82_FR_50701 82 FR 50491 - Availability of Final Report on Regulatory Review Under Executive Order 13783

82 FR 50491 - Availability of Final Report on Regulatory Review Under Executive Order 13783

DEPARTMENT OF ENERGY

Federal Register Volume 82, Issue 210 (November 1, 2017)

Page Range50491-50493
FR Document2017-23713

Through this document, the Department of Energy (DOE) announces the availability of its report issued under Executive Order 13783, ``Promoting Energy Independence and Economic Growth''.

Federal Register, Volume 82 Issue 210 (Wednesday, November 1, 2017)
[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Rules and Regulations]
[Pages 50491-50493]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23713]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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


Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / 
Rules and Regulations

[[Page 50491]]



DEPARTMENT OF ENERGY

2 CFR Chapter IX

5 CFR Chapter XXIII

10 CFR Chapters II, III and X

41 CFR Chapter 109

48 CFR Chapter 9


Availability of Final Report on Regulatory Review Under Executive 
Order 13783

AGENCY: Office of the Secretary, Department of Energy.

ACTION: Notification of final report on regulatory review.

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

SUMMARY: Through this document, the Department of Energy (DOE) 
announces the availability of its report issued under Executive Order 
13783, ``Promoting Energy Independence and Economic Growth''.

DATES: The Secretary signed the final report on October 24, 2017.

ADDRESSES: Copies of the report are available for public inspection at 
the U.S. Department of Energy, Forrestal Building, 1000 Independence 
Avenue SW., Washington, DC 20585. Public inspection can be conducted 
between 9:00 a.m. and 4:00 p.m., Monday through Friday, except Federal 
holidays. This report is being published in its entirety and can also 
be accessed online at https://www.energy.gov/downloads/final-report-regulatory-review-under-executive-order-13783.

FOR FURTHER INFORMATION CONTACT: Daniel Cohen, U.S. Department of 
Energy, Office of the General Counsel, 1000 Independence Avenue SW., 
Washington, DC 20585. Telephone: (202) 586-5000. Email: 
[email protected].

SUPPLEMENTARY INFORMATION: The Department of Energy (DOE) announces the 
availability of its report issued under Executive Order 13783, 
``Promoting Energy Independence and Economic Growth''. The report 
provides the recommendations of DOE's Regulatory Reform Task Force to 
reduce regulatory burdens on domestic energy resources, and is 
published as an appendix to this document and available at https://www.energy.gov/downloads/final-report-regulatory-review-under-executive-order-13783.

    Issued in Washington, DC, on October 26, 2017.
Shena A. Kennerly,
Acting Director, Office of the Executive Secretariat, Department of 
Energy.

Appendix

Department of Energy

Final Report on Regulatory Review Under Executive Order 13783

    On March 28, 2017, the President signed Executive Order (EO) 
13783, entitled ``Promoting Energy Independence and Economic 
Growth.'' Among other things, EO 13783 requires the heads of 
agencies to review all existing regulations, orders, guidance 
documents, policies, and any other similar agency actions 
(collectively, ``agency actions'') that potentially burden \1\ the 
development or use of domestically produced energy resources, with 
particular attention to oil, natural gas, coal, and nuclear energy 
resources. Such review does not include agency actions that are 
mandated by law, necessary for the public interest, and consistent 
with the policy set forth elsewhere in that order.
---------------------------------------------------------------------------

    \1\ Executive Order 13783 defined burden for purposes of the 
review of existing regulations to mean to unnecessarily obstruct, 
delay, curtail, or otherwise impose significant costs on the siting, 
permitting, production, utilization, transmission, or delivery of 
energy resources.
---------------------------------------------------------------------------

    On May 18, 2017, I submitted to the Director of the Office of 
Management and Budget (OMB) the Department of Energy's (DOE) plan to 
review its agency actions under EO 13783. The plan was also sent to 
the Vice President, the Assistant to the President for Economic 
Policy, the Assistant to the President for Domestic Policy, and the 
Chair of the Council on Environmental Quality (CEQ). In the plan, I 
stated that DOE's Regulatory Reform Task Force (Task Force) would 
conduct the review of agency actions subject to review under EO 
13783.
    On May 30, 2017, DOE published in the Federal Register a Request 
for Information (RFI), seeking input and other assistance from 
entities significantly affected by regulations of the DOE, including 
State, local, and tribal governments, small businesses, consumers, 
non-governmental organizations, and manufacturers and their trade 
associations.\2\
---------------------------------------------------------------------------

    \2\ 82 FR 24582 (May 30, 2017).
---------------------------------------------------------------------------

    DOE's goal in publishing the RFI was to ``create a systematic 
method for identifying those existing DOE rules that are obsolete, 
unnecessary, unjustified, or simply no longer make sense.'' DOE 
decided to solicit views on: (a) How DOE could best conduct its 
analysis of existing agency actions, and (b) insights on specific 
rules or Department-imposed obligations that should be altered or 
eliminated.
    The comment period on the RFI closed on July 14, 2017. DOE 
received 132 separate public comments from decision-makers, 
stakeholders, and the public on rules promulgated by DOE and the 
burdens some of those rules have imposed. The Task Force has 
evaluated these comments to achieve meaningful regulatory reform in 
a manner consistent with our commitment to public participation in 
the rulemaking process.
    DOE sought views on the specific rules or Department-imposed 
obligations that should be altered or eliminated, because knowledge 
about the full effects of a rule is widely dispersed in society, and 
members of the public are likely to have useful information and 
perspectives on the benefits and burdens of existing requirements 
and how regulatory obligations may be updated, streamlined, revised, 
or repealed to better achieve regulatory objectives, while 
minimizing regulatory burdens, consistent with applicable law. 
Interested parties may also be well-positioned to identify those 
rules that are most in need of reform, and, thus, assist the 
Department in prioritizing and properly tailoring its review 
process.
    Beyond the RFI, the Task Force reviewed DOE Directives, Orders, 
Manuals, and Policies designed to ensure the effective management 
and operation of the National Laboratories, which contribute to 
American economic growth and energy security. Also, with the help of 
the Office of Management and staff for the Under Secretary of 
Energy, we reviewed DOE's Directives, Orders, Manuals, and Policies 
specifically for burdens on domestic energy production.
    In addition to the work conducted to comply with EO 13783, DOE 
will continue to review all agency actions to assure that DOE does 
not burden domestic energy production. For example, as discussed 
below, we will review agency actions concerning fossil fuel 
consumption in Federal buildings, impact of building codes, and 
nuclear export licensing. DOE is committed to reducing regulatory 
burdens on the American people to unleash domestic energy production 
and promote job creation and economic growth.

Recommendations To Reduce Regulatory Burdens on Domestic Energy 
Resources

    Based on a review of the comments received in response to the 
RFI, coupled with the work of the Task Force to identify both 
internal and external agency actions that inhibit domestic energy 
development and use, DOE's Task Force offers the following 
recommendations:

[[Page 50492]]

    (1) Streamline Natural Gas Exports;
    (2) Review National Laboratory Policies;
    (3) Review National Environmental Policy Act (NEPA) Regulations; 
and
    (4) Review the DOE Appliance Standards Program.

DOE Task Force Recommendations

(1) Streamline Natural Gas Exports

    Several commenters encouraged DOE to expedite exports of 
Liquefied Natural Gas (LNG).
    On September 1, 2017, DOE announced a proposed rule to provide 
faster approval of small-scale natural gas exports, including LNG. 
This measure will expedite the review and approval of applications 
to export small amounts of natural gas in the emerging small-scale 
LNG export market. Under the Natural Gas Act, DOE has jurisdiction 
over imports and exports of natural gas. For applications to export 
natural gas to countries without a qualifying free trade agreement 
(non-free trade agreement countries), DOE must conduct a public 
interest review before authorizing an export. This proposed rule 
provides that DOE, upon receipt of any complete application to 
export natural gas (including LNG) to non-free trade agreement 
countries, will grant the application if the application meets two 
criteria: The application proposes to export no more than 0.14 
billion cubic feet per day (bcf/d), and the proposed export 
qualifies for a categorical exclusion under DOE's NEPA regulations.
    For applications meeting these criteria, the exports are 
considered ``small-scale natural gas exports'' and are deemed in the 
public interest under the Natural Gas Act. Exports of natural gas to 
free trade agreement countries are already deemed in the public 
interest under the Act.
    The Task Force will also consider whether future rulemakings can 
allow for expedited processing of larger-scale exports of natural 
gas as consistent with applicable law and DOE's statutory authority.

(2) Review National Laboratory Policies

    DOE manages several National Laboratories that support the 
Department's energy, science, and nuclear non-proliferation 
missions. As part of our review, the Task Force conducted a 
comprehensive review of operations and procedures at the National 
Labs. The National Labs conduct research and development of 
innovative technologies that have the potential to enable future 
energy production. The Task Force identified several areas for 
reform that would permit the National Laboratories to operate more 
efficiently, focusing more time and resources on their mission-
critical work: Conducting early-stage research and development of 
innovative energy technologies that advance American economic growth 
and energy security.

(3) Review DOE's National Environmental Policy Act (NEPA) 
Regulations and Implementation

    DOE received comments on the RFI concerning streamlining and 
simplifying the agency's external regulations (10 CFR 1021) and 
internal operations to improve effectiveness and efficiency of NEPA 
document approval processes. The Task Force is comprehensively 
reviewing NEPA and offers several specific recommendations to reform 
DOE's NEPA processes to optimize and ensure compliance with existing 
statutes, CEQ regulations (40 CFR 1500-1508), and EO.
    Specific NEPA recommendations include:
     Reform the NEPA process for permitting and export 
applications, including LNG and infrastructure.
     Review existing NEPA policies to assess whether DOE 
should grant more categorical exclusions. Further, enable DOE's 
adoption of categorical exclusions already approved by other Federal 
agencies, and foster interagency collaboration, such as working with 
the Bureau of Land Management to consider categorical exclusions for 
geothermal energy on Federal lands.
     Remove language in DOE Regulations (10 CFR 1021) that 
is not consistent with overarching CEQ regulations (40 CFR 1500-
1508).

(4) Review DOE Appliance Standards Program

    Pursuant to the Energy Policy and Conservation Act of 1975 
(EPCA), DOE implements minimum energy conservation standards and 
separate test procedures for more than 60 categories of appliances. 
DOE's energy conservation standards apply to this EO because they 
impact U.S. energy consumption, the vast majority of which comes 
from oil, natural gas, coal, and nuclear resources.
    Below is a summary of the various public comments and proposals 
that DOE has received and is considering:
     Review the Process Rule. Many commenters have asked DOE 
to follow and review the 1996 Process Rule (10 CFR Appendix A to 
Subpart C). The Process Rule describes the procedures, 
interpretations, and policies that guide DOE in establishing new or 
revised energy-efficiency standards for consumer products. Given our 
commitment to transparency and regulatory certainty, DOE will 
consider issuing a RFI to gather additional feedback from 
stakeholders on how to amend or improve the Process Rule.
     Reduce the Burden of Serial Rule-making. Many 
stakeholders, including manufacturers and small businesses, regard 
as overly burdensome and unnecessary the statutory requirement to 
reconsider standards at least once every six years.
    [cir] Commenters offered similar feedback in response to the 
Department of Commerce's RFI pursuant to the Presidential Memorandum 
on Streamlining Permitting and Reducing Regulatory Burdens for 
Domestic Manufacturing.
    [cir] Commenters of both DOE's and Commerce's RFI suggest 
extending the time period between consideration of standards to give 
regulated industries more time to comply. This would require 
statutory changes, which are outside the scope of EO 13783.
    However, DOE will consider other agency actions to reduce 
regulatory burdens on American families and businesses. As stated 
below, such reforms would give DOE more time to determine, before 
considering amending standards for a product, whether costs were 
accurately estimated and expected energy savings were realized.
    The current 6-year review process may not provide adequate time 
for such a retrospective analysis, which is critical to determine 
whether energy conservation standards are working as intended and 
the underlying assumptions are sound.
    [cir] In lieu of statutory changes to the 6-year review period, 
DOE should consider ``no amended standards'' determinations when 
supported by data and when small energy savings require significant 
upfront cost to achieve.
    [cir] Consider voluntary, non-regulatory, and market-based 
alternatives to standards-setting. For example, when appropriate and 
consistent with the law, consider using established industry test 
procedures as the DOE test procedures.
    [cir] Consider establishing a baseline for energy savings that 
qualify as not significant and thus not economically justified.
    [cir] Refrain from enacting standards through a direct final 
rule because of the economic burden it may impose on households and 
the lack of consumer voice in the rulemaking process.
     Improve Cost-Benefit Analysis. EPCA requires DOE to 
promulgate rules that are economically justified, but this 
definition is subject to interpretation. Setting clear definitions 
that evaluate the comprehensive range of costs and benefits is 
crucial to ensure that DOE's conservation standards save energy 
while minimizing economic burdens. Some topics for consideration 
include:
    [cir] Establish internal DOE standards for how to regulate when 
large portions of the public would bear net costs (costs exceed 
benefits). Adopting a standard for determining a level at which the 
net cost is too large would preserve resources and mitigate burdens 
on consumers.
    [cir] Conduct a retrospective review of previous standards to 
assess the validity of DOE's analysis before it is used in new 
rules. This would give DOE enough time to collect information on 
consumer preferences and behavior, including surveys of consumers.
     Reconsider standards and test procedures for particular 
products. Commenters identified numerous standards and test 
procedures for reconsideration, citing excessive regulatory burdens. 
DOE is evaluating these comments, examples of which include:
    [cir] Review standards for natural gas products to consider 
whether the standards are inconsistent with the intent of EO 13783 
to minimize regulatory burdens on domestic energy resources.
    [cir] Reconsider, or refrain from establishing, certain 
standards, including commercial packaged boilers, commercial and 
industrial fans and blowers, the refrigerated beverage vending 
machine standards rule published in 2016; the commercial 
refrigeration equipment standards rule published in 2014; the 
residential furnace fan rule published in 2014; and the residential 
water heaters standards published in 2010. Other commenters 
recommend maintaining many of these standards.

[[Page 50493]]

    [cir] Repeal or reconsider several test procedures, including 
for compressors, residential central air conditioners and heat 
pumps, and consumer and commercial water heaters. Other commenters 
recommend maintaining current test procedures.
     Follow the requirements of EO 13783 when analyzing 
climate impacts. EO 13783 withdraws certain documents concerning the 
development of the Social Cost of Carbon (SCC) and requires agencies 
to follow the requirements of OMB Circular A-4 in climate analyses. 
DOE will follow these requirements in our regulations. Also, some 
commenters encouraged DOE not to use SCC to calculate the climate 
impacts of regulations.
    In addition to the recommendations listed above, DOE is 
committed to enhancing engagement with stakeholders in an open and 
transparent process. Building on the listening session held on 
October 2, 2017, DOE is preparing to send a letter to each of the 
Department's Federal Advisory Committees requesting them to include 
regulatory reform on the agenda for their next meeting. DOE will 
also consider holding additional listening sessions on a semi-
regular basis to gather feedback and hold the Department accountable 
to the public.
    Furthermore, DOE will continue to consider other areas where it 
may be possible to relieve burdens on domestic energy production. 
For example, DOE will consider, consistent with Federal law, 
possible flexibility for regulations relating to fossil fuel 
consumption in Federal buildings, buildings codes, nuclear export 
licensing, and DOE's proposed nuclear damage contingent cost 
allocation rule. In short, we will remain committed to reducing 
burdens on all kinds of domestic energy production.

Section 2(d) of EO 13783

    These recommendations comprise DOE's final report, which will be 
submitted to the Vice President, the OMB Director, the Assistant to 
the President for Economic Policy, the Assistant to the President 
for Domestic Policy, and the Chair of the Council on Environmental 
Quality, as required by section 2(d) of EO 13783.
    If implemented, these recommendations would alleviate or 
eliminate aspects of agency actions that burden domestic energy 
development, production, and use.

    October 24, 2017

Rick Perry,
Secretary of Energy

[FR Doc. 2017-23713 Filed 10-31-17; 8:45 am]
 BILLING CODE 6450-01-P



                                                                                                                                                                                                   50491

                                              Rules and Regulations                                                                                           Federal Register
                                                                                                                                                              Vol. 82, No. 210

                                                                                                                                                              Wednesday, November 1, 2017



                                              This section of the FEDERAL REGISTER                    ‘‘Promoting Energy Independence and                        DOE’s goal in publishing the RFI was to
                                              contains regulatory documents having general            Economic Growth’’. The report provides                  ‘‘create a systematic method for identifying
                                              applicability and legal effect, most of which           the recommendations of DOE’s                            those existing DOE rules that are obsolete,
                                              are keyed to and codified in the Code of                                                                        unnecessary, unjustified, or simply no longer
                                                                                                      Regulatory Reform Task Force to reduce                  make sense.’’ DOE decided to solicit views
                                              Federal Regulations, which is published under           regulatory burdens on domestic energy
                                              50 titles pursuant to 44 U.S.C. 1510.                                                                           on: (a) How DOE could best conduct its
                                                                                                      resources, and is published as an                       analysis of existing agency actions, and (b)
                                              The Code of Federal Regulations is sold by              appendix to this document and                           insights on specific rules or Department-
                                              the Superintendent of Documents.                        available at https://www.energy.gov/                    imposed obligations that should be altered or
                                                                                                      downloads/final-report-regulatory-                      eliminated.
                                                                                                      review-under-executive-order-13783.                        The comment period on the RFI closed on
                                              DEPARTMENT OF ENERGY                                                                                            July 14, 2017. DOE received 132 separate
                                                                                                        Issued in Washington, DC, on October 26,              public comments from decision-makers,
                                                                                                      2017.                                                   stakeholders, and the public on rules
                                              2 CFR Chapter IX
                                                                                                      Shena A. Kennerly,                                      promulgated by DOE and the burdens some
                                                                                                      Acting Director, Office of the Executive                of those rules have imposed. The Task Force
                                              5 CFR Chapter XXIII                                                                                             has evaluated these comments to achieve
                                                                                                      Secretariat, Department of Energy.
                                                                                                                                                              meaningful regulatory reform in a manner
                                              10 CFR Chapters II, III and X                           Appendix                                                consistent with our commitment to public
                                                                                                                                                              participation in the rulemaking process.
                                                                                                      Department of Energy
                                              41 CFR Chapter 109                                                                                                 DOE sought views on the specific rules or
                                                                                                      Final Report on Regulatory Review Under                 Department-imposed obligations that should
                                              48 CFR Chapter 9                                        Executive Order 13783                                   be altered or eliminated, because knowledge
                                                                                                                                                              about the full effects of a rule is widely
                                                                                                         On March 28, 2017, the President signed
                                              Availability of Final Report on                         Executive Order (EO) 13783, entitled                    dispersed in society, and members of the
                                              Regulatory Review Under Executive                       ‘‘Promoting Energy Independence and                     public are likely to have useful information
                                                                                                      Economic Growth.’’ Among other things, EO               and perspectives on the benefits and burdens
                                              Order 13783                                                                                                     of existing requirements and how regulatory
                                                                                                      13783 requires the heads of agencies to
                                              AGENCY:  Office of the Secretary,                       review all existing regulations, orders,                obligations may be updated, streamlined,
                                              Department of Energy.                                   guidance documents, policies, and any other             revised, or repealed to better achieve
                                                                                                      similar agency actions (collectively, ‘‘agency          regulatory objectives, while minimizing
                                              ACTION: Notification of final report on                                                                         regulatory burdens, consistent with
                                              regulatory review.                                      actions’’) that potentially burden 1 the
                                                                                                      development or use of domestically                      applicable law. Interested parties may also be
                                                                                                      produced energy resources, with particular              well-positioned to identify those rules that
                                              SUMMARY:   Through this document, the                                                                           are most in need of reform, and, thus, assist
                                              Department of Energy (DOE) announces                    attention to oil, natural gas, coal, and nuclear
                                                                                                      energy resources. Such review does not                  the Department in prioritizing and properly
                                              the availability of its report issued                                                                           tailoring its review process.
                                                                                                      include agency actions that are mandated by
                                              under Executive Order 13783,                            law, necessary for the public interest, and                Beyond the RFI, the Task Force reviewed
                                              ‘‘Promoting Energy Independence and                     consistent with the policy set forth elsewhere          DOE Directives, Orders, Manuals, and
                                              Economic Growth’’.                                      in that order.                                          Policies designed to ensure the effective
                                              DATES: The Secretary signed the final                      On May 18, 2017, I submitted to the                  management and operation of the National
                                                                                                      Director of the Office of Management and                Laboratories, which contribute to American
                                              report on October 24, 2017.                                                                                     economic growth and energy security. Also,
                                                                                                      Budget (OMB) the Department of Energy’s
                                              ADDRESSES: Copies of the report are                                                                             with the help of the Office of Management
                                                                                                      (DOE) plan to review its agency actions
                                              available for public inspection at the                  under EO 13783. The plan was also sent to               and staff for the Under Secretary of Energy,
                                              U.S. Department of Energy, Forrestal                    the Vice President, the Assistant to the                we reviewed DOE’s Directives, Orders,
                                              Building, 1000 Independence Avenue                      President for Economic Policy, the Assistant            Manuals, and Policies specifically for
                                              SW., Washington, DC 20585. Public                       to the President for Domestic Policy, and the           burdens on domestic energy production.
                                              inspection can be conducted between                     Chair of the Council on Environmental                      In addition to the work conducted to
                                                                                                      Quality (CEQ). In the plan, I stated that               comply with EO 13783, DOE will continue to
                                              9:00 a.m. and 4:00 p.m., Monday                                                                                 review all agency actions to assure that DOE
                                                                                                      DOE’s Regulatory Reform Task Force (Task
                                              through Friday, except Federal holidays.                                                                        does not burden domestic energy production.
                                                                                                      Force) would conduct the review of agency
                                              This report is being published in its                   actions subject to review under EO 13783.               For example, as discussed below, we will
                                              entirety and can also be accessed online                   On May 30, 2017, DOE published in the                review agency actions concerning fossil fuel
                                              at https://www.energy.gov/downloads/                    Federal Register a Request for Information              consumption in Federal buildings, impact of
                                              final-report-regulatory-review-under-                   (RFI), seeking input and other assistance               building codes, and nuclear export licensing.
                                              executive-order-13783.                                  from entities significantly affected by                 DOE is committed to reducing regulatory
                                                                                                      regulations of the DOE, including State, local,         burdens on the American people to unleash
                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                      and tribal governments, small businesses,               domestic energy production and promote job
                                              Daniel Cohen, U.S. Department of                                                                                creation and economic growth.
                                                                                                      consumers, non-governmental organizations,
                                              Energy, Office of the General Counsel,                  and manufacturers and their trade
                                              1000 Independence Avenue SW.,                                                                                   Recommendations To Reduce Regulatory
                                                                                                      associations.2                                          Burdens on Domestic Energy Resources
sradovich on DSK3GMQ082PROD with RULES




                                              Washington, DC 20585. Telephone:
                                              (202) 586–5000. Email:                                    1 Executive Order 13783 defined burden for
                                                                                                                                                                Based on a review of the comments
                                              Regulatory.Review@hq.doe.gov.                           purposes of the review of existing regulations to
                                                                                                                                                              received in response to the RFI, coupled with
                                                                                                      mean to unnecessarily obstruct, delay, curtail, or      the work of the Task Force to identify both
                                              SUPPLEMENTARY INFORMATION: The                                                                                  internal and external agency actions that
                                                                                                      otherwise impose significant costs on the siting,
                                              Department of Energy (DOE) announces                    permitting, production, utilization, transmission, or   inhibit domestic energy development and
                                              the availability of its report issued                   delivery of energy resources.                           use, DOE’s Task Force offers the following
                                              under Executive Order 13783,                              2 82 FR 24582 (May 30, 2017).                         recommendations:



                                         VerDate Sep<11>2014   17:12 Oct 31, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\01NOR1.SGM   01NOR1


                                              50492            Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Rules and Regulations

                                                (1) Streamline Natural Gas Exports;                    document approval processes. The Task                 amending standards for a product, whether
                                                (2) Review National Laboratory Policies;               Force is comprehensively reviewing NEPA               costs were accurately estimated and expected
                                                (3) Review National Environmental Policy               and offers several specific recommendations           energy savings were realized.
                                              Act (NEPA) Regulations; and                              to reform DOE’s NEPA processes to optimize               The current 6-year review process may not
                                                (4) Review the DOE Appliance Standards                 and ensure compliance with existing statutes,         provide adequate time for such a
                                              Program.                                                 CEQ regulations (40 CFR 1500–1508), and               retrospective analysis, which is critical to
                                                                                                       EO.                                                   determine whether energy conservation
                                              DOE Task Force Recommendations                             Specific NEPA recommendations include:              standards are working as intended and the
                                              (1) Streamline Natural Gas Exports                         • Reform the NEPA process for permitting            underlying assumptions are sound.
                                                                                                       and export applications, including LNG and               Æ In lieu of statutory changes to the 6-year
                                                 Several commenters encouraged DOE to
                                                                                                       infrastructure.                                       review period, DOE should consider ‘‘no
                                              expedite exports of Liquefied Natural Gas
                                                                                                         • Review existing NEPA policies to assess           amended standards’’ determinations when
                                              (LNG).
                                                                                                       whether DOE should grant more categorical             supported by data and when small energy
                                                 On September 1, 2017, DOE announced a
                                                                                                       exclusions. Further, enable DOE’s adoption            savings require significant upfront cost to
                                              proposed rule to provide faster approval of
                                                                                                       of categorical exclusions already approved by         achieve.
                                              small-scale natural gas exports, including
                                                                                                       other Federal agencies, and foster interagency           Æ Consider voluntary, non-regulatory, and
                                              LNG. This measure will expedite the review
                                                                                                       collaboration, such as working with the               market-based alternatives to standards-
                                              and approval of applications to export small
                                                                                                       Bureau of Land Management to consider                 setting. For example, when appropriate and
                                              amounts of natural gas in the emerging small-
                                                                                                       categorical exclusions for geothermal energy          consistent with the law, consider using
                                              scale LNG export market. Under the Natural
                                                                                                       on Federal lands.                                     established industry test procedures as the
                                              Gas Act, DOE has jurisdiction over imports
                                              and exports of natural gas. For applications               • Remove language in DOE Regulations (10            DOE test procedures.
                                                                                                       CFR 1021) that is not consistent with                    Æ Consider establishing a baseline for
                                              to export natural gas to countries without a
                                                                                                       overarching CEQ regulations (40 CFR 1500–             energy savings that qualify as not significant
                                              qualifying free trade agreement (non-free
                                              trade agreement countries), DOE must                     1508).                                                and thus not economically justified.
                                              conduct a public interest review before                                                                           Æ Refrain from enacting standards through
                                                                                                       (4) Review DOE Appliance Standards                    a direct final rule because of the economic
                                              authorizing an export. This proposed rule                Program
                                              provides that DOE, upon receipt of any                                                                         burden it may impose on households and the
                                              complete application to export natural gas                  Pursuant to the Energy Policy and                  lack of consumer voice in the rulemaking
                                              (including LNG) to non-free trade agreement              Conservation Act of 1975 (EPCA), DOE                  process.
                                              countries, will grant the application if the             implements minimum energy conservation                   • Improve Cost-Benefit Analysis. EPCA
                                              application meets two criteria: The                      standards and separate test procedures for            requires DOE to promulgate rules that are
                                              application proposes to export no more than              more than 60 categories of appliances. DOE’s          economically justified, but this definition is
                                              0.14 billion cubic feet per day (bcf/d), and             energy conservation standards apply to this           subject to interpretation. Setting clear
                                              the proposed export qualifies for a categorical          EO because they impact U.S. energy                    definitions that evaluate the comprehensive
                                              exclusion under DOE’s NEPA regulations.                  consumption, the vast majority of which               range of costs and benefits is crucial to
                                                 For applications meeting these criteria, the          comes from oil, natural gas, coal, and nuclear        ensure that DOE’s conservation standards
                                              exports are considered ‘‘small-scale natural             resources.                                            save energy while minimizing economic
                                              gas exports’’ and are deemed in the public                  Below is a summary of the various public           burdens. Some topics for consideration
                                              interest under the Natural Gas Act. Exports              comments and proposals that DOE has                   include:
                                              of natural gas to free trade agreement                   received and is considering:                             Æ Establish internal DOE standards for
                                              countries are already deemed in the public                  • Review the Process Rule. Many                    how to regulate when large portions of the
                                              interest under the Act.                                  commenters have asked DOE to follow and               public would bear net costs (costs exceed
                                                 The Task Force will also consider whether             review the 1996 Process Rule (10 CFR                  benefits). Adopting a standard for
                                              future rulemakings can allow for expedited               Appendix A to Subpart C). The Process Rule            determining a level at which the net cost is
                                              processing of larger-scale exports of natural            describes the procedures, interpretations, and        too large would preserve resources and
                                              gas as consistent with applicable law and                policies that guide DOE in establishing new           mitigate burdens on consumers.
                                              DOE’s statutory authority.                               or revised energy-efficiency standards for               Æ Conduct a retrospective review of
                                                                                                       consumer products. Given our commitment               previous standards to assess the validity of
                                              (2) Review National Laboratory Policies                  to transparency and regulatory certainty,             DOE’s analysis before it is used in new rules.
                                                 DOE manages several National Laboratories             DOE will consider issuing a RFI to gather             This would give DOE enough time to collect
                                              that support the Department’s energy,                    additional feedback from stakeholders on              information on consumer preferences and
                                              science, and nuclear non-proliferation                   how to amend or improve the Process Rule.             behavior, including surveys of consumers.
                                              missions. As part of our review, the Task                   • Reduce the Burden of Serial Rule-                   • Reconsider standards and test
                                              Force conducted a comprehensive review of                making. Many stakeholders, including                  procedures for particular products.
                                              operations and procedures at the National                manufacturers and small businesses, regard            Commenters identified numerous standards
                                              Labs. The National Labs conduct research                 as overly burdensome and unnecessary the              and test procedures for reconsideration,
                                              and development of innovative technologies               statutory requirement to reconsider standards         citing excessive regulatory burdens. DOE is
                                              that have the potential to enable future                 at least once every six years.                        evaluating these comments, examples of
                                              energy production. The Task Force identified                Æ Commenters offered similar feedback in           which include:
                                              several areas for reform that would permit               response to the Department of Commerce’s                 Æ Review standards for natural gas
                                              the National Laboratories to operate more                RFI pursuant to the Presidential                      products to consider whether the standards
                                              efficiently, focusing more time and resources            Memorandum on Streamlining Permitting                 are inconsistent with the intent of EO 13783
                                              on their mission-critical work: Conducting               and Reducing Regulatory Burdens for                   to minimize regulatory burdens on domestic
                                              early-stage research and development of                  Domestic Manufacturing.                               energy resources.
                                              innovative energy technologies that advance                 Æ Commenters of both DOE’s and                        Æ Reconsider, or refrain from establishing,
                                              American economic growth and energy                      Commerce’s RFI suggest extending the time             certain standards, including commercial
                                              security.                                                period between consideration of standards to          packaged boilers, commercial and industrial
                                                                                                       give regulated industries more time to                fans and blowers, the refrigerated beverage
                                              (3) Review DOE’s National Environmental
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                                                                                                       comply. This would require statutory                  vending machine standards rule published in
                                              Policy Act (NEPA) Regulations and                        changes, which are outside the scope of EO            2016; the commercial refrigeration
                                              Implementation                                           13783.                                                equipment standards rule published in 2014;
                                                 DOE received comments on the RFI                         However, DOE will consider other agency            the residential furnace fan rule published in
                                              concerning streamlining and simplifying the              actions to reduce regulatory burdens on               2014; and the residential water heaters
                                              agency’s external regulations (10 CFR 1021)              American families and businesses. As stated           standards published in 2010. Other
                                              and internal operations to improve                       below, such reforms would give DOE more               commenters recommend maintaining many
                                              effectiveness and efficiency of NEPA                     time to determine, before considering                 of these standards.



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                                                               Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Rules and Regulations                                              50493

                                                 Æ Repeal or reconsider several test                   related to supplemental standards of                  executive branch standards of ethical
                                              procedures, including for compressors,                   ethical conduct for Postal Regulatory                 conduct.3 On August 7, 1992, OGE
                                              residential central air conditioners and heat            Commission employees. The rules                       published a final rule titled Standards of
                                              pumps, and consumer and commercial water
                                                                                                       revise the existing rules in order to                 Ethical Conduct for Employees of the
                                              heaters. Other commenters recommend
                                              maintaining current test procedures.                     better conform to Office of Government                Executive Branch (OGE Standards).4
                                                 • Follow the requirements of EO 13783                 Ethics standards and accurately reflect               The OGE Standards, codified at 5 CFR
                                              when analyzing climate impacts. EO 13783                 the Commission’s regulatory role under                part 2635, became effective February 3,
                                              withdraws certain documents concerning the               the Postal Accountability and                         1993, and established uniform standards
                                              development of the Social Cost of Carbon                 Enhancement Act.                                      of ethical conduct applicable to all
                                              (SCC) and requires agencies to follow the                DATES: Effective December 1, 2017.                    executive branch personnel. On August
                                              requirements of OMB Circular A–4 in climate                                                                    12, 1993, the Postal Rate Commission
                                              analyses. DOE will follow these requirements             FOR FURTHER INFORMATION CONTACT:
                                                                                                       David A. Trissell, General Counsel, at                collaborated with OGE to publish
                                              in our regulations. Also, some commenters
                                              encouraged DOE not to use SCC to calculate               202–789–6820.                                         existing 5 CFR part 5601 as an interim
                                              the climate impacts of regulations.                      SUPPLEMENTARY INFORMATION:
                                                                                                                                                             rule. 58 FR 42839 (Aug. 12, 1993).
                                                 In addition to the recommendations listed                                                                      In 2006, the Postal Accountability and
                                              above, DOE is committed to enhancing                     Table of Contents                                     Enhancement Act (PAEA), Public Law
                                              engagement with stakeholders in an open                  I. Introduction                                       109–435, 120 Stat. 3198 (2006) changed
                                              and transparent process. Building on the                 II. Background                                        the agency’s name from the Postal Rate
                                              listening session held on October 2, 2017,               III. Comments                                         Commission to the Postal Regulatory
                                              DOE is preparing to send a letter to each of             IV. Commission Analysis                               Commission and made several changes
                                              the Department’s Federal Advisory                        V. Ordering Paragraphs
                                              Committees requesting them to include                                                                          to the Commission’s regulatory role.
                                              regulatory reform on the agenda for their next           I. Introduction                                       Order No. 3906 at 2–3. The
                                              meeting. DOE will also consider holding                                                                        supplemental standards of ethical
                                              additional listening sessions on a semi-                    On May 24, 2017, the Postal                        conduct, existing 5 CFR part 5601, have
                                              regular basis to gather feedback and hold the            Regulatory Commission (Commission)                    never been amended or finalized since
                                              Department accountable to the public.                    issued a notice of proposed rulemaking                their 1993 adoption and remain
                                                 Furthermore, DOE will continue to                     to revise its supplemental standards of               attributed to the Postal Rate
                                              consider other areas where it may be possible            ethical conduct, 5 CFR part 5601.1 On
                                              to relieve burdens on domestic energy
                                                                                                                                                             Commission. The PAEA’s changes to the
                                                                                                       the same day, the Commission also                     Commission’s responsibilities drive the
                                              production. For example, DOE will consider,              issued a notice of proposed rulemaking
                                              consistent with Federal law, possible                                                                          need to modernize the Commission’s
                                              flexibility for regulations relating to fossil           to revise the ethics rules applicable to              supplemental standards of ethical
                                              fuel consumption in Federal buildings,                   Commission employees, 39 CFR subpart                  conduct. Moreover, experience has
                                              buildings codes, nuclear export licensing,               A of part 3000.2                                      informed the Commission’s view
                                              and DOE’s proposed nuclear damage                           Executive branch employees are                     regarding linguistic and organizational
                                              contingent cost allocation rule. In short, we            subject to multiple federal ethics laws,              revisions to clarify the supplemental
                                              will remain committed to reducing burdens                regulations issued by the Office of
                                              on all kinds of domestic energy production.                                                                    standards of ethical conduct.
                                                                                                       Government Ethics (OGE), and
                                              Section 2(d) of EO 13783                                 executive orders. The supplemental                    III. Comments
                                                 These recommendations comprise DOE’s                  standards of ethical conduct at issue in                 The Commission received two sets of
                                              final report, which will be submitted to the             this Order are additional restrictions                comments pertaining to the proposed
                                              Vice President, the OMB Director, the                    applicable only to Commission                         revisions to the supplemental standards
                                              Assistant to the President for Economic                  employees. These supplemental                         of ethical conduct and the
                                              Policy, the Assistant to the President for               standards of ethical conduct concern                  Commission’s ethics rules.
                                              Domestic Policy, and the Chair of the Council            prohibited financial interests,                          Sum Comments. The Commission
                                              on Environmental Quality, as required by                 prohibited outside employment,
                                              section 2(d) of EO 13783.
                                                                                                                                                             received the following comment
                                                 If implemented, these recommendations
                                                                                                       disqualification when seeking non-                    through the www.federalregister.gov
                                              would alleviate or eliminate aspects of                  federal employment, and prior approval                Web site: ‘‘Any deletion of ethical
                                              agency actions that burden domestic energy               to engage in outside employment. For                  conduct would not be in the best
                                              development, production, and use.                        the reasons discussed below, the                      interest of the American people due to
                                                 October 24, 2017                                      Commission adopts the proposed rules                  transparency.’’ 5
                                              Rick Perry,                                              without alteration. OGE concurs with                     PR Comments. The Public
                                              Secretary of Energy                                      the Commission’s proposed revisions to                Representative supports the proposed
                                              [FR Doc. 2017–23713 Filed 10–31–17; 8:45 am]
                                                                                                       5 CFR part 5601.                                      revisions.6 He deems it ‘‘critical that the
                                              BILLING CODE 6450–01–P                                   II. Background                                          3 See Executive Order No. 12674, 54 FR 15159

                                                                                                          In 1991, Executive Order 12674, as                 (Apr. 12, 1989); Executive Order No. 12731, 55 FR
                                                                                                       amended by Executive Order 12731,                     42547 (Oct. 17, 1990).
                                              POSTAL REGULATORY COMMISSION                             authorized OGE to establish a single,
                                                                                                                                                               4 See 57 FR 35006–35067, as corrected at 57 FR

                                                                                                                                                             48557 (Oct. 27, 1992), 57 FR 52583 (Nov. 4, 1992),
                                                                                                       comprehensive, and clear set of                       and 60 FR 66857–66858 (Dec. 27, 1995).
                                              5 CFR Part 5601                                                                                                  5 Comment Received from Beth Sum, June 19,

                                              [Docket No. RM2017–4; Order No. 4177]                      1 82 FR 23758 (May 24, 2017). The Commission        2017 (Sum Comments). For transparency, this
                                                                                                       posted this document on its Web site on May 19,       comment was posted to the Commission’s Web site
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                                              Supplemental Standards of Ethical                        2017. Notice of Proposed Rulemaking on                and associated with this docket.
                                                                                                       Amendments to Supplemental Standards of Ethical         6 Public Representative Comments on Notices of
                                              Conduct                                                  Conduct for Employees of the Postal Regulatory        Proposed Rulemaking on Amendments to Ethics
                                              AGENCY:    Postal Regulatory Commission.                 Commission, May 19, 2017 (Order No. 3906).            Rules and Amendments to Supplemental Standards
                                                                                                         2 82 FR 23766 (May 24, 2017). The Commission        of Ethical Conduct for Employees of the Postal
                                              ACTION:   Final rule.                                    posted this document on its Web site on May 19,       Regulatory Commission, June 26, 2017 (PR
                                                                                                       2017. Order No. 3907, Notice of Proposed              Comments). The Public Representative also filed a
                                              SUMMARY:   The Commission is issuing a                   Rulemaking on Amendments to Ethics Rules, May         motion for late acceptance of his comments. Motion
                                              set of rules that amend existing rules                   19, 2017.                                                                                      Continued




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Document Created: 2017-11-01 02:02:58
Document Modified: 2017-11-01 02:02:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionNotification of final report on regulatory review.
DatesThe Secretary signed the final report on October 24, 2017.
ContactDaniel Cohen, U.S. Department of Energy, Office of the General Counsel, 1000 Independence Avenue SW., Washington, DC 20585. Telephone: (202) 586-5000. Email: [email protected]
FR Citation82 FR 50491 
CFR Citation10
Title 10 CFR Chapter II
2
Title 2 CFR Chapter IX
41
Title 41 CFR Chapter 109
48
Title 48 CFR Chapter 9
5
Title 5 CFR Chapter XXIII

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