built-in cooler with upright freezer with  C-9-BI                           6.38AV + 168.8
 automatic defrost without an automatic
 icemaker.
Cooler with upright freezer with           C-9I                             5.58AV + 231.7
 automatic defrost with an automatic
 icemaker.
Built-in cooler with upright freezer with  C-9I-BI                          6.38AV + 252.8
 automatic defrost with an automatic
 icemaker.
Compact cooler with all-refrigerator--     C-13A                            5.93AV + 193.7
 automatic defrost.
Built-in compact cooler with all-          C-13A-BI                         6.52AV + 213.1
 refrigerator--automatic defrost.
----------------------------------------------------------------------------------------------------------------
[dagger] AV = Adjusted volume, in ft\3\, as calculated according to title 10 CFR part 430, subpart B, appendix
  A.

C. Summary of Benefits and Costs of the Proposed Standards

    The benefits and costs of the adopted standards can also be 
expressed in terms of annualized values. The annualized net benefit is 
the sum of: (1) the annualized national economic value (expressed in 
2015$) of the benefits from operating products that meet the adopted 
standards (consisting primarily of operating cost savings from using 
less energy, minus increases in product purchase costs, and (2) the 
annualized monetary value of the benefits of CO2 and 
NOX emission reductions.\3\
---------------------------------------------------------------------------

    \3\ To convert the time-series of costs and benefits into 
annualized values, DOE calculated a present value in 2016, the year 
used for discounting the NPV of total consumer costs and savings. 
For the benefits, DOE calculated a present value associated with 
each year's shipments in the year in which the shipments occur 
(2020, 2030, etc.), and then discounted the present value from each 
year to 2016. The calculation uses discount rates of 3 and 7 percent 
for all costs and benefits except for the value of CO2 
reductions, for which DOE used case-specific discount rates. Using 
the present value, DOE then calculated the fixed annual payment over 
a 30-year period, starting in the compliance year that yields the 
same present value.
---------------------------------------------------------------------------

    Table II.7 shows the annualized values for MREFs under TSL 2 for 
coolers and TSL 1 for combination cooler refrigeration products, 
expressed in 2015$. The results under the primary estimate are as 
follows. Using a 7-percent discount rate for benefits and costs other 
than CO2 reduction, (for which DOE used a 3-percent discount 
rate along with the SCC series that has a value of $40.6/t in 2015),\4\ 
the estimated cost of the standards in this rule is $153 million per 
year in increased equipment costs, while the estimated annual benefits 
are $593 million in reduced equipment operating costs, $165 million in 
CO2 reductions, and $13.1 million in reduced NOX 
emissions. In this case, the net benefit amounts to $619 million per 
year.
---------------------------------------------------------------------------

    \4\ DOE used a 3-percent discount rate because the SCC values 
for the series used in the calculation were derived using a 3-
percent discount rate (see section IV.L of the direct final rule 
published elsewhere in this Federal Register).
---------------------------------------------------------------------------

    Using a 3-percent discount rate for all benefits and costs and the 
SCC series has a value of $40.6/t in 2015, the estimated cost of the 
standards is $157 million per year in increased equipment costs, while 
the estimated annual benefits are $754 million in reduced operating 
costs, $165 million in CO2 reductions, and $17.7 million in 
reduced NOX emissions. In this case, the net benefit amounts 
to $779 million per year.

                                       Table II.7--Annualized Benefits and Costs of Adopted Standards for MREFs *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Low net benefits estimate  High net benefits estimate
                                              Discount rate                Primary estimate*                   *                           *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    ................................                                 (Million 2015$/year)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings...  7%..............................  593.......................  545.......................  649.
                                    3%..............................  754.......................  686.......................  839.
CO[ihel2] Reduction Value ($12.2/   5%..............................  49........................  46........................  53.
 t)**.
CO[ihel2] Reduction Value ($40.0/   3%..............................  165.......................  155.......................  179.
 t)**.
CO[ihel2] Reduction Value ($62.3/   2.5%............................  242.......................  227.......................  263.
 t)**.
CO[ihel2] Reduction Value ($117/    3%..............................  502.......................  471.......................  546.
 t)**.
NOX Reduction Value [dagger]......  7%..............................  13.1......................  12.4......................  31.6.
                                    3%..............................  17.7......................  16.6......................  43.6.
Total Benefits [dagger][dagger]...  7% plus CO[ihel2] range.........  655 to 1,108..............  603 to 1,028..............  733 to 1,226.
                                    7%..............................  771.......................  712.......................  860.
                                    3% plus CO[ihel2] range.........  820 to 1,273..............  748 to 1,173..............  935 to 1,428.
                                    3%..............................  937.......................  857.......................  1,062.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Incremental Product Costs  7%..............................  153.......................  145.......................  118.
                                    3%..............................  157.......................  148.......................  116.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total [dagger][dagger]............  7% plus CO[ihel2] range.........  503 to 956................  459 to 884................  615 to 1,108.
                                    7%..............................  619.......................  568.......................  742.
                                    3% plus CO[ihel2] range.........  663 to 1,116..............  601 to 1,026..............  819 to 1,312.

[[Page 74960]]

 
                                    3%..............................  779.......................  709.......................  946.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This table presents the annualized costs and benefits associated with MREFs shipped in 2019-2048. These results include benefits to consumers which
  accrue after 2048 from the MREFs purchased from 2019-2048. The results account for the incremental variable and fixed costs incurred by manufacturers
  due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High Benefits Estimates utilize
  projections of energy prices and housing starts from the AEO 2015 Reference case, Low Economic Growth case, and High Economic Growth case,
  respectively. In addition, incremental product costs reflect constant price trend the Primary Estimate and the Low Benefits Estimate, and a high
  decline rate in the High Benefits Estimate. The methods used to derive projected price trends are explained in section IV.F of the direct final rule
  published elsewhere in this Federal Register. Note that the Benefits and Costs may not sum to the Net Benefits due to rounding.
** The CO[ihel2] values represent global monetized values of the SCC, in 2015$ per metric ton (t), in 2015 under several scenarios of the updated SCC
  values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case
  represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor.
[dagger] DOE estimated the monetized value of NOX emissions reductions associated with electricity savings using benefit per ton estimates from the
  ``Regulatory Impact Analysis for the Clean Power Plan Final Rule,'' published in August 2015 by EPA's Office of Air Quality Planning and Standards.
  (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L of the direct final rule published
  elsewhere in this Federal Register for further discussion. For the Primary Estimate and Low Net Benefits Estimate, DOE used a national benefit-per-ton
  estimate for NOX emitted from the Electric Generating Unit sector based on an estimate of premature mortality derived from the ACS study (Krewski et
  al. 2009). For DOE's High Net Benefits Estimate, the benefit-per-ton estimates were based on the Six Cities study (Lepuele et al. 2011), which are
  nearly two-and-a-half times larger than those from the ACS study.
[dagger][dagger] Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
  ($40.6/t case). In the rows labeled ``7% plus CO[ihel2] range'' and ``3% plus CO[ihel2] range,'' the operating cost and NOX benefits are calculated
  using the labeled discount rate, and those values are added to the full range of CO[ihel2] values. The value of consumer incremental product costs is
  lower in the high net benefits scenario than it is in the primary case because the high net benefits scenario uses a highly declining price trend that
  more than offsets the increase in shipments due to higher economic growth.

III. Public Participation

A. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule until the date provided in the DATES section at the 
beginning of this proposed rule. Interested parties may submit 
comments, data, and other information using any of the methods 
described in the ADDRESSES section at the beginning of this proposed 
rule.
    Although DOE welcomes comments on any aspect of the proposal in 
this notice and the analysis as described in the direct final rule 
published elsewhere in this Federal Register, DOE is particularly 
interested in receiving comments and views of interested parties 
concerning the following issues:
    1. Whether the standards proposed in this notice would result in 
any lessening of utility for MREFs, including whether certain features 
would be eliminated from these products. See sections III.H.1.d and 
IV.2 of the direct final rule published elsewhere in this Federal 
Register.
    2. The incremental manufacturer production costs DOE estimated at 
each efficiency level. See section IV.C of the direct final rule 
published elsewhere in this Federal Register.
    3. DOE's method to estimate MREF shipments under the no-new-
standards case and under potential energy conservation standards 
levels. See section IV.G of the direct final rule published elsewhere 
in this Federal Register.
    4. The assumption that installation, maintenance, and repair costs 
do not vary for MREFs at higher efficiency levels. See section IV.F of 
the direct final rule published elsewhere in this Federal Register.
    5. The manufacturer conversion costs (both product and capital) 
used in DOE's analysis. See section V.B.2.d of the direct final rule 
published elsewhere in this Federal Register.
    6. The cumulative regulatory burden to MREF manufacturers 
associated with the proposed standards and on the approach DOE used in 
evaluating cumulative regulatory burden, including the timeframes and 
regulatory dates evaluated. See section V.B.2.e of the direct final 
rule published elsewhere in this Federal Register.
    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

[[Page 74961]]

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) 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).

B. Public Meeting

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

IV. Procedural Issues and Regulatory Review

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

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this proposed 
rule.

List of Subjects in 10 CFR Part 430

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

    Issued in Washington, DC, on October 4, 2016.
David J. Friedman,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

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

PART 430--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS

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

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

0
2. Amend Sec.  430.32 by adding paragraph (aa) to read as follows:


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

* * * * *
    (aa) Miscellaneous refrigeration products. The energy standards as 
determined by the equations of the following table(s) shall be rounded 
off to the nearest kWh per year. If the equation calculation is halfway 
between the nearest two kWh per year values, the standard shall be 
rounded up to the higher of these values.
    (1) Coolers manufactured starting on [date three years after date 
of publication of the direct final rule in the federal register] shall 
have Annual Energy Use (AEU) no more than:

------------------------------------------------------------------------
             Product class                        AEU (kWh/yr)
------------------------------------------------------------------------
1. Built-in compact...................  7.88AV + 155.8
2. Built-in...........................
3. Freestanding compact...............
4. Freestanding.......................
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as calculated according
  to appendix A of subpart B of this part.

    (2) Combination cooler refrigeration products manufactured starting 
on [date three years after date of publication of the direct final rule 
in the federal register] shall have Annual Energy Use (AEU) no more 
than:

[[Page 74962]]



------------------------------------------------------------------------
             Product class                        AEU (kWh/yr)
------------------------------------------------------------------------
C-3A. Cooler with all-refrigerator--    4.57AV + 130.4
 automatic defrost.
C-3A-BI. Built-in cooler with all-      5.19AV + 147.8
 refrigerator--automatic defrost..
C-9. Cooler with upright freezers with  5.58AV + 147.7
 automatic defrost without an
 automatic icemaker.
C-9-BI. Built-in cooler with upright    6.38AV + 168.8
 freezer with automatic defrost
 without an automatic icemaker.
C-9I. Cooler with upright freezer with  5.58AV + 231.7
 automatic defrost with an automatic
 icemaker.
C-9I-BI. Built-in cooler with upright   6.38AV + 252.8
 freezer with automatic defrost with
 an automatic icemaker.
C-13A. Compact cooler with all-         5.93AV + 193.7
 refrigerator--automatic defrost.
C-13A-BI. Built-in compact cooler with  6.52AV + 213.1
 all-refrigerator--automatic defrost.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as calculated according
  to appendix A of subpart B of this part.

[FR Doc. 2016-24758 Filed 10-27-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                    74950

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 81, No. 209

                                                                                                                                                                  Friday, October 28, 2016



                                                    This section of the FEDERAL REGISTER                    the ADDRESSES section before November                 Energy through the methods listed
                                                    contains notices to the public of the proposed          28, 2016.                                             above and by email to Chad_S_
                                                    issuance of rules and regulations. The                  ADDRESSES: See section III, ‘‘Public                  Whiteman@omb.eop.gov.
                                                    purpose of these notices is to give interested                                                                   EPCA requires the Attorney General
                                                    persons an opportunity to participate in the
                                                                                                            Participation,’’ for details. If DOE
                                                    rule making prior to the adoption of the final          withdraws the direct final rule                       to provide DOE a written determination
                                                    rules.                                                  published elsewhere in this Federal                   of whether the proposed standard is
                                                                                                            Register, DOE will hold a public                      likely to lessen competition. The U.S.
                                                                                                            meeting to allow for additional                       Department of Justice Antitrust Division
                                                    DEPARTMENT OF ENERGY                                    comment on this proposed rule. DOE                    invites input from market participants
                                                                                                            will publish notice of any meeting in                 and other interested persons with views
                                                    10 CFR Part 430                                         the Federal Register.                                 on the likely competitive impact of the
                                                                                                              Any comments submitted must                         proposed standard. Interested persons
                                                    [Docket Number EERE–2011–BT–STD–                        identify the proposed rule for Energy                 may contact the Division at
                                                    0043]                                                                                                         energy.standards@usdoj.gov before
                                                                                                            Conservation Standards for
                                                    RIN 1904–AC51                                           Miscellaneous Refrigeration Products,                 November 28, 2016. Please indicate in
                                                                                                            and provide docket number EERE–                       the ‘‘Subject’’ line of your email the title
                                                    Energy Conservation Program: Energy                     2011–BT–STD–0043 and/or regulatory                    and Docket Number of this rulemaking
                                                    Conservation Standards for                              information number (RIN) number                       notice.
                                                    Miscellaneous Refrigeration Products                    1904–AC51. Comments may be                               Docket: The docket, which includes
                                                                                                            submitted using any of the following                  Federal Register notices, public meeting
                                                    AGENCY: Office of Energy Efficiency and                 methods:                                              attendee lists and transcripts,
                                                    Renewable Energy, Department of                           1. Federal eRulemaking Portal:                      comments, and other supporting
                                                    Energy.                                                 www.regulations.gov. Follow the                       documents/materials, is available for
                                                    ACTION: Notice of proposed rulemaking.                  instructions for submitting comments.                 review at www.regulations.gov. All
                                                                                                              2. Email: WineChillers-2011–STD–                    documents in the docket are listed in
                                                    SUMMARY:    The Energy Policy and                       0043@ee.doe.gov. Include the docket                   the www.regulations.gov index.
                                                    Conservation Act of 1975 (‘‘EPCA’’), as                 number and/or RIN in the subject line                 However, some documents listed in the
                                                    amended, established the Energy                         of the message. Submit electronic                     index may not be publicly available,
                                                    Conservation Program for Consumer                       comments in WordPerfect, Microsoft                    such as those containing information
                                                    Products Other Than Automobiles.                        Word, PDF, or ASCII file format, and                  that is exempt from public disclosure.
                                                    Based on provisions in EPCA that                        avoid the use of special characters or                   A link to the docket Web page can be
                                                    enable the Secretary of Energy to                       any form of encryption.                               found at: http://www.regulations.gov/
                                                    classify additional types of consumer                     3. Postal Mail: Appliance and                       #!docketDetail;D=EERE-2011-BT-STD-
                                                    products as covered products, the U.S.                  Equipment Standards Program, U.S.                     0043. This Web page contains a link to
                                                    Department of Energy (‘‘DOE’’)                          Department of Energy, Building                        the docket for this notice on the
                                                    classified miscellaneous refrigeration                  Technologies Office, Mailstop EE–5B,                  www.regulations.gov site. The
                                                    products (‘‘MREFs’’) as covered                         1000 Independence Avenue SW.,                         www.regulations.gov Web page contains
                                                    consumer products under EPCA. In                        Washington, DC, 20585–0121. If                        simple instructions on how to access all
                                                    determining whether to set standards for                possible, please submit all items on a                documents, including public comments,
                                                    products, DOE must evaluate whether                     compact disc (CD), in which case it is                in the docket. See section III, ‘‘Public
                                                    new standards would be technologically                  not necessary to include printed copies.              Participation,’’ for further information
                                                    feasible and economically justified, and                  4. Hand Delivery/Courier: Appliance                 on how to submit comments through
                                                    would save a significant amount of                      and Equipment Standards Program, U.S.                 www.regulations.gov.
                                                    energy. In this proposed rule, DOE                      Department of Energy, Building
                                                    proposes new energy conservation                        Technologies Office, 950 L’Enfant Plaza               FOR FURTHER INFORMATION CONTACT:
                                                    standards for MREFs identical to those                  SW., 6th Floor, Washington, DC 20024.                 Joseph Hagerman, U.S. Department of
                                                    set forth in a direct final rule published              Telephone: (202) 586–6636. If possible,               Energy, Office of Energy Efficiency and
                                                    elsewhere in this Federal Register. If                  please submit all items on a CD, in                   Renewable Energy, Building
                                                    DOE receives adverse comment and                        which case it is not necessary to include             Technologies Office, EE–5B, 1000
                                                    determines that such comment may                        printed copies.                                       Independence Avenue SW.,
                                                    provide a reasonable basis for                            No telefacsimilies (faxes) will be                  Washington, DC, 20585–0121.
                                                    withdrawal, DOE will publish a notice                   accepted. For detailed instructions on                Telephone: (202) 586–6590. Email:
                                                    withdrawing the final rule and will                     submitting comments and additional                    refrigerators_and_freezers@ee.doe.gov.
                                                    proceed with this proposed rule.                        information on the rulemaking process,                  For further information on how to
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    DATES: DOE will accept comments, data,                  see section III of this document (‘‘Public            submit a comment, review other public
                                                    and information regarding the proposed                  Participation’’).                                     comments and the docket, or participate
                                                    standards no later than February 15,                      Written comments regarding the                      in the public meeting, contact the
                                                    2017.                                                   burden-hour estimates or other aspects                Appliance and Equipment Standards
                                                      Comments regarding the likely                         of the collection-of-information                      Program staff at (202) 586–6636 or by
                                                    competitive impact of the proposed                      requirements contained in this proposed               email: Appliance_Standards_Public_
                                                    standard should be sent to the                          rule may be submitted to Office of                    Meetings@ee.doe.gov.
                                                    Department of Justice contact listed in                 Energy Efficiency and Renewable                       SUPPLEMENTARY INFORMATION:



                                               VerDate Sep<11>2014   17:23 Oct 27, 2016   Jkt 241001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\28OCP1.SGM   28OCP1


                                                                            Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                         74951

                                                    Table of Contents                                          Pursuant to EPCA, DOE’s energy                        2. The savings in operating costs
                                                    I. Introduction and Legal Authority
                                                                                                            conservation program for covered                      throughout the estimated average life of
                                                       A. Legal Authority                                   products consists essentially of four                 the covered products in the type (or
                                                       B. Rulemaking History                                parts: (1) Testing; (2) labeling; (3) the             class) compared to any increase in the
                                                    II. Proposed Standards                                  establishment of Federal energy                       price, initial charges, or maintenance
                                                       A. TSLs Considered for Coolers                       conservation standards; and (4)                       expenses for the covered products that
                                                       B. TSLs Considered for Combination                   certification and enforcement                         are likely to result from the imposition
                                                          Cooler Refrigeration Products                     procedures. The Federal Trade                         of the standard;
                                                       C. Summary of Benefits and Costs of the              Commission (‘‘FTC’’) is primarily                        3. The total projected amount of
                                                          Proposed Standards                                responsible for labeling, and DOE                     energy, or as applicable, water, savings
                                                    III. Public Participation                               implements the remainder of the                       likely to result directly from the
                                                       A. Submission of Comments
                                                                                                            program. Subject to certain criteria and              imposition of the standard;
                                                       B. Public Meeting
                                                    IV. Procedural Issues and Regulatory Review             conditions, DOE is required to develop                   4. Any lessening of the utility or the
                                                    V. Approval of the Office of the Secretary              test procedures to measure the energy                 performance of the covered products
                                                                                                            efficiency, energy use, or estimated                  likely to result from the imposition of
                                                    I. Introduction and Legal Authority                     annual operating cost of each covered                 the standard;
                                                    A. Legal Authority                                      product. (42 U.S.C. 6295(o)(3)(A) and                    5. The impact of any lessening of
                                                                                                            (r)) Manufacturers of covered products                competition, as determined in writing
                                                       The Energy Policy and Conservation                   must use the prescribed DOE test                      by the Attorney General, that is likely to
                                                    Act of 1975, as amended (‘‘EPCA’’)                      procedure as the basis for certifying to              result from the imposition of the
                                                    (Public Law 94–163 (December 22,                        DOE that their products comply with                   standard;
                                                    1975)) includes provisions covering the                 the applicable energy conservation                       6. The need for national energy and
                                                    products addressed by this notice. EPCA                 standards adopted under EPCA and                      water conservation; and
                                                    addresses, among other things, the                      when making representations to the                       7. Other factors the Secretary of
                                                    energy efficiency of certain types of                   public regarding the energy use or                    Energy (Secretary) considers relevant.
                                                    consumer products. Relevant provisions                  efficiency of those products. (42 U.S.C.              (42 U.S.C. 6295(o)(2)(B)(i)(I)–(VII))
                                                    of the Act specifically include                         6293(c) and 6295(s)) Similarly, DOE
                                                                                                                                                                     Further, EPCA, as codified,
                                                    definitions (42 U.S.C. 6291), energy                    must use these test procedures to
                                                                                                                                                                  establishes a rebuttable presumption
                                                    conservation standards (42 U.S.C. 6295),                determine whether the products comply
                                                                                                                                                                  that a standard is economically justified
                                                    test procedures (42 U.S.C. 6293),                       with standards adopted pursuant to
                                                                                                                                                                  if the Secretary finds that the additional
                                                    labeling provisions (42 U.S.C. 6294),                   EPCA. (42 U.S.C. 6295(s)) The DOE test
                                                                                                                                                                  cost to the consumer of purchasing a
                                                    and the authority to require information                procedure for MREFs currently appears
                                                                                                            at title 10 of the Code of Federal                    product complying with an energy
                                                    and reports from manufacturers (42                                                                            conservation standard level will be less
                                                    U.S.C. 6296).                                           Regulations (‘‘CFR’’) part 430, subpart B,
                                                                                                            appendix A (appendix A).                              than three times the value of the energy
                                                       Under 42 U.S.C. 6292(a)(20), DOE                        DOE follows specific criteria when                 savings during the first year that the
                                                    may extend coverage over a particular                   prescribing new or amended standards                  consumer will receive as a result of the
                                                    type of consumer product provided that                  for covered products. As indicated                    standard, as calculated under the
                                                    DOE determines that classifying                         above, any new or amended standard for                applicable test procedure. (42 U.S.C.
                                                    products of such type as covered                        a covered product must be designed to                 6295(o)(2)(B)(iii))
                                                    products is necessary or appropriate to                 achieve the maximum improvement in                       EPCA also contains what is known as
                                                    carry out the purposes of EPCA and that                 energy efficiency that is technologically             an ‘‘anti-backsliding’’ provision, which
                                                    the average annual per-household                        feasible and economically justified. (42              prevents the Secretary from prescribing
                                                    energy use by products of such type is                  U.S.C. 6295(o)(2)(A) and (3)(B))                      any amended standard that either
                                                    likely to exceed 100 kilowatt-hours                     Furthermore, DOE may not adopt any                    increases the maximum allowable
                                                    (‘‘kWh’’) or its British thermal unit                   standard that would not result in the                 energy use or decreases the minimum
                                                    (‘‘Btu’’) equivalent per year. See 42                   significant conservation of energy. (42               required energy efficiency of a covered
                                                    U.S.C. 6292(b)(1). EPCA sets out the                    U.S.C. 6295(o)(3)) Moreover, DOE may                  product. (42 U.S.C. 6295(o)(1)) Also, the
                                                    following additional requirements to                    not prescribe a standard: (1) for certain             Secretary may not prescribe an amended
                                                    establish energy conservation standards                 products, including MREFs, if no test                 or new standard if interested persons
                                                    for a newly covered product: (1) The                    procedure has been established for the                have established by a preponderance of
                                                    average per household domestic energy                   product, or (2) if DOE determines by                  the evidence that the standard is likely
                                                    use by such products exceeded 150 kWh                   rule that the new or amended standard                 to result in the unavailability in the
                                                    or its Btu equivalent for any 12-month                  is not technologically feasible or                    United States in any covered product
                                                    period ending before such                               economically justified. (42 U.S.C.                    type (or class) of performance
                                                    determination; (2) the aggregate                        6295(o)(3)(A)–(B)) In deciding whether a              characteristics (including reliability),
                                                    domestic household energy use by such                   new or amended standard is                            features, sizes, capacities, and volumes
                                                    products exceeded 4.2 million kWh or                    economically justified, DOE must                      that are substantially the same as those
                                                    its Btu equivalent for any such 12-                     determine whether the benefits of the                 generally available in the United States.
                                                    month period; (3) substantial energy                    standard exceed its burdens. (42 U.S.C.               (42 U.S.C. 6295(o)(4))
                                                    efficiency of the products is                           6295(o)(2)(B)(i)) DOE must make this                     Additionally, DOE may set energy
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                                                    technologically feasible; and (4)                       determination after receiving comments                conservation standards for a covered
                                                    applying a labeling rule is unlikely to be              on the proposed standard and                          product that has two or more
                                                    sufficient to induce manufacturers to                   considering, to the greatest extent                   subcategories. In those instances, DOE
                                                    produce, and consumers and other                        practicable, the following seven factors:             must specify a different standard level
                                                    persons to purchase, products of such                      1. The economic impact of the                      for a type or class of products that has
                                                    type that achieve the maximum level of                  standard on manufacturers and                         the same function or intended use if
                                                    energy efficiency. See 42 U.S.C.                        consumers of the products subject to the              DOE determines that products within
                                                    6295(l)(1).                                             standard;                                             such group: (A) Consume a different


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                                                    74952                   Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                    kind of energy from that consumed by                    establishing the recommended standard.                B. Rulemaking History
                                                    other covered products within such type                 A notice of proposed rulemaking                          DOE has not previously established
                                                    (or class); or (B) have a capacity or other             (‘‘NOPR’’) that proposes an identical                 energy conservation standards for
                                                    performance-related feature which other                 energy efficiency standard is published               MREFs. Consistent with its statutory
                                                    products within such type (or class) do                 simultaneously with the direct final                  obligations, DOE sought to establish
                                                    not have and such feature justifies a                   rule. A public comment period of at                   regulatory coverage over these products
                                                    higher or lower standard. (42 U.S.C.                    least 110 days is provided. See 42 U.S.C.             prior to establishing energy
                                                    6295(q)(1)) In determining whether a                    6295(p)(4). Not later than 120 days after             conservation standards to regulate
                                                    performance-related feature justifies a                 the date on which a direct final rule                 MREF efficiency. On November 8, 2011,
                                                    different standard for a group of                       issued under this authority is published              DOE published a notice of proposed
                                                    products, DOE must consider such                        in the Federal Register, the Secretary                determination of coverage (‘‘NOPD’’) to
                                                    factors as the utility to the consumer of               shall withdraw the direct final rule if               address the potential coverage of those
                                                    such a feature and other factors DOE                    the Secretary receives one or more                    refrigeration products that do not use a
                                                    deems appropriate. Id. Any rule                         adverse public comments relating to the               compressor-based refrigeration system.
                                                    prescribing such a standard must                        direct final rule or any alternative joint            76 FR 69147. Rather than employing a
                                                    include an explanation of the basis on                  recommendation and based on the                       compressor/condenser-based system
                                                    which such higher or lower level was                                                                          typically installed in the refrigerators,
                                                                                                            rulemaking record relating to the direct
                                                    established. (42 U.S.C. 6295(q)(2))                                                                           refrigerator-freezers, and freezers found
                                                       Federal energy conservation                          final rule, the Secretary determines that
                                                                                                            such adverse public comments or                       in most U.S. homes, these ‘‘non-
                                                    requirements generally supersede State                                                                        compressor-based’’ refrigeration
                                                    laws or regulations concerning energy                   alternative joint recommendation may
                                                                                                            provide a reasonable basis for                        products use a variety of other means to
                                                    conservation testing, labeling, and                                                                           introduce chilled air into the interior of
                                                    standards. (42 U.S.C. 6297(a) through                   withdrawing the direct final rule under
                                                                                                            subsection 42 U.S.C. 6295(o) or any                   the storage cabinet of the product. Two
                                                    (c)) DOE may, however, grant waivers of                                                                       systems that DOE specifically examined
                                                    Federal preemption for particular State                 other applicable law. On withdrawal of
                                                                                                            a direct final rule, the Secretary shall              were thermoelectric- and absorption-
                                                    laws or regulations, in accordance with                                                                       based systems.1 The former of these
                                                    the procedures and other provisions set                 proceed with the NOPR published
                                                                                                            simultaneously with the direct final rule             systems is used in some wine chiller
                                                    forth under 42 U.S.C. 6297(d).                                                                                applications. With respect to the latter
                                                       DOE is also required to address                      and publish in the Federal Register the
                                                                                                                                                                  group of products, DOE indicated its
                                                    standby mode and off mode energy use.                   reasons why the direct final rule was
                                                                                                                                                                  belief that these types of products were
                                                    (42 U.S.C. 6295(gg)(3)) Specifically,                   withdrawn. This direct final rule
                                                                                                                                                                  used primarily in mobile applications
                                                    when DOE adopts a standard for a                        provision applies to the products at
                                                                                                                                                                  and would likely fall outside of DOE’s
                                                    covered product after that date, it must,               issue in the direct final rule published
                                                                                                                                                                  scope of coverage. See 42 U.S.C. 6292(a)
                                                    if justified by the criteria for the                    simultaneously with this NOPR. See 42
                                                                                                                                                                  (excluding from coverage ‘‘those
                                                    adoption of standards under EPCA (42                    U.S.C. 6295(p)(4).                                    consumer products designed solely for
                                                    U.S.C. 6295(o)), incorporate standby                       DOE also notes that it typically                   use in recreational vehicles and other
                                                    mode and off mode energy use into a                     finalizes its test procedures for a given             mobile equipment’’).
                                                    single standard, or, if that is not feasible,           regulated product or equipment prior to                  On February 13, 2012, DOE published
                                                    adopt a separate standard for such                      proposing new or amended energy                       a notice announcing the availability of
                                                    energy use for that product. (42 U.S.C.                 conservation standards for that product               the framework document, ‘‘Energy
                                                    6295(gg)(3)(A) and (B)) DOE’s test                                                                            Conservation Standards Rulemaking
                                                                                                            or equipment, see 10 CFR part 430,
                                                    procedures for MREFs address standby                                                                          Framework Document for Wine Chillers
                                                                                                            subpart C, Appendix A, sec. 7(c)
                                                    mode and off mode energy use, as do                                                                           and Miscellaneous Refrigeration
                                                                                                            (‘‘Procedures, Interpretations and
                                                    the new standards adopted in this                                                                             Products,’’ and a public meeting to
                                                                                                            Policies for Consideration of New or
                                                    notice of proposed rulemaking.                                                                                discuss the proposed analytical
                                                       With particular regard to direct final               Revised Energy Conservation Standards
                                                                                                            for Consumer Products’’ or ‘‘Process                  framework for the energy conservation
                                                    rules, the Energy Independence and
                                                                                                            Rule’’). In this instance, although DOE               standards rulemaking. 77 FR 7547. In
                                                    Security Act of 2007 (‘‘EISA 2007’’),
                                                                                                            has finalized its test procedure for                  the framework document, DOE
                                                    Public Law 110–140 (December 19,
                                                                                                            MREFs, rather than issue a notice of                  described the procedural and analytical
                                                    2007), amended EPCA, in relevant part,
                                                                                                            proposed rulemaking to set standards                  approaches it anticipated using to
                                                    to grant DOE authority to issue a type
                                                                                                            for these products, DOE is moving                     evaluate potential energy conservation
                                                    of final rule (i.e., a ‘‘direct final rule’’)
                                                                                                            forward with a direct final rule. As part             standards for four types of consumer
                                                    establishing an energy conservation
                                                                                                            of the negotiated rulemaking that led to              refrigeration products: Wine chillers,
                                                    standard for a product on receipt of a
                                                                                                            the Term Sheet setting out the standards              non-compressor refrigerators, hybrid
                                                    statement that is submitted jointly by
                                                                                                            that DOE is proposing, Working Group                  refrigerators (i.e., a wine chiller
                                                    interested persons that are fairly
                                                                                                            members recommended (with ASRAC’s                     combined with a refrigerator), and ice
                                                    representative of relevant points of view
                                                                                                            approval) that DOE implement the test                 makers.
                                                    (including representatives of                                                                                    DOE held a public meeting on
                                                    manufacturers of covered products,                      procedure that DOE recently finalized.
                                                                                                            See 81 FR 46768 (July 18, 2016). The                  February 22, 2012, to present the
                                                    States, and efficiency advocates), as                                                                         framework document, describe the
                                                    determined by the Secretary, and that                   approach laid out in that final rule is
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                                                                                                                                                                  analyses DOE planned to conduct
                                                    contains recommendations with respect                   consistent with the approach agreed
                                                                                                                                                                  during the rulemaking, seek comments
                                                    to an energy or water conservation                      upon by the various Working Group
                                                                                                                                                                  from interested parties on these
                                                    standard. In the context of consumer                    members who participated in the
                                                                                                                                                                  subjects, and inform the public about,
                                                    products, if the Secretary determines                   negotiated rulemaking. Accordingly, in
                                                                                                                                                                  and facilitate public participation in, the
                                                    that the recommended standard                           accordance with section 14 of the
                                                    contained in the statement is in                        Process Rule, DOE tentatively concludes                 1 Chapter 3 of the direct final rule technical
                                                    accordance with 42 U.S.C. 6295(o), the                  that deviation from the Process Rule is               support document provides a detailed description
                                                    Secretary may issue a final rule                        appropriate here.                                     of each of these refrigeration technologies.



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                                                                            Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                          74953

                                                    rulemaking. At the public meeting and                   possible, reach consensus on a                        cooler refrigeration products—as
                                                    during the comment period, DOE                          recommended scope of coverage,                        defined under the proposal—would
                                                    received multiple comments that                         definitions, test procedures, and energy              meet the requirements under EPCA to
                                                    addressed issues raised in the                          conservation standards. 80 FR 17355.                  be considered covered products. Id. at
                                                    framework document and identified                       The MREF Working Group consisted of                   11456–11459.
                                                    additional issues relevant to the                       15 members, including two members                        On July 18, 2016, DOE published a
                                                    rulemaking.                                             from ASRAC and one DOE                                final coverage determination and final
                                                       On October 31, 2013, DOE published                   representative. The MREF Working                      rule (the ‘‘July 2016 Final Coverage
                                                    in the Federal Register a supplemental                  Group met in person during six sets of                Determination’’) to establish coolers and
                                                    notice of proposed determination of                     meetings in 2015: May 4–5, June 11–12,                combination cooler refrigeration
                                                    coverage (the ‘‘October 2013 SNOPD’’),                  July 15–16, August 11–12, September                   products as covered products under
                                                    in which it tentatively determined that                 16–17, and October 20.                                EPCA. Because DOE did not receive any
                                                    the four categories of consumer                            On August 11, 2015, the MREF                       comments in response to the March
                                                    products addressed in the framework                     Working Group reached consensus on a                  2016 SNOPD that would substantively
                                                    document (wine chillers, non-                           term sheet to recommend a scope of                    alter its proposals, the findings of the
                                                    compressor refrigeration products,                      coverage, set of definitions, and test                final determination were unchanged
                                                    hybrid refrigerators, and ice makers)                   procedures for MREFs (‘‘Term Sheet                    from those presented in the March 2016
                                                    satisfy the provisions of 42 U.S.C.                     #1’’).2 That document laid out the scope              SNOPD. Moreover, DOE determined in
                                                    6292(b)(1). 78 FR 65223.                                of products that the Working Group                    the July 2016 Final Coverage
                                                       DOE published a notice announcing a                  recommended that DOE adopt with                       Determination that MREFs, on average,
                                                    public meeting and the availability of                  respect to MREFs, the definitions that                consume more than 150 kWh/yr, and
                                                    the preliminary technical support                       would apply to MREFs and certain other                that the aggregate annual national
                                                    document (‘‘TSD’’) for the MREF energy                  refrigeration products, and the test                  energy use of these products exceeds 4.2
                                                    conservation standards rulemaking on                    procedure that manufacturers of MREFs                 TWh. Accordingly, these data indicate
                                                    December 3, 2014. 79 FR 71705. The                      would need to use when evaluating the                 that MREFs satisfy at least two of the
                                                    preliminary analysis considered                         energy usage of these products. On                    four criteria required under EPCA in
                                                    potential standards for the products                    October 20, 2015, the MREF Working                    order for the Secretary to set standards
                                                    proposed for coverage in the October                    Group reached consensus on a second                   for a product whose coverage is added
                                                    2013 SNOPD. The preliminary TSD                         term sheet embodying its recommended                  pursuant to 42 U.S.C. 6292(b). See 42
                                                    included the results of the following                   energy conservation standards for                     U.S.C. 6295(l)(1)(A)–(D). 81 FR 46768.
                                                    DOE preliminary analyses: (1) Market                    coolers and combination cooler                        With respect to the remaining two
                                                    and technology assessment; (2)                          refrigeration products (‘‘Term Sheet                  criteria, as indicated in substantial
                                                    screening analysis; (3) engineering                     #2’’). ASRAC approved Term Sheet #1                   detail in its accompanying direct final
                                                    analysis; (4) markups analysis; (5)                     during an open meeting on December                    rule, DOE’s analysis indicates that these
                                                    energy use analysis; (6) LCC and PBP                    18, 2015, and Term Sheet #2 during an                 two criteria are satisfied as well.
                                                    analyses; (7) shipments analysis; (8)                   open meeting on January 20, 2016.                        In addition to establishing coverage,
                                                    national impact analysis (‘‘NIA’’); and                 ASRAC subsequently sent both term                     the July 2016 Final Coverage
                                                    (9) preliminary manufacturer impact                     sheets to the Secretary for consideration.            Determination established definitions
                                                    analysis (‘‘MIA’’).                                        In addition to these steps, DOE sought             for ‘‘miscellaneous refrigeration
                                                       DOE held a public meeting on January                 to ensure that it had obtained complete               products,’’ ‘‘coolers,’’ and ‘‘combination
                                                    9, 2015, during which it presented                      information and input regarding certain               cooler refrigeration products’’ in title 10
                                                    preliminary results for the engineering                 aspects related to manufacturers of                   of the Code of Federal Regulations
                                                    and downstream economic analyses and                    thermoelectric refrigeration products.                (‘‘CFR’’) § 430.2. The July 2016 Final
                                                    sought comments from interested                         To this end, on December 15, 2015, DOE                Coverage Determination also amended
                                                    parties on these subjects. At the public                published a notice of data availability               the existing definitions for
                                                    meeting and during the comment                          (the ‘‘December 2015 NODA’’) in which                 ‘‘refrigerator,’’ ‘‘refrigerator-freezer,’’
                                                    period, DOE received comments that                      it requested additional public feedback               and ‘‘freezer’’ for consistency with the
                                                    addressed issues raised in the                          on the methods and information used in                newly established MREF definitions.
                                                    preliminary analysis and identified                     the development of the MREF Working                   These definitions were generally
                                                    additional issues relevant to this                      Group Term Sheets. 80 FR 77589. DOE                   consistent with the March 2016 SNOPD.
                                                    rulemaking. After reviewing the                         noted in particular its interest in                   Id.
                                                    comments received in response to both                                                                            DOE has considered the
                                                                                                            information related to manufacturers of
                                                    the preliminary analysis and a test                                                                           recommended energy conservation
                                                                                                            thermoelectric refrigeration products.
                                                    procedure NOPR published on                                                                                   standards from the MREF Working
                                                                                                            Id. at 77590.
                                                    December 16, 2014 (the ‘‘December 2014                     After considering the MREF Working                 Group and believes that they meet the
                                                    Test Procedure NOPR,’’ 79 FR 74894),                    Group recommendations and comments                    EPCA requirements for issuance of a
                                                    DOE ultimately determined that the                      received in response to the December                  direct final rule. As a result, DOE has
                                                    development of test procedures and                      2015 NODA, DOE published an SNOPD                     published a direct final rule establishing
                                                    potential energy conservation standards                 and notice of proposed rulemaking (the                energy conservation standards for
                                                    for MREFs would benefit from a                          ‘‘March 2016 SNOPD’’) on March 4,                     MREFs elsewhere in this Federal
                                                    negotiated rulemaking process.                                                                                Register. If DOE receives adverse
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                                                                                                            2016. 81 FR 11454. The March 2016
                                                       On April 1, 2015, DOE published a                    SNOPD proposed establishing coverage,                 comments that may provide a
                                                    notice of intent to establish an                        definitions, and terminology consistent               reasonable basis for withdrawal and
                                                    Appliance Standards and Rulemaking                      with Term Sheet #1. It also proposed to               withdraws the direct final rule, DOE
                                                    Federal Advisory Committee                              determine that coolers and combination                will consider those comments and any
                                                    (‘‘ASRAC’’) negotiated rulemaking                                                                             other comments received in determining
                                                    working group for MREFs (the ‘‘MREF                       2 The MREF Working Group term sheets are            how to proceed with this proposed rule.
                                                    Working Group’’ or in context, the                      available in docket ID EERE–2011–BT–STD–0043 at          For further background information
                                                    ‘‘Working Group’’) to discuss and, if                   http://regulations.gov.                               on these proposed standards and the


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                                                    74954                           Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                    supporting analyses, please see the                                       the standard exceed its burdens,                           that affect economic justification. These
                                                    direct final rule published elsewhere in                                  considering to the greatest extent                         include the impacts on identifiable
                                                    this Federal Register. That document                                      practicable the seven statutory factors                    subgroups of consumers, such as low-
                                                    includes additional discussion on the                                     set forth in EPCA. (42 U.S.C.                              income households and seniors, who
                                                    EPCA requirements for promulgation of                                     6295(o)(2)(B)(i)) The new or amended                       may be disproportionately affected by a
                                                    energy conservation standards, the                                        standard must also result in a significant                 national standard. Section V.B.1.b of the
                                                    history of the standards rulemakings                                      conservation of energy. (42 U.S.C.                         direct final rule published elsewhere in
                                                    establishing such standards, as well as                                   6295(o)(3)(B))                                             this Federal Register presents the
                                                    information on the test procedures used                                      DOE considered the impacts of
                                                                                                                                                                                         estimated impacts of each TSL for these
                                                    to measure the energy efficiency of                                       standards at each trial standard level
                                                                                                                                                                                         subgroups.
                                                    MREFs. The document also contains an                                      (‘‘TSL’’) considered, beginning with
                                                    in-depth discussion of the analyses                                       maximum technologically feasible (max-                     A. TSLs Considered for Coolers
                                                    conducted in support of this                                              tech) level, to determine whether that
                                                    rulemaking, the methodologies DOE                                         level was economically justified. Where                       Table II.1 and Table II.2 summarize
                                                    used in conducting those analyses, and                                    the max-tech level was not                                 the quantitative impacts estimated for
                                                    the analytical results.                                                   economically justified, DOE then                           each TSL for coolers. The national
                                                                                                                              considered the next most efficient level                   impacts are measured over the lifetime
                                                    II. Proposed Standards                                                    and undertook the same evaluation until                    of coolers purchased in the 30-year
                                                       When considering proposed                                              it reached the highest efficiency level                    period that begins in the anticipated
                                                    standards, the new or amended energy                                      that is both technologically feasible and                  year of compliance with new standards
                                                    conservation standard that DOE adopts                                     economically justified and saves a                         (2019–2048 for TSL 2, and 2021–2050
                                                    for any type (or class) of covered                                        significant amount of energy.                              for the other TSLs). The energy savings,
                                                    product shall be designed to achieve the                                     To aid the reader as DOE discusses                      emissions reductions, and value of
                                                    maximum improvement in energy                                             the benefits and burdens of each TSL,                      emissions reductions refer to full-fuel-
                                                    efficiency that DOE determines is                                         DOE has included tables that present a
                                                                                                                                                                                         cycle (‘‘FFC’’) results. The efficiency
                                                    technologically feasible and                                              summary of the results of DOE’s
                                                                                                                                                                                         levels contained in each TSL are
                                                    economically justified. (42 U.S.C.                                        quantitative analysis for each TSL. In
                                                    6295(o)(2)(A)) In determining whether a                                   addition to the quantitative results                       described in section V.A of the direct
                                                    standard is economically justified, DOE                                   presented in the tables, DOE also                          final rule published elsewhere in this
                                                    must determine whether the benefits of                                    considers other burdens and benefits                       Federal Register.

                                                                                      TABLE II.1—SUMMARY OF ANALYTICAL RESULTS FOR COOLERS: NATIONAL IMPACTS
                                                                                               Category                                                         TSL 1 *             TSL 2 *                   TSL 3 *             TSL 4 *

                                                                                                                         Cumulative FFC National Energy Savings (quads)

                                                    Quads ..............................................................................................                  1.13                1.51                      1.84                2.02.

                                                                                                                       NPV of Consumer Costs and Benefits (2015$ billion)

                                                    3% discount rate ..............................................................................                       8.34             11.02                    12.19                   6.83.
                                                    7% discount rate ..............................................................................                       3.41              4.78                     4.81                   1.81.

                                                                                                                Cumulative FFC Emissions Reduction (Total FFC Emissions)

                                                    CO2 (million metric tons) .................................................................                       67.91               91.76                   110.61               121.30.
                                                    SO2 (thousand tons) ........................................................................                      39.38               54.04                    64.13                70.26.
                                                    NOX (thousand tons) .......................................................................                      122.38              163.86                   199.36               218.79.
                                                    Hg (tons) ..........................................................................................               0.15                0.20                     0.24                 0.26.
                                                    CH4 (thousand tons) ........................................................................                     291.14              387.12                   474.33               520.85.
                                                    CH4 (thousand tons CO2eq)** .........................................................                           8151.79            10839.31                 13281.37             14583.83.
                                                    N2O (thousand tons) ........................................................................                       0.82                1.12                     1.33                 1.46.
                                                    N2O (thousand tons CO2eq)** .........................................................                            217.02              296.92                   353.41               387.24.

                                                                                                                      Value of Emissions Reduction (Total FFC Emissions)

                                                    CO2 (2015$ billion) † ........................................................................          0.478 to 6.673        0.679 to 9.266        0.777 to 10.856        0.849 to 11.882.
                                                    NOX¥3% discount rate (2015$ million) ..........................................                         229.6 to 523.5         326.1 to743.4         373.3 to 851.2         407.9 to 929.9.
                                                    NOX¥7% discount rate (2015$ million) ..........................................                          92.5 to 208.7        141.9 to 319.9         150.2 to 338.7         163.1 to 367.8.
                                                      Parentheses indicate negative (¥) values.
                                                      * For TSL 2, the results are forecasted over the lifetime of products sold from 2019–2048. For the other TSLs, the results are forecasted over
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                                                    the lifetime of products sold from 2021–2050.
                                                      ** CO2eq is the quantity of CO2 that would have the same global warming potential (‘‘GWP’’).
                                                      † Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.




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                                                                                    Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                                                  74955

                                                                 TABLE II.2—SUMMARY OF ANALYTICAL RESULTS FOR COOLERS: MANUFACTURER AND CONSUMER IMPACTS
                                                                                               Category                                                         TSL 1 *               TSL 2 *                  TSL 3 *           TSL 4 *

                                                                                                                                                Manufacturer Impacts

                                                    Industry NPV (2015$ million) (No-new-standards case INPV =
                                                      263.3) ...........................................................................................    244.3 to 264.0          208.5 to 253.3       168.4 to 226.5        110.5 to 283.8.
                                                    Industry NPV (% change) ................................................................                  ¥7.2 to 0.3           ¥20.8 to ¥3.8       ¥36.0 to ¥14.0          ¥58.0 to 7.8.

                                                                                                                                Consumer Average LCC Savings (2015$)

                                                    Freestanding Compact Coolers .......................................................                                 279                    265                      288              123.
                                                    Built-in Compact Coolers .................................................................                        ** n.a.                    28                       60            (230).
                                                    Freestanding Coolers ......................................................................                          648                    153                      240            (121).
                                                    Built-in Coolers ................................................................................                    n.a.                    77                      187            (254).

                                                                                                                                         Consumer Simple PBP (years)

                                                    Freestanding Compact Coolers .......................................................                                    1.1                 1.4                      1.6                3.5.
                                                    Built-in Compact Coolers .................................................................                              n.a.                4.6                      4.4               14.8.
                                                    Freestanding Coolers ......................................................................                             1.0                 1.8                      1.8                4.8.
                                                    Built-in Coolers ................................................................................                       n.a.                6.1                      4.7               17.7.

                                                                                                                               % of Consumers that Experience Net Cost

                                                    Freestanding Compact Coolers .......................................................                                      6                   9                      12                 51.
                                                    Built-in Compact Coolers .................................................................                                0                  29                      27                 93.
                                                    Freestanding Coolers ......................................................................                               0                  22                       9                 78.
                                                    Built-in Coolers ................................................................................                         0                  22                       7                 86.
                                                      Parentheses indicate negative (¥) values.
                                                      * For TSL 2, the results are forecasted over the lifetime of products sold from 2019–2048. For the other TSLs, the results are forecasted over
                                                    the lifetime of products sold from 2021–2050.
                                                      ** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or exceeded in the MREF market.


                                                       DOE first considered TSL 4, which                                      impacts on low-volume manufacturers                             At TSL 3, the average LCC savings
                                                    represents the max-tech efficiency                                        (‘‘LVMs’’) of MREFs may be severe. This                      range from $60 to $288. The simple
                                                    levels. TSL 4 would save 2.02 quads of                                    could have a direct impact on domestic                       payback period ranges from 1.6 years to
                                                    energy, an amount DOE considers                                           manufacturing capacity and production                        4.7 years. The fraction of consumers
                                                    significant. Under TSL 4, the net present                                 employment in the cooler industry.                           experiencing a net LCC cost ranges from
                                                    value (‘‘NPV’’) of consumer benefit                                          The Secretary concludes that at TSL                       7 percent to 27 percent.
                                                    would be $1.81 billion using a discount                                   4 for coolers, the benefits of energy
                                                                                                                                                                                              At TSL 3, the projected change in
                                                    rate of 7 percent, and $6.83 billion using                                savings, positive NPV of consumer
                                                                                                                                                                                           INPV ranges from a decrease of $94.8
                                                    a discount rate of 3 percent.                                             benefits, emission reductions, and the
                                                                                                                                                                                           million to a decrease of $36.8 million,
                                                       The cumulative emissions reductions                                    estimated monetary value of the
                                                                                                                                                                                           which correspond to decreases of 36.0
                                                    at TSL 4 are 121.3 million metric tons                                    emissions reductions would be
                                                                                                                                                                                           percent and 14.0 percent, respectively.
                                                    (‘‘Mt’’) of CO2, 70.3 thousand tons of                                    outweighed by the economic burden on
                                                                                                                                                                                           Manufacturer feedback from
                                                    SO2, 218.8 thousand tons of NOX, 0.26                                     some consumers, and the impacts on
                                                                                                                                                                                           confidential interviews indicated that
                                                    ton of Hg, 520.9 thousand tons of CH4,                                    manufacturers, including the conversion
                                                                                                                                                                                           all cooler segments are highly price
                                                    and 1.5 thousand tons of N2O. The                                         costs and profit margin impacts that
                                                                                                                                                                                           sensitive, and therefore the lower bound
                                                    estimated monetary value of the CO2                                       could result in a large reduction in
                                                                                                                                                                                           of INPV impacts is more likely to occur.
                                                    emissions reduction at TSL 4 ranges                                       INPV. Consequently, the Secretary has
                                                                                                                                                                                           Again, at TSL 3, disproportionate
                                                    from $849 million to $11,882 million.                                     concluded that TSL 4 is not
                                                       At TSL 4, the average LCC savings                                                                                                   impacts on the LVMs may be severe.
                                                                                                                              economically justified.
                                                    range from ¥$254 to $123. The simple                                         DOE then considered TSL 3, which                          This could have a direct impact on
                                                    payback period ranges from 3.5 years to                                   would save an estimated 1.84 quads of                        domestic manufacturing capacity and
                                                    17.7 years. The fraction of consumers                                     energy, an amount DOE considers                              production employment in the cooler
                                                    experiencing a net LCC cost ranges from                                   significant. Under TSL 3, the NPV of                         industry.
                                                    51 percent to 93 percent.                                                 consumer benefit would be $4.81 billion                         The Secretary concludes that at TSL
                                                       At TSL 4, the projected change in                                      using a discount rate of 7 percent, and                      3 for coolers, the benefits of energy
                                                    industry net present value (‘‘INPV’’)                                     $12.19 billion using a discount rate of                      savings, positive NPV of consumer
                                                    ranges from a decrease of $152.8 million                                  3 percent.                                                   benefits, emission reductions, and the
                                                    to an increase of $20.5 million, which                                       The cumulative emissions reductions                       estimated monetary value of the
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                                                    correspond to a decrease of 58.0 percent                                  at TSL 3 are 110.6 Mt of CO2, 64.1                           emissions reductions would be
                                                    to an increase of 7.8 percent,                                            thousand tons of SO2, 199.4 thousand                         outweighed by the impacts on
                                                    respectively. Manufacturer feedback                                       tons of NOX, 0.24 tons of Hg, 474.3                          manufacturers, including the conversion
                                                    during confidential interviews indicated                                  thousand tons of CH4, and 1.33                               costs and profit margin impacts that
                                                    that all cooler segments are highly price-                                thousand tons of N2O. The estimated                          could result in a large reduction in
                                                    sensitive, and therefore the lower bound                                  monetary value of the CO2 emissions                          INPV. Consequently, the Secretary has
                                                    of INPV impacts is more likely to occur.                                  reduction at TSL 3 ranges from $777                          concluded that TSL 3 is not
                                                    Additionally, at TSL 4, disproportionate                                  million to $10,856 million.                                  economically justified.


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                                                    74956                           Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                       DOE then considered TSL 2, which                                        6.1 years. The fraction of consumers                                       average LCC savings would outweigh
                                                    reflects the standard levels                                               experiencing a net LCC cost ranges from                                    the negative impacts on some
                                                    recommended by the MREF Working                                            9 percent to 29 percent.                                                   consumers and on manufacturers,
                                                    Group. TSL 2 would save an estimated                                         At TSL 2, the projected change in                                        including the conversion costs that
                                                    1.51 quads of energy, an amount DOE                                        INPV ranges from a decrease of $54.8                                       could result in a reduction in INPV for
                                                    considers significant. Under TSL 2, the                                    million to a decrease of $10.0 million,                                    manufacturers. Accordingly, the
                                                    NPV of consumer benefit would be                                           which represent decreases of 20.8                                          Secretary has concluded that TSL 2
                                                    $4.78 billion using a discount rate of 7                                   percent and 3.8 percent, respectively.                                     would offer the maximum improvement
                                                    percent, and $11.02 billion using a                                        Feedback from the LVMs indicated that
                                                                                                                                                                                                          in efficiency that is technologically
                                                    discount rate of 3 percent.                                                TSL 2 would not impede their ability to
                                                                                                                                                                                                          feasible and economically justified, and
                                                       The cumulative emissions reductions                                     maintain their current MREF product
                                                    at TSL 2 are 91.8 Mt of CO2, 54.0                                          offerings.                                                                 would result in the significant
                                                    thousand tons of SO2, 163.9 thousand                                         After considering the analysis and                                       conservation of energy.
                                                    tons of NOX, 0.20 tons of Hg, 387.1                                        weighing the benefits and burdens, DOE                                        Therefore, DOE proposes to adopt
                                                    thousand tons of CH4, and 1.12                                             has determined that the recommended                                        TSL 2 as the energy conservation
                                                    thousand tons of N2O. The estimated                                        standards for coolers are in accordance                                    standard for coolers. The proposed new
                                                    monetary value of the CO2 emissions                                        with 42 U.S.C. 6295(o). Specifically, the                                  energy conservation standards which
                                                    reduction at TSL 2 ranges from $679                                        Secretary has determined the benefits of                                   are expressed as maximum annual
                                                    million to $9,266 million.                                                 energy savings, positive NPV of                                            energy use, in kWh/yr, as a function of
                                                       At TSL 2, the average LCC savings                                       consumer benefits, emission reductions,                                    adjusted volume (‘‘AV’’), in cubic feet
                                                    range from $28 to $265. The simple                                         the estimated monetary value of the                                        (‘‘ft3’’), are shown in Table II.3.
                                                    payback period ranges from 1.4 years to                                    emissions reductions, and positive

                                                                                        TABLE II.3—PROPOSED NEW ENERGY CONSERVATION STANDARDS FOR COOLERS
                                                                                                                                                                                                                                                        Maximum
                                                                                                                                       Product class                                                                                                allowable AEU *
                                                                                                                                                                                                                                                        (kWh/yr)

                                                    Built-in Compact ...........................................................................................................................................................................   7.88AV † + 155.8
                                                    Built-in.
                                                    Freestanding Compact.
                                                    Freestanding.
                                                       † AV = Adjusted volume, in ft3, as calculated according to title 10 CFR part 430, subpart B, appendix A.


                                                    B. TSLs Considered for Combination                                         impacts are measured over the lifetime                                     emissions reductions, and value of
                                                    Cooler Refrigeration Products.                                             of products purchased in the 30-year                                       emissions reductions refer to FFC
                                                      Table II.4 and Table II.5 summarize                                      period that begins in the anticipated                                      results. The efficiency levels contained
                                                    the quantitative impacts estimated for                                     year of compliance with new standards                                      in each TSL are described in section
                                                    each TSL for combination cooler                                            (2019–2048 for TSL 1, and 2021–2050                                        V.A of the direct final rule published
                                                    refrigeration products. The national                                       for the other TSLs). The energy savings,                                   elsewhere in this Federal Register.

                                                    TABLE II.4—SUMMARY OF ANALYTICAL RESULTS FOR COMBINATION COOLER REFRIGERATION PRODUCTS TSLS: NATIONAL
                                                                                                   IMPACTS
                                                                                               Category                                                             TSL 1 *                       TSL 2 *                       TSL 3 *                  TSL 4 *

                                                                                                                          Cumulative FFC National Energy Savings (quads)

                                                    Quads ..............................................................................................                  0.00084                           0.007                         0.012                 0.016.

                                                                                                                       NPV of Consumer Costs and Benefits (2015$ billion)

                                                    3% discount rate ..............................................................................                         0.0045                          0.035                         (0.06)                (0.14).
                                                    7% discount rate ..............................................................................                         0.0017                          0.011                         (0.04)                (0.09).

                                                                                                                 Cumulative FFC Emissions Reduction (Total FFC Emissions)

                                                    CO2 (million metric tons) .................................................................                                 0.05                         0.44                          0.73                  0.96.
                                                    SO2 (thousand tons) ........................................................................                                0.03                         0.25                          0.42                  0.55.
                                                    NOX (thousand tons) .......................................................................                                 0.09                         0.80                          1.32                  1.73.
                                                    Hg (tons) ..........................................................................................                        0.00                         0.00                          0.00                  0.00.
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                                                    CH4 (thousand tons) ........................................................................                                0.21                         1.90                          3.16                  4.13.
                                                    CH4 (thousand tons CO2eq) ** .........................................................                                      6.02                        53.24                         88.46                115.75.
                                                    N2O (thousand tons) ........................................................................                                0.00                         0.01                          0.01                  0.01.
                                                    N2O (thousand tons CO2eq) ** ........................................................                                       0.16                         1.40                          2.34                  3.05.

                                                                                                                       Value of Emissions Reduction (Total FFC Emissions)

                                                    CO2 (2015$ billion) † ........................................................................              0.000 to 0.005                 0.003 to 0.042                0.005 to 0.071            0.007 to 0.092.
                                                    NOX ¥ 3% discount rate (2015$ million) ........................................                                 0.2 to 0.4                      1.4 to 3.3                   2.4 to 5.5                 3.1 to 7.1.



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                                                                                     Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                                                    74957

                                                    TABLE II.4—SUMMARY OF ANALYTICAL RESULTS FOR COMBINATION COOLER REFRIGERATION PRODUCTS TSLS: NATIONAL
                                                                                              IMPACTS—Continued
                                                                                               Category                                                           TSL 1 *               TSL 2 *                  TSL 3 *            TSL 4 *

                                                    NOX ¥ 7% discount rate (2015$ million) ........................................                                 0.1 to 0.2             0.6 to 1.3              0.9 to 2.1         1.2 to 2.7.
                                                      Parentheses indicate negative (¥) values.
                                                      * For TSL 1, the results are forecasted over the lifetime of products sold from 2019–2048. For the other TSLs, the results are forecasted over
                                                    the lifetime of products sold from 2021–2050.
                                                      ** CO2eq is the quantity of CO2 that would have the same global warming potential (GWP).
                                                      † Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.

                                                             TABLE II.5—SUMMARY OF ANALYTICAL RESULTS FOR COMBINATION COOLER REFRIGERATION PRODUCTS TSLS:
                                                                                          MANUFACTURER AND CONSUMER IMPACTS
                                                                                               Category                                                           TSL 1 *               TSL 2 *                  TSL 3 *            TSL 4 *

                                                                                                                                                  Manufacturer Impacts

                                                    Industry NPV (2015$ million) (No-new-standards case INPV =
                                                      108.2) ...........................................................................................      107.4 to 107.6          103.7 to 107.5        101.6 to 117.7        100.1 to 128.5.
                                                    Industry NPV (% change) ................................................................                  ¥0.7 to ¥0.5            ¥4.1 to ¥0.6            ¥6.0 to 8.9          ¥7.5 to 18.8.

                                                                                                                                  Consumer Average LCC Savings (2015$)

                                                    C–3A ................................................................................................                n.a.**                    58                     53               (209).
                                                    C–3A–BI ...........................................................................................                    n.a                     66                     59               (237).
                                                    C–9 ..................................................................................................                 n.a.                    89                      3               (182).
                                                    C–9–BI .............................................................................................                   n.a.                   102                      4               (205).
                                                    C–13A ..............................................................................................                    32                     17                  (123)               (194).
                                                    C–13A–BI .........................................................................................                     n.a.                     8                  (151)               (232).

                                                                                                                                           Consumer Simple PBP (years)

                                                    C–3A ................................................................................................                     n.a.                4.1                       6.8               25.3.
                                                    C–3A–BI ...........................................................................................                       n.a.                4.1                       6.8               25.4.
                                                    C–9 ..................................................................................................                    n.a.                2.6                      12.1               23.3.
                                                    C–9–BI .............................................................................................                      n.a.                2.6                      12.0               23.2.
                                                    C–13A ..............................................................................................                       4.3                5.0                      13.3               16.0.
                                                    C–13A–BI .........................................................................................                        n.a.                6.5                      21.6               24.6.

                                                                                                                                 % of Consumers that Experience Net Cost

                                                    C–3A ................................................................................................                       0                  4                        26                 92.
                                                    C–3A–BI ...........................................................................................                         0                  4                        26                 92.
                                                    C–9 ..................................................................................................                      0                  0                        62                 90.
                                                    C–9–BI .............................................................................................                        0                  0                        63                 90.
                                                    C–13A ..............................................................................................                        6                 44                        94                 96.
                                                    C–13A–BI .........................................................................................                          0                 49                        97                 98.
                                                      Parentheses indicate negative (¥) values.
                                                      * For TSL 1, the results are forecasted over the lifetime of products sold from 2019–2048. For the other TSLs, the results are forecasted over
                                                    the lifetime of products sold from 2021–2050.
                                                      ** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or exceeded in the MREF market.


                                                       DOE first considered TSL 4, which                                         At TSL 4, the average LCC savings                           standards for coolers and other
                                                    represents the max-tech efficiency                                         range from ¥$237 to ¥$182. The                                cumulative regulatory burdens, at TSL
                                                    levels. TSL 4 would save 0.016 quads of                                    simple payback period ranges from 16.0                        4, disproportionate impacts on domestic
                                                    energy, an amount DOE considers                                            years to 25.4 years. The fraction of                          LVMs of combination cooler
                                                    significant. Under TSL 4, the NPV of                                       consumers experiencing a net LCC cost                         refrigeration products may be severe.
                                                    consumer benefit would be ¥$0.09                                           ranges from 90 percent to 98 percent.                         This could have a direct impact on the
                                                    billion using a discount rate of 7                                           Also at TSL 4, the projected change in                      availability of certain niche combination
                                                    percent, and ¥$0.14 billion using a                                        INPV ranges from a decrease of $8.1                           cooler refrigeration products, as well as
                                                    discount rate of 3 percent.                                                million to an increase of $20.3 million,                      on competition, domestic
                                                       The cumulative emissions reductions                                     which correspond to a decrease of 7.5                         manufacturing capacity, and production
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                                                    at TSL 4 are 0.96 Mt of CO2, 0.55                                          percent to an increase of 18.8 percent,                       employment related to the combination
                                                    thousand tons of SO2, 1.73 thousand                                        respectively. Similar to coolers, detailed                    cooler refrigeration product industry.
                                                    tons of NOX, 0.0 ton of Hg, 4.13                                           feedback from manufacturer interviews                            The Secretary concludes that at TSL
                                                    thousand tons of CH4, and 0.01                                             indicated that combination cooler                             4 for combination cooler refrigeration
                                                    thousand tons of N2O. The estimated                                        refrigeration products are highly price                       products, the benefits of energy savings,
                                                    monetary value of the CO2 emissions                                        sensitive, and therefore the lower bound                      emission reductions, and the estimated
                                                    reduction at TSL 4 ranges from $7                                          of INPV impacts is more likely to occur.                      monetary value of the emissions
                                                    million to $92 million.                                                    Additionally, in the context of new                           reductions would be outweighed by the


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                                                    74958                   Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                    negative NPV of consumer benefits, the                     DOE then considered TSL 2, which                   thousand tons of SO2, 0.09 thousand
                                                    economic burden on some consumers,                      reflects the efficiency levels with                   tons of NOX, 0.00 tons of Hg, 0.21
                                                    and the disproportionate impacts on the                 maximum consumer NPV at seven                         thousand tons of CH4, and 0.00
                                                    LVMs, which could directly impact the                   percent discount rate. TSL 2 would save               thousand tons of N2O. The estimated
                                                    availability of certain niche combination               an estimated 0.007 quads of energy, an                monetary value of the CO2 emissions
                                                    cooler products. Consequently, the                      amount DOE considers significant.                     reduction at TSL 1 ranges from $0
                                                    Secretary has concluded that TSL 4 is                   Under TSL 2, the NPV of consumer                      million to $5 million.
                                                    not economically justified.                             benefit would be $0.011 billion using a                 At TSL 1, the combination cooler
                                                       DOE then considered TSL 3, which                     discount rate of 7 percent, and $0.035                refrigeration products currently
                                                    would save an estimated 0.012 quads of                  billion using a discount rate of 3                    available on the market already meet or
                                                    energy, an amount DOE considers                         percent.                                              exceed the corresponding efficiency
                                                    significant. Under TSL 3, the NPV of                       The cumulative emissions reductions                levels in all product classes except for
                                                    consumer benefit would be ¥$0.04                        at TSL 2 are 0.44 Mt of CO2, 0.25                     C–13A. As a result, for five of the
                                                    billion using a discount rate of 7                      thousand tons of SO2, 0.8 thousand tons               product classes, no consumers
                                                    percent, and ¥$0.06 billion using a                     of NOX, 0.00 tons of Hg, 1.90 thousand                experience a net cost, and the LCC
                                                    discount rate of 3 percent.                             tons of CH4, and 0.013 thousand tons of               savings and simple payback period are
                                                       The cumulative emissions reductions                  N2O. The estimated monetary value of                  not applicable. For product class C–
                                                    at TSL 3 are 0.73 Mt of CO2, 0.42                       the CO2 emissions reduction at TSL 2                  13A, the average LCC savings is $32, the
                                                    thousand tons of SO2, 1.32 thousand                     ranges from $3 million to $42 million.                simple payback period is 4.3 years, and
                                                                                                               At TSL 2, the average LCC savings                  the fraction of consumers experiencing
                                                    tons of NOX, 0.00 tons of Hg, 3.16
                                                                                                            range from $8 to $102. The simple                     a net LCC cost is 6 percent.
                                                    thousand tons of CH4, and 0.01
                                                                                                            payback period ranges from 2.6 years to
                                                    thousand tons of N2O. The estimated                                                                             At TSL 1, the projected change in
                                                                                                            6.5 years. The fraction of consumers
                                                    monetary value of the CO2 emissions                                                                           INPV ranges from a decrease of $0.8
                                                                                                            experiencing a net LCC cost ranges from
                                                    reduction at TSL 3 ranges from $5                                                                             million to a decrease of $0.5 million,
                                                                                                            zero percent to 49 percent.
                                                    million to $71 million.                                    At TSL 2, the projected change in                  which represent decreases of 0.7 percent
                                                       At TSL 3, the average LCC savings                    INPV ranges from a decrease of $4.4                   and 0.5 percent, respectively. DOE
                                                    range from ¥$151 to $59. The simple                     million to a decrease of $0.6 million,                estimated that all combination cooler
                                                    payback period ranges from 6.8 years to                 which represent decreases of 4.1 percent              refrigeration products manufactured
                                                    21.6 years. The fraction of consumers                   and 0.6 percent, respectively. Again, in              domestically by LVMs currently meet
                                                    experiencing a net LCC cost ranges from                 the context of new standards for coolers              the standard levels corresponding to
                                                    26 percent to 97 percent.                               and other cumulative regulatory                       TSL 1. Therefore, at TSL 1, DOE
                                                       At TSL 3, the projected change in                    burdens, at TSL 2, disproportionate                   believes that domestic manufacturers
                                                    INPV ranges from a decrease of $6.5                     impacts on domestic LVMs may be                       will continue to offer the same
                                                    million to an increase of $9.6 million,                 severe. This could have a direct impact               combination cooler refrigeration
                                                    which represent a decrease of 6.0                       on the availability of certain niche                  products as those they currently offer.
                                                    percent and an increase of 8.9 percent,                 combination cooler refrigeration                        After considering the analysis and
                                                    respectively. Again, manufacturers                      products, as well as on competition,                  weighing the benefits and burdens, DOE
                                                    indicated that combination cooler                       domestic manufacturing capacity and                   has determined that the recommended
                                                    refrigeration products are highly price                 production employment related to the                  standards for combination cooler
                                                    sensitive, and therefore the lower bound                combination cooler refrigeration                      refrigeration products are in accordance
                                                    of INPV impacts is more likely to occur.                product industry.                                     with 42 U.S.C. 6295(o). Specifically, the
                                                    In the context of new standards for                        The Secretary concludes that at TSL                Secretary has determined the benefits of
                                                    coolers and other cumulative regulatory                 2 for combination cooler refrigeration                energy savings, positive NPV of
                                                    burdens, at TSL 3, disproportionate                     products, the benefits of energy savings,             consumer benefits, emission reductions,
                                                    impacts on domestic LVMs of                             positive NPV of consumer benefits,                    the estimated monetary value of the
                                                    combination cooler refrigeration                        emission reductions, and the estimated                emissions reductions, and positive
                                                    products may be severe. This could                      monetary value of the emissions                       average LCC savings would outweigh
                                                    have a direct impact on the availability                reductions would again be outweighed                  the negative impacts on some
                                                    of certain niche combination cooler                     by the disproportionate impacts on the                consumers and on manufacturers,
                                                    refrigeration products, as well as on                   domestic LVMs, which could directly                   including the conversion costs that
                                                    competition, domestic manufacturing                     impact the availability of certain niche              could result in a reduction in INPV for
                                                    capacity and production employment                      combination cooler products.                          manufacturers. Accordingly, the
                                                    related to the combination cooler                       Consequently, the Secretary has                       Secretary has concluded that TSL 1
                                                    refrigeration product industry.                         concluded that TSL 2 is not                           would offer the maximum improvement
                                                       The Secretary concludes that at TSL                  economically justified.                               in efficiency that is technologically
                                                    3 for combination cooler refrigeration                     DOE then considered TSL 1, which                   feasible and economically justified, and
                                                    products, the benefits of energy savings,               reflects the standard levels                          would result in the significant
                                                    emission reductions, and the estimated                  recommended by the MREF Working                       conservation of energy.
                                                    monetary value of the emissions                         Group. TSL 1 would save an estimated                    Therefore, DOE proposes to adopt
                                                    reductions would be outweighed by the                   0.00084 quads of energy, an amount                    TSL 1 as the energy conservation
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                                                    negative NPV of consumer benefits and                   DOE considers significant. Under TSL 1,               standard for combination cooler
                                                    disproportionate impacts on the LVMs,                   the NPV of consumer benefit would be                  refrigeration products. The proposed
                                                    which could directly impact the                         $0.0017 billion using a discount rate of              new energy conservation standards,
                                                    availability of certain niche combination               7 percent, and $0.0045 billion using a                which are expressed as maximum
                                                    cooler products. Consequently, the                      discount rate of 3 percent.                           annual energy use, in kWh/yr, as a
                                                    Secretary has concluded that TSL 3 is                      The cumulative emissions reductions                function of AV, in ft3, are shown in
                                                    not economically justified.                             at TSL 1 are 0.05 Mt of CO2, 0.03                     Table II.6.



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                                                                                      Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                                                                          74959

                                                        TABLE II.6—PROPOSED ENERGY CONSERVATION STANDARDS FOR COMBINATION COOLER REFRIGERATION PRODUCTS
                                                                                                                                                                                                                                                          Maximum
                                                                                                                                                                                                                          Product class
                                                                                                                    Product class description                                                                                                          allowable AEU
                                                                                                                                                                                                                           designation                     (kWh/yr)

                                                    Cooler with all-refrigerator—automatic defrost ................................................................................................                      C–3A                        4.57AV † + 130.4
                                                    Built-in cooler with all-refrigerator—automatic defrost .....................................................................................                        C–3A–BI                     5.19AV + 147.8
                                                    Cooler with upright freezers with automatic defrost without an automatic icemaker ......................................                                             C–9                         5.58AV + 147.7
                                                    Built-in cooler with upright freezer with automatic defrost without an automatic icemaker ............................                                               C–9–BI                      6.38AV + 168.8
                                                    Cooler with upright freezer with automatic defrost with an automatic icemaker ............................................                                           C–9I                        5.58AV + 231.7
                                                    Built-in cooler with upright freezer with automatic defrost with an automatic icemaker .................................                                             C–9I–BI                     6.38AV + 252.8
                                                    Compact cooler with all-refrigerator—automatic defrost .................................................................................                             C–13A                       5.93AV + 193.7
                                                    Built-in compact cooler with all-refrigerator—automatic defrost ......................................................................                               C–13A–BI                    6.52AV + 213.1
                                                       † AV = Adjusted volume, in ft3, as calculated according to title 10 CFR part 430, subpart B, appendix A.


                                                    C. Summary of Benefits and Costs of the                                          Table II.7 shows the annualized                                      costs, $165 million in CO2 reductions,
                                                    Proposed Standards                                                             values for MREFs under TSL 2 for                                       and $13.1 million in reduced NOX
                                                                                                                                   coolers and TSL 1 for combination                                      emissions. In this case, the net benefit
                                                       The benefits and costs of the adopted                                       cooler refrigeration products, expressed                               amounts to $619 million per year.
                                                    standards can also be expressed in terms                                       in 2015$. The results under the primary                                  Using a 3-percent discount rate for all
                                                    of annualized values. The annualized                                           estimate are as follows. Using a 7-                                    benefits and costs and the SCC series
                                                    net benefit is the sum of: (1) the                                             percent discount rate for benefits and                                 has a value of $40.6/t in 2015, the
                                                    annualized national economic value                                             costs other than CO2 reduction, (for                                   estimated cost of the standards is $157
                                                    (expressed in 2015$) of the benefits                                           which DOE used a 3-percent discount                                    million per year in increased equipment
                                                    from operating products that meet the                                          rate along with the SCC series that has                                costs, while the estimated annual
                                                    adopted standards (consisting primarily                                        a value of $40.6/t in 2015),4 the                                      benefits are $754 million in reduced
                                                    of operating cost savings from using less                                      estimated cost of the standards in this                                operating costs, $165 million in CO2
                                                    energy, minus increases in product                                             rule is $153 million per year in                                       reductions, and $17.7 million in
                                                    purchase costs, and (2) the annualized                                         increased equipment costs, while the                                   reduced NOX emissions. In this case, the
                                                    monetary value of the benefits of CO2                                          estimated annual benefits are $593                                     net benefit amounts to $779 million per
                                                    and NOX emission reductions.3                                                  million in reduced equipment operating                                 year.

                                                                                    TABLE II.7—ANNUALIZED BENEFITS AND COSTS OF ADOPTED STANDARDS FOR MREFS *
                                                                                                                                                                                                                         Low net benefits              High net benefits
                                                                                                                                                             Discount rate                Primary estimate*                 estimate *                    estimate *

                                                                                                                                                                                                                       (Million 2015$/year)

                                                                                                                                                               Benefits

                                                    Consumer Operating Cost Savings .......................................                            7% .............................   593 .....................     545 .....................     649.
                                                    ................................................................................................   3% .............................   754 .....................     686 .....................     839.
                                                    CO2 Reduction Value ($12.2/t)** ...........................................                        5% .............................   49 .......................    46 .......................    53.
                                                    CO2 Reduction Value ($40.0/t)** ...........................................                        3% .............................   165 .....................     155 .....................     179.
                                                    CO2 Reduction Value ($62.3/t)** ...........................................                        2.5% ..........................    242 .....................     227 .....................     263.
                                                    CO2 Reduction Value ($117/t)** ............................................                        3% .............................   502 .....................     471 .....................     546.
                                                    NOX Reduction Value † .........................................................                    7% .............................   13.1 ....................     12.4 ....................     31.6.
                                                                                                                                                       3% .............................   17.7 ....................     16.6 ....................     43.6.
                                                    Total Benefits †† ....................................................................             7% plus CO2 range ...              655 to 1,108 .......          603 to 1,028 .......          733 to 1,226.
                                                                                                                                                       7% .............................   771 .....................     712 .....................     860.
                                                                                                                                                       3% plus CO2 range ...              820 to 1,273 .......          748 to 1,173 .......          935 to 1,428.
                                                                                                                                                       3% .............................   937 .....................     857 .....................     1,062.

                                                                                                                                                                 Costs

                                                    Consumer Incremental Product Costs ..................................                              7% .............................   153 .....................     145 .....................     118.
                                                                                                                                                       3% .............................   157 .....................     148 .....................     116.

                                                                                                                                                            Net Benefits

                                                    Total †† ..................................................................................        7% plus CO2 range ...              503 to 956 ..........         459 to 884 ..........         615 to 1,108.
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                                                                                                                                                       7% .............................   619 .....................     568 .....................     742.
                                                                                                                                                       3% plus CO2 range ...              663 to 1,116 .......          601 to 1,026 .......          819 to 1,312.

                                                      3 To convert the time-series of costs and benefits                           discounted the present value from each year to                         a 30-year period, starting in the compliance year
                                                    into annualized values, DOE calculated a present                               2016. The calculation uses discount rates of 3 and                     that yields the same present value.
                                                    value in 2016, the year used for discounting the                               7 percent for all costs and benefits except for the                      4 DOE used a 3-percent discount rate because the

                                                    NPV of total consumer costs and savings. For the                               value of CO2 reductions, for which DOE used case-                      SCC values for the series used in the calculation
                                                    benefits, DOE calculated a present value associated                            specific discount rates. Using the present value,                      were derived using a 3-percent discount rate (see
                                                    with each year’s shipments in the year in which the                            DOE then calculated the fixed annual payment over                      section IV.L of the direct final rule published
                                                    shipments occur (2020, 2030, etc.), and then                                                                                                          elsewhere in this Federal Register).



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                                                    74960                   Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                                 TABLE II.7—ANNUALIZED BENEFITS AND COSTS OF ADOPTED STANDARDS FOR MREFS *—Continued
                                                                                                                                                                                           Low net benefits           High net benefits
                                                                                                                                Discount rate                Primary estimate*                estimate *                 estimate *

                                                                          (Million 2015$/year)

                                                                                                                          3% .............................   779 .....................    709 .....................   946.
                                                       * This table presents the annualized costs and benefits associated with MREFs shipped in 2019–2048. These results include benefits to con-
                                                    sumers which accrue after 2048 from the MREFs purchased from 2019–2048. The results account for the incremental variable and fixed costs
                                                    incurred by manufacturers due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High
                                                    Benefits Estimates utilize projections of energy prices and housing starts from the AEO 2015 Reference case, Low Economic Growth case, and
                                                    High Economic Growth case, respectively. In addition, incremental product costs reflect constant price trend the Primary Estimate and the Low
                                                    Benefits Estimate, and a high decline rate in the High Benefits Estimate. The methods used to derive projected price trends are explained in sec-
                                                    tion IV.F of the direct final rule published elsewhere in this Federal Register. Note that the Benefits and Costs may not sum to the Net Benefits
                                                    due to rounding.
                                                       ** The CO2 values represent global monetized values of the SCC, in 2015$ per metric ton (t), in 2015 under several scenarios of the updated
                                                    SCC values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The
                                                    fourth case represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an esca-
                                                    lation factor.
                                                       † DOE estimated the monetized value of NOX emissions reductions associated with electricity savings using benefit per ton estimates from the
                                                    ‘‘Regulatory Impact Analysis for the Clean Power Plan Final Rule,’’ published in August 2015 by EPA’s Office of Air Quality Planning and Stand-
                                                    ards. (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L of the direct final rule
                                                    published elsewhere in this Federal Register for further discussion. For the Primary Estimate and Low Net Benefits Estimate, DOE used a na-
                                                    tional benefit-per-ton estimate for NOX emitted from the Electric Generating Unit sector based on an estimate of premature mortality derived from
                                                    the ACS study (Krewski et al. 2009). For DOE’s High Net Benefits Estimate, the benefit-per-ton estimates were based on the Six Cities study
                                                    (Lepuele et al. 2011), which are nearly two-and-a-half times larger than those from the ACS study.
                                                       †† Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
                                                    ($40.6/t case). In the rows labeled ‘‘7% plus CO2 range’’ and ‘‘3% plus CO2 range,’’ the operating cost and NOX benefits are calculated using the
                                                    labeled discount rate, and those values are added to the full range of CO2 values. The value of consumer incremental product costs is lower in
                                                    the high net benefits scenario than it is in the primary case because the high net benefits scenario uses a highly declining price trend that more
                                                    than offsets the increase in shipments due to higher economic growth.


                                                    III. Public Participation                               published elsewhere in this Federal                              you for clarification, DOE may not be
                                                                                                            Register.                                                        able to consider your comment.
                                                    A. Submission of Comments
                                                                                                               4. The assumption that installation,                             However, your contact information
                                                       DOE will accept comments, data, and                  maintenance, and repair costs do not                             will be publicly viewable if you include
                                                    information regarding this proposed                     vary for MREFs at higher efficiency                              it in the comment itself or in any
                                                    rule until the date provided in the DATES               levels. See section IV.F of the direct                           documents attached to your comment.
                                                    section at the beginning of this proposed               final rule published elsewhere in this                           Any information that you do not want
                                                    rule. Interested parties may submit                     Federal Register.                                                to be publicly viewable should not be
                                                    comments, data, and other information                      5. The manufacturer conversion costs                          included in your comment, nor in any
                                                    using any of the methods described in                   (both product and capital) used in                               document attached to your comment.
                                                    the ADDRESSES section at the beginning                  DOE’s analysis. See section V.B.2.d of                           Otherwise, persons viewing comments
                                                    of this proposed rule.                                  the direct final rule published elsewhere                        will see only first and last names,
                                                       Although DOE welcomes comments                       in this Federal Register.                                        organization names, correspondence
                                                    on any aspect of the proposal in this                      6. The cumulative regulatory burden                           containing comments, and any
                                                    notice and the analysis as described in                 to MREF manufacturers associated with                            documents submitted with the
                                                    the direct final rule published elsewhere               the proposed standards and on the                                comments.
                                                    in this Federal Register, DOE is                        approach DOE used in evaluating                                     Do not submit to www.regulations.gov
                                                    particularly interested in receiving                    cumulative regulatory burden, including                          information for which disclosure is
                                                    comments and views of interested                        the timeframes and regulatory dates                              restricted by statute, such as trade
                                                    parties concerning the following issues:                evaluated. See section V.B.2.e of the                            secrets and commercial or financial
                                                                                                            direct final rule published elsewhere in                         information (hereinafter referred to as
                                                       1. Whether the standards proposed in                 this Federal Register.                                           Confidential Business Information
                                                    this notice would result in any lessening                                                                                (CBI)). Comments submitted through
                                                                                                               Submitting comments via
                                                    of utility for MREFs, including whether                                                                                  www.regulations.gov cannot be claimed
                                                                                                            www.regulations.gov. The
                                                    certain features would be eliminated                                                                                     as CBI. Comments received through the
                                                                                                            www.regulations.gov Web page will
                                                    from these products. See sections                                                                                        Web site will waive any CBI claims for
                                                                                                            require you to provide your name and
                                                    III.H.1.d and IV.2 of the direct final rule                                                                              the information submitted. For
                                                                                                            contact information. Your contact
                                                    published elsewhere in this Federal                                                                                      information on submitting CBI, see the
                                                                                                            information will be viewable to DOE
                                                    Register.                                                                                                                Confidential Business Information
                                                                                                            Building Technologies staff only. Your
                                                       2. The incremental manufacturer                      contact information will not be publicly                         section below.
                                                    production costs DOE estimated at each                  viewable except for your first and last                             DOE processes submissions made
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                                                    efficiency level. See section IV.C of the               names, organization name (if any), and                           through www.regulations.gov before
                                                    direct final rule published elsewhere in                submitter representative name (if any).                          posting. Normally, comments will be
                                                    this Federal Register.                                  If your comment is not processed                                 posted within a few days of being
                                                       3. DOE’s method to estimate MREF                     properly because of technical                                    submitted. However, if large volumes of
                                                    shipments under the no-new-standards                    difficulties, DOE will use this                                  comments are being processed
                                                    case and under potential energy                         information to contact you. If DOE                               simultaneously, your comment may not
                                                    conservation standards levels. See                      cannot read your comment due to                                  be viewable for up to several weeks.
                                                    section IV.G of the direct final rule                   technical difficulties and cannot contact                        Please keep the comment tracking


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                                                                                     Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules                                                                                         74961

                                                    number that www.regulations.gov                                             marked ‘‘confidential’’ including all the                                  V. Approval of the Office of the
                                                    provides after you have successfully                                        information believed to be confidential,                                   Secretary
                                                    uploaded your comment.                                                      and one copy of the document marked
                                                       Submitting comments via email, hand                                      ‘‘non-confidential’’ with the information                                    The Secretary of Energy has approved
                                                    delivery/courier, or mail. Comments and                                     believed to be confidential deleted.                                       publication of this proposed rule.
                                                    documents submitted via email, hand                                         Submit these documents via email or on                                     List of Subjects in 10 CFR Part 430
                                                    delivery/courier, or mail also will be                                      a CD, if feasible. DOE will make its own
                                                    posted to www.regulations.gov. If you                                       determination about the confidential                                         Administrative practice and
                                                    do not want your personal contact                                           status of the information and treat it                                     procedure, Confidential business
                                                    information to be publicly viewable, do                                     according to its determination.                                            information, Energy conservation,
                                                    not include it in your comment or any                                          Factors of interest to DOE when                                         Household appliances, Imports,
                                                    accompanying documents. Instead,                                            evaluating requests to treat submitted                                     Intergovernmental relations, Reporting
                                                    provide your contact information in a                                       information as confidential include: (1)                                   and recordkeeping requirements, and
                                                    cover letter. Include your first and last                                   A description of the items; (2) whether                                    Small businesses.
                                                    names, email address, telephone                                             and why such items are customarily                                           Issued in Washington, DC, on October 4,
                                                    number, and optional mailing address.                                       treated as confidential within the                                         2016.
                                                    The cover letter will not be publicly                                       industry; (3) whether the information is                                   David J. Friedman,
                                                    viewable as long as it does not include                                     generally known by or available from
                                                                                                                                                                                                           Acting Assistant Secretary, Energy Efficiency
                                                    any comments.                                                               other sources; (4) whether the
                                                                                                                                                                                                           and Renewable Energy.
                                                       Include contact information each time                                    information has previously been made
                                                    you submit comments, data, documents,                                       available to others without obligation                                       For the reasons set forth in the
                                                    and other information to DOE. If you                                        concerning its confidentiality; (5) an                                     preamble, DOE proposes to amend part
                                                    submit via mail or hand delivery/                                           explanation of the competitive injury to                                   430 of chapter II, subchapter D, of title
                                                    courier, please provide all items on a                                      the submitting person that would result                                    10 of the Code of Federal Regulations,
                                                    CD, if feasible, in which case it is not                                    from public disclosure; (6) when such                                      as set forth below:
                                                    necessary to submit printed copies. No                                      information might lose its confidential
                                                    telefacsimiles (faxes) will be accepted.                                    character due to the passage of time; and                                  PART 430—ENERGY CONSERVATION
                                                       Comments, data, and other                                                (7) why disclosure of the information                                      PROGRAM FOR CONSUMER
                                                    information submitted to DOE                                                would be contrary to the public interest.                                  PRODUCTS
                                                    electronically should be provided in                                           It is DOE’s policy that all comments
                                                    PDF (preferred), Microsoft Word or                                          may be included in the public docket,                                      ■ 1. The authority citation for part 430
                                                                                                                                without change and as received,                                            continues to read as follows:
                                                    Excel, WordPerfect, or text (ASCII) file
                                                                                                                                including any personal information
                                                    format. Provide documents that are not                                                                                                                   Authority: 42 U.S.C. 6291–6309; 28 U.S.C.
                                                                                                                                provided in the comments (except
                                                    secured, that are written in English, and                                                                                                              2461 note.
                                                                                                                                information deemed to be exempt from
                                                    that are free of any defects or viruses.
                                                                                                                                public disclosure).                                                        ■ 2. Amend § 430.32 by adding
                                                    Documents should not contain special
                                                    characters or any form of encryption                                        B. Public Meeting                                                          paragraph (aa) to read as follows:
                                                    and, if possible, they should carry the                                       As stated previously, if DOE                                             § 430.32 Energy and water conservation
                                                    electronic signature of the author.                                         withdraws the direct final rule                                            standards and their compliance dates.
                                                       Campaign form letters. Please submit                                     published elsewhere in this Federal                                        *     *     *     *     *
                                                    campaign form letters by the originating                                    Register pursuant to 42 U.S.C.
                                                    organization in batches of between 50 to                                                                                                                 (aa) Miscellaneous refrigeration
                                                                                                                                6295(p)(4)(C), DOE will hold a public                                      products. The energy standards as
                                                    500 form letters per PDF or as one form                                     meeting to allow for additional
                                                    letter with a list of supporters’ names                                                                                                                determined by the equations of the
                                                                                                                                comment on this proposed rule. DOE
                                                    compiled into one or more PDFs. This                                                                                                                   following table(s) shall be rounded off to
                                                                                                                                will publish notice of any meeting in
                                                    reduces comment processing and                                                                                                                         the nearest kWh per year. If the equation
                                                                                                                                the Federal Register.
                                                    posting time.                                                                                                                                          calculation is halfway between the
                                                       Confidential Business Information.                                       IV. Procedural Issues and Regulatory                                       nearest two kWh per year values, the
                                                    Pursuant to 10 CFR 1004.11, any person                                      Review                                                                     standard shall be rounded up to the
                                                    submitting information that he or she                                         The regulatory reviews conducted for                                     higher of these values.
                                                    believes to be confidential and exempt                                      this proposed rule are identical to those                                    (1) Coolers manufactured starting on
                                                    by law from public disclosure should                                        conducted for the direct final rule                                        [date three years after date of
                                                    submit via email, postal mail, or hand                                      published elsewhere in this Federal                                        publication of the direct final rule in the
                                                    delivery/courier two well-marked                                            Register. Please see the direct final rule                                 federal register] shall have Annual
                                                    copies: One copy of the document                                            for further details.                                                       Energy Use (AEU) no more than:

                                                                                                                                        Product class                                                                                                 AEU (kWh/yr)

                                                    1.   Built-in compact .......................................................................................................................................................................   7.88AV + 155.8
                                                    2.   Built-in.
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                                                    3.   Freestanding compact.
                                                    4.   Freestanding.
                                                         AV = Total adjusted volume, expressed in ft3, as calculated according to appendix A of subpart B of this part.


                                                      (2) Combination cooler refrigeration                                      three years after date of publication of                                   register] shall have Annual Energy Use
                                                    products manufactured starting on [date                                     the direct final rule in the federal                                       (AEU) no more than:




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                                                    74962                       Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Proposed Rules

                                                                                                                             Product class                                                                                     AEU (kWh/yr)

                                                    C–3A. Cooler with all-refrigerator—automatic defrost .................................................................................................................   4.57AV   +   130.4
                                                    C–3A–BI. Built-in cooler with all-refrigerator—automatic defrost. ...............................................................................................        5.19AV   +   147.8
                                                    C–9. Cooler with upright freezers with automatic defrost without an automatic icemaker .........................................................                         5.58AV   +   147.7
                                                    C–9–BI. Built-in cooler with upright freezer with automatic defrost without an automatic icemaker ..........................................                             6.38AV   +   168.8
                                                    C–9I. Cooler with upright freezer with automatic defrost with an automatic icemaker ...............................................................                      5.58AV   +   231.7
                                                    C–9I–BI. Built-in cooler with upright freezer with automatic defrost with an automatic icemaker ..............................................                           6.38AV   +   252.8
                                                    C–13A. Compact cooler with all-refrigerator—automatic defrost ................................................................................................           5.93AV   +   193.7
                                                    C–13A–BI. Built-in compact cooler with all-refrigerator—automatic defrost ................................................................................               6.52AV   +   213.1
                                                       AV = Total adjusted volume, expressed in ft3, as calculated according to appendix A of subpart B of this part.


                                                    [FR Doc. 2016–24758 Filed 10–27–16; 8:45 am]                        • Federal eRulemaking Portal: http://                              • Confidential Submissions—To
                                                    BILLING CODE 6450–01–P                                            www.regulations.gov. Follow the                                   submit a comment with confidential
                                                                                                                      instructions for submitting comments.                             information that you do not wish to be
                                                                                                                      Comments submitted electronically,                                made publicly available, submit your
                                                    DEPARTMENT OF HEALTH AND                                          including attachments, to http://                                 comments only as a written/paper
                                                    HUMAN SERVICES                                                    www.regulations.gov will be posted to                             submission. You should submit two
                                                                                                                      the docket unchanged. Because your                                copies total. One copy will include the
                                                    Food and Drug Administration                                      comment will be made public, you are                              information you claim to be confidential
                                                                                                                      solely responsible for ensuring that your                         with a heading or cover note that states
                                                    21 CFR Parts 514 and 556                                          comment does not include any                                      ‘‘THIS DOCUMENT CONTAINS
                                                    [Docket No. FDA–2012–N–1067]                                      confidential information that you or a                            CONFIDENTIAL INFORMATION.’’ The
                                                                                                                      third party may not wish to be posted,                            Agency will review this copy, including
                                                    RIN 0910–AG17                                                     such as medical information, your or                              the claimed confidential information, in
                                                                                                                      anyone else’s Social Security number, or                          its consideration of comments. The
                                                    New Animal Drugs; Updating                                        confidential business information, such                           second copy, which will have the
                                                    Tolerances for Residues of New                                    as a manufacturing process. Please note                           claimed confidential information
                                                    Animal Drugs in Food
                                                                                                                      that if you include your name, contact                            redacted/blacked out, will be available
                                                    AGENCY:      Food and Drug Administration,                        information, or other information that                            for public viewing and posted on http://
                                                    HHS.                                                              identifies you in the body of your                                www.regulations.gov. Submit both
                                                    ACTION: Proposed rule; supplemental                               comments, that information will be                                copies to the Division of Dockets
                                                    notice of proposed rulemaking.                                    posted on http://www.regulations.gov.                             Management. If you do not wish your
                                                                                                                        • If you want to submit a comment                               name and contact information to be
                                                    SUMMARY:   The Food and Drug                                      with confidential information that you                            made publicly available, you can
                                                    Administration (FDA or we) is                                     do not wish to be made available to the                           provide this information on the cover
                                                    proposing to amend our 2012 document                              public, submit the comment as a                                   sheet and not in the body of your
                                                    entitled ‘‘New Animal Drugs; Updating                             written/paper submission and in the                               comments and you must identify this
                                                    Tolerances for Residues of New Animal                             manner detailed (see ‘‘Written/Paper                              information as ‘‘confidential.’’ Any
                                                    Drugs in Food.’’ The document                                     Submissions’’ and ‘‘Instructions’’).                              information marked as ‘‘confidential’’
                                                    proposed to revise the animal drug                                                                                                  will not be disclosed except in
                                                    regulations regarding tolerances for                              Written/Paper Submission
                                                                                                                                                                                        accordance with 21 CFR 10.20 and other
                                                    residues of approved and conditionally                               Submit written/paper submissions as                            applicable disclosure law. For more
                                                    approved new animal drugs in food by                              follows:                                                          information about FDA’s posting of
                                                    standardizing, simplifying, and                                      • Mail/Hand delivery/Courier (for                              comments to public dockets, see 80 FR
                                                    clarifying the determination standards                            written/paper submissions): Division of                           56469, September 18, 2015, or access
                                                    and codification style. We also proposed                          Dockets Management (HFA–305), Food                                the information at: http://www.fda.gov/
                                                    to add definitions for key terms. We are                          and Drug Administration, 5630 Fishers                             regulatoryinformation/dockets/
                                                    taking this action to more clearly                                Lane, Rm. 1061, Rockville, MD 20852.                              default.htm.
                                                    explain our current thinking about                                   • For written/paper comments                                      Docket: For access to the docket to
                                                    certain provisions of the 2012 document                           submitted to the Division of Dockets                              read background documents or the
                                                    based on comments from stakeholders,                              Management, FDA will post your                                    electronic and written/paper comments
                                                    and to more accurately reflect the                                comment, as well as any attachments,                              received, go to http://
                                                    rationale FDA relied on in the past to                            except for information submitted,                                 www.regulations.gov and insert the
                                                    approve certain new animal drugs                                  marked and identified, as confidential,                           docket number, found in brackets in the
                                                    without a tolerance. We are reopening                             if submitted as detailed in                                       heading of this document, into the
                                                    the comment period only with respect                              ‘‘Instructions.’’                                                 ‘‘Search’’ box and follow the prompts
                                                    to the specific issues identified in this                            Instructions: All submissions received                         and/or go to the Division of Dockets
                                                    supplemental proposed rule.                                       must include the Docket No. FDA–                                  Management, 5630 Fishers Lane, Rm.
                                                    DATES: Submit either electronic or                                2012–N–1067 for this proposed
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                                                                                                                                                        1061, Rockville, MD 20852.
                                                    written comments on this proposed rule                            rulemaking. Received comments will be
                                                                                                                      placed in the docket and, except for                              FOR FURTHER INFORMATION CONTACT:
                                                    by December 27, 2016.
                                                                                                                      those submitted as ‘‘Confidential                                 Dong Yan, Center for Veterinary
                                                    ADDRESSES: You may submit comments
                                                                                                                      Submissions,’’ publicly viewable at                               Medicine (HFV–151), Food and Drug
                                                    as follows:
                                                                                                                      http://www.regulations.gov or at the                              Administration, 7500 Standish Pl.,
                                                    Electronic Submissions                                            Division of Dockets Management                                    Rockville, MD 20855, 240–402–0825,
                                                      Submit electronic comments in the                               between 9 a.m. and 4 p.m., Monday                                 dong.yan@fda.hhs.gov.
                                                    following way:                                                    through Friday.                                                   SUPPLEMENTARY INFORMATION:



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Document Created: 2018-02-13 16:40:03
Document Modified: 2018-02-13 16:40:03
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 rulemaking.
DatesDOE will accept comments, data, and information regarding the proposed standards no later than February 15, 2017.
ContactJoseph Hagerman, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, DC, 20585-0121. Telephone: (202) 586-6590. Email: [email protected]
FR Citation81 FR 74950 
RIN Number1904-AC51
CFR AssociatedAdministrative Practice and Procedure; Confidential Business Information; Energy Conservation; Household Appliances; Imports; Intergovernmental Relations; Reporting and Recordkeeping Requirements and Small Businesses

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