81_FR_75953 81 FR 75742 - Energy Conservation Standards for Commercial and Industrial Fans and Blowers: Availability of Provisional Analysis Tools

81 FR 75742 - Energy Conservation Standards for Commercial and Industrial Fans and Blowers: Availability of Provisional Analysis Tools

DEPARTMENT OF ENERGY

Federal Register Volume 81, Issue 211 (November 1, 2016)

Page Range75742-75753
FR Document2016-26341

The U.S. Department of Energy (DOE) has completed a provisional analysis that estimates the potential economic impacts and energy savings that could result from promulgating a regulatory energy conservation standard for commercial and industrial fans and blowers (``fans''). At this time, DOE is not proposing any energy conservation standard for fans. However, it is publishing this analysis so stakeholders can review the analysis results and the underlining assumptions and calculations that might ultimately support a proposed standard. DOE encourages stakeholders to provide any additional data or information that may improve the analysis. The analysis is now publically available at http://www.regulations.gov/docket?D=EERE-2013- BT-STD-0006.

Federal Register, Volume 81 Issue 211 (Tuesday, November 1, 2016)
[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Proposed Rules]
[Pages 75742-75753]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26341]


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

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

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


Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / 
Proposed Rules

[[Page 75742]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2013-BT-STD-0006]
RIN 1904-AC55


Energy Conservation Standards for Commercial and Industrial Fans 
and Blowers: Availability of Provisional Analysis Tools

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

ACTION: Notice of data availability (NODA).

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

SUMMARY: The U.S. Department of Energy (DOE) has completed a 
provisional analysis that estimates the potential economic impacts and 
energy savings that could result from promulgating a regulatory energy 
conservation standard for commercial and industrial fans and blowers 
(``fans''). At this time, DOE is not proposing any energy conservation 
standard for fans. However, it is publishing this analysis so 
stakeholders can review the analysis results and the underlining 
assumptions and calculations that might ultimately support a proposed 
standard. DOE encourages stakeholders to provide any additional data or 
information that may improve the analysis. The analysis is now 
publically available at http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.

DATES: DOE will accept comments, data, and information regarding the 
NODA no later than December 1, 2016.

ADDRESSES: Instructions: Any comments submitted must identify the NODA 
for Energy Conservation Standards for Commercial and Industrial Fans 
and Blowers, and provide docket number EERE-2013-BT-STD-0006 and/or 
regulatory information number (RIN) 1904-AC55. Comments may be 
submitted using any of the following methods: Interested persons may 
submit comments, identified by docket number EERE-2013-BT-STD-0006 and/
or regulatory information number (RIN) 1904-AC55, by any of the 
following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     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.
     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.
     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.
     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.
    The docket Web page can be found at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006. The docket Web page contains simple 
instructions on how to access all documents, including public comments, 
in the docket.

FOR FURTHER INFORMATION CONTACT: Ms. Ashley Armstrong, U.S. Department 
of Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies, EE-2J, 1000 Independence Avenue SW., Washington, DC 
20585-0121. Telephone: (202) 586-6590. Email: 
[email protected].
    Mr. Peter Cochran, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-9496. Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. History of Energy Conservation Standards Rulemaking for 
Commercial and Industrial Fans and Blowers
II. Current Status
III. Summary of the Analyses Performed by DOE
    A. Fan Electrical Input Power
    B. Scope of the Analysis and Addition of Certain Embedded Fans
    C. Equipment Classes
    D. Compliance Year
    E. Engineering Analysis
    F. Manufacturer Impact Analysis
    1. Impacts on OEMs
    G. Life-Cycle Cost and Payback Period Analyses
    H. National Impact Analysis
IV. Issues on Which DOE Seeks Public Comment

I. History of Energy Conservation Standards Rulemaking for Commercial 
and Industrial Fans and Blowers

    On June 28, 2011, DOE published a notice of proposed determination 
of coverage to initiate the energy conservation standards rulemaking 
for fans, blowers, and fume hoods. 76 FR 37678. Subsequently, DOE 
published a notice of public meeting and availability of the Framework 
document for commercial and industrial fans and blowers (``fans'') in 
the Federal Register. 78 FR 7306 (February 1, 2013). In the Framework 
document, DOE requested feedback from interested parties on many 
issues, including the engineering analysis, the manufacturer impact 
analysis (MIA), the life-cycle cost (LCC) and payback period (PBP) 
analyses, and the national impact analysis (NIA).
    On December 10, 2014, DOE published a notice of data availability 
(December 2014 NODA) that estimated the potential economic impacts and 
energy savings that could result from promulgating energy conservation 
standards for fans. 79 FR 73246. The December 2014 NODA comment period 
was originally scheduled to close on January 26, 2015. However, DOE 
subsequently published a notice extending the comment period to 
February 25, 2015, to allow additional time for interested parties to 
submit

[[Page 75743]]

comments. 80 FR 1477 (January 12, 2015). The December 2014 NODA 
analysis used a ``wire-to-air'' fan electrical input power metric, the 
fan energy index (FEI), to characterize fan performance. FEI is the 
ratio of the weighted-average fan electrical input power of a minimally 
compliant fan to the weighted-average fan electrical input power of a 
given fan, at three specified operating points. The FEI metric relied 
on an equation describing fan efficiency as a function of airflow and 
pressure in order to set the minimum fan efficiency of each considered 
efficiency level (EL) analyzed in the December 2014 NODA. In October 
2014, several representatives of fan manufacturers and energy 
efficiency advocates \1\ (Joint Stakeholders) presented DOE with an 
alternative metric approach called ``Fan Efficiency Ratio,'' which 
included a fan efficiency-only metric approach (FERH) and a 
wire-to-air metric approach (FERW).\2\ Both the FEI 
approach, presented in the December 2014 NODA, and the FERW 
approaches relied on an equation to determine required fan efficiency 
as a function of the fan's airflow and pressure. The main differences 
between the December 2014 NODA FEI and the FERW approaches 
were the form of the equation used for the fan efficiency, and the 
operating conditions at which the metric was evaluated. While in the 
December 2014 NODA, the FEI was calculated as a weighted average of the 
fan performance at three specific operating points, the FERW 
was calculated at all manufacturer-declared operating points. On May 1, 
2015, based on the additional information received and comments to the 
December 2014 NODA, DOE published a second NODA (May 2015 NODA) that 
announced the availability of data from DOE analyses conducted using a 
modified FEI metric. 80 FR 24841. The modified FEI metric used in the 
May 2015 NODA is similar to the FERW metric presented by the 
Joint Stakeholders.
---------------------------------------------------------------------------

    \1\ The Air Movement and Control Association (AMCA), New York 
Blower Company, Natural Resources Defense Council (NRDC), the 
Appliance Standards Awareness Project (ASAP), and the Northwest 
Energy Efficiency Alliance (NEEA).
    \2\ Supporting documents from this meeting, including 
presentation slides are available at: http://www.regulations.gov/document?D=EERE-2013-BT-STD-0006-0029.
---------------------------------------------------------------------------

    Concurrent with these efforts, DOE also began a process through the 
Appliance Standards Rulemaking Federal Advisory Committee (ASRAC) to 
discuss negotiated energy conservation standards and test procedure for 
fans.\3\ On April 1, 2015, DOE published a notice of intent to 
establish a negotiated rulemaking Working Group for fans. 80 FR 17359. 
Twenty-five nominees were selected to serve as members of the Working 
Group in addition to one member from ASRAC and one DOE representative. 
Members of the Working Group were selected to ensure all stakeholders' 
interests and areas of expertise were represented.
---------------------------------------------------------------------------

    \3\ Information on the ASRAC, the commercial and industrial fans 
Working Group, and meeting dates is available at: http://energy.gov/eere/buildings/appliance-standards-and-rulemaking-federal-advisory-committee.
---------------------------------------------------------------------------

    The Working Group negotiations comprised 16 meetings and three 
webinars and covered scope, metrics, test procedures, and energy 
conservation standard levels for fans.\4\ The negotiations were 
initially scheduled to end on August 6, 2015, but the Working Group 
voted to extend the process by 30 days. The Working Group concluded its 
negotiations on September 3, 2015, with a consensus vote to approve and 
publish a term sheet containing recommendations for DOE on scope, 
energy conservation standards analysis methodology, and the test 
procedure for fans. The term sheet containing the Working Group 
recommendations is available in the fans energy conservation standard 
rulemaking docket.\5\ ASRAC subsequently voted to approve the 
recommendations of the Working Group during the September 24, 2015 
webinar meeting.
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    \4\ Details of the negotiation sessions can be found in the 
public meeting transcripts that are posted to the docket for the 
energy conservation standard rulemaking at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.
    \5\ The term sheet, document No. 179, is posted on the docket 
for the energy conservation standards rulemaking at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.
---------------------------------------------------------------------------

II. Current Status

    Since the negotiations, DOE has revised its analysis to reflect the 
term sheet recommendations regarding the metric and energy conservation 
standards. DOE is publishing this NODA to inform stakeholders of the 
impacts of potential energy conservation standards for fans based on 
term sheet recommendations and to request feedback on specific issues.
    DOE made several changes to its analysis in preparing this NODA to 
address the term sheet recommendations as well as other stakeholder 
concerns expressed during the negotiations. Table II-1 lists the 
stakeholders who commented on issues addressed in this NODA. These 
changes and the ensuing results are described in section III, the 
accompanying analysis spreadsheets, or both. The most significant 
changes include
    (1) the augmentation of the AMCA sales data used in the May 2015 
NODA to better account for fans made by companies that incorporate 
those fans for sale in their own equipment (see section III.G);
    (2) the augmentation of the AMCA sales data used in the May 2015 
NODA to represent additional sales of forward curved fans, which AMCA 
stated were underrepresented in the original data AMCA provided. (AMCA, 
Public Meeting Transcript, No. 85 at p. 91); and
    (3) the inclusion of OEM equipment conversion costs.
    At this time, DOE is not proposing any energy conservation 
standards for fans. DOE may revise the analyses presented in today's 
NODA based on any new or updated information or data it obtains during 
the course of the rulemaking. DOE encourages stakeholders to provide 
any additional data or information that may improve the analysis.

          Table II-2--List of Commenters on Energy Conservation Standard Issues Addressed in This NODA
----------------------------------------------------------------------------------------------------------------
        Company or organization                 Abbreviation                         Affiliation
----------------------------------------------------------------------------------------------------------------
ACME Engineering & Manufacturing         ACME......................  Manufacturer.
 Corporation.
AcoustiFLO.............................  AcoustiFLO................  Manufacturer.
Air-Conditioning, Heating, and           AHRI......................  Trade Association.
 Refrigeration Institute.
Air Movement and Control Association,    AMCA......................  Trade Association.
 Inc.
Appliance Standards Awareness Program..  ASAP......................  Efficiency Advocate.
California Investor-Owned Utilities....  CA IOUs...................  Utilities.
ebm-papst, Inc.........................  ebm-papst.................  Manufacturer.

[[Page 75744]]

 
Flowcare Engineering Inc...............  Flowcare..................  Manufacturer.
Greenheck Fan Corporation..............  Greenheck.................  Manufacturer.
Ingersoll Rand/Trane...................  Ingersoll Rand/Trane......  Manufacturer.
Morrison Products......................  Morrison..................  Manufacturer.
United Technologies/Carrier............  United Technologies/        Manufacturer.
                                          Carrier.
----------------------------------------------------------------------------------------------------------------

III. Summary of the Analyses Performed by DOE

    DOE developed provisional analyses of fans in the following areas: 
(1) Engineering; (2) manufacturer impacts; (3) LCC and PBP; and (4) 
national impacts. The Government Regulatory Impact Model (GRIM), the 
engineering spreadsheet, the life-cycle cost spreadsheet, and the 
national impact analysis spreadsheet used in preparing these analyses 
and their respective results are available at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006. Each individual 
spreadsheet includes an introduction that provides an overview of the 
contents of the spreadsheet. These spreadsheets present the various 
inputs and outputs to the analysis and, where necessary, instructions. 
Brief descriptions of the calculation of the considered energy 
conservation standard levels, of the scope, of the provisional 
analyses, and of the supporting spreadsheet tools are provided in this 
preamble. If DOE proposes energy conservation standards for fans in a 
future NOPR, then DOE will publish a technical support document (TSD) 
containing a detailed written account of the analyses performed in 
support of the NOPR, which will include updates to the analyses made 
available in this NODA.

A. Fan Electrical Input Power

    Fan energy performance is a critical input in the provisional 
analyses discussed in this notice. DOE used the fan electrical input 
power metric (FEP) as recommended by the Working Group to characterize 
the efficiency levels and represent fan performance. (No. 179, 
Recommendation #6 at p. 5) \6\
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    \6\ A notation in this form refers to a specific recommendation 
from the Working Group term sheet, document No. 179.
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    The recommended FEP metric represents the electrical input power of 
the fan and includes the performance of the motor, and any transmission 
and/or control if integrated, assembled, or packaged with the fan. The 
Working Group recommended to require manufacturers to determine the FEP 
at each manufacturer-declared operating point, at standard air density, 
where the operating point is characterized by a value of airflow and 
total pressure for ducted fans and by a value of airflow and static 
pressure for unducted fans.7 8 Two methods were recommended 
by the Working Group for determining the FEP: (1) A fan shaft input 
power measurement combined with default values to represent the 
performance of the motor and any transmission and/or control (default 
value testing method); or (2) a direct measurement of the fan 
electrical input power (direct testing method). The recommended default 
value testing method provides different sets of calculation algorithms 
and default values to establish the FEP of a fan depending on its 
configuration (e.g., bare shaft fan, fan with regulated electric motor, 
or fan with motor with transmission and/or control). The Working Group 
also recommended allowing the representation of an index metric, the 
FEI, to allow for better comparability across all regulated fans. The 
engineering analysis and conversion cost spreadsheet presents the 
algorithms and default values used by the default value testing method 
and calculations of the FEP for both testing methods. (No. 179, 
Recommendation #9-16 at pp. 6-10)
---------------------------------------------------------------------------

    \7\ Ducted fans are: Axial cylindrical housed, centrifugal 
housed, inline and mixed-flow, and radial housed fans. Unducted fans 
are panel fans, centrifugal unhoused fans, and power roof 
ventilators. (No. 179, Appendix C at p. 16)
    \8\ In this document, all pressures refer to standard air 
densities. Standard air density is defined by a density of 0.075 lb/
ft\3\, corresponding to air at 68 [deg]F, 50 percent relative 
humidity and 406.78 in.wg.
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    As noted previously, the FEP of a fan includes the performance of 
the bare shaft fan and of its drive system.\9\ In the December 2014 
NODA and the May 2015 NODA, DOE calculated the FEP of a fan that 
exactly meets a given efficiency level (FEPSTD) using a fan efficiency 
equation and the default values and calculation algorithms of a fan 
sold with a regulated electric motor and transmission, such as a belt 
drive. During the negotiations, the Working Group voted to retain this 
approach and provided further recommendations on how to establish the 
fan efficiency equation and default values for standalone fans.\10\ 
(No. 179, Recommendation #18 at p. 11)
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    \9\ The drive system includes the motor and any transmission 
and/or control if integrated, assembled or packaged with the fan.
    \10\ A standalone fan is a fan that is not exclusively 
distributed in commerce for incorporation or incorporated in a 
larger piece of equipment.
---------------------------------------------------------------------------

    Based on this recommendation, and applying the same approach for 
embedded fans (see Section III.B), this NODA calculates the FEPSTD,i of 
a fan based on the following equation, in kW, at a given operating 
point i:
[GRAPHIC] [TIFF OMITTED] TP01NO16.152

Where:

Qi = airflow (cfm) at operating point i;
Pi = total pressure for ducted fans, static pressure for unducted 
fans (in.wg.) at operating point i;
[eta]STD,i = standard level fan total efficiency for ducted fans, 
standard level fan static efficiency for unducted fans at operating 
point i (percent), calculated in accordance with Eq. 2;
[eta]T,i = default transmission efficiency (percent) at operating 
point i;
LM,i = default electric motor losses (hp) at operating point i;
6343 = conversion factor for I-P units; and
0.746 = hp to kW conversion factor.


[[Page 75745]]


    The Working Group recommended a fan efficiency equation to use for 
all fans when calculating FEPSTD. (No. 179, Recommendations #19-21 at 
pp. 11-12) For each efficiency level considered, this NODA uses the 
equation recommended by the Working Group to determine the fan total 
efficiency for ducted fans and the fan static efficiency for unducted 
fans (percent) at a given operating point i (percent):
[GRAPHIC] [TIFF OMITTED] TP01NO16.153

Where:

[eta]STD,i = standard level fan total efficiency for ducted fans, 
standard level fan static efficiency for unducted fans (percent) at 
operating point i and considered efficiency level;
Qi = flow (CFM) at operating point i;
Pi = total pressure for ducted fans, static pressure for unducted 
fans (in.wg.) at operating point i;
[eta]target = constant (percent) used to establish the efficiency 
level associated with each standards case considered (see section 
III.E).

    The detailed equations and assumptions used to calculate 
FEPSTD are included in the engineering analysis and 
conversion cost spreadsheet.
    In addition, for this NODA, DOE maintained the Working Group 
recommendation for the FEI calculation, with one modification as 
follows: DOE calculated the FEI using a reference value of FEP 
(FEPREF) instead of using a value equal to the first energy 
conservation standards DOE may set (FEPSTD). As a reference 
value, DOE used the mid-point efficiency level (EL3).
    DOE requests feedback on the calculation of the FEPSTD 
and FEI.

B. Scope of the Analysis and Addition of Certain Embedded Fans

    In the December 2014 NODA and the May 2015 NODA, DOE analyzed the 
following fan categories: Axial housed fans, axial unhoused fans, 
centrifugal housed fans, centrifugal unhoused fans, inline and mixed 
flow fans, radial fans, and power roof ventilators. This NODA analyzes 
the same fan categories based on the recommendation of the Working 
Group, but renames axial housed fans as axial cylindrical housed fans 
and axial unhoused fans as panel fans based on information provided by 
the Working Group. In addition, based on the discussions of the Working 
Group, DOE incorporated more embedded fans into its analysis for this 
NODA.\11\ DOE also added more sales of forward curved fans for this 
NODA, which AMCA stated were under-represented in the original data 
AMCA provided. (AMCA, Public Meeting Transcript, No. 85 at p. 91) 
Accordingly, this NODA analyzes the fans listed in Table III-1 with the 
characteristics discussed in this section and exemptions listed in 
Table III-2. (No. 179, Recommendation #1-4 at pp. 1-4)

                  Table III-1--Fan Categories Analyzed
------------------------------------------------------------------------
             Family                  Fan category       In NODA scope?
------------------------------------------------------------------------
Axial...........................  Axial cylindrical   Yes *
                                   housed.
                                  Panel.............  Yes *
                                  Power Roof          Yes *
                                   Ventilator.
                                  Induced flow fans.  No
                                  Safety fan........  No
                                  Circulating fans..  No
Centrifugal.....................  Centrifugal housed  Yes *
                                  Centrifugal         Yes *
                                   unhoused.
                                  Radial shrouded...  Yes *
                                  Radial unshrouded.  No if impeller is
                                                       less than 30
                                                       inches in
                                                       diameter or less
                                                       than 3 inches in
                                                       blade width.
                                  Power Roof          Yes *
                                   Ventilator.
                                  Induced flow fans.  No
                                  Safety fan........  No
                                  Inline............  Yes *
Mixed flow......................  ..................  Yes *
Cross flow......................  ..................  No
------------------------------------------------------------------------
* Excluding embedded fans listed in Table III-2.


            Table III-2--Embedded Fans Recommended Exemptions
------------------------------------------------------------------------
                           Equipment category
-------------------------------------------------------------------------
Fans exclusively embedded in:
    Single phase central air conditioners and heat pumps with a
     certified cooling capacity rated less than 65,000 Btu per hour,
     subject to DOE's energy conservation standard at 10 CFR 430.32(c).
    Three phase, air-cooled, small commercial packaged air-conditioning
     and heating equipment with a certified cooling capacity rated less
     than 65,000 Btu per hour, subject to DOE's energy conservation
     standard at 10 CFR 431.97(b).
    Residential furnaces subject to DOE's energy conservation standard
     at 10 CFR 430.32(y).
    Transport refrigeration (i.e., Trailer refrigeration, Self-powered
     truck refrigeration, Vehicle-powered truck refrigeration, Marine/
     Rail container refrigerant).
    Vacuums.
    Heat Rejection Equipment:
        Packaged evaporative open circuit cooling towers.

[[Page 75746]]

 
        Evaporative field erected open circuit cooling tower.
        Packaged evaporative closed circuit cooling towers.
        Evaporative field erected closed circuit cooling tower.
        Packaged evaporative condensers.
        Field erected evaporative condensers.
        Packaged air cooled (dry) coolers.
        Field erected air cooled (dry) coolers.
        Air cooled steam condensers.
        Hybrid (water saving) versions of all of the previously listed
         equipment that contain both evaporative and air cooled heat
         exchange sections.
    Air curtains.
Supply or Condenser fans, exclusively embedded in:
    Air-cooled commercial package air conditioners and heat pumps (CUAC,
     CUHP) between 5.5 and 63.5 tons regulated by DOE's energy
     conservation standard at 10 CFR 431.97(b).
    Water-cooled, evaporatively-cooled, and water-source commercial air
     conditioners or heat pumps regulated by DOE's energy conservation
     standard at 10 CFR 431.97(b).
    Single package vertical air conditioners and heat pumps regulated by
     DOE's energy conservation standard at 10 CFR 431.97(d).
    Packaged terminal air conditioners (PTAC) and packaged terminal heat
     pumps (PTHP) regulated by DOE's energy conservation standard at 10
     CFR 431.97(c).
    Computer room air conditioners regulated by DOE's energy
     conservation standard at 10 CFR 431.97(e).
    Variable refrigerant flow multi-split air conditioners and heat
     pumps regulated by DOE's energy conservation standard at 10 CFR
     431.97(f).
------------------------------------------------------------------------

    In addition, based on the recommendation of the Working Group, this 
NODA only considered fans with operating points with a fan shaft input 
power equal to, or greater than, 1 horsepower and a fan airpower equal 
to or less than 150 horsepower. (No. 179, Recommendation #5 at p. 4) 
The horsepower scope limitations are further explained in the 
engineering analysis and conversion cost spreadsheet.

C. Equipment Classes

    When evaluating and establishing energy conservation standards, DOE 
divides covered equipment into equipment classes by the type of energy 
used or by capacity or other performance-related features that justify 
differing standards. In making a determination whether a performance-
related feature justifies a different standard, DOE must consider such 
factors as the utility of the feature to the consumer and other factors 
DOE determines are appropriate. (42 U.S.C. 6295(q)) In the December 
2014 and May 2015 NODAs, DOE divided commercial and industrial fans 
into seven equipment classes based primarily on the direction of the 
airflow through the fan and other features that impact the energy use 
and utility of a fan (see Table III-3). In addition, DOE grouped inline 
and mixed flow fans into a single equipment class and included all 
power roof ventilators in a single equipment class.

                                       Table III-3--Fan Equipment Classes
----------------------------------------------------------------------------------------------------------------
               Airflow                       Fan category               Feature              Equipment class
----------------------------------------------------------------------------------------------------------------
Axial................................  Axial cylindrical        Cylindrical housing....  Axial cylindrical
                                        housed.                                           housed.
                                       Panel..................  Orifice panel or ring..  Panel.
                                       Power Roof Ventilator..  Weather protection       Power Roof Ventilator.
                                                                 housing.
Centrifugal..........................  Power Roof Ventilator..  Weather protection
                                                                 housing..
                                       Centrifugal housed.....  Scroll Housing.........  Centrifugal housed.
                                       Centrifugal unhoused...  No Housing.............  Centrifugal unhoused.
                                       Radial shrouded........  Radial impellers and     Radial housed.
                                       Radial unshrouded......   housing (dust/material
                                                                 handling).
                                       Inline.................  Cabinet or cylindrical   Inline and Mixed Flow.
                                                                 Housing.
Mixed flow
----------------------------------------------------------------------------------------------------------------

    During the negotiations, the Working Group did not come to a 
consensus regarding the equipment classes and stakeholders provided 
several suggestions for modifying these equipment classes. (No. 179, 
Recommendation #30 at p. 19)
    ASAP and AMCA, supported by the CA IOUs, recommended grouping all 
ducted fans into a single equipment class, and all unducted fans in a 
single equipment class. (ASAP and AMCA, No. 50 at p. 2; CA IOUs, No. 49 
at p. 2) Flowcare commented that fans should be classified into three 
classes: Axial fans, centrifugal fans, and mixed flow fans. (Flowcare, 
No. 46 at p. 6)
    Ingersoll Rand/Trane commented that centrifugal housed fans with a 
forward curved blade design have a distinct utility compared to other 
centrifugal housed fans (e.g., backward curved centrifugal housed fans) 
and should be in a separate equipment class. Ingersoll Rand/Trane 
commented that forward curved centrifugal housed fans are compact, have 
a relatively good sound quality, and are most suitable for low-pressure 
applications, in which they are relatively efficient. (Ingersoll Rand/
Trane, No. 153 at p. 5) AHRI provided similar comments. AHRI stated 
that forward curved centrifugal housed fans require a separate 
equipment class for the following reasons: (1) Their compact sizes 
compared to backward curved fans providing the same airflow and 
pressure; (2) their specific applications in low pressure and speed 
ranges, providing good sound quality; and (3) the European Regulation 
327/2011

[[Page 75747]]

considers them separately. (AHRI, No. 129-2 at pp. 1-6)
    DOE did not group all fans into only ducted and unducted equipment 
classes because fans have other unique features that provide different 
utilities to the customer and, as a result, justify additional 
equipment classes. However, DOE recognizes that ducted and unducted 
fans perform differently. For this NODA, the FEPstd at each 
EL is calculated differently for ducted and unducted fans to account 
for these performance differences. (See section III.A for more details) 
For this same reason, DOE also did not establish equipment classes 
based solely on airflow.
    With respect to establishing a separate equipment class for forward 
curved centrifugal housed fans, DOE analyzed a sample of fan selections 
\12\ and found forward curved centrifugal housed fans that meet every 
efficiency level being analyzed. In addition, for small diameter fans, 
DOE also found an example of a forward curved fan with a small impeller 
diameter (i.e., less than 6.5 inches) that met all efficiency levels up 
to EL 5, showing that it is technologically feasible for small forward 
curved fans to reach high efficiency levels.\13\ DOE notes that there 
may be many more forward curved fans with small impeller diameters at 
high efficiency levels in the market than its database shows. DOE 
recognizes that maintaining the utility of small forward curved fans 
across all operating points is important and requires preserving 
forward curved fan availability or acceptable non-forward curved fan 
replacements across sizes and operating points. Based on analysis of 
the data available, DOE believes small forward curved fans or 
acceptable non-forward curved replacements would be available up to EL 
5 across all current sizes and operating points. DOE therefore believes 
that more-efficient forward curved centrifugal housed fans could 
replace inefficient forward curved centrifugal housed fans up to EL 5. 
In addition, to consider the possibility that an original equipment 
manufacturer (OEM) might opt to replace a forward curved centrifugal 
housed fan incorporated in a larger piece of heating, ventilation, air-
conditioning, and refrigeration (HVACR) equipment with a backward 
curved centrifugal housed fan, DOE included the costs of redesigning 
the HVACR equipment to accommodate a different fan in the standards 
case fan price calculation. (See section III.F.1 for more details) 
Therefore, DOE does not believe that forward curved centrifugal housed 
fans merit a separate equipment class.
---------------------------------------------------------------------------

    \12\ See description of the fan selection sample in the life 
cycle analysis section III.F.1.
    \13\ See engineering analysis discussion in section III.E for 
details about the considered efficiency levels.
---------------------------------------------------------------------------

    Regarding the application range, DOE agrees with AHRI and Ingersoll 
Rand/Trane that forward curved centrifugal housed fans are most 
typically used in low pressure (less than 5.0 in.wg.), low speed 
applications (between 800 and 1200 rpm). DOE accounted for the 
specificity of the application range in the metric, which allows 
calculating the FEPSTD of a fan based on a fan efficiency 
equation that provides lower values at decreased pressure and airflow 
(see Eq. 2). In other words, the required FEP at a given efficiency 
level decreases with pressure and airflow in order to account for the 
fact that fans operating in these ranges are inherently less efficient.
    Finally, DOE notes that the latest revision of the European 
Regulation 327/2011 \14\ is considering grouping forward curved 
centrifugal housed fans with backward curved centrifugal housed fans 
for fans with an electrical input power greater than 5 kW (equivalent 
to approximately 6.7 hp). At a given diameter, the European study 
states that forward curved fans typically output more flow compared to 
backward bladed fans, which allows them to run relatively slower. This 
effect is more apparent for smaller diameters and becomes less 
significant as fan diameter increases. The EU therefore concluded that 
forward and backward curved centrifugal housed fans of larger sizes 
(greater than 5 kW of fan electrical input power) could be treated in 
the same product category with the same minimum efficiencies. For 
capacities less than 5 kW, the latest revision of the European 
regulation is considering maintaining forward curved centrifugal housed 
fans as a separate equipment class. DOE's fan selection analysis found 
forward curved centrifugal housed fans with electrical input power 
below 5kW that were compliant up to EL 6. Therefore, DOE believes such 
distinction is not necessary when using the FEP metric. In addition, as 
previously noted, DOE accounted for the costs of potentially 
incorporating a larger fan in a larger piece of equipment as part of 
the OEM equipment conversion costs. Therefore, DOE is not considering 
applying the distinction made in the European regulation 327/2011 and 
retains forward curved centrifugal housed fans in the same equipment 
class as other centrifugal housed fans for this NODA analysis.
---------------------------------------------------------------------------

    \14\ Ecodesign Fan Review, Review Study of Commission Regulation 
(EU) No 327/2011, Final Report prepared by Van Holsteijn en Kemna 
B.V. for the European Commission, Directorate-General for Energy. 
Available at http://www.fanreview.eu/documents.htm (last accessed 
02/02/2016).
---------------------------------------------------------------------------

    AHRI and Bade commented that regulating return fans and exhaust 
fans requires special consideration because they typically operate at 
similar flows but lower static pressures compared to supply fans, which 
inherently affects the fan operating efficiency. (AHRI, No. 158 at pp. 
5-6; Bade, No 116 at p. 1) Similarly, Ingersoll Rand/Trane commented 
that using efficient fans in variable-air-volume applications might 
decrease the capability of the fans to achieve an airflow reduction at 
lower system requirements, which may increase a building's energy 
consumption by pushing consumers to constant volume systems or 
requiring different systems. (Ingersoll Rand/Trane, No. 153 at p. 3) 
DOE agrees with AHRI and Ingersoll Rand/Trane that fans operating at 
lower pressures will have a lower efficiency compared to fans of 
equivalent design operating at higher pressures. To account for this 
effect and preserve the utility of low-pressure fans, DOE is 
considering a metric that is a function of the operating pressure, 
where the required FEP at a given efficiency level is less stringent at 
lower operating pressures. Consequently, a return or exhaust fan 
operating at a lower pressure than a supply fan at a given flow would 
have a lower required FEP at a given efficiency level, which mitigates 
the disproportionate impacts suggested by AHRI and Ingersoll Rand/
Trane.
    Based on these comments, DOE maintained the equipment classes used 
in the May 2015 NODA and presented in Table III-3.
    DOE seeks comments on the equipment classes used in this notice, 
including information on specific sizes or operating points for which 
forward curved fans would no longer be available at efficiency levels 
up to EL 5 and whether, at those sizes or operating points, an 
acceptable non-forward curved fan is available.

D. Compliance Year

    For this analysis, DOE assumed a compliance date of five years 
after publication of a final energy conservation standards rule. (42 
U.S.C. 6316(a); 42 U.S.C. 6295(l)(2)) The Working Group did not make 
any recommendation on the compliance year, and DOE believes that five 
years would allow fan manufacturers sufficient time to redesign their 
existing equipment, as necessary, to meet new energy conservation 
standards. DOE anticipates the final rule to publish in

[[Page 75748]]

2017, resulting in a compliance date for the standards of 2022. 
Stakeholders provided several suggestions for the compliance date.
    ebm-papst commented that a three-year compliance period would 
represent sufficient time. (ebm-papst, No. 45 at p. 2) Morrison 
commented that even five years may not be enough. (Morrison, No. 51 at 
p. 9)
    Ingersoll Rand/Trane and AHRI commented that, in order to allow 
OEMs to redesign their existing equipment to use fans of different 
types or sizes, the compliance date for fans that are components of 
larger piece of equipment should be delayed. For such fans, Ingersoll 
Rand/Trane recommended an additional two years and AHRI recommended an 
additional five years after the compliance date for standalone fans. 
(Ingersoll Rand/Trane, No. 153 at p. 4; AHRI, No. 158 at p. 9)
    In the December 2014 NODA, DOE requested comments on the redesign 
time per fan model. United Technologies/Carrier stated three years 
would be too short in terms of compliance period and that it could take 
18 to 24 months per fan for an OEM to complete a redesign for an 
embedded fan and the equipment incorporating the fan. (United 
Technologies/Carrier, No. 43 at p. 2)
    DOE believes that manufacturers will be able to offer fans that are 
compliant with any energy conservation standards DOE may set before 5 
years after publication of a final rule. Many fans are compliant with 
the highest efficiency levels for at least part of their operating 
range. Consequently, for many fans, any standard may only require 
certifying a different operating range rather than redesigning the fan. 
DOE's analysis estimates that at the most stringent EL (EL 6), 70 
percent of current fan selections \15\ would not meet the standard but 
that more than half of these could be replaced by existing compliant 
substitutes. This means that even at the highest EL, only 33 percent of 
all fan selections would require a redesigned fan. Therefore, DOE 
believes that a five-year compliance period is sufficient for fan 
manufacturers, including OEMs to either redesign their fans and 
equipment or select compliant, alternative fans. For the analyses in 
this NODA, DOE assumed a compliance date of five years after the 
publication of the final rule.
---------------------------------------------------------------------------

    \15\ Based on 2012 data, see section III.G for more details. A 
fan selection is the combination of a fan model and design point at 
which it is purchased.
---------------------------------------------------------------------------

    DOE seeks comments on the use a compliance date of five years after 
the publication of the final rule.

E. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer production cost (MPC) and efficiency levels of fans. This 
relationship serves as the basis for calculations performed in the 
other analysis tools to estimate the costs and benefits to individual 
consumers, manufacturers, and the Nation.
    DOE used the same methodology in the engineering analysis of this 
NODA as for the December 2014 NODA and the May 2015 NODA. For each fan 
equipment class, DOE identified existing technology options that could 
affect efficiency. Next, DOE conducted a screening analysis to review 
each technology option and decide whether it: (1) Is technologically 
feasible; (2) is practicable to manufacture, install, and service; (3) 
would adversely affect product utility or product availability; or (4) 
would have adverse impacts on health and safety. The technology options 
remaining after the screening analysis consisted of a variety of 
impeller types and guide vanes. DOE categorized the fan equipment 
classes into subcategories by the technology options the fans use. DOE 
then conducted a market-based assessment of the prevalence of each 
subcategory at each efficiency level analyzed. DOE estimated market 
prevalence using the sales data provided by AMCA that was within the 
scope of the analysis and for which there was sufficient information. 
This NODA, like the May 2015 NODA has fewer subgroups than the December 
2014 NODA due to limitations in the sales data provided by AMCA.
    For this NODA, DOE augmented the AMCA sales data used in the May 
2015 NODA to account for embedded fans made by companies that 
incorporate those fans for sale in their own equipment (see section 
III.G) and to represent additional sales of forward curved fans, which 
AMCA stated were underrepresented in the original data AMCA provided. 
(AMCA, Public Meeting Transcript, No. 85 at p. 91) The resulting 
engineering database was analyzed at six efficiency levels (ELs) 
representing different target efficiencies ([eta]target[hairsp], see 
section III.A). In this NODA, efficiency levels were set separately for 
ducted and unducted fans, based on the recommendation of the working 
group. (No. 179, Recommendation #18 at pp. 10-11) For ducted fans, the 
six efficiency levels are calculated using the same six total 
efficiency targets used in the May 2015 NODA. At each of the analyzed 
efficiency levels in this NODA, the static efficiency targets used for 
unducted fans are 0.04 less than the total efficiency target at each 
respective level. The exact target efficiencies used in this NODA are 
presented in Table 3 of the ``MPC Approach'' tab of the engineering 
analysis and conversion cost spreadsheet.
    DOE calculated MPCs at each efficiency level using the same 
methodology as used in the December 2014 NODA and the May 2015 NODA. 
The MPCs were derived from product teardowns and publically available 
product literature and were informed by interviews with manufacturers. 
DOE calculated the MPCs for fans in each subcategory. DOE used these 
MPCs to characterize the relationship between MPC and blade or impeller 
diameter for each subcategory. DOE found that all fan subcategories 
were represented at all ELs, so DOE did not use subcategory MPC 
differences to directly represent higher efficiency. DOE found some 
subcategories to be more prevalent at higher ELs. Therefore, DOE 
calculated MPCs for each fan equipment class at each efficiency level 
analyzed by weighting the MPCs of each subcategory within a class by 
its prevalence at the efficiency level being analyzed.
    DOE's preliminary MPC estimates indicate that the changes in MPC as 
efficiency level increases are small or, in some fan equipment classes, 
zero. However, DOE is aware that aerodynamic redesigns are a primary 
method by which manufacturers improve fan performance. These redesigns 
require manufacturers to make large upfront investments for R&D, 
testing and prototyping, and purchasing new production equipment. DOE's 
preliminary findings indicate that the magnitude of these upfront costs 
are more significant than the difference in MPC of a fan redesigned for 
efficiency compared to its precursor. For this NODA, DOE included a 
conversion cost markup in its calculation of the manufacturer selling 
price (MSP) to account for these conversion costs. These markups and 
associated MSPs were developed and applied in downstream analyses. They 
are discussed in section III.F and presented in the LCC spreadsheet.
    The main outputs of the fans engineering analysis are the MPCs of 
each fan equipment class (including material, labor, and overhead) and 
technology option distributions at each efficiency level analyzed.

F. Manufacturer Impact Analysis

    For the MIA, DOE used the Government Regulatory Impact Model (GRIM) 
to assess the economic impact of potential standards on commercial and 
industrial fan manufacturers. DOE

[[Page 75749]]

developed key industry average financial parameters for the GRIM using 
publicly available data from corporate annual reports along with 
information received through confidential interviews with 
manufacturers. These values include average industry tax rate; working 
capital rate; net property, plant, and equipment rate; selling, 
general, and administrative expense rate; research and development 
expense rate; depreciation rate; capital expenditure rate; and 
manufacturer discount rate.
    Additionally, DOE calculated total industry capital and product 
conversion costs associated with meeting all analyzed efficiency 
levels. Using a proprietary cost model and feedback received from 
manufacturers during interviews, DOE first estimated the average 
industry capital and product conversion costs associated with 
redesigning a single size of a fan series to meet a specific efficiency 
level. DOE estimated the costs for all subcategories within each fan 
equipment class. DOE multiplied these per model conversion costs by the 
number of models that would be required to be redesigned at each 
efficiency level to arrive at the total industry conversion costs. The 
number of models that would be redesigned was calculated using 
information from the engineering database developed from the AMCA sales 
database (see section III.E). Additional information on the number of 
models redesigned is available in the engineering analysis and 
conversion cost spreadsheet, ``Total Fan Conversion Costs'' section of 
the ``Database Overview and Use'' tab.
    The GRIM uses these estimated values in conjunction with inputs 
from other analyses, including the MPCs from the engineering analysis, 
the annual shipments by fan equipment class from the NIA, and the fan 
manufacturer markups for the cost recovery markup scenario from the LCC 
analysis to model industry annual cash flows from the reference year 
through the end of the analysis period. The primary quantitative output 
of this model is the industry net present value (INPV), which DOE 
calculates as the sum of industry annual cash flows, discounted to the 
present day using the industry specific weighted average cost of 
capital, or manufacturer discount rate.
    Standards can affect INPV in several ways including requiring 
upfront investments in manufacturing capital as well as research and 
development expenses, which increase the cost of production and 
potentially alter manufacturer markups. DOE expects that manufacturers 
may lose a portion of INPV due to standards. The potential loss in INPV 
due to standards is calculated as the difference between INPV in the 
no-standards case (absent new energy conservation standards) and the 
INPV in the standards cases (with new energy conservation standards in 
effect). DOE examines a range of possible impacts on industry by 
modeling various pricing strategies commercial and industrial fan 
manufacturers may adopt following the adoption of new energy 
conservations standards for fans.
    In addition to INPV, the MIA also calculates the manufacturer 
markups, which are applied to the MPCs derived in the engineering 
analysis, to arrive at the manufacturer selling prices (MSPs) in the 
no-standards case. In the standards cases manufacturers will incur 
costs from the redesign of models that do not meet the required FEP at 
a given efficiency levels. DOE modeled two markup scenarios for the 
standards cases, a preservation of gross margin markup scenario and a 
conversion cost pass through markup scenario.
    In the preservation of gross margin markup scenario, DOE assumes 
that manufacturers maintain the same manufacturer markup, as a 
percentage, in the standards cases as they do in the no-standards case, 
despite higher levels of investment in the standards cases. This markup 
scenario represents the lower bound, or worst-case scenario for 
manufacturers, since manufacturers are not able to pass the conversion 
costs associated with complying with higher efficiency levels on to 
their customers. In the fan conversion cost recovery markup scenario, 
DOE assumes that manufacturers are able to pass on to their customers 
the fan conversion costs they incur to meet higher efficiency levels. 
In this markup scenario, manufacturer markups are based on the total 
manufacturer fan conversion costs and calculated to allow manufacturers 
to recover their upfront fan conversion costs, in addition to their 
normal no-standards case markup. DOE calculated the conversion cost 
pass through markups for each efficiency level by amortizing the 
conversion costs over the units shipped throughout the analysis period 
that were redesigned to meet the efficiency level being analyzed. This 
fan conversion cost pass through markup scenario represents the upper 
bound, or best-case scenario for manufacturers, since manufacturers are 
able to pass on to their customers the fan conversion costs associated 
with complying with higher efficiency levels. For the standards cases, 
all other downstream analyses use the fan manufacturer markups 
calculated in the fan conversion costs pass through markup scenario.
    DOE requests information on the per-model (size of a fan series) 
redesign costs presented in the engineering analysis and conversion 
cost spreadsheet.
    DOE requests information on the number of models (sizes of a fan 
series) that are currently in the scope of the rulemaking nationally.
    DOE requests feedback on the quantity of redesigns, methodology, 
and results used to calculate the total industry conversion costs by 
equipment class and EL, as presented in the engineering analysis and 
conversion cost spreadsheet.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared among sizes in a fan 
series.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared between belt and 
direct drive fans with the same aerodynamic design.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared between fans of 
different construction classes of the same aerodynamic design.
1. Impacts on OEMs
    Several stakeholders commented that the previous DOE analyses did 
not take into account the significant costs incurred by manufacturers 
who incorporate fans into their equipment. Ingersoll Rand/Trane, United 
Technologies/Carrier, Morrison, AHRI, and Greenheck commented that 
separate costs to redesign the units in which fans are installed would 
be incurred due to this regulation. (Ingersoll Rand/Trane, No. 42 at p. 
4; United Technologies/Carrier, No. 43 at p. 4; Morrison, No. 51 at p. 
5; AHRI, No. 53 at p. 6; Greenheck, No. 54-A at pp. 4-5) AHRI added 
that the cost to redesign the units in which fans are installed can be 
several times greater in terms of both time and money than the cost to 
redesign the fan itself. (AHRI, No. 53 at p. 7) Morrison and Ingersoll 
Rand/Trane commented that fans in commercial and industrial building 
applications are typically housed within other equipment such as air 
handlers or unitary rooftop units that are sized specifically around 
the fan. (Morrison, No. 51 at p. 5; Ingersoll Rand/Trane, No. 42 at p. 
11) AHRI commented that any change to fan size, operating range, or fan 
type will increase the OEM production cost, and urged DOE to consider 
the production cost impact to OEMs as part of the rulemaking. (AHRI, 
No. 53 at p. 6) Ingersoll Rand/Trane added that this increased cost 
would affect building

[[Page 75750]]

owners and could decrease adoption rate by consumers. (Ingersoll Rand/
Trane, No. 42 at p. 11).
    AHRI also commented that in order to pass a regulation imposing 
additional costs (testing, implementation, time-frame, spare part 
availability, re-certification) on OEMs, DOE must consider the costs to 
these manufacturers and compare them to the potential energy saved, and 
in order to do so must conduct manufacturer interviews with OEMs. AHRI 
requested that DOE conduct such interviews and delineate DOE-covered 
equipment made by OEMs as a separate fan equipment class to assess the 
costs and relative benefits of a second layer of regulation on 
currently regulated HVACR equipment and publish a new NODA specifically 
addressing the impact on OEMs who were excluded from DOE's initial 
analysis. (AHRI, No. 158 at p. 3).
    After careful consideration of these comments and the Working Group 
discussions, DOE recognizes that its previous analyses did not 
accurately account for the cost impacts of a fans regulation on all 
impacted manufacturers. DOE revised its analysis for this NODA to 
better account for cost impacts on fan manufacturers, especially OEMs. 
DOE understands that some OEMs manufacture their own fans that they 
then incorporate in the equipment that they manufacture for sale. As 
discussed in section III.B, DOE augmented the database it used for this 
NODA by incorporating fans made by companies that then incorporate 
those fans for sale in their own equipment (see section III.G). The 
presence of these fans in the database DOE used for this NODA ensures 
that its analysis accounts for the impacts on MPC (see section III.E) 
and conversion costs (see previous discussion in this section) for OEMs 
that manufacture fans and incorporate them in the equipment that they 
manufacture for sale. DOE also understands that OEMs that incorporate 
fans may incur additional conversion costs for their equipment not 
directly associated with improving the efficiency of the fan. For this 
NODA, DOE estimated OEM equipment conversion costs and included them in 
its analysis. DOE conducted interviews with manufacturers of equipment 
with embedded fans. DOE used information gathered during these 
interviews in conjunction with its engineering database to estimate OEM 
equipment conversion costs at each EL. In each fan equipment class, fan 
models in the engineering database that were representing fans sold by 
OEMs (whether or not the OEM made the fan) and that needed to be 
redesigned or reselected were determined to incur OEM equipment 
conversion costs. The aggregated industry OEM equipment conversion 
costs are presented in the engineering analysis and conversion cost 
spreadsheet.
    DOE applied OEM equipment conversion costs to all embedded fans in 
its analysis. For OEMs that manufacture the fans that they incorporate 
in the equipment they manufacture for sale, DOE added the OEM equipment 
conversion costs to the fan conversion costs to develop total 
conversion cost recovery markups at each EL, for each fan equipment 
class, using the cost recovery markup methodology described in section 
III.F. For OEMs that incorporate fans that they do not manufacture 
themselves, the OEM equipment conversion cost is used to develop a cost 
recovery markup that is applied downstream of the fan conversion cost 
recovery markup. DOE then used the results as an input to the LCC 
analysis. Consequently, the cost to consumers of embedded fans, and, in 
turn, the cost-justification for the analyzed efficiency levels, 
accounts for both fan and OEM equipment conversion costs in this NODA.
    DOE believes the revisions made for this NODA analysis--augmenting 
DOE's database to more completely incorporate embedded fans and 
including OEM equipment conversion costs--better account for the costs 
and benefits associated with potential energy conservation standards 
for fans incorporated in larger pieces of equipment and address the 
concerns of Ingersoll Rand/Trane, United Technologies/Carrier, 
Morrison, AHRI, and Greenheck.
    DOE did not analyze a separate equipment class for embedded fans. 
DOE believes the revisions to its analysis described previously in this 
section appropriately account for the costs and benefits associated 
with embedded fans. However, the LCC spreadsheet published as part of 
this NODA provides the option to view results by subgroup for embedded 
fans and standalone fans separately.
    DOE requests information on the portion of equipment with embedded 
fans that would require heat testing for certification with any new 
energy conservation standards. DOE also requests feedback on the number 
of embedded fans that would require redesign as presented in the 
engineering analysis and conversion costs spreadsheet.

G. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers, in the compliance year. The LCC is 
the total cost of purchasing, installing, and operating a commercial or 
industrial fan over the course of its lifetime.
    DOE determines the LCC by considering: (1) The total installed cost 
to the consumer (which consists of manufacturer selling price, the 
conversion costs, distribution channel markups, and sales taxes); (2) 
the range of fan annual energy consumption as they are used in the 
field; (3) the fan operating costs; (4) fan lifetime; and (5) a 
discount rate that reflects the real consumer cost of capital and puts 
the LCC in present-value terms. The PBP represents the number of years 
needed to recover the increase in purchase price of higher-efficiency 
fans through savings in the operating cost. The PBP is calculated by 
dividing the incremental increase in installed cost of the higher 
efficiency product, compared to the baseline product, by the annual 
savings in operating costs.
    For each considered standards case corresponding to each efficiency 
level, DOE measures the change in LCC relative to the no-standards 
case. The no-standards case is characterized by the distribution of fan 
efficiencies in the absence of new standards (i.e., what consumers 
would have purchased in the compliance year in the absence of new 
standards). In the standards cases, fans with efficiency below the 
standard levels ``roll-up'' to the standard level in the compliance 
year.
    To characterize annual fan operating hours, DOE established 
statistical distributions of consumers of each fan equipment class 
across sectors and applications, which in turn determined the fan 
operating hours. Recognizing that several inputs to the determination 
of consumer LCC and PBP are either variable or uncertain (e.g., annual 
operating hours, lifetime, discount rate), DOE conducts the LCC and PBP 
analysis by modeling both the uncertainty and variability in the inputs 
using Monte Carlo simulations and probability distributions.
    In addition to characterizing several of the inputs to the analyses 
with probability distributions, DOE developed a sample of individual 
fan selections representative of the market.\16\ By developing this 
sample, DOE was able to perform the LCC and

[[Page 75751]]

PBP calculations for each fan selection to account for the variability 
in energy consumption associated with each selection.
---------------------------------------------------------------------------

    \16\ A fan selection is a fan model and the fan shaft input 
power, operating flow, and pressure values for which it was 
purchased.
---------------------------------------------------------------------------

    The primary outputs of the LCC and PBP analyses are: (1) Average 
LCC in each standards case; (2) average PBPs; (3) average LCC savings 
at each standards case relative to the no-standards case; and (4) the 
percentage of consumers that experience a net benefit, have no impact, 
or have a net cost for each fan equipment class and efficiency level. 
The average annual energy consumption derived in the LCC analysis is 
used as an input in the NIA (see section III.H).
    In the December 2014 NODA and the May 2015 NODA, DOE developed a 
sample of individual fan selections (i.e., representative database of 
fan models including data on the design flow, pressure, and fan shaft 
input power for which they were purchased, and the drive configuration) 
using fan sales data provided by AMCA. During the negotiations, AMCA 
commented that these sales data included some standalone fans purchased 
by OEMs for incorporation into larger HVACR equipment but was not 
representative of sales of embedded fans. Specifically, AMCA commented 
that forward curved centrifugal housed fans, which are very common in 
HVACR equipment, were under-represented. (AMCA, Public Meeting 
Transcript, No. 85 at p. 91).
    In this NODA, DOE collected additional technical and market 
information specific to embedded fans and revised the LCC sample to 
represent both the embedded fan and standalone fan markets. For each 
fan equipment class, DOE used confidential AMCA sales data for over 
57,000 fan selections (with complete performance data), representing 
over 92,000 units sold, to develop a sample representative of fans sold 
on the US market. Each row in the sample represents a fan selection. 
The number of rows was adjusted to match the US market distributions 
across fan equipment classes, subcategory, fan shaft input power, and 
drive configuration. DOE adjusted the number of standalone fans in the 
LCC sample to mirror the actual standalone fan market distributions 
based on confidential market estimates from AMCA for the U.S standalone 
fan market. For embedded fans, DOE adjusted the number of fan 
selections in the LCC sample to reflect the actual embedded fan market 
distributions based on embedded fan shipments data.\17\ As a result, 
and in line with AMCA's comment, the share of forward curved 
centrifugal housed fans in the sample increased from 3 percent to 19 
percent. Using this sample, DOE was able to perform individual energy 
use calculations for each row in the sample and account for the 
variability in energy consumption associated with each fan selection.
---------------------------------------------------------------------------

    \17\ See description of the LCC sample in the LCC Spreadsheet.
---------------------------------------------------------------------------

    The ``2012 Shipments'' worksheet of the NIA spreadsheet presents 
the standalone fan market and embedded fan market data used to 
calibrate the LCC sample. The worksheet includes breakdowns by 
equipment class, subcategory, as well as the HVACR equipment shipments 
and estimated number of fans per unit used by DOE to calculate the 
number of embedded fans. The LCC sample description worksheet in the 
LCC spreadsheet provides more detailed breakdown of the fan selections 
by power bins and efficiency levels.
    DOE seeks feedback and input on the 2012 standalone fan and 
embedded fan shipments values, by equipment class and subcategory. 
Specifically, DOE requests feedback on: (1) The estimated number of 
fans per HVACR equipment; (2) the distribution of HVACR fans across fan 
subcategories by fan application; and (3) the share of standalone fans 
purchased and incorporated in HVACR equipment.
    DOE seeks feedback and input on the distribution of fan selections 
by power bin and subcategory for standalone fans and embedded fans as 
presented in the ``LCC sample Description'' worksheet of the LCC 
spreadsheet.
    In the December 2014 NODA and the May 2015 NODA, DOE calculated the 
FEP of a fan selection in the LCC sample using the default values and 
calculation algorithms for bare shaft fans. DOE applied this approach 
because the fan selection data included performance data for fans in 
bare shaft configurations. In this NODA, in order to establish the FEP 
of a fan considered in the analysis, DOE retained this approach and 
used the default values and calculation algorithms for bare shaft fans 
as recommended by the Working Group. The engineering analysis and 
conversion cost spreadsheet presents the detailed equations and default 
values used to calculate the FEP of a given fan model in a bare shaft 
configuration. In addition, based on the Working Group recommendation, 
the spreadsheet includes default values and calculation algorithms for 
other fan configurations such as fans with dynamic continuous controls. 
(No. 179, Recommendation #12-16 at pp. 7-9)
    After the publication of the December 2014 NODA, Morrison and AHRI 
commented that the operating hours seemed high but did not provide 
quantified estimates. (Morrison, No. 51 at p. 8; AHRI, No. 53 at p. 13) 
In the December 2014 and May 2015 NODAs, DOE used industrial plant 
assessment and Energy Plus building simulation data to estimate fan 
operating hours, which averaged around 6,500 hours per year.\18\ In 
this NODA, DOE retained the same assumption for the operating hours of 
standalone fans and developed specific operating hours for embedded 
fans based on HVAC fan operating hours data which averaged 2,725 hours 
per year.\19\
---------------------------------------------------------------------------

    \18\ Database of motor nameplate and field measurement data 
compiled by the Washington State University Extension Energy Program 
(WSU) and Applied Proactive Technologies (APT) under contract with 
the New York State Energy Research and Development Authority 
(NYSERDA) (2011); Strategic Energy Group (Jan. 2008), Northwest 
Industrial Motor Database Summary from Regional Technical Forum. 
Retrieved March 5, 2013 from http://rtf.nwcouncil.org/subcommittees/osumotor/Default.htm; U.S. Department of Energy, Energy Efficiency 
and Renewable Energy, Building Technologies Office, EnergyPlus 
Energy Simulation Software (Aug. 2014). Available at http://apps1.eere.energy.gov/buildings/energyplus.
    \19\ Arthur D. Little, Inc. ``Opportunities for Energy Savings 
in the Residential and Commercial Sectors with High-Efficiency 
Electric Motors (Final Report),'' (Dec. 1999); U.S. Department of 
Energy-Office of Energy Efficiency and Renewable Energy. Energy 
Conservation Program for Certain Industrial Equipment: Energy 
Conservation Standards for Water-Cooled and Evaporatively-Cooled 
Commercial Packaged Air-Conditioning and Heating Equipment. Final 
Rule Technical Support Document, Chapter 4 Energy Use 
Characterization (2012). Available at http://www.regulations.gov/document?D=EERE-2011-BT-STD-0029-0039; 1 U.S. Department of Energy-
Office of Energy Efficiency and Renewable Energy. Energy 
Conservation Program for Certain Industrial Equipment: Energy 
Conservation Standards for Small, Large, and Very Large Commercial 
Package Air Conditioning and Heating Equipment. NOPR Technical 
Support Document, Chapter 7 Energy Use Analysis (2014). Available at 
http://www.regulations.gov/document?D=EERE-2013-BT-STD-0007-0027.
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on fan operating hours.
    In the December 2014 NODA and the May 2015 NODA, DOE assumed that 
all fans operated at full design flow and pressure when performing the 
energy use calculation. AHRI noted that most fans in HVAC equipment do 
not run at full design speed but at 60 percent of full speed 
(equivalent to running at 60 percent of design flow). (AHRI, No. 129-1 
at p. 2) AHRI additionally provided input on the typical fan load 
profiles in VAV systems. (AHRI, No. 53 at p. 13) ACME commented that, 
50 percent of the time, the actual operating point of a fan is not 
equal to the design point selection of the fan and has a higher 
pressure value. ACME added that in some situations, the design point of 
the fan is not known and the actual operating point of a fan may fall 
in a region of operation where the fan has a

[[Page 75752]]

poor efficiency. ACME estimated that this could happen at least 30 
percent of the time. In addition, ACME commented that the energy use 
analysis should account for fans operating in variable air volume (VAV) 
systems, for which the actual fan operating point is different than the 
design point. ACME believes that accounting for these situations would 
reduce the energy savings as calculated in the May 2015 NODA. (ACME, 
No. 149 at pp. 1-2) For industrial fans, AcoustiFLO stated that most 
fans operate at their design point. (AcoustiFLO, Public Meeting 
Transcript, No. 85 at p. 193)
    Based on these comments and stakeholder feedback received during 
negotiations DOE revised its December 2014 and May 2015 NODA analyses 
to account for part load operation. For the commercial sector, DOE 
assumed that 80 percent of the fans operated at an airflow that 
differed from the design flow at least some of the time. DOE based the 
80 percent value on results from the EnergyPlus building energy use 
simulation software \20\ that indicated that 80 percent of fans in the 
commercial sector operate along a variable load profile. To reflect 
this, DOE developed variable load profiles for 80 percent of the 
commercial fans based on the information provided by AHRI and the 
EnergyPlus building energy use simulation. In the case of the 
industrial sector, in line with the inputs from the stakeholders, DOE 
assumed about a third of the fans operated outside of the design flow 
(30 percent). The load profiles are presented in the ``Sectors and 
Applications'' worksheet of the LCC spreadsheet.
---------------------------------------------------------------------------

    \20\ The EnergyPlus building energy use simulation software is 
available at http://apps1.eere.energy.gov/buildings/energyplus/.
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on the fan load profiles used in the 
energy use calculation and on the percentage of fans used in variable 
load applications.
    In the December 2014 NODA and the May 2015 NODA, DOE estimated the 
average fan lifetime for standalone fans to be 30 years. AHRI commented 
that the lifetimes seemed high but did not provide quantified 
estimates. Morrison commented that the lifetimes seemed high and that 
fans used in HVAC typically have 12-15 year lifetimes. (AHRI, No. 53 at 
p. 5, Morrison, No. 51 at p. 8) In this NODA, DOE revised the fan 
lifetimes to account for the fact that fans in HVACR application may 
have shorter lifetimes. In line with Morrison's comment, DOE used an 
average embedded fan lifetime of 17 years based on estimates of HVACR 
equipment lifetimes, but maintained an average lifetime of 30 years for 
other fans.\21\ The LCC spreadsheet includes more details on the fan 
lifetime estimates and includes a sensitivity scenario that provides 
results for an average embedded fan lifetime of 15 years.\22\
---------------------------------------------------------------------------

    \21\ Roth, Kurt, Detlef Westphalen, John Dieckmann, Sephir 
Hamilton, and William Goetzler. ``Energy Consumption Characteristics 
of Commercial Building HVAC Systems Volume III: Energy Savings 
Potential.'' National Technical Information Service (NTIS): U.S. 
Department of Commerce (July 2002). Available at http://apps1.eere.energy.gov/buildings/publications/pdfs/commercial_initiative/hvac_volume3_final_report.pdf.
    U.S. Department of Energy-Office of Energy Efficiency and 
Renewable Energy. Energy Conservation Program for Certain Industrial 
Equipment: Energy Conservation Standards for Small, Large, and Very 
Large Commercial Package Air Conditioning and Heating Equipment. 
Life-Cycle Cost Spreadsheet (NOPR) (2014). Available at http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0007.
    \22\ The sensitivity scenario used a mechanical lifetime of 
45,000 hours based on typical annual operating hours of 3000 hours 
and a lifetime in years of 15. The lifetimes calculates in the LCC 
may lead to different lifetimes in years due to the variability in 
applications and associated annual operating hours (i.e., fans 
operating fewer annual hours may have a longer lifetime).
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on fan lifetimes.

H. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total consumer costs and savings expected to 
result from potential new standards at each EL. DOE calculated NES and 
NPV for each EL as the difference between a no-standards case forecast 
(without new standards) and the standards case forecast (with 
standards). Cumulative energy savings are the sum of the annual NES 
determined for the lifetime of all fans shipped during a 30-year 
analysis period assumed to start in 2022. Energy savings include the 
full-fuel cycle energy savings (i.e., the energy needed to extract, 
process, and deliver primary fuel sources such as coal and natural gas, 
and the conversion and distribution losses of generating electricity 
from those fuel sources). The NPV is the sum over time of the 
discounted net savings each year, which consists of the difference 
between total energy cost savings and increases in total equipment 
costs. NPV results are reported for discount rates of 3 and 7 percent.
    To calculate the NES and NPV, DOE projected future shipments and 
efficiency distributions (for each EL) for each potential fan equipment 
class. DOE recognizes the uncertainty in projecting shipments and 
electricity prices; as a result, the NIA includes several different 
scenarios for each. Other inputs to the NIA include the estimated fan 
lifetime used in the LCC analysis, fan price, average annual energy 
consumption, and efficiency distributions from the LCC.
IV. Issues on Which DOE Seeks Public Comment
    DOE is interested in receiving comment on all aspects of this 
analysis. DOE is particularly interested in receiving comments and 
views of interested parties concerning the following issues:
    1. DOE requests feedback on the calculation of the 
FEPSTD and FEI.
    2. DOE seeks comments on the equipment classes used in this notice.
    3. DOE seeks information on whether there are specific sizes or 
operating points where forward curved fans would no longer be available 
at efficiency levels up to EL 5.
    4. DOE seeks comments on the use a compliance date of five years 
after the publication of the final rule.
    5. DOE requests information on the per-model (i.e., a single size 
fan within a fan series) redesign costs presented in the engineering 
analysis and conversion cost spreadsheet.
    6. DOE requests information on the number of models that are 
currently in the scope of the rulemaking nationally.
    7. DOE requests feedback on the quantity of redesigns, methodology, 
and results used to calculate the total industry conversion costs by 
equipment class and EL, as presented in the engineering analysis and 
conversion cost spreadsheet.
    8. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared among sizes 
in a fan series.
    9. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared between 
belt and direct drive fans with the same aerodynamic design.
    10. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared between 
fans of different construction classes of the same aerodynamic design.
    11. DOE requests information on the portion of equipment with 
embedded fans that would require heat testing for certification with 
any new energy conservation standards.
    12. DOE requests feedback on the number of embedded fans that would 
require redesign presented in the engineering analysis and conversion 
costs spreadsheet.
    13. DOE seeks feedback and input on the 2012 standalone fan and 
embedded fan shipments values, by equipment class and subcategory. 
Specifically, DOE

[[Page 75753]]

requests feedback on: (1) The estimated number of fans per HVACR 
equipment; (2) the distribution of HVACR fans across fan subcategory by 
fan application; and (3) the share of standalone fans purchased and 
incorporated in HVACR equipment.
    14. DOE seeks feedback and input on the distribution of fan 
selections by power bin and subcategory for standalone fans and 
embedded fans as presented in the ``LCC sample Description'' worksheet 
of the LCC spreadsheet.
    15. DOE seeks feedback and inputs on the fan operating hours.
    16. DOE seeks feedback and inputs on the fan load profiles used in 
the energy use calculation and on the percentage of fans used in 
variable load applications.
    17. DOE seeks feedback and inputs on the fan lifetimes.
    The purpose of this NODA is to notify industry, manufacturers, 
consumer groups, efficiency advocates, government agencies, and other 
stakeholders of the publication of an analysis of potential energy 
conservation standards for commercial and industrial fans and blowers. 
Stakeholders should contact DOE for any additional information 
pertaining to the analyses performed for this NODA.

    Issued in Washington, DC, on October 19, 2016.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2016-26341 Filed 10-31-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                      75742

                                                      Proposed Rules                                                                                                Federal Register
                                                                                                                                                                    Vol. 81, No. 211

                                                                                                                                                                    Tuesday, November 1, 2016



                                                      This section of the FEDERAL REGISTER                    regulatory information number (RIN)                     Mr. Peter Cochran, U.S. Department of
                                                      contains notices to the public of the proposed          1904–AC55, by any of the following                    Energy, Office of the General Counsel,
                                                      issuance of rules and regulations. The                  methods:                                              GC–33, 1000 Independence Avenue
                                                      purpose of these notices is to give interested
                                                                                                                • Federal eRulemaking Portal:                       SW., Washington, DC 20585–0121.
                                                      persons an opportunity to participate in the                                                                  Telephone: (202) 586–9496. Email:
                                                      rule making prior to the adoption of the final          www.regulations.gov. Follow the
                                                      rules.                                                  instructions for submitting comments.                 peter.cochran@hq.doe.gov.
                                                                                                                • Email: CIFB2013STD0006@                           SUPPLEMENTARY INFORMATION:
                                                                                                              ee.doe.gov. Include the docket number                 Table of Contents
                                                      DEPARTMENT OF ENERGY                                    and/or RIN in the subject line of the
                                                                                                              message. Submit electronic comments                   I. History of Energy Conservation Standards
                                                      10 CFR Part 431                                         in WordPerfect, Microsoft Word, PDF,                        Rulemaking for Commercial and
                                                                                                                                                                          Industrial Fans and Blowers
                                                      [Docket No. EERE–2013–BT–STD–0006]                      or ASCII file format, and avoid the use
                                                                                                                                                                    II. Current Status
                                                                                                              of special characters or any form of                  III. Summary of the Analyses Performed by
                                                      RIN 1904–AC55                                           encryption.                                                 DOE
                                                      Energy Conservation Standards for                         • Postal Mail: Appliance and                           A. Fan Electrical Input Power
                                                      Commercial and Industrial Fans and                      Equipment Standards Program, U.S.                        B. Scope of the Analysis and Addition of
                                                      Blowers: Availability of Provisional                    Department of Energy, Building                              Certain Embedded Fans
                                                                                                              Technologies Office, Mailstop EE–5B,                     C. Equipment Classes
                                                      Analysis Tools                                                                                                   D. Compliance Year
                                                                                                              1000 Independence Avenue SW.,
                                                      AGENCY: Office of Energy Efficiency and                                                                          E. Engineering Analysis
                                                                                                              Washington, DC 20585–0121. If
                                                      Renewable Energy, Department of                                                                                  F. Manufacturer Impact Analysis
                                                                                                              possible, please submit all items on a                   1. Impacts on OEMs
                                                      Energy.                                                 compact disc (CD), in which case it is                   G. Life-Cycle Cost and Payback Period
                                                      ACTION: Notice of data availability                     not necessary to include printed copies.                    Analyses
                                                      (NODA).                                                   • Hand Delivery/Courier: Appliance                     H. National Impact Analysis
                                                                                                              and Equipment Standards Program, U.S.                 IV. Issues on Which DOE Seeks Public
                                                      SUMMARY:     The U.S. Department of                                                                                 Comment
                                                      Energy (DOE) has completed a                            Department of Energy, Building
                                                      provisional analysis that estimates the                 Technologies Office, 950 L’Enfant Plaza               I. History of Energy Conservation
                                                      potential economic impacts and energy                   SW., 6th Floor, Washington, DC 20024.                 Standards Rulemaking for Commercial
                                                      savings that could result from                          Telephone: (202) 586–6636. If possible,               and Industrial Fans and Blowers
                                                      promulgating a regulatory energy                        please submit all items on a CD, in
                                                                                                              which case it is not necessary to include                On June 28, 2011, DOE published a
                                                      conservation standard for commercial                                                                          notice of proposed determination of
                                                      and industrial fans and blowers                         printed copies.
                                                                                                                                                                    coverage to initiate the energy
                                                      (‘‘fans’’). At this time, DOE is not                      • Docket: The docket, which includes
                                                                                                                                                                    conservation standards rulemaking for
                                                      proposing any energy conservation                       Federal Register notices, public meeting
                                                                                                                                                                    fans, blowers, and fume hoods. 76 FR
                                                      standard for fans. However, it is                       attendee lists and transcripts,
                                                                                                                                                                    37678. Subsequently, DOE published a
                                                      publishing this analysis so stakeholders                comments, and other supporting
                                                                                                                                                                    notice of public meeting and availability
                                                      can review the analysis results and the                 documents/materials, is available for
                                                                                                                                                                    of the Framework document for
                                                      underlining assumptions and                             review at www.regulations.gov. All
                                                                                                                                                                    commercial and industrial fans and
                                                      calculations that might ultimately                      documents in the docket are listed in
                                                                                                                                                                    blowers (‘‘fans’’) in the Federal Register.
                                                      support a proposed standard. DOE                        the www.regulations.gov index.
                                                                                                                                                                    78 FR 7306 (February 1, 2013). In the
                                                      encourages stakeholders to provide any                  However, some documents listed in the
                                                                                                                                                                    Framework document, DOE requested
                                                      additional data or information that may                 index may not be publicly available,
                                                                                                                                                                    feedback from interested parties on
                                                      improve the analysis. The analysis is                   such as those containing information
                                                                                                                                                                    many issues, including the engineering
                                                      now publically available at http://                     that is exempt from public disclosure.
                                                                                                                                                                    analysis, the manufacturer impact
                                                      www.regulations.gov/docket?D=EERE-                         The docket Web page can be found at:               analysis (MIA), the life-cycle cost (LCC)
                                                      2013-BT-STD-0006.                                       http://www.regulations.gov/                           and payback period (PBP) analyses, and
                                                      DATES: DOE will accept comments, data,                  docket?D=EERE-2013-BT-STD-0006.                       the national impact analysis (NIA).
                                                      and information regarding the NODA no                   The docket Web page contains simple                      On December 10, 2014, DOE
                                                      later than December 1, 2016.                            instructions on how to access all                     published a notice of data availability
                                                      ADDRESSES: Instructions: Any comments                   documents, including public comments,                 (December 2014 NODA) that estimated
                                                      submitted must identify the NODA for                    in the docket.                                        the potential economic impacts and
                                                      Energy Conservation Standards for                       FOR FURTHER INFORMATION CONTACT: Ms.                  energy savings that could result from
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      Commercial and Industrial Fans and                      Ashley Armstrong, U.S. Department of                  promulgating energy conservation
                                                      Blowers, and provide docket number                      Energy, Office of Energy Efficiency and               standards for fans. 79 FR 73246. The
                                                      EERE–2013–BT–STD–0006 and/or                            Renewable Energy, Building                            December 2014 NODA comment period
                                                      regulatory information number (RIN)                     Technologies, EE–2J, 1000                             was originally scheduled to close on
                                                      1904–AC55. Comments may be                              Independence Avenue SW.,                              January 26, 2015. However, DOE
                                                      submitted using any of the following                    Washington, DC 20585–0121.                            subsequently published a notice
                                                      methods: Interested persons may submit                  Telephone: (202) 586–6590. Email:                     extending the comment period to
                                                      comments, identified by docket number                   ApplianceStandardsQuestions@                          February 25, 2015, to allow additional
                                                      EERE–2013–BT–STD–0006 and/or                            ee.doe.gov.                                           time for interested parties to submit


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                                                                                  Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                                                                        75743

                                                      comments. 80 FR 1477 (January 12,                                      using a modified FEI metric. 80 FR                                        II. Current Status
                                                      2015). The December 2014 NODA                                          24841. The modified FEI metric used in                                       Since the negotiations, DOE has
                                                      analysis used a ‘‘wire-to-air’’ fan                                    the May 2015 NODA is similar to the                                       revised its analysis to reflect the term
                                                      electrical input power metric, the fan                                 FERW metric presented by the Joint                                        sheet recommendations regarding the
                                                      energy index (FEI), to characterize fan                                Stakeholders.                                                             metric and energy conservation
                                                      performance. FEI is the ratio of the                                     Concurrent with these efforts, DOE                                      standards. DOE is publishing this
                                                      weighted-average fan electrical input                                                                                                            NODA to inform stakeholders of the
                                                                                                                             also began a process through the
                                                      power of a minimally compliant fan to                                                                                                            impacts of potential energy conservation
                                                                                                                             Appliance Standards Rulemaking
                                                      the weighted-average fan electrical                                                                                                              standards for fans based on term sheet
                                                                                                                             Federal Advisory Committee (ASRAC)
                                                      input power of a given fan, at three                                                                                                             recommendations and to request
                                                                                                                             to discuss negotiated energy
                                                      specified operating points. The FEI                                                                                                              feedback on specific issues.
                                                      metric relied on an equation describing                                conservation standards and test
                                                                                                                             procedure for fans.3 On April 1, 2015,                                       DOE made several changes to its
                                                      fan efficiency as a function of airflow                                                                                                          analysis in preparing this NODA to
                                                      and pressure in order to set the                                       DOE published a notice of intent to
                                                                                                                             establish a negotiated rulemaking                                         address the term sheet
                                                      minimum fan efficiency of each                                                                                                                   recommendations as well as other
                                                      considered efficiency level (EL)                                       Working Group for fans. 80 FR 17359.
                                                                                                                                                                                                       stakeholder concerns expressed during
                                                      analyzed in the December 2014 NODA.                                    Twenty-five nominees were selected to
                                                                                                                                                                                                       the negotiations. Table II–1 lists the
                                                      In October 2014, several representatives                               serve as members of the Working Group
                                                                                                                                                                                                       stakeholders who commented on issues
                                                      of fan manufacturers and energy                                        in addition to one member from ASRAC                                      addressed in this NODA. These changes
                                                      efficiency advocates 1 (Joint                                          and one DOE representative. Members                                       and the ensuing results are described in
                                                      Stakeholders) presented DOE with an                                    of the Working Group were selected to                                     section III, the accompanying analysis
                                                      alternative metric approach called ‘‘Fan                               ensure all stakeholders’ interests and                                    spreadsheets, or both. The most
                                                      Efficiency Ratio,’’ which included a fan                               areas of expertise were represented.                                      significant changes include
                                                      efficiency-only metric approach (FERH)                                   The Working Group negotiations                                             (1) the augmentation of the AMCA
                                                      and a wire-to-air metric approach                                      comprised 16 meetings and three                                           sales data used in the May 2015 NODA
                                                      (FERW).2 Both the FEI approach,                                        webinars and covered scope, metrics,                                      to better account for fans made by
                                                      presented in the December 2014 NODA,                                   test procedures, and energy                                               companies that incorporate those fans
                                                      and the FERW approaches relied on an                                   conservation standard levels for fans.4                                   for sale in their own equipment (see
                                                      equation to determine required fan                                     The negotiations were initially                                           section III.G);
                                                      efficiency as a function of the fan’s                                  scheduled to end on August 6, 2015, but                                      (2) the augmentation of the AMCA
                                                      airflow and pressure. The main                                         the Working Group voted to extend the                                     sales data used in the May 2015 NODA
                                                      differences between the December 2014                                                                                                            to represent additional sales of forward
                                                                                                                             process by 30 days. The Working Group
                                                      NODA FEI and the FERW approaches                                                                                                                 curved fans, which AMCA stated were
                                                                                                                             concluded its negotiations on
                                                      were the form of the equation used for                                                                                                           underrepresented in the original data
                                                                                                                             September 3, 2015, with a consensus
                                                      the fan efficiency, and the operating                                                                                                            AMCA provided. (AMCA, Public
                                                                                                                             vote to approve and publish a term
                                                      conditions at which the metric was                                                                                                               Meeting Transcript, No. 85 at p. 91); and
                                                      evaluated. While in the December 2014                                  sheet containing recommendations for
                                                                                                                                                                                                          (3) the inclusion of OEM equipment
                                                      NODA, the FEI was calculated as a                                      DOE on scope, energy conservation                                         conversion costs.
                                                      weighted average of the fan performance                                standards analysis methodology, and                                          At this time, DOE is not proposing
                                                      at three specific operating points, the                                the test procedure for fans. The term                                     any energy conservation standards for
                                                      FERW was calculated at all                                             sheet containing the Working Group                                        fans. DOE may revise the analyses
                                                      manufacturer-declared operating points.                                recommendations is available in the                                       presented in today’s NODA based on
                                                      On May 1, 2015, based on the additional                                fans energy conservation standard                                         any new or updated information or data
                                                      information received and comments to                                   rulemaking docket.5 ASRAC                                                 it obtains during the course of the
                                                      the December 2014 NODA, DOE                                            subsequently voted to approve the                                         rulemaking. DOE encourages
                                                      published a second NODA (May 2015                                      recommendations of the Working Group                                      stakeholders to provide any additional
                                                      NODA) that announced the availability                                  during the September 24, 2015 webinar                                     data or information that may improve
                                                      of data from DOE analyses conducted                                    meeting.                                                                  the analysis.

                                                               TABLE II–2—LIST OF COMMENTERS ON ENERGY CONSERVATION STANDARD ISSUES ADDRESSED IN THIS NODA
                                                                            Company or organization                                                                         Abbreviation                                                    Affiliation

                                                      ACME Engineering & Manufacturing Corporation ...........                             ACME ..............................................................................     Manufacturer.
                                                      AcoustiFLO .......................................................................   AcoustiFLO ......................................................................       Manufacturer.
                                                      Air-Conditioning, Heating, and Refrigeration Institute ......                        AHRI ................................................................................   Trade Association.
                                                      Air Movement and Control Association, Inc .....................                      AMCA ..............................................................................     Trade Association.
                                                      Appliance Standards Awareness Program ......................                         ASAP ...............................................................................    Efficiency Advocate.
                                                      California Investor-Owned Utilities ...................................              CA IOUs ...........................................................................     Utilities.
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      ebm-papst, Inc ..................................................................    ebm-papst ........................................................................      Manufacturer.

                                                        1 The Air Movement and Control Association                              3 Information on the ASRAC, the commercial and                         rulemaking at: http://www.regulations.gov/
                                                      (AMCA), New York Blower Company, Natural                               industrial fans Working Group, and meeting dates                          docket?D=EERE-2013-BT-STD-0006.
                                                      Resources Defense Council (NRDC), the Appliance                        is available at: http://energy.gov/eere/buildings/                          5 The term sheet, document No. 179, is posted on
                                                      Standards Awareness Project (ASAP), and the                            appliance-standards-and-rulemaking-federal-                               the docket for the energy conservation standards
                                                      Northwest Energy Efficiency Alliance (NEEA).
                                                        2 Supporting documents from this meeting,
                                                                                                                             advisory-committee.                                                       rulemaking at: http://www.regulations.gov/
                                                                                                                                4 Details of the negotiation sessions can be found                     docket?D=EERE-2013-BT-STD-0006.
                                                      including presentation slides are available at:
                                                      http://www.regulations.gov/document?D=EERE-                            in the public meeting transcripts that are posted to
                                                      2013-BT-STD-0006-0029.                                                 the docket for the energy conservation standard



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                                                      75744                     Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules

                                                            TABLE II–2—LIST OF COMMENTERS ON ENERGY CONSERVATION STANDARD ISSUES ADDRESSED IN THIS NODA—
                                                                                                      Continued
                                                                           Company or organization                                                                     Abbreviation                                                   Affiliation

                                                      Flowcare Engineering Inc .................................................       Flowcare ..........................................................................    Manufacturer.
                                                      Greenheck Fan Corporation .............................................          Greenheck .......................................................................      Manufacturer.
                                                      Ingersoll Rand/Trane ........................................................    Ingersoll Rand/Trane .......................................................           Manufacturer.
                                                      Morrison Products ............................................................   Morrison ...........................................................................   Manufacturer.
                                                      United Technologies/Carrier .............................................        United Technologies/Carrier ............................................               Manufacturer.



                                                      III. Summary of the Analyses                                       A. Fan Electrical Input Power                                            electric motor, or fan with motor with
                                                      Performed by DOE                                                     Fan energy performance is a critical                                   transmission and/or control). The
                                                                                                                         input in the provisional analyses                                        Working Group also recommended
                                                        DOE developed provisional analyses                                                                                                        allowing the representation of an index
                                                                                                                         discussed in this notice. DOE used the
                                                      of fans in the following areas: (1)                                                                                                         metric, the FEI, to allow for better
                                                                                                                         fan electrical input power metric (FEP)
                                                      Engineering; (2) manufacturer impacts;                                                                                                      comparability across all regulated fans.
                                                                                                                         as recommended by the Working Group
                                                      (3) LCC and PBP; and (4) national                                  to characterize the efficiency levels and                                The engineering analysis and
                                                      impacts. The Government Regulatory                                 represent fan performance. (No. 179,                                     conversion cost spreadsheet presents
                                                      Impact Model (GRIM), the engineering                               Recommendation #6 at p. 5) 6                                             the algorithms and default values used
                                                      spreadsheet, the life-cycle cost                                     The recommended FEP metric                                             by the default value testing method and
                                                      spreadsheet, and the national impact                               represents the electrical input power of                                 calculations of the FEP for both testing
                                                      analysis spreadsheet used in preparing                             the fan and includes the performance of                                  methods. (No. 179, Recommendation
                                                      these analyses and their respective                                the motor, and any transmission and/or                                   #9–16 at pp. 6–10)
                                                      results are available at: http://                                  control if integrated, assembled, or                                        As noted previously, the FEP of a fan
                                                      www.regulations.gov/docket?D=EERE-                                 packaged with the fan. The Working                                       includes the performance of the bare
                                                      2013-BT-STD-0006. Each individual                                  Group recommended to require                                             shaft fan and of its drive system.9 In the
                                                      spreadsheet includes an introduction                               manufacturers to determine the FEP at                                    December 2014 NODA and the May
                                                      that provides an overview of the                                   each manufacturer-declared operating                                     2015 NODA, DOE calculated the FEP of
                                                      contents of the spreadsheet. These                                 point, at standard air density, where the                                a fan that exactly meets a given
                                                      spreadsheets present the various inputs                            operating point is characterized by a                                    efficiency level (FEPSTD) using a fan
                                                      and outputs to the analysis and, where                             value of airflow and total pressure for                                  efficiency equation and the default
                                                      necessary, instructions. Brief                                     ducted fans and by a value of airflow
                                                                                                                                                                                                  values and calculation algorithms of a
                                                                                                                         and static pressure for unducted fans.7 8
                                                      descriptions of the calculation of the                                                                                                      fan sold with a regulated electric motor
                                                                                                                         Two methods were recommended by
                                                      considered energy conservation                                                                                                              and transmission, such as a belt drive.
                                                                                                                         the Working Group for determining the
                                                      standard levels, of the scope, of the                                                                                                       During the negotiations, the Working
                                                                                                                         FEP: (1) A fan shaft input power
                                                      provisional analyses, and of the                                   measurement combined with default                                        Group voted to retain this approach and
                                                      supporting spreadsheet tools are                                   values to represent the performance of                                   provided further recommendations on
                                                      provided in this preamble. If DOE                                  the motor and any transmission and/or                                    how to establish the fan efficiency
                                                      proposes energy conservation standards                             control (default value testing method);                                  equation and default values for
                                                      for fans in a future NOPR, then DOE                                or (2) a direct measurement of the fan                                   standalone fans.10 (No. 179,
                                                      will publish a technical support                                   electrical input power (direct testing                                   Recommendation #18 at p. 11)
                                                      document (TSD) containing a detailed                               method). The recommended default                                            Based on this recommendation, and
                                                      written account of the analyses                                    value testing method provides different                                  applying the same approach for
                                                      performed in support of the NOPR,                                  sets of calculation algorithms and                                       embedded fans (see Section III.B), this
                                                      which will include updates to the                                  default values to establish the FEP of a                                 NODA calculates the FEPSTD,i of a fan
                                                      analyses made available in this NODA.                              fan depending on its configuration (e.g.,                                based on the following equation, in kW,
                                                                                                                         bare shaft fan, fan with regulated                                       at a given operating point i:




                                                      Where:                                                             hSTD,i = standard level fan total efficiency for                         hT,i = default transmission efficiency
                                                      Qi = airflow (cfm) at operating point i;                               ducted fans, standard level fan static                                    (percent) at operating point i;
                                                                                                                             efficiency for unducted fans at operating                            LM,i = default electric motor losses (hp) at
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      Pi = total pressure for ducted fans, static
                                                           pressure for unducted fans (in.wg.) at                            point i (percent), calculated in                                          operating point i;
                                                           operating point i;                                                accordance with Eq. 2;                                               6343 = conversion factor for I–P units; and
                                                                                                                                                                                                  0.746 = hp to kW conversion factor.

                                                        6 A notation in this form refers to a specific                   centrifugal unhoused fans, and power roof                                   9 The drive system includes the motor and any

                                                      recommendation from the Working Group term                         ventilators. (No. 179, Appendix C at p. 16)                              transmission and/or control if integrated, assembled
                                                      sheet, document No. 179.                                             8 In this document, all pressures refer to standard                    or packaged with the fan.
                                                        7 Ducted fans are: Axial cylindrical housed,                     air densities. Standard air density is defined by a                         10 A standalone fan is a fan that is not exclusively

                                                      centrifugal housed, inline and mixed-flow, and                     density of 0.075 lb/ft3, corresponding to air at 68                      distributed in commerce for incorporation or
                                                                                                                                                                                                                                                            EP01NO16.152</GPH>




                                                      radial housed fans. Unducted fans are panel fans,                  °F, 50 percent relative humidity and 406.78 in.wg.                       incorporated in a larger piece of equipment.



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                                                                                   Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                                                                       75745

                                                        The Working Group recommended a                                         For each efficiency level considered,                                           ducted fans and the fan static efficiency
                                                      fan efficiency equation to use for all fans                               this NODA uses the equation                                                     for unducted fans (percent) at a given
                                                      when calculating FEPSTD. (No. 179,                                        recommended by the Working Group to                                             operating point i (percent):
                                                      Recommendations #19–21 at pp. 11–12)                                      determine the fan total efficiency for




                                                      Where:                                                                    with one modification as follows: DOE                                           on the recommendation of the Working
                                                      hSTD,i = standard level fan total efficiency for                          calculated the FEI using a reference                                            Group, but renames axial housed fans as
                                                           ducted fans, standard level fan static                               value of FEP (FEPREF) instead of using                                          axial cylindrical housed fans and axial
                                                           efficiency for unducted fans (percent) at                            a value equal to the first energy                                               unhoused fans as panel fans based on
                                                           operating point i and considered                                     conservation standards DOE may set
                                                           efficiency level;
                                                                                                                                                                                                                information provided by the Working
                                                                                                                                (FEPSTD). As a reference value, DOE                                             Group. In addition, based on the
                                                      Qi = flow (CFM) at operating point i;
                                                                                                                                used the mid-point efficiency level                                             discussions of the Working Group, DOE
                                                      Pi = total pressure for ducted fans, static
                                                           pressure for unducted fans (in.wg.) at                               (EL3).                                                                          incorporated more embedded fans into
                                                           operating point i;                                                     DOE requests feedback on the                                                  its analysis for this NODA.11 DOE also
                                                      htarget = constant (percent) used to establish                            calculation of the FEPSTD and FEI.
                                                                                                                                                                                                                added more sales of forward curved fans
                                                           the efficiency level associated with each                            B. Scope of the Analysis and Addition                                           for this NODA, which AMCA stated
                                                           standards case considered (see section
                                                                                                                                of Certain Embedded Fans                                                        were under-represented in the original
                                                           III.E).
                                                                                                                                  In the December 2014 NODA and the                                             data AMCA provided. (AMCA, Public
                                                        The detailed equations and                                              May 2015 NODA, DOE analyzed the                                                 Meeting Transcript, No. 85 at p. 91)
                                                      assumptions used to calculate FEPSTD                                      following fan categories: Axial housed                                          Accordingly, this NODA analyzes the
                                                      are included in the engineering analysis                                  fans, axial unhoused fans, centrifugal                                          fans listed in Table III–1 with the
                                                      and conversion cost spreadsheet.                                          housed fans, centrifugal unhoused fans,                                         characteristics discussed in this section
                                                        In addition, for this NODA, DOE                                         inline and mixed flow fans, radial fans,                                        and exemptions listed in Table III–2.
                                                      maintained the Working Group                                              and power roof ventilators. This NODA                                           (No. 179, Recommendation #1–4 at pp.
                                                      recommendation for the FEI calculation,                                   analyzes the same fan categories based                                          1–4)

                                                                                                                             TABLE III–1—FAN CATEGORIES ANALYZED
                                                                               Family                                                                       Fan category                                                              In NODA scope?

                                                      Axial ........................................................   Axial cylindrical housed .........................................................                  Yes *
                                                                                                                       Panel ......................................................................................        Yes *
                                                                                                                       Power Roof Ventilator ............................................................                  Yes *
                                                                                                                       Induced flow fans ...................................................................               No
                                                                                                                       Safety fan ...............................................................................          No
                                                                                                                       Circulating fans ......................................................................             No
                                                      Centrifugal ...............................................      Centrifugal housed .................................................................                Yes *
                                                                                                                       Centrifugal unhoused .............................................................                  Yes *
                                                                                                                       Radial shrouded .....................................................................               Yes *
                                                                                                                       Radial unshrouded .................................................................                 No if impeller is less than 30 inches in
                                                                                                                                                                                                                             diameter or less than 3 inches in
                                                                                                                                                                                                                             blade width.
                                                                                                                       Power Roof Ventilator ............................................................                  Yes *
                                                                                                                       Induced flow fans ...................................................................               No
                                                                                                                       Safety fan ...............................................................................          No
                                                                                                                       Inline ......................................................................................       Yes *
                                                      Mixed flow ...............................................        ................................................................................................   Yes *
                                                      Cross flow ...............................................        ................................................................................................   No
                                                         * Excluding embedded fans listed in Table III–2.

                                                                                                             TABLE III–2—EMBEDDED FANS RECOMMENDED EXEMPTIONS
                                                                                                                                                      Equipment category

                                                      Fans exclusively embedded in:
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                          Single phase central air conditioners and heat pumps with a certified cooling capacity rated less than 65,000 Btu per hour, subject to
                                                            DOE’s energy conservation standard at 10 CFR 430.32(c).
                                                          Three phase, air-cooled, small commercial packaged air-conditioning and heating equipment with a certified cooling capacity rated less
                                                            than 65,000 Btu per hour, subject to DOE’s energy conservation standard at 10 CFR 431.97(b).
                                                          Residential furnaces subject to DOE’s energy conservation standard at 10 CFR 430.32(y).
                                                          Transport refrigeration (i.e., Trailer refrigeration, Self-powered truck refrigeration, Vehicle-powered truck refrigeration, Marine/Rail container
                                                            refrigerant).
                                                          Vacuums.
                                                          Heat Rejection Equipment:
                                                                                                                                                                                                                                                                      EP01NO16.153</GPH>




                                                              Packaged evaporative open circuit cooling towers.



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                                                      75746                        Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules

                                                                                                 TABLE III–2—EMBEDDED FANS RECOMMENDED EXEMPTIONS—Continued
                                                                                                                                                    Equipment category

                                                              Evaporative field erected open circuit cooling tower.
                                                              Packaged evaporative closed circuit cooling towers.
                                                              Evaporative field erected closed circuit cooling tower.
                                                              Packaged evaporative condensers.
                                                              Field erected evaporative condensers.
                                                              Packaged air cooled (dry) coolers.
                                                              Field erected air cooled (dry) coolers.
                                                              Air cooled steam condensers.
                                                              Hybrid (water saving) versions of all of the previously listed equipment that contain both evaporative and air cooled heat exchange sec-
                                                                 tions.
                                                         Air curtains.
                                                      Supply or Condenser fans, exclusively embedded in:
                                                         Air-cooled commercial package air conditioners and heat pumps (CUAC, CUHP) between 5.5 and 63.5 tons regulated by DOE’s energy
                                                            conservation standard at 10 CFR 431.97(b).
                                                         Water-cooled, evaporatively-cooled, and water-source commercial air conditioners or heat pumps regulated by DOE’s energy conservation
                                                            standard at 10 CFR 431.97(b).
                                                         Single package vertical air conditioners and heat pumps regulated by DOE’s energy conservation standard at 10 CFR 431.97(d).
                                                         Packaged terminal air conditioners (PTAC) and packaged terminal heat pumps (PTHP) regulated by DOE’s energy conservation standard
                                                            at 10 CFR 431.97(c).
                                                         Computer room air conditioners regulated by DOE’s energy conservation standard at 10 CFR 431.97(e).
                                                         Variable refrigerant flow multi-split air conditioners and heat pumps regulated by DOE’s energy conservation standard at 10 CFR 431.97(f).



                                                        In addition, based on the                                              C. Equipment Classes                                                  determines are appropriate. (42 U.S.C.
                                                      recommendation of the Working Group,                                       When evaluating and establishing                                    6295(q)) In the December 2014 and May
                                                      this NODA only considered fans with                                      energy conservation standards, DOE                                    2015 NODAs, DOE divided commercial
                                                      operating points with a fan shaft input                                  divides covered equipment into                                        and industrial fans into seven
                                                      power equal to, or greater than, 1                                       equipment classes by the type of energy                               equipment classes based primarily on
                                                      horsepower and a fan airpower equal to                                   used or by capacity or other                                          the direction of the airflow through the
                                                      or less than 150 horsepower. (No. 179,                                   performance-related features that justify                             fan and other features that impact the
                                                      Recommendation #5 at p. 4) The                                           differing standards. In making a                                      energy use and utility of a fan (see Table
                                                      horsepower scope limitations are further                                 determination whether a performance-                                  III–3). In addition, DOE grouped inline
                                                      explained in the engineering analysis                                    related feature justifies a different                                 and mixed flow fans into a single
                                                      and conversion cost spreadsheet.                                         standard, DOE must consider such                                      equipment class and included all power
                                                                                                                               factors as the utility of the feature to the                          roof ventilators in a single equipment
                                                                                                                               consumer and other factors DOE                                        class.

                                                                                                                               TABLE III–3—FAN EQUIPMENT CLASSES
                                                                           Airflow                                            Fan category                                            Feature                                  Equipment class

                                                      Axial ...............................................   Axial cylindrical housed ................              Cylindrical housing .......................      Axial cylindrical housed.
                                                                                                              Panel .............................................    Orifice panel or ring ......................     Panel.
                                                                                                              Power Roof Ventilator ..................               Weather protection housing .........             Power Roof Ventilator.
                                                      Centrifugal ......................................      Power Roof Ventilator ..................               Weather protection housing..
                                                                                                              Centrifugal housed .......................             Scroll Housing ..............................    Centrifugal housed.
                                                                                                              Centrifugal unhoused ...................               No Housing ...................................   Centrifugal unhoused.
                                                                                                              Radial shrouded ...........................            Radial impellers and housing                     Radial housed.
                                                                                                              Radial unshrouded                                        (dust/material handling).
                                                                                                              Inline .............................................   Cabinet or cylindrical Housing ......            Inline and Mixed Flow.
                                                      Mixed flow



                                                        During the negotiations, the Working                                   should be classified into three classes:                              pressure applications, in which they are
                                                      Group did not come to a consensus                                        Axial fans, centrifugal fans, and mixed                               relatively efficient. (Ingersoll Rand/
                                                      regarding the equipment classes and                                      flow fans. (Flowcare, No. 46 at p. 6)                                 Trane, No. 153 at p. 5) AHRI provided
                                                      stakeholders provided several                                               Ingersoll Rand/Trane commented that                                similar comments. AHRI stated that
                                                      suggestions for modifying these                                          centrifugal housed fans with a forward                                forward curved centrifugal housed fans
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      equipment classes. (No. 179,                                             curved blade design have a distinct                                   require a separate equipment class for
                                                      Recommendation #30 at p. 19)                                             utility compared to other centrifugal                                 the following reasons: (1) Their compact
                                                        ASAP and AMCA, supported by the                                        housed fans (e.g., backward curved                                    sizes compared to backward curved fans
                                                      CA IOUs, recommended grouping all                                        centrifugal housed fans) and should be                                providing the same airflow and
                                                      ducted fans into a single equipment                                      in a separate equipment class. Ingersoll                              pressure; (2) their specific applications
                                                      class, and all unducted fans in a single                                 Rand/Trane commented that forward                                     in low pressure and speed ranges,
                                                      equipment class. (ASAP and AMCA,                                         curved centrifugal housed fans are                                    providing good sound quality; and (3)
                                                      No. 50 at p. 2; CA IOUs, No. 49 at p.                                    compact, have a relatively good sound                                 the European Regulation 327/2011
                                                      2) Flowcare commented that fans                                          quality, and are most suitable for low-


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                                                                            Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                           75747

                                                      considers them separately. (AHRI, No.                   fan in the standards case fan price                   curved centrifugal housed fans in the
                                                      129–2 at pp. 1–6)                                       calculation. (See section III.F.1 for more            same equipment class as other
                                                         DOE did not group all fans into only                 details) Therefore, DOE does not believe              centrifugal housed fans for this NODA
                                                      ducted and unducted equipment classes                   that forward curved centrifugal housed                analysis.
                                                      because fans have other unique features                 fans merit a separate equipment class.                   AHRI and Bade commented that
                                                      that provide different utilities to the                    Regarding the application range, DOE               regulating return fans and exhaust fans
                                                      customer and, as a result, justify                      agrees with AHRI and Ingersoll Rand/                  requires special consideration because
                                                      additional equipment classes. However,                  Trane that forward curved centrifugal                 they typically operate at similar flows
                                                      DOE recognizes that ducted and                          housed fans are most typically used in                but lower static pressures compared to
                                                      unducted fans perform differently. For                  low pressure (less than 5.0 in.wg.), low              supply fans, which inherently affects
                                                      this NODA, the FEPstd at each EL is                     speed applications (between 800 and                   the fan operating efficiency. (AHRI, No.
                                                      calculated differently for ducted and                   1200 rpm). DOE accounted for the                      158 at pp. 5–6; Bade, No 116 at p. 1)
                                                      unducted fans to account for these                      specificity of the application range in               Similarly, Ingersoll Rand/Trane
                                                      performance differences. (See section                   the metric, which allows calculating the              commented that using efficient fans in
                                                      III.A for more details) For this same                   FEPSTD of a fan based on a fan efficiency             variable-air-volume applications might
                                                      reason, DOE also did not establish                      equation that provides lower values at                decrease the capability of the fans to
                                                      equipment classes based solely on                       decreased pressure and airflow (see Eq.               achieve an airflow reduction at lower
                                                      airflow.                                                2). In other words, the required FEP at               system requirements, which may
                                                         With respect to establishing a separate              a given efficiency level decreases with               increase a building’s energy
                                                      equipment class for forward curved                      pressure and airflow in order to account              consumption by pushing consumers to
                                                      centrifugal housed fans, DOE analyzed a                 for the fact that fans operating in these             constant volume systems or requiring
                                                      sample of fan selections 12 and found                   ranges are inherently less efficient.                 different systems. (Ingersoll Rand/
                                                      forward curved centrifugal housed fans                     Finally, DOE notes that the latest                 Trane, No. 153 at p. 3) DOE agrees with
                                                      that meet every efficiency level being                  revision of the European Regulation                   AHRI and Ingersoll Rand/Trane that
                                                      analyzed. In addition, for small                        327/2011 14 is considering grouping                   fans operating at lower pressures will
                                                      diameter fans, DOE also found an                        forward curved centrifugal housed fans                have a lower efficiency compared to
                                                      example of a forward curved fan with a                  with backward curved centrifugal                      fans of equivalent design operating at
                                                      small impeller diameter (i.e., less than                housed fans for fans with an electrical               higher pressures. To account for this
                                                      6.5 inches) that met all efficiency levels              input power greater than 5 kW                         effect and preserve the utility of low-
                                                      up to EL 5, showing that it is                          (equivalent to approximately 6.7 hp). At              pressure fans, DOE is considering a
                                                      technologically feasible for small                      a given diameter, the European study                  metric that is a function of the operating
                                                      forward curved fans to reach high                       states that forward curved fans typically             pressure, where the required FEP at a
                                                                                                              output more flow compared to                          given efficiency level is less stringent at
                                                      efficiency levels.13 DOE notes that there
                                                                                                              backward bladed fans, which allows                    lower operating pressures.
                                                      may be many more forward curved fans
                                                                                                              them to run relatively slower. This                   Consequently, a return or exhaust fan
                                                      with small impeller diameters at high
                                                                                                              effect is more apparent for smaller                   operating at a lower pressure than a
                                                      efficiency levels in the market than its
                                                                                                              diameters and becomes less significant                supply fan at a given flow would have
                                                      database shows. DOE recognizes that
                                                                                                              as fan diameter increases. The EU                     a lower required FEP at a given
                                                      maintaining the utility of small forward
                                                                                                              therefore concluded that forward and                  efficiency level, which mitigates the
                                                      curved fans across all operating points
                                                                                                              backward curved centrifugal housed                    disproportionate impacts suggested by
                                                      is important and requires preserving
                                                                                                              fans of larger sizes (greater than 5 kW of            AHRI and Ingersoll Rand/Trane.
                                                      forward curved fan availability or
                                                                                                              fan electrical input power) could be                     Based on these comments, DOE
                                                      acceptable non-forward curved fan                       treated in the same product category                  maintained the equipment classes used
                                                      replacements across sizes and operating                 with the same minimum efficiencies.                   in the May 2015 NODA and presented
                                                      points. Based on analysis of the data                   For capacities less than 5 kW, the latest             in Table III–3.
                                                      available, DOE believes small forward                   revision of the European regulation is                   DOE seeks comments on the
                                                      curved fans or acceptable non-forward                   considering maintaining forward curved                equipment classes used in this notice,
                                                      curved replacements would be available                  centrifugal housed fans as a separate                 including information on specific sizes
                                                      up to EL 5 across all current sizes and                 equipment class. DOE’s fan selection                  or operating points for which forward
                                                      operating points. DOE therefore believes                analysis found forward curved                         curved fans would no longer be
                                                      that more-efficient forward curved                      centrifugal housed fans with electrical               available at efficiency levels up to EL 5
                                                      centrifugal housed fans could replace                   input power below 5kW that were                       and whether, at those sizes or operating
                                                      inefficient forward curved centrifugal                  compliant up to EL 6. Therefore, DOE                  points, an acceptable non-forward
                                                      housed fans up to EL 5. In addition, to                 believes such distinction is not                      curved fan is available.
                                                      consider the possibility that an original               necessary when using the FEP metric. In
                                                      equipment manufacturer (OEM) might                      addition, as previously noted, DOE                    D. Compliance Year
                                                      opt to replace a forward curved                         accounted for the costs of potentially                  For this analysis, DOE assumed a
                                                      centrifugal housed fan incorporated in a                incorporating a larger fan in a larger                compliance date of five years after
                                                      larger piece of heating, ventilation, air-              piece of equipment as part of the OEM                 publication of a final energy
                                                      conditioning, and refrigeration (HVACR)                 equipment conversion costs. Therefore,                conservation standards rule. (42 U.S.C.
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      equipment with a backward curved                        DOE is not considering applying the                   6316(a); 42 U.S.C. 6295(l)(2)) The
                                                      centrifugal housed fan, DOE included                    distinction made in the European                      Working Group did not make any
                                                      the costs of redesigning the HVACR                      regulation 327/2011 and retains forward               recommendation on the compliance
                                                      equipment to accommodate a different                                                                          year, and DOE believes that five years
                                                                                                                14 Ecodesign Fan Review, Review Study of            would allow fan manufacturers
                                                        12 See  description of the fan selection sample in    Commission Regulation (EU) No 327/2011, Final         sufficient time to redesign their existing
                                                      the life cycle analysis section III.F.1.                Report prepared by Van Holsteijn en Kemna B.V.
                                                         13 See engineering analysis discussion in section    for the European Commission, Directorate-General
                                                                                                                                                                    equipment, as necessary, to meet new
                                                      III.E for details about the considered efficiency       for Energy. Available at http://www.fanreview.eu/     energy conservation standards. DOE
                                                      levels.                                                 documents.htm (last accessed 02/02/2016).             anticipates the final rule to publish in


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                                                      75748                 Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules

                                                      2017, resulting in a compliance date for                E. Engineering Analysis                               total efficiency target at each respective
                                                      the standards of 2022. Stakeholders                        The engineering analysis establishes               level. The exact target efficiencies used
                                                      provided several suggestions for the                    the relationship between the                          in this NODA are presented in Table 3
                                                      compliance date.                                        manufacturer production cost (MPC)                    of the ‘‘MPC Approach’’ tab of the
                                                         ebm-papst commented that a three-                    and efficiency levels of fans. This                   engineering analysis and conversion
                                                      year compliance period would represent                  relationship serves as the basis for                  cost spreadsheet.
                                                      sufficient time. (ebm-papst, No. 45 at p.                                                                        DOE calculated MPCs at each
                                                                                                              calculations performed in the other
                                                      2) Morrison commented that even five                                                                          efficiency level using the same
                                                                                                              analysis tools to estimate the costs and
                                                      years may not be enough. (Morrison, No.                                                                       methodology as used in the December
                                                                                                              benefits to individual consumers,
                                                      51 at p. 9)                                                                                                   2014 NODA and the May 2015 NODA.
                                                                                                              manufacturers, and the Nation.
                                                         Ingersoll Rand/Trane and AHRI                           DOE used the same methodology in                   The MPCs were derived from product
                                                      commented that, in order to allow                       the engineering analysis of this NODA                 teardowns and publically available
                                                      OEMs to redesign their existing                         as for the December 2014 NODA and the                 product literature and were informed by
                                                      equipment to use fans of different types                                                                      interviews with manufacturers. DOE
                                                                                                              May 2015 NODA. For each fan
                                                      or sizes, the compliance date for fans                                                                        calculated the MPCs for fans in each
                                                                                                              equipment class, DOE identified
                                                      that are components of larger piece of                                                                        subcategory. DOE used these MPCs to
                                                                                                              existing technology options that could
                                                      equipment should be delayed. For such                                                                         characterize the relationship between
                                                                                                              affect efficiency. Next, DOE conducted a
                                                      fans, Ingersoll Rand/Trane                                                                                    MPC and blade or impeller diameter for
                                                                                                              screening analysis to review each
                                                      recommended an additional two years                                                                           each subcategory. DOE found that all
                                                                                                              technology option and decide whether
                                                      and AHRI recommended an additional                                                                            fan subcategories were represented at all
                                                                                                              it: (1) Is technologically feasible; (2) is
                                                      five years after the compliance date for                                                                      ELs, so DOE did not use subcategory
                                                                                                              practicable to manufacture, install, and
                                                      standalone fans. (Ingersoll Rand/Trane,                                                                       MPC differences to directly represent
                                                                                                              service; (3) would adversely affect
                                                      No. 153 at p. 4; AHRI, No. 158 at p. 9)                                                                       higher efficiency. DOE found some
                                                                                                              product utility or product availability;              subcategories to be more prevalent at
                                                         In the December 2014 NODA, DOE
                                                                                                              or (4) would have adverse impacts on                  higher ELs. Therefore, DOE calculated
                                                      requested comments on the redesign
                                                                                                              health and safety. The technology                     MPCs for each fan equipment class at
                                                      time per fan model. United
                                                                                                              options remaining after the screening                 each efficiency level analyzed by
                                                      Technologies/Carrier stated three years
                                                                                                              analysis consisted of a variety of                    weighting the MPCs of each subcategory
                                                      would be too short in terms of
                                                                                                              impeller types and guide vanes. DOE                   within a class by its prevalence at the
                                                      compliance period and that it could take
                                                                                                              categorized the fan equipment classes                 efficiency level being analyzed.
                                                      18 to 24 months per fan for an OEM to
                                                                                                              into subcategories by the technology                     DOE’s preliminary MPC estimates
                                                      complete a redesign for an embedded
                                                                                                              options the fans use. DOE then                        indicate that the changes in MPC as
                                                      fan and the equipment incorporating the
                                                                                                              conducted a market-based assessment of                efficiency level increases are small or, in
                                                      fan. (United Technologies/Carrier, No.
                                                                                                              the prevalence of each subcategory at                 some fan equipment classes, zero.
                                                      43 at p. 2)
                                                                                                              each efficiency level analyzed. DOE                   However, DOE is aware that
                                                         DOE believes that manufacturers will
                                                                                                              estimated market prevalence using the                 aerodynamic redesigns are a primary
                                                      be able to offer fans that are compliant
                                                                                                              sales data provided by AMCA that was                  method by which manufacturers
                                                      with any energy conservation standards
                                                                                                              within the scope of the analysis and for              improve fan performance. These
                                                      DOE may set before 5 years after
                                                                                                              which there was sufficient information.               redesigns require manufacturers to make
                                                      publication of a final rule. Many fans
                                                                                                              This NODA, like the May 2015 NODA                     large upfront investments for R&D,
                                                      are compliant with the highest
                                                                                                              has fewer subgroups than the December                 testing and prototyping, and purchasing
                                                      efficiency levels for at least part of their
                                                                                                              2014 NODA due to limitations in the                   new production equipment. DOE’s
                                                      operating range. Consequently, for many
                                                                                                              sales data provided by AMCA.                          preliminary findings indicate that the
                                                      fans, any standard may only require
                                                                                                                 For this NODA, DOE augmented the                   magnitude of these upfront costs are
                                                      certifying a different operating range
                                                                                                              AMCA sales data used in the May 2015                  more significant than the difference in
                                                      rather than redesigning the fan. DOE’s
                                                                                                              NODA to account for embedded fans                     MPC of a fan redesigned for efficiency
                                                      analysis estimates that at the most
                                                                                                              made by companies that incorporate                    compared to its precursor. For this
                                                      stringent EL (EL 6), 70 percent of
                                                                                                              those fans for sale in their own                      NODA, DOE included a conversion cost
                                                      current fan selections 15 would not meet
                                                                                                              equipment (see section III.G) and to                  markup in its calculation of the
                                                      the standard but that more than half of
                                                                                                              represent additional sales of forward                 manufacturer selling price (MSP) to
                                                      these could be replaced by existing
                                                                                                              curved fans, which AMCA stated were                   account for these conversion costs.
                                                      compliant substitutes. This means that
                                                                                                              underrepresented in the original data                 These markups and associated MSPs
                                                      even at the highest EL, only 33 percent
                                                                                                              AMCA provided. (AMCA, Public                          were developed and applied in
                                                      of all fan selections would require a
                                                                                                              Meeting Transcript, No. 85 at p. 91) The              downstream analyses. They are
                                                      redesigned fan. Therefore, DOE believes
                                                                                                              resulting engineering database was                    discussed in section III.F and presented
                                                      that a five-year compliance period is
                                                                                                              analyzed at six efficiency levels (ELs)               in the LCC spreadsheet.
                                                      sufficient for fan manufacturers,
                                                                                                              representing different target efficiencies               The main outputs of the fans
                                                      including OEMs to either redesign their
                                                                                                              (htarget , see section III.A). In this NODA,          engineering analysis are the MPCs of
                                                      fans and equipment or select compliant,
                                                                                                              efficiency levels were set separately for             each fan equipment class (including
                                                      alternative fans. For the analyses in this
                                                                                                              ducted and unducted fans, based on the                material, labor, and overhead) and
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                                                      NODA, DOE assumed a compliance date
                                                                                                              recommendation of the working group.                  technology option distributions at each
                                                      of five years after the publication of the
                                                                                                              (No. 179, Recommendation #18 at pp.                   efficiency level analyzed.
                                                      final rule.
                                                         DOE seeks comments on the use a                      10–11) For ducted fans, the six
                                                                                                              efficiency levels are calculated using the            F. Manufacturer Impact Analysis
                                                      compliance date of five years after the
                                                                                                              same six total efficiency targets used in               For the MIA, DOE used the
                                                      publication of the final rule.
                                                                                                              the May 2015 NODA. At each of the                     Government Regulatory Impact Model
                                                        15 Based on 2012 data, see section III.G for more     analyzed efficiency levels in this NODA,              (GRIM) to assess the economic impact of
                                                      details. A fan selection is the combination of a fan    the static efficiency targets used for                potential standards on commercial and
                                                      model and design point at which it is purchased.        unducted fans are 0.04 less than the                  industrial fan manufacturers. DOE


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                                                                           Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                           75749

                                                      developed key industry average                          calculated as the difference between                    DOE requests information on the per-
                                                      financial parameters for the GRIM using                 INPV in the no-standards case (absent                 model (size of a fan series) redesign
                                                      publicly available data from corporate                  new energy conservation standards) and                costs presented in the engineering
                                                      annual reports along with information                   the INPV in the standards cases (with                 analysis and conversion cost
                                                      received through confidential                           new energy conservation standards in                  spreadsheet.
                                                      interviews with manufacturers. These                    effect). DOE examines a range of                        DOE requests information on the
                                                      values include average industry tax rate;               possible impacts on industry by                       number of models (sizes of a fan series)
                                                      working capital rate; net property, plant,              modeling various pricing strategies                   that are currently in the scope of the
                                                      and equipment rate; selling, general,                   commercial and industrial fan                         rulemaking nationally.
                                                      and administrative expense rate;                        manufacturers may adopt following the                   DOE requests feedback on the
                                                      research and development expense rate;                  adoption of new energy conservations                  quantity of redesigns, methodology, and
                                                      depreciation rate; capital expenditure                  standards for fans.                                   results used to calculate the total
                                                      rate; and manufacturer discount rate.                      In addition to INPV, the MIA also                  industry conversion costs by equipment
                                                         Additionally, DOE calculated total                   calculates the manufacturer markups,                  class and EL, as presented in the
                                                      industry capital and product conversion                 which are applied to the MPCs derived                 engineering analysis and conversion
                                                      costs associated with meeting all                       in the engineering analysis, to arrive at             cost spreadsheet.
                                                      analyzed efficiency levels. Using a                     the manufacturer selling prices (MSPs)                  DOE requests information on the
                                                      proprietary cost model and feedback                     in the no-standards case. In the                      extent to which product conversion
                                                      received from manufacturers during                      standards cases manufacturers will                    costs and/or capital conversion costs are
                                                      interviews, DOE first estimated the                     incur costs from the redesign of models               shared among sizes in a fan series.
                                                      average industry capital and product                    that do not meet the required FEP at a                  DOE requests information on the
                                                      conversion costs associated with                        given efficiency levels. DOE modeled                  extent to which product conversion
                                                      redesigning a single size of a fan series               two markup scenarios for the standards                costs and/or capital conversion costs are
                                                      to meet a specific efficiency level. DOE                cases, a preservation of gross margin                 shared between belt and direct drive
                                                      estimated the costs for all subcategories               markup scenario and a conversion cost                 fans with the same aerodynamic design.
                                                      within each fan equipment class. DOE                    pass through markup scenario.                           DOE requests information on the
                                                      multiplied these per model conversion                      In the preservation of gross margin                extent to which product conversion
                                                      costs by the number of models that                      markup scenario, DOE assumes that                     costs and/or capital conversion costs are
                                                      would be required to be redesigned at                   manufacturers maintain the same                       shared between fans of different
                                                      each efficiency level to arrive at the total            manufacturer markup, as a percentage,                 construction classes of the same
                                                      industry conversion costs. The number                   in the standards cases as they do in the              aerodynamic design.
                                                      of models that would be redesigned was                  no-standards case, despite higher levels              1. Impacts on OEMs
                                                      calculated using information from the                   of investment in the standards cases.
                                                      engineering database developed from                     This markup scenario represents the                      Several stakeholders commented that
                                                      the AMCA sales database (see section                    lower bound, or worst-case scenario for               the previous DOE analyses did not take
                                                      III.E). Additional information on the                   manufacturers, since manufacturers are                into account the significant costs
                                                      number of models redesigned is                          not able to pass the conversion costs                 incurred by manufacturers who
                                                      available in the engineering analysis                   associated with complying with higher                 incorporate fans into their equipment.
                                                      and conversion cost spreadsheet, ‘‘Total                efficiency levels on to their customers.              Ingersoll Rand/Trane, United
                                                      Fan Conversion Costs’’ section of the                   In the fan conversion cost recovery                   Technologies/Carrier, Morrison, AHRI,
                                                      ‘‘Database Overview and Use’’ tab.                      markup scenario, DOE assumes that                     and Greenheck commented that separate
                                                         The GRIM uses these estimated values                 manufacturers are able to pass on to                  costs to redesign the units in which fans
                                                      in conjunction with inputs from other                   their customers the fan conversion costs              are installed would be incurred due to
                                                      analyses, including the MPCs from the                   they incur to meet higher efficiency                  this regulation. (Ingersoll Rand/Trane,
                                                      engineering analysis, the annual                        levels. In this markup scenario,                      No. 42 at p. 4; United Technologies/
                                                      shipments by fan equipment class from                   manufacturer markups are based on the                 Carrier, No. 43 at p. 4; Morrison, No. 51
                                                      the NIA, and the fan manufacturer                       total manufacturer fan conversion costs               at p. 5; AHRI, No. 53 at p. 6; Greenheck,
                                                      markups for the cost recovery markup                    and calculated to allow manufacturers                 No. 54–A at pp. 4–5) AHRI added that
                                                      scenario from the LCC analysis to model                 to recover their upfront fan conversion               the cost to redesign the units in which
                                                      industry annual cash flows from the                     costs, in addition to their normal no-                fans are installed can be several times
                                                      reference year through the end of the                   standards case markup. DOE calculated                 greater in terms of both time and money
                                                      analysis period. The primary                            the conversion cost pass through                      than the cost to redesign the fan itself.
                                                      quantitative output of this model is the                markups for each efficiency level by                  (AHRI, No. 53 at p. 7) Morrison and
                                                      industry net present value (INPV),                      amortizing the conversion costs over the              Ingersoll Rand/Trane commented that
                                                      which DOE calculates as the sum of                      units shipped throughout the analysis                 fans in commercial and industrial
                                                      industry annual cash flows, discounted                  period that were redesigned to meet the               building applications are typically
                                                      to the present day using the industry                   efficiency level being analyzed. This fan             housed within other equipment such as
                                                      specific weighted average cost of                       conversion cost pass through markup                   air handlers or unitary rooftop units that
                                                      capital, or manufacturer discount rate.                 scenario represents the upper bound, or               are sized specifically around the fan.
                                                         Standards can affect INPV in several                 best-case scenario for manufacturers,                 (Morrison, No. 51 at p. 5; Ingersoll
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                                                      ways including requiring upfront                        since manufacturers are able to pass on               Rand/Trane, No. 42 at p. 11) AHRI
                                                      investments in manufacturing capital as                 to their customers the fan conversion                 commented that any change to fan size,
                                                      well as research and development                        costs associated with complying with                  operating range, or fan type will
                                                      expenses, which increase the cost of                    higher efficiency levels. For the                     increase the OEM production cost, and
                                                      production and potentially alter                        standards cases, all other downstream                 urged DOE to consider the production
                                                      manufacturer markups. DOE expects                       analyses use the fan manufacturer                     cost impact to OEMs as part of the
                                                      that manufacturers may lose a portion of                markups calculated in the fan                         rulemaking. (AHRI, No. 53 at p. 6)
                                                      INPV due to standards. The potential                    conversion costs pass through markup                  Ingersoll Rand/Trane added that this
                                                      loss in INPV due to standards is                        scenario.                                             increased cost would affect building


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                                                      75750                Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules

                                                      owners and could decrease adoption                      reselected were determined to incur                   G. Life-Cycle Cost and Payback Period
                                                      rate by consumers. (Ingersoll Rand/                     OEM equipment conversion costs. The                   Analyses
                                                      Trane, No. 42 at p. 11).                                aggregated industry OEM equipment                        The LCC and PBP analyses determine
                                                         AHRI also commented that in order to                 conversion costs are presented in the                 the economic impact of potential
                                                      pass a regulation imposing additional                   engineering analysis and conversion                   standards on individual consumers, in
                                                      costs (testing, implementation, time-                   cost spreadsheet.                                     the compliance year. The LCC is the
                                                      frame, spare part availability, re-                                                                           total cost of purchasing, installing, and
                                                      certification) on OEMs, DOE must                           DOE applied OEM equipment
                                                                                                              conversion costs to all embedded fans in              operating a commercial or industrial fan
                                                      consider the costs to these                                                                                   over the course of its lifetime.
                                                      manufacturers and compare them to the                   its analysis. For OEMs that manufacture
                                                                                                                                                                       DOE determines the LCC by
                                                      potential energy saved, and in order to                 the fans that they incorporate in the
                                                                                                                                                                    considering: (1) The total installed cost
                                                      do so must conduct manufacturer                         equipment they manufacture for sale,                  to the consumer (which consists of
                                                      interviews with OEMs. AHRI requested                    DOE added the OEM equipment                           manufacturer selling price, the
                                                      that DOE conduct such interviews and                    conversion costs to the fan conversion                conversion costs, distribution channel
                                                      delineate DOE-covered equipment made                    costs to develop total conversion cost                markups, and sales taxes); (2) the range
                                                      by OEMs as a separate fan equipment                     recovery markups at each EL, for each                 of fan annual energy consumption as
                                                      class to assess the costs and relative                  fan equipment class, using the cost                   they are used in the field; (3) the fan
                                                      benefits of a second layer of regulation                recovery markup methodology                           operating costs; (4) fan lifetime; and (5)
                                                      on currently regulated HVACR                            described in section III.F. For OEMs that             a discount rate that reflects the real
                                                      equipment and publish a new NODA                        incorporate fans that they do not                     consumer cost of capital and puts the
                                                      specifically addressing the impact on                   manufacture themselves, the OEM                       LCC in present-value terms. The PBP
                                                      OEMs who were excluded from DOE’s                       equipment conversion cost is used to                  represents the number of years needed
                                                      initial analysis. (AHRI, No. 158 at p. 3).              develop a cost recovery markup that is                to recover the increase in purchase price
                                                         After careful consideration of these                 applied downstream of the fan                         of higher-efficiency fans through savings
                                                      comments and the Working Group                                                                                in the operating cost. The PBP is
                                                                                                              conversion cost recovery markup. DOE
                                                      discussions, DOE recognizes that its                                                                          calculated by dividing the incremental
                                                                                                              then used the results as an input to the
                                                      previous analyses did not accurately                                                                          increase in installed cost of the higher
                                                      account for the cost impacts of a fans                  LCC analysis. Consequently, the cost to
                                                                                                              consumers of embedded fans, and, in                   efficiency product, compared to the
                                                      regulation on all impacted                                                                                    baseline product, by the annual savings
                                                      manufacturers. DOE revised its analysis                 turn, the cost-justification for the
                                                                                                              analyzed efficiency levels, accounts for              in operating costs.
                                                      for this NODA to better account for cost                                                                         For each considered standards case
                                                      impacts on fan manufacturers,                           both fan and OEM equipment
                                                                                                              conversion costs in this NODA.                        corresponding to each efficiency level,
                                                      especially OEMs. DOE understands that                                                                         DOE measures the change in LCC
                                                      some OEMs manufacture their own fans                       DOE believes the revisions made for                relative to the no-standards case. The
                                                      that they then incorporate in the                       this NODA analysis—augmenting DOE’s                   no-standards case is characterized by
                                                      equipment that they manufacture for                     database to more completely incorporate               the distribution of fan efficiencies in the
                                                      sale. As discussed in section III.B, DOE                embedded fans and including OEM                       absence of new standards (i.e., what
                                                      augmented the database it used for this                 equipment conversion costs—better                     consumers would have purchased in the
                                                      NODA by incorporating fans made by                      account for the costs and benefits                    compliance year in the absence of new
                                                      companies that then incorporate those                   associated with potential energy                      standards). In the standards cases, fans
                                                      fans for sale in their own equipment                    conservation standards for fans                       with efficiency below the standard
                                                      (see section III.G). The presence of these              incorporated in larger pieces of                      levels ‘‘roll-up’’ to the standard level in
                                                      fans in the database DOE used for this                  equipment and address the concerns of                 the compliance year.
                                                      NODA ensures that its analysis accounts                                                                          To characterize annual fan operating
                                                                                                              Ingersoll Rand/Trane, United
                                                      for the impacts on MPC (see section                                                                           hours, DOE established statistical
                                                                                                              Technologies/Carrier, Morrison, AHRI,
                                                      III.E) and conversion costs (see previous                                                                     distributions of consumers of each fan
                                                      discussion in this section) for OEMs that               and Greenheck.
                                                                                                                                                                    equipment class across sectors and
                                                      manufacture fans and incorporate them                      DOE did not analyze a separate                     applications, which in turn determined
                                                      in the equipment that they manufacture                  equipment class for embedded fans.                    the fan operating hours. Recognizing
                                                      for sale. DOE also understands that                     DOE believes the revisions to its                     that several inputs to the determination
                                                      OEMs that incorporate fans may incur                    analysis described previously in this                 of consumer LCC and PBP are either
                                                      additional conversion costs for their                   section appropriately account for the                 variable or uncertain (e.g., annual
                                                      equipment not directly associated with                  costs and benefits associated with                    operating hours, lifetime, discount rate),
                                                      improving the efficiency of the fan. For                embedded fans. However, the LCC                       DOE conducts the LCC and PBP analysis
                                                      this NODA, DOE estimated OEM                            spreadsheet published as part of this                 by modeling both the uncertainty and
                                                      equipment conversion costs and                          NODA provides the option to view                      variability in the inputs using Monte
                                                      included them in its analysis. DOE                      results by subgroup for embedded fans                 Carlo simulations and probability
                                                      conducted interviews with                               and standalone fans separately.                       distributions.
                                                      manufacturers of equipment with                                                                                  In addition to characterizing several
                                                      embedded fans. DOE used information                        DOE requests information on the
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                                                                              portion of equipment with embedded                    of the inputs to the analyses with
                                                      gathered during these interviews in                                                                           probability distributions, DOE
                                                      conjunction with its engineering                        fans that would require heat testing for
                                                                                                              certification with any new energy                     developed a sample of individual fan
                                                      database to estimate OEM equipment                                                                            selections representative of the
                                                      conversion costs at each EL. In each fan                conservation standards. DOE also
                                                                                                              requests feedback on the number of                    market.16 By developing this sample,
                                                      equipment class, fan models in the                                                                            DOE was able to perform the LCC and
                                                      engineering database that were                          embedded fans that would require
                                                      representing fans sold by OEMs                          redesign as presented in the engineering                16 A fan selection is a fan model and the fan shaft
                                                      (whether or not the OEM made the fan)                   analysis and conversion costs                         input power, operating flow, and pressure values
                                                      and that needed to be redesigned or                     spreadsheet.                                          for which it was purchased.



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                                                                           Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                                     75751

                                                      PBP calculations for each fan selection                 comment, the share of forward curved                  seemed high but did not provide
                                                      to account for the variability in energy                centrifugal housed fans in the sample                 quantified estimates. (Morrison, No. 51
                                                      consumption associated with each                        increased from 3 percent to 19 percent.               at p. 8; AHRI, No. 53 at p. 13) In the
                                                      selection.                                              Using this sample, DOE was able to                    December 2014 and May 2015 NODAs,
                                                        The primary outputs of the LCC and                    perform individual energy use                         DOE used industrial plant assessment
                                                      PBP analyses are: (1) Average LCC in                    calculations for each row in the sample               and Energy Plus building simulation
                                                      each standards case; (2) average PBPs;                  and account for the variability in energy             data to estimate fan operating hours,
                                                      (3) average LCC savings at each                         consumption associated with each fan                  which averaged around 6,500 hours per
                                                      standards case relative to the no-                      selection.                                            year.18 In this NODA, DOE retained the
                                                      standards case; and (4) the percentage of                  The ‘‘2012 Shipments’’ worksheet of                same assumption for the operating
                                                      consumers that experience a net benefit,                the NIA spreadsheet presents the                      hours of standalone fans and developed
                                                      have no impact, or have a net cost for                  standalone fan market and embedded                    specific operating hours for embedded
                                                      each fan equipment class and efficiency                 fan market data used to calibrate the                 fans based on HVAC fan operating hours
                                                      level. The average annual energy                        LCC sample. The worksheet includes                    data which averaged 2,725 hours per
                                                      consumption derived in the LCC                          breakdowns by equipment class,                        year.19
                                                      analysis is used as an input in the NIA                 subcategory, as well as the HVACR                        DOE seeks feedback and inputs on fan
                                                      (see section III.H).                                    equipment shipments and estimated                     operating hours.
                                                        In the December 2014 NODA and the                     number of fans per unit used by DOE to                   In the December 2014 NODA and the
                                                      May 2015 NODA, DOE developed a                          calculate the number of embedded fans.                May 2015 NODA, DOE assumed that all
                                                      sample of individual fan selections (i.e.,              The LCC sample description worksheet                  fans operated at full design flow and
                                                      representative database of fan models                   in the LCC spreadsheet provides more                  pressure when performing the energy
                                                      including data on the design flow,                      detailed breakdown of the fan selections              use calculation. AHRI noted that most
                                                      pressure, and fan shaft input power for                 by power bins and efficiency levels.                  fans in HVAC equipment do not run at
                                                      which they were purchased, and the                         DOE seeks feedback and input on the                full design speed but at 60 percent of
                                                      drive configuration) using fan sales data               2012 standalone fan and embedded fan                  full speed (equivalent to running at 60
                                                      provided by AMCA. During the                            shipments values, by equipment class                  percent of design flow). (AHRI, No. 129–
                                                      negotiations, AMCA commented that                       and subcategory. Specifically, DOE                    1 at p. 2) AHRI additionally provided
                                                      these sales data included some                          requests feedback on: (1) The estimated               input on the typical fan load profiles in
                                                      standalone fans purchased by OEMs for                   number of fans per HVACR equipment;                   VAV systems. (AHRI, No. 53 at p. 13)
                                                      incorporation into larger HVACR                         (2) the distribution of HVACR fans                    ACME commented that, 50 percent of
                                                      equipment but was not representative of                 across fan subcategories by fan                       the time, the actual operating point of a
                                                      sales of embedded fans. Specifically,                   application; and (3) the share of                     fan is not equal to the design point
                                                      AMCA commented that forward curved                      standalone fans purchased and                         selection of the fan and has a higher
                                                      centrifugal housed fans, which are very                 incorporated in HVACR equipment.                      pressure value. ACME added that in
                                                      common in HVACR equipment, were                            DOE seeks feedback and input on the                some situations, the design point of the
                                                      under-represented. (AMCA, Public                        distribution of fan selections by power               fan is not known and the actual
                                                      Meeting Transcript, No. 85 at p. 91).                   bin and subcategory for standalone fans               operating point of a fan may fall in a
                                                        In this NODA, DOE collected                           and embedded fans as presented in the                 region of operation where the fan has a
                                                      additional technical and market                         ‘‘LCC sample Description’’ worksheet of
                                                      information specific to embedded fans                   the LCC spreadsheet.                                    18 Database of motor nameplate and field

                                                      and revised the LCC sample to represent                    In the December 2014 NODA and the                  measurement data compiled by the Washington
                                                                                                              May 2015 NODA, DOE calculated the                     State University Extension Energy Program (WSU)
                                                      both the embedded fan and standalone                                                                          and Applied Proactive Technologies (APT) under
                                                      fan markets. For each fan equipment                     FEP of a fan selection in the LCC sample              contract with the New York State Energy Research
                                                      class, DOE used confidential AMCA                       using the default values and calculation              and Development Authority (NYSERDA) (2011);
                                                      sales data for over 57,000 fan selections               algorithms for bare shaft fans. DOE                   Strategic Energy Group (Jan. 2008), Northwest
                                                                                                              applied this approach because the fan                 Industrial Motor Database Summary from Regional
                                                      (with complete performance data),                                                                             Technical Forum. Retrieved March 5, 2013 from
                                                      representing over 92,000 units sold, to                 selection data included performance                   http://rtf.nwcouncil.org/subcommittees/osumotor/
                                                      develop a sample representative of fans                 data for fans in bare shaft                           Default.htm; U.S. Department of Energy, Energy
                                                      sold on the US market. Each row in the                  configurations. In this NODA, in order                Efficiency and Renewable Energy, Building
                                                                                                                                                                    Technologies Office, EnergyPlus Energy Simulation
                                                      sample represents a fan selection. The                  to establish the FEP of a fan considered              Software (Aug. 2014). Available at http://
                                                      number of rows was adjusted to match                    in the analysis, DOE retained this                    apps1.eere.energy.gov/buildings/energyplus.
                                                      the US market distributions across fan                  approach and used the default values                    19 Arthur D. Little, Inc. ‘‘Opportunities for Energy

                                                      equipment classes, subcategory, fan                     and calculation algorithms for bare shaft             Savings in the Residential and Commercial Sectors
                                                                                                              fans as recommended by the Working                    with High-Efficiency Electric Motors (Final
                                                      shaft input power, and drive                                                                                  Report),’’ (Dec. 1999); U.S. Department of Energy–
                                                      configuration. DOE adjusted the number                  Group. The engineering analysis and                   Office of Energy Efficiency and Renewable Energy.
                                                      of standalone fans in the LCC sample to                 conversion cost spreadsheet presents                  Energy Conservation Program for Certain Industrial
                                                      mirror the actual standalone fan market                 the detailed equations and default                    Equipment: Energy Conservation Standards for
                                                                                                              values used to calculate the FEP of a                 Water-Cooled and Evaporatively-Cooled
                                                      distributions based on confidential                                                                           Commercial Packaged Air-Conditioning and
                                                      market estimates from AMCA for the                      given fan model in a bare shaft                       Heating Equipment. Final Rule Technical Support
                                                                                                              configuration. In addition, based on the
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                                                      U.S standalone fan market. For                                                                                Document, Chapter 4 Energy Use Characterization
                                                      embedded fans, DOE adjusted the                         Working Group recommendation, the                     (2012). Available at http://www.regulations.gov/
                                                                                                              spreadsheet includes default values and               document?D=EERE-2011-BT-STD-0029-0039; 1 U.S.
                                                      number of fan selections in the LCC                                                                           Department of Energy–Office of Energy Efficiency
                                                      sample to reflect the actual embedded                   calculation algorithms for other fan                  and Renewable Energy. Energy Conservation
                                                      fan market distributions based on                       configurations such as fans with                      Program for Certain Industrial Equipment: Energy
                                                      embedded fan shipments data.17 As a                     dynamic continuous controls. (No. 179,                Conservation Standards for Small, Large, and Very
                                                                                                              Recommendation #12–16 at pp. 7–9)                     Large Commercial Package Air Conditioning and
                                                      result, and in line with AMCA’s                                                                               Heating Equipment. NOPR Technical Support
                                                                                                                 After the publication of the December              Document, Chapter 7 Energy Use Analysis (2014).
                                                        17 See description of the LCC sample in the LCC       2014 NODA, Morrison and AHRI                          Available at http://www.regulations.gov/
                                                      Spreadsheet.                                            commented that the operating hours                    document?D=EERE-2013-BT-STD-0007-0027.



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                                                      75752                Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules

                                                      poor efficiency. ACME estimated that                    lifetime of 30 years for other fans.21 The             fan lifetime used in the LCC analysis,
                                                      this could happen at least 30 percent of                LCC spreadsheet includes more details                  fan price, average annual energy
                                                      the time. In addition, ACME commented                   on the fan lifetime estimates and                      consumption, and efficiency
                                                      that the energy use analysis should                     includes a sensitivity scenario that                   distributions from the LCC.
                                                      account for fans operating in variable air              provides results for an average
                                                                                                                                                                     IV. Issues on Which DOE Seeks Public
                                                      volume (VAV) systems, for which the                     embedded fan lifetime of 15 years.22
                                                      actual fan operating point is different                    DOE seeks feedback and inputs on fan                Comment
                                                      than the design point. ACME believes                    lifetimes.                                                DOE is interested in receiving
                                                      that accounting for these situations                                                                           comment on all aspects of this analysis.
                                                                                                              H. National Impact Analysis
                                                      would reduce the energy savings as                                                                             DOE is particularly interested in
                                                      calculated in the May 2015 NODA.                           The NIA estimates the national energy               receiving comments and views of
                                                      (ACME, No. 149 at pp. 1–2) For                          savings (NES) and the net present value                interested parties concerning the
                                                      industrial fans, AcoustiFLO stated that                 (NPV) of total consumer costs and                      following issues:
                                                      most fans operate at their design point.                savings expected to result from potential                 1. DOE requests feedback on the
                                                      (AcoustiFLO, Public Meeting                             new standards at each EL. DOE                          calculation of the FEPSTD and FEI.
                                                      Transcript, No. 85 at p. 193)                           calculated NES and NPV for each EL as                     2. DOE seeks comments on the
                                                         Based on these comments and                          the difference between a no-standards                  equipment classes used in this notice.
                                                      stakeholder feedback received during                    case forecast (without new standards)                     3. DOE seeks information on whether
                                                      negotiations DOE revised its December                   and the standards case forecast (with                  there are specific sizes or operating
                                                      2014 and May 2015 NODA analyses to                      standards). Cumulative energy savings                  points where forward curved fans
                                                      account for part load operation. For the                are the sum of the annual NES                          would no longer be available at
                                                      commercial sector, DOE assumed that                     determined for the lifetime of all fans                efficiency levels up to EL 5.
                                                      80 percent of the fans operated at an                   shipped during a 30-year analysis                         4. DOE seeks comments on the use a
                                                      airflow that differed from the design                   period assumed to start in 2022. Energy                compliance date of five years after the
                                                      flow at least some of the time. DOE                     savings include the full-fuel cycle                    publication of the final rule.
                                                      based the 80 percent value on results                   energy savings (i.e., the energy needed                   5. DOE requests information on the
                                                      from the EnergyPlus building energy use                 to extract, process, and deliver primary               per-model (i.e., a single size fan within
                                                      simulation software 20 that indicated                   fuel sources such as coal and natural                  a fan series) redesign costs presented in
                                                      that 80 percent of fans in the                          gas, and the conversion and distribution               the engineering analysis and conversion
                                                      commercial sector operate along a                       losses of generating electricity from                  cost spreadsheet.
                                                      variable load profile. To reflect this,                 those fuel sources). The NPV is the sum                   6. DOE requests information on the
                                                      DOE developed variable load profiles                    over time of the discounted net savings                number of models that are currently in
                                                      for 80 percent of the commercial fans                   each year, which consists of the                       the scope of the rulemaking nationally.
                                                      based on the information provided by                    difference between total energy cost                      7. DOE requests feedback on the
                                                      AHRI and the EnergyPlus building                        savings and increases in total equipment               quantity of redesigns, methodology, and
                                                      energy use simulation. In the case of the               costs. NPV results are reported for                    results used to calculate the total
                                                      industrial sector, in line with the inputs              discount rates of 3 and 7 percent.                     industry conversion costs by equipment
                                                                                                                 To calculate the NES and NPV, DOE                   class and EL, as presented in the
                                                      from the stakeholders, DOE assumed
                                                                                                              projected future shipments and                         engineering analysis and conversion
                                                      about a third of the fans operated
                                                                                                              efficiency distributions (for each EL) for             cost spreadsheet.
                                                      outside of the design flow (30 percent).
                                                                                                              each potential fan equipment class. DOE                   8. DOE requests information on the
                                                      The load profiles are presented in the
                                                                                                              recognizes the uncertainty in projecting               extent to which product conversion
                                                      ‘‘Sectors and Applications’’ worksheet
                                                                                                              shipments and electricity prices; as a                 costs and/or capital conversion costs are
                                                      of the LCC spreadsheet.
                                                                                                              result, the NIA includes several                       shared among sizes in a fan series.
                                                         DOE seeks feedback and inputs on the
                                                                                                              different scenarios for each. Other                       9. DOE requests information on the
                                                      fan load profiles used in the energy use
                                                                                                              inputs to the NIA include the estimated                extent to which product conversion
                                                      calculation and on the percentage of
                                                      fans used in variable load applications.                                                                       costs and/or capital conversion costs are
                                                                                                                 21 Roth, Kurt, Detlef Westphalen, John
                                                         In the December 2014 NODA and the                                                                           shared between belt and direct drive
                                                                                                              Dieckmann, Sephir Hamilton, and William
                                                      May 2015 NODA, DOE estimated the                        Goetzler. ‘‘Energy Consumption Characteristics of
                                                                                                                                                                     fans with the same aerodynamic design.
                                                      average fan lifetime for standalone fans                Commercial Building HVAC Systems Volume III:              10. DOE requests information on the
                                                      to be 30 years. AHRI commented that                     Energy Savings Potential.’’ National Technical         extent to which product conversion
                                                                                                              Information Service (NTIS): U.S. Department of         costs and/or capital conversion costs are
                                                      the lifetimes seemed high but did not                   Commerce (July 2002). Available at http://
                                                      provide quantified estimates. Morrison                  apps1.eere.energy.gov/buildings/publications/pdfs/
                                                                                                                                                                     shared between fans of different
                                                      commented that the lifetimes seemed                     commercial_initiative/hvac_volume3_final_              construction classes of the same
                                                      high and that fans used in HVAC                         report.pdf.                                            aerodynamic design.
                                                      typically have 12–15 year lifetimes.                       U.S. Department of Energy–Office of Energy             11. DOE requests information on the
                                                                                                              Efficiency and Renewable Energy. Energy                portion of equipment with embedded
                                                      (AHRI, No. 53 at p. 5, Morrison, No. 51                 Conservation Program for Certain Industrial
                                                      at p. 8) In this NODA, DOE revised the                  Equipment: Energy Conservation Standards for
                                                                                                                                                                     fans that would require heat testing for
                                                      fan lifetimes to account for the fact that              Small, Large, and Very Large Commercial Package        certification with any new energy
                                                                                                                                                                     conservation standards.
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                                                                              Air Conditioning and Heating Equipment. Life-
                                                      fans in HVACR application may have                      Cycle Cost Spreadsheet (NOPR) (2014). Available at
                                                      shorter lifetimes. In line with Morrison’s                                                                        12. DOE requests feedback on the
                                                                                                              http://www.regulations.gov/docket?D=EERE-2013-
                                                      comment, DOE used an average                            BT-STD-0007.
                                                                                                                                                                     number of embedded fans that would
                                                      embedded fan lifetime of 17 years based                    22 The sensitivity scenario used a mechanical       require redesign presented in the
                                                      on estimates of HVACR equipment                         lifetime of 45,000 hours based on typical annual       engineering analysis and conversion
                                                      lifetimes, but maintained an average
                                                                                                              operating hours of 3000 hours and a lifetime in        costs spreadsheet.
                                                                                                              years of 15. The lifetimes calculates in the LCC may      13. DOE seeks feedback and input on
                                                                                                              lead to different lifetimes in years due to the
                                                        20 The EnergyPlus building energy use simulation      variability in applications and associated annual
                                                                                                                                                                     the 2012 standalone fan and embedded
                                                      software is available at http://                        operating hours (i.e., fans operating fewer annual     fan shipments values, by equipment
                                                      apps1.eere.energy.gov/buildings/energyplus/.            hours may have a longer lifetime).                     class and subcategory. Specifically, DOE


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                                                                           Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Proposed Rules                                                  75753

                                                      requests feedback on: (1) The estimated                 DATES:  Comments must be received on                  to subpart B of Interagency Guidelines
                                                      number of fans per HVACR equipment;                     or before January 3, 2017.                            Establishing Information Security
                                                      (2) the distribution of HVACR fans                      ADDRESSES: You may submit comments                    Standards (Interagency Guidelines)
                                                      across fan subcategory by fan                           by any of the following methods:                      contained in FDIC rules at part 364,
                                                      application; and (3) the share of                          • FDIC Web site: http://www.fdic.gov/              appendix B. The FDIC previously
                                                      standalone fans purchased and                           regulations/laws/federal/propose.html.                revised part 364 to make the Interagency
                                                      incorporated in HVACR equipment.                        Follow instructions for submitting                    Guidelines applicable to both state
                                                        14. DOE seeks feedback and input on                   comments on the agency Web site.                      nonmember banks and state savings
                                                      the distribution of fan selections by                      • FDIC Email: Comments@fdic.gov.                   associations.1
                                                      power bin and subcategory for                           Include RIN #3064–AE47 on the subject                    The FDIC proposes to rescind in its
                                                      standalone fans and embedded fans as                    line of the message.                                  entirety part 391, subpart A and to
                                                      presented in the ‘‘LCC sample                              • FDIC Mail: Robert E. Feldman,                    modify the scope of part 326 to include
                                                      Description’’ worksheet of the LCC                      Executive Secretary, Attention:                       state savings associations to conform to
                                                      spreadsheet.                                            Comments, Federal Deposit Insurance                   and reflect the scope of the FDIC’s
                                                        15. DOE seeks feedback and inputs on                  Corporation, 550 17th Street NW.,                     current supervisory responsibilities as
                                                      the fan operating hours.                                Washington, DC 20429.                                 the appropriate Federal banking agency.
                                                        16. DOE seeks feedback and inputs on                     • Hand Delivery to FDIC: Comments                  The FDIC also proposes to define
                                                      the fan load profiles used in the energy                may be hand delivered to the guard                    ‘‘FDIC-supervised insured depository
                                                      use calculation and on the percentage of                station at the rear of the 550 17th Street            institution or institution’’ and ‘‘State
                                                      fans used in variable load applications.                building (located on F Street) on                     savings association.’’ Upon removal of
                                                        17. DOE seeks feedback and inputs on                  business days between 7 a.m. and 5 p.m.               part 391, subpart A, the Security
                                                      the fan lifetimes.                                         Please include your name, affiliation,             Procedures, regulations applicable for
                                                        The purpose of this NODA is to notify                 address, email address, and telephone                 all insured depository institutions for
                                                      industry, manufacturers, consumer                       number(s) in your comment. Where                      which the FDIC has been designated the
                                                      groups, efficiency advocates,                           appropriate, comments should include a                appropriate Federal banking agency will
                                                      government agencies, and other                          short Executive Summary consisting of                 be found at 12 CFR part 326.
                                                      stakeholders of the publication of an                   no more than five single-spaced pages.
                                                      analysis of potential energy                            All statements received, including                    I. Background
                                                      conservation standards for commercial                   attachments and other supporting                      The Dodd-Frank Act
                                                      and industrial fans and blowers.                        materials, are part of the public record
                                                      Stakeholders should contact DOE for                     and are subject to public disclosure.                    The Dodd-Frank Act 1 provided for a
                                                      any additional information pertaining to                You should submit only information                    substantial reorganization of the
                                                      the analyses performed for this NODA.                   that you wish to make publicly                        regulation of state and Federal savings
                                                        Issued in Washington, DC, on October 19,              available.                                            associations and their holding
                                                      2016.                                                     Please note: All comments received will be          companies. Beginning July 21, 2011, the
                                                      Kathleen B. Hogan,                                      posted generally without change to http://            transfer date established by section 311
                                                                                                              www.fdic.gov/regulations/laws/federal/                of the Dodd-Frank Act, codified at 12
                                                      Deputy Assistant Secretary for Energy
                                                                                                              propose.html, including any personal                  U.S.C. 5411, the powers, duties, and
                                                      Efficiency, Energy Efficiency and Renewable
                                                                                                              information provided. Paper copies of public          functions formerly performed by the
                                                      Energy.
                                                                                                              comments may be requested from the Public
                                                      [FR Doc. 2016–26341 Filed 10–31–16; 8:45 am]            Information Center by telephone at 1–877–
                                                                                                                                                                    OTS were divided among the FDIC, as
                                                      BILLING CODE 6450–01–P                                  275–3342 or 1–703–562–2200.                           to state savings associations, the Office
                                                                                                                                                                    of the Comptroller of the Currency
                                                                                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                    (‘‘OCC’’), as to Federal savings
                                                                                                              Lauren Whitaker, Attorney, Consumer
                                                      FEDERAL DEPOSIT INSURANCE                                                                                     associations, and the Board of
                                                                                                              Compliance Section, Legal Division
                                                      CORPORATION                                                                                                   Governors of the Federal Reserve
                                                                                                              (202) 898–3872; Martha L. Ellett,
                                                                                                                                                                    System (‘‘FRB’’), as to savings and loan
                                                                                                              Counsel, Consumer Compliance
                                                      12 CFR Parts 326 and 391                                                                                      holding companies. Section 316(b) of
                                                                                                              Section, Legal Division, (202) 898–6765;
                                                                                                                                                                    the Dodd-Frank Act, codified at 12
                                                      RIN 3064–AE47                                           Karen Jones Currie, Senior Examination
                                                                                                                                                                    U.S.C. 5414(b), provides the manner of
                                                                                                              Specialist, Division of Risk Management
                                                      Removal of Transferred OTS                                                                                    treatment for all orders, resolutions,
                                                                                                              and Supervision (202) 898–3981.
                                                      Regulations Regarding Minimum                                                                                 determinations, regulations, and
                                                                                                              SUPPLEMENTARY INFORMATION: Part 391,
                                                      Security Procedures Amendments to                                                                             advisory materials that had been issued,
                                                                                                              subpart A was included in the                         made, prescribed, or allowed to become
                                                      FDIC Regulations                                        regulations that were transferred to the              effective by the OTS. The section
                                                      AGENCY: Federal Deposit Insurance                       FDIC from the Office of Thrift                        provides that if such materials were in
                                                      Corporation.                                            Supervision (‘‘OTS’’) on July 21, 2011,               effect on the day before the transfer
                                                      ACTION: Notice of proposed rulemaking.                  in connection with the implementation                 date, they continue to be in effect and
                                                                                                              of applicable provisions of title III of the          are enforceable by or against the
                                                      SUMMARY:   In this notice of proposed                   Dodd-Frank Wall Street Reform and                     appropriate successor agency until they
                                                      rulemaking (‘‘NPR’’ or ‘‘Proposed                       Consumer Protection Act (‘‘Dodd-Frank
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                                                                                                                                    are modified, terminated, set aside, or
                                                      Rule’’), the Federal Deposit Insurance                  Act’’). With the exception of one                     superseded in accordance with
                                                      Corporation (‘‘FDIC’’) proposes to                      provision (§ 391.5) the requirements for              applicable law by such successor
                                                      rescind and remove a part from the                      State savings associations in part 391,               agency, by any court of competent
                                                      Code of Federal Regulations entitled                    subpart A are substantively identical to              jurisdiction, or by operation of law.
                                                      ‘‘Security Procedures’’ and to amend                    the requirements in the FDIC’s 12 CFR
                                                      FDIC regulations to make the removed                    part 326 (‘‘part 326’’), which is entitled              1 80FR 65907 (Oct. 28, 2015).
                                                      Office of Thrift Supervision (‘‘OTS’’)                  ‘‘Minimum Security Procedures.’’ The                    1 Dodd-Frank  Wall Street Reform and Consumer
                                                      regulations applicable to state savings                 one exception directs savings                         Protection Act, Public Law 111–203, 124 Stat. 1376
                                                      associations.                                           associations to comply with appendix B                (2010) (codified at 12 U.S.C. 5301 et seq.).



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Document Created: 2016-11-01 02:35:53
Document Modified: 2016-11-01 02:35:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of data availability (NODA).
DatesDOE will accept comments, data, and information regarding the NODA no later than December 1, 2016.
ContactMs. Ashley Armstrong, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies, EE-2J, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 586-6590. Email: [email protected]
FR Citation81 FR 75742 
RIN Number1904-AC55

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