83_FR_11795 83 FR 11743 - Notice of Decision and Order Granting a Waiver to New Shunxiang Electrical Appliance Co., Ltd., From the Department of Energy Refrigerator, Refrigerator-Freezer, Freezer Test Procedure

83 FR 11743 - Notice of Decision and Order Granting a Waiver to New Shunxiang Electrical Appliance Co., Ltd., From the Department of Energy Refrigerator, Refrigerator-Freezer, Freezer Test Procedure

DEPARTMENT OF ENERGY

Federal Register Volume 83, Issue 52 (March 16, 2018)

Page Range11743-11745
FR Document2018-05366

This notice announces a Decision and Order granting to New Shunxiang Electrical Appliance Co., Ltd., (``New Shunxiang'') a waiver from specified portions of the DOE test procedure for determining the energy consumption of specified refrigerator and refrigerator-freezer basic models. New Shunxiang is required to test and rate the specified basic model of its combination cooler refrigeration product in accordance with the alternate test procedure described in the Decision and Order.

Federal Register, Volume 83 Issue 52 (Friday, March 16, 2018)
[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)]
[Notices]
[Pages 11743-11745]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05366]


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DEPARTMENT OF ENERGY

[Case No. RF-044]


Notice of Decision and Order Granting a Waiver to New Shunxiang 
Electrical Appliance Co., Ltd., From the Department of Energy 
Refrigerator, Refrigerator-Freezer, Freezer Test Procedure

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

ACTION: Notice of decision and order.

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

SUMMARY: This notice announces a Decision and Order granting to New 
Shunxiang Electrical Appliance Co., Ltd., (``New Shunxiang'') a waiver 
from specified portions of the DOE test procedure for determining the 
energy consumption of specified refrigerator and refrigerator-freezer 
basic models. New Shunxiang is required to test and rate the specified 
basic model of its combination cooler refrigeration product in 
accordance with the alternate test procedure described in the Decision 
and Order.

DATES: This Decision and Order is effective on March 16, 2018.

FOR FURTHER INFORMATION CONTACT: 
    Ms. Lucy deButts, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 287-1604. Email: [email protected].
    Mr. Michael Kido, U.S. Department of Energy, Office of the General 
Counsel, Mail Stop GC-33, Forrestal Building, 1000 Independence Avenue 
SW, Washington, DC 20585-0103. Telephone: (202) 586-8145. Email: 
[email protected].

SUPPLEMENTARY INFORMATION:  On October 14, 2015, New Shunxiang 
submitted a petition for waiver from the applicable refrigerator and 
refrigerator-freezer test procedure set forth in 10 CFR part 430, 
subpart B, appendix A (``Appendix A''). On July 19, 2017, DOE published 
a notice announcing its receipt of the petition for waiver from New 
Shunxiang. 82 FR 33099. In that notice, DOE also solicited comments 
from interested parties on all aspects of the petition and specified an 
alternate test procedure that DOE was considering to require New 
Shunxiang to follow for testing and certifying the specific basic 
models for which New Shunxiang requested a waiver. Id. (New Shunxiang 
did not seek an interim waiver from the test procedure.) On March 16, 
2018, DOE publishes the notice announcing a Decision and Order granting 
a waiver to New Shunxiang.

    Issued in Washington, DC, on March 9, 2018.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.

Case #RF-044

Decision and Order

I. Background and Authority

    The Energy Policy and Conservation Act of 1975 (``EPCA'' or ``the 
Act''),\1\ Public Law 94-163 (42 U.S.C. 6291-6317, as codified), among 
other things, authorizes DOE to regulate the energy efficiency of a 
number of consumer products and industrial equipment. Title III, Part B 
\2\ of EPCA established the Energy Conservation Program for Consumer 
Products Other Than Automobiles, a program that includes consumer 
refrigerators and refrigerator-freezers. (42 U.S.C. 6292(a)(1)) Under 
EPCA, DOE's energy conservation program consists essentially of four 
parts: (1) Testing, (2) labeling, (3) Federal energy conservation 
standards, and (4) certification and enforcement procedures.
---------------------------------------------------------------------------

    \1\ All references to EPCA in this document refer to the statute 
as amended through the EPS Improvement Act of 2017, Public Law 115-
115 (January 12, 2018).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated as Part A.
---------------------------------------------------------------------------

    The Federal testing requirements consist of test procedures that 
manufacturers of covered products must use as the basis for: (1) 
Certifying to DOE that their products comply with the applicable energy 
conservation standards adopted pursuant to EPCA (42 U.S.C. 6295(s)), 
and (2) making representations about the efficiency of that product (42 
U.S.C. 6293(c)). Similarly, DOE must use these test procedures to 
determine whether the product complies with relevant standards 
promulgated under EPCA. (42 U.S.C. 6295(s))
    Under 42 U.S.C. 6293, EPCA sets forth the criteria and procedures 
DOE is required to follow when prescribing or amending test procedures 
for covered products. EPCA requires that test procedures prescribed or 
amended under this section must be reasonably designed to produce test 
results which reflect the energy efficiency, energy use or estimated 
annual operating cost of a covered product during a representative 
average use cycle or period of use and requires that test procedures 
not be unduly burdensome to conduct. (42 U.S.C. 6293(b)(3)) The test 
procedure for consumer refrigerators and refrigerator-freezers is 
contained in 10 CFR part 430, subpart B, appendix A (``Appendix A'').
    Under 10 CFR 430.27, any interested person may submit a petition 
for waiver from DOE's test procedure requirements. DOE will grant a 
waiver from the test procedure requirements if DOE determines either 
that the basic model for which the waiver was requested contains a 
design characteristic that prevents testing of the basic model 
according to the prescribed test procedures, or that the prescribed 
test procedures evaluate the basic model in a manner so 
unrepresentative of its true energy or water consumption 
characteristics as to provide materially inaccurate comparative data. 
10 CFR 430.27(f)(2). DOE may grant the waiver subject to conditions, 
including adherence to alternate test procedures. Id.

II. New Shunxiang's Petition for Waiver: Assertions and Determinations

    By email with attachment sent to DOE on October 14, 2015, New 
Shunxiang submitted a petition for waiver for its combination cooler 
refrigeration product basic model JG50-2D1. In its petition, New 
Shunxiang stated that it was unclear to it as to how this product would 
be classified under DOE's regulations. As indicated in New Shunxiang's 
submitted data, the product includes both a cooler (which can reach 
temperatures down to 40.2 degrees Fahrenheit ([deg]F)) and a 
refrigerator (which can reach temperatures down to 35[emsp14][deg]F). 
Such a basic model is subject to the existing refrigerator energy 
conservation standards for the product

[[Page 11744]]

class that would apply if the model did not include a cooler 
compartment.\3\
---------------------------------------------------------------------------

    \3\ See the relevant 2011 guidance documents for consumer 
refrigerators and freezers available at https://www1.eere.energy.gov/buildings/appliance_standards/pdfs/hybridwinechiller_faq3_2011-02-10.pdf and https://www1.eere.energy.gov/buildings/appliance_standards/pdfs/hybridwinechiller_faq_2011-02-10.pdf.
---------------------------------------------------------------------------

    Subsequent to the submission of New Shunxiang's petition, DOE 
issued a final rule that, among other things, established test 
procedures for miscellaneous refrigeration products (``MREFs''), which 
includes coolers and combination cooler refrigeration products. 81 FR 
46768 (July 18, 2016); 81 FR 49868 (July 29, 2016). The final rule also 
added new definitions to DOE's regulations, including for cooler-
refrigerator and combination cooler refrigeration products, and amended 
the definition of refrigerator. 81 FR 46791-46792. Under the new and 
amended definitions, the basic model for which New Shunxiang seeks a 
waiver currently meets the definition of both combination cooler 
refrigeration product and refrigerator, and the basic model will 
continue to meet the definition of refrigerator until October 28, 2019, 
the compliance date of standards for MREFs, including combination 
cooler refrigeration products. Id.
    The amended test procedure adopted in the final rule contains 
provisions specific to combination cooler refrigeration products, 
including a standardized cooler compartment temperature of 
55[emsp14][deg]F and a correction factor of 0.55. However, a prefatory 
note to Appendix A states that use of these provisions for 
representations of energy use for combination cooler refrigeration 
products is not required until the compliance date of any energy 
conservation standards for these products, October 28, 2019. 81 FR 
46795. As explained in the July 2016 final rule, prior to the 
compliance date of the MREF energy conservation standards, combination 
cooler refrigeration products, including the product identified in New 
Shunxiang's petition, are subject to the energy conservation standards 
for refrigerators based on testing according to relevant test procedure 
waivers. 81 FR 46771.
    DOE granted a waiver for products similar to those identified in 
New Shunxiang's petition for wavier--products combining a high-
temperature compartment (a cooler) with a refrigerator--to Panasonic 
Appliances Refrigeration Systems Corporation of America (``PAPRSA'') in 
2012 (under PAPRSA's previous corporate name, Sanyo E&E Corporation) 
(Case No. RF-022, 77 FR 49443 (August 16, 2012)), in 2013 (Case No. RF-
031, 78 FR 57139; September 17, 2013)), and 2014 (Case No. RF-041, 79 
FR 55769; September 17, 2014)). On October 4, 2012, DOE issued a notice 
of correction to its Decision and Order in Case No. RF-022 by 
incorporating a K-factor (correction factor) value of 0.85 when 
calculating the energy consumption of the affected models. 77 FR 60688. 
On January 26, 2016, due to issues with the equations detailed in the 
prior waiver decisions, DOE issued a proposed modification of its prior 
waivers and granted PAPRSA an interim waiver (81 FR 4270) under Case 
No. RF-043 to correct these known issues. In May 2017, DOE issued a 
Decision and Order granting PAPRSA with a waiver. See 82 FR 21209 (May 
5, 2017). DOE also previously granted a similar waiver to Sub-Zero 
Group Inc. through an interim waiver (79 FR 55772; September 17, 2014) 
and a subsequent Decision and Order (80 FR 7854; February 12, 2015) 
under Case No. RF-040. More recently, DOE granted a similar waiver to 
AGA Marvel through an interim waiver (81 FR 41531; June 27, 2016) and a 
subsequent Decision and Order (82 FR 21211; May 5, 2017) under case RF-
045.
    While the recent amendments to Appendix A include provisions 
designed to test for compliance with the combination cooler 
refrigeration product standards, such compliance is not yet required. 
The basic models for which DOE most recently granted waivers to PAPRSA 
and AGA Marvel are still required to comply with the energy 
conservation standards for refrigerators. DOE determined in previous 
waivers that a correction factor of 0.85 is appropriate to account for 
the thermal load from loading warm items and from door openings in 
these products when subject to the current refrigerator energy 
conservation standards. Thus, the PAPRSA and AGA Marvel waivers 
effectively required that the manufacturers test the basic models using 
the test procedure specified for combination cooler refrigeration 
products,\4\ with one exception. The waivers required that the 
manufacturers apply a correction factor of 0.85 rather than the 0.55 
established in the MREF test procedure for combination cooler 
refrigeration products.
---------------------------------------------------------------------------

    \4\ Waivers granted prior to the effective date of recent 
amendments to Appendix A specified a standardized temperature of 
55[emsp14][deg]F for cooler compartments. The more recent waivers do 
not specify this, as it is included in the amended test procedure as 
applied to combination cooler refrigeration products.
---------------------------------------------------------------------------

    DOE published a notice on July 19, 2017, announcing receipt of New 
Shunxiang's petition for waiver (hereafter ``notice of petition for 
waiver''). 82 FR 33099. DOE received no comments in response to the 
notice of petition for waiver. DOE has determined that applying the DOE 
test procedure to the basic model of combination cooler refrigeration 
product listed in New Shunxiang's petition for waiver (i.e., basic 
model JG50-2D1) would yield results unrepresentative of the efficiency 
of that product in use.
    In this Decision and Order, DOE is requiring that New Shunxiang 
test and rate the combination cooler refrigeration product for which it 
has requested a waiver according to the alternate test procedure 
specified in this Decision and Order, which is identical to that 
proposed in the notice of petition for waiver.
    In its petition, New Shunxiang sought a test procedure waiver for a 
single basic model. This Decision and Order is applicable only to the 
basic model listed and does not extend to any other basic models.
    Consistent with 10 CFR 430.27(j), not later than 60 days after 
March 16, 2018 any manufacturer currently distributing in commerce in 
the United States a product employing a technology or characteristic 
that results in the same need for a waiver from the applicable test 
procedure must submit a petition for waiver.
    Manufacturers not currently distributing such a product in commerce 
in the United States must petition for and be granted a waiver prior to 
the distribution in commerce of that product in the United States. 
Manufacturers may also submit a request for interim waiver pursuant to 
the requirements of 10 CFR 430.27.

III. Consultations With Other Agencies

    In accordance with 10 CFR 430.27(f)(2), DOE consulted with the 
Federal Trade Commission (``FTC'') staff concerning the New Shunxiang 
petition for waiver. The FTC staff did not have any objections to 
granting a waiver to New Shunxiang.

IV. Order

    After careful consideration of all the material that was submitted 
by New Shunxiang, DOE grants a waiver regarding the basic model 
specified below. Therefore, in accordance with 10 CFR 430.2, it is 
ordered that:
    (1) New Shunxiang must test and rate the following New Shunxiang 
basic model as set forth in paragraph (2) of this section: JG50-2D1.
    (2) The alternate test procedure for the basic model specified in 
paragraph (1) of this section is the test procedure for

[[Page 11745]]

combination cooler refrigeration products specified in 10 CFR part 430, 
subpart B, appendix A, with the exception that New Shunxiang must 
calculate energy consumption using a correction factor (``K-factor'') 
of 0.85, instead of the prescribed 0.55.
    (3) Representations. New Shunxiang must make representations about 
the energy use of the specified basic model identified in paragraph (1) 
of this section for compliance, marketing, or other purposes only to 
the extent that such product has been tested in accordance with the 
provisions outlined above and such representations fairly disclose the 
results of such testing in accordance with 10 CFR part 430, subpart B, 
appendix A and 10 CFR 429.14.
    (4) This waiver shall remain in effect consistent with the 
provisions of 10 CFR 430.27. This Decision and Order will terminate on 
October 28, 2019, in conjunction with the compliance date of the 
recently published standards for MREFs. Testing to demonstrate 
compliance with those standards, and any other representations of 
energy use made on or after October 28, 2019, will require 
manufacturers to use the relevant test procedure for these products.
    (5) This waiver is issued on the condition that the statements, 
representations, and documentary materials provided by the petitioner 
are valid. DOE may revoke or modify this waiver at any time if it 
determines the factual basis underlying the petition for waiver is 
incorrect, or the results from the alternate test procedure are 
unrepresentative of the basic model's true energy consumption 
characteristics. 10 CFR 430.27(k)(1). Likewise, New Shunxiang may 
request that DOE rescind or modify the waiver if New Shunxiang 
discovers an error in the information provided to DOE as part of its 
petition, determines that the waiver is no longer needed, or for other 
appropriate reasons. 10 CFR 430.27(k)(2). If New Shunxiang believes 
that a test method other than that specified in this Decision and Order 
provides representative results and is less burdensome, New Shunxiang 
may submit a request for modification under 10 CFR 430.27(k)(2) that 
explains why DOE should adopt the test procedure submitted by New 
Shunxiang and addresses the reasons for DOE's modifications provided in 
this Decision and Order.
    (6) Granting of this waiver does not release New Shunxiang from the 
certification requirements set forth at 10 CFR part 429.

    Signed in Washington, DC, on March 9, 2018.

Kathleen B. Hogan,

Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency 
and Renewable Energy.

[FR Doc. 2018-05366 Filed 3-15-18; 8:45 am]
 BILLING CODE 6450-01-P



                                                                               Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Notices                                             11743

                                               Acuity may submit a request for                         1000 Independence Avenue SW,                           standards adopted pursuant to EPCA (42
                                               modification under 10 CFR                               Washington, DC 20585–0103.                             U.S.C. 6295(s)), and (2) making
                                               431.401(k)(2) that explains why DOE                     Telephone: (202) 586–8145. Email:                      representations about the efficiency of
                                               should adopt the test procedure                         Michael.Kido@hq.doe.gov.                               that product (42 U.S.C. 6293(c)).
                                               submitted by Acuity and addresses the                   SUPPLEMENTARY INFORMATION: On                          Similarly, DOE must use these test
                                               reasons for DOE’s modifications                         October 14, 2015, New Shunxiang                        procedures to determine whether the
                                               provided in this Decision and Order.                    submitted a petition for waiver from the               product complies with relevant
                                               Acuity also may submit another less                     applicable refrigerator and refrigerator-              standards promulgated under EPCA. (42
                                               burdensome alternative test procedure                   freezer test procedure set forth in 10                 U.S.C. 6295(s))
                                               not expressly considered in this notice                 CFR part 430, subpart B, appendix A                       Under 42 U.S.C. 6293, EPCA sets forth
                                               under the same provision.                               (‘‘Appendix A’’). On July 19, 2017, DOE                the criteria and procedures DOE is
                                                 (7) Granting of this waiver does not                  published a notice announcing its                      required to follow when prescribing or
                                               release a petitioner from the                           receipt of the petition for waiver from                amending test procedures for covered
                                               certification requirements set forth at 10              New Shunxiang. 82 FR 33099. In that                    products. EPCA requires that test
                                               CFR part 429.                                           notice, DOE also solicited comments                    procedures prescribed or amended
                                                 Signed in Washington, DC, on March 9,                 from interested parties on all aspects of              under this section must be reasonably
                                               2018.                                                   the petition and specified an alternate                designed to produce test results which
                                               Kathleen B. Hogan,                                      test procedure that DOE was                            reflect the energy efficiency, energy use
                                               Deputy Assistant Secretary for Energy                   considering to require New Shunxiang                   or estimated annual operating cost of a
                                               Efficiency, Energy Efficiency and Renewable             to follow for testing and certifying the               covered product during a representative
                                               Energy.                                                 specific basic models for which New                    average use cycle or period of use and
                                               [FR Doc. 2018–05365 Filed 3–15–18; 8:45 am]             Shunxiang requested a waiver. Id. (New
                                                                                                                                                              requires that test procedures not be
                                                                                                       Shunxiang did not seek an interim
                                               BILLING CODE 6450–01–P                                                                                         unduly burdensome to conduct. (42
                                                                                                       waiver from the test procedure.) On
                                                                                                                                                              U.S.C. 6293(b)(3)) The test procedure for
                                                                                                       March 16, 2018, DOE publishes the
                                                                                                                                                              consumer refrigerators and refrigerator-
                                               DEPARTMENT OF ENERGY                                    notice announcing a Decision and Order
                                                                                                                                                              freezers is contained in 10 CFR part 430,
                                                                                                       granting a waiver to New Shunxiang.
                                               [Case No. RF–044]                                                                                              subpart B, appendix A (‘‘Appendix A’’).
                                                                                                         Issued in Washington, DC, on March 9,
                                                                                                       2018.                                                     Under 10 CFR 430.27, any interested
                                               Notice of Decision and Order Granting                                                                          person may submit a petition for waiver
                                               a Waiver to New Shunxiang Electrical                    Kathleen B. Hogan,
                                                                                                                                                              from DOE’s test procedure
                                               Appliance Co., Ltd., From the                           Deputy Assistant Secretary for Energy
                                                                                                       Efficiency, Energy Efficiency and Renewable            requirements. DOE will grant a waiver
                                               Department of Energy Refrigerator,                                                                             from the test procedure requirements if
                                               Refrigerator-Freezer, Freezer Test                      Energy.
                                                                                                                                                              DOE determines either that the basic
                                               Procedure                                               Case #RF–044                                           model for which the waiver was
                                               AGENCY: Office of Energy Efficiency and                 Decision and Order                                     requested contains a design
                                               Renewable Energy, Department of                                                                                characteristic that prevents testing of the
                                                                                                       I. Background and Authority
                                               Energy.                                                                                                        basic model according to the prescribed
                                                                                                          The Energy Policy and Conservation                  test procedures, or that the prescribed
                                               ACTION: Notice of decision and order.
                                                                                                       Act of 1975 (‘‘EPCA’’ or ‘‘the Act’’),1                test procedures evaluate the basic model
                                               SUMMARY:   This notice announces a                      Public Law 94–163 (42 U.S.C. 6291–                     in a manner so unrepresentative of its
                                               Decision and Order granting to New                      6317, as codified), among other things,                true energy or water consumption
                                               Shunxiang Electrical Appliance Co.,                     authorizes DOE to regulate the energy                  characteristics as to provide materially
                                               Ltd., (‘‘New Shunxiang’’) a waiver from                 efficiency of a number of consumer                     inaccurate comparative data. 10 CFR
                                               specified portions of the DOE test                      products and industrial equipment.                     430.27(f)(2). DOE may grant the waiver
                                               procedure for determining the energy                    Title III, Part B 2 of EPCA established the            subject to conditions, including
                                               consumption of specified refrigerator                   Energy Conservation Program for                        adherence to alternate test procedures.
                                               and refrigerator-freezer basic models.                  Consumer Products Other Than                           Id.
                                               New Shunxiang is required to test and                   Automobiles, a program that includes
                                                                                                       consumer refrigerators and refrigerator-               II. New Shunxiang’s Petition for
                                               rate the specified basic model of its                                                                          Waiver: Assertions and Determinations
                                               combination cooler refrigeration                        freezers. (42 U.S.C. 6292(a)(1)) Under
                                               product in accordance with the alternate                EPCA, DOE’s energy conservation
                                                                                                       program consists essentially of four                     By email with attachment sent to DOE
                                               test procedure described in the Decision                                                                       on October 14, 2015, New Shunxiang
                                                                                                       parts: (1) Testing, (2) labeling, (3)
                                               and Order.                                                                                                     submitted a petition for waiver for its
                                                                                                       Federal energy conservation standards,
                                               DATES: This Decision and Order is                       and (4) certification and enforcement                  combination cooler refrigeration
                                               effective on March 16, 2018.                            procedures.                                            product basic model JG50–2D1. In its
                                               FOR FURTHER INFORMATION CONTACT:                           The Federal testing requirements                    petition, New Shunxiang stated that it
                                                  Ms. Lucy deButts, U.S. Department of                 consist of test procedures that                        was unclear to it as to how this product
                                               Energy, Office of Energy Efficiency and                 manufacturers of covered products must                 would be classified under DOE’s
                                               Renewable Energy, Building                              use as the basis for: (1) Certifying to                regulations. As indicated in New
                                               Technologies Office, EE–5B, 1000                        DOE that their products comply with                    Shunxiang’s submitted data, the product
daltland on DSKBBV9HB2PROD with NOTICES




                                               Independence Avenue SW, Washington,                     the applicable energy conservation                     includes both a cooler (which can reach
                                               DC 20585–0121. Telephone: (202) 287–                                                                           temperatures down to 40.2 degrees
                                               1604. Email: AS_Waiver_Requests@                           1 All references to EPCA in this document refer     Fahrenheit (°F)) and a refrigerator
                                               ee.doe.gov.                                             to the statute as amended through the EPS              (which can reach temperatures down to
                                                 Mr. Michael Kido, U.S. Department of
                                                                                                       Improvement Act of 2017, Public Law 115–115            35 °F). Such a basic model is subject to
                                                                                                       (January 12, 2018).
                                               Energy, Office of the General Counsel,                     2 For editorial reasons, upon codification in the   the existing refrigerator energy
                                               Mail Stop GC–33, Forrestal Building,                    U.S. Code, Part B was redesignated as Part A.          conservation standards for the product


                                          VerDate Sep<11>2014   21:54 Mar 15, 2018   Jkt 244001   PO 00000   Frm 00075   Fmt 4703   Sfmt 4703   E:\FR\FM\16MRN1.SGM   16MRN1


                                               11744                           Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Notices

                                               class that would apply if the model did                 022, 77 FR 49443 (August 16, 2012)), in               Shunxiang’s petition for waiver
                                               not include a cooler compartment.3                      2013 (Case No. RF–031, 78 FR 57139;                   (hereafter ‘‘notice of petition for
                                                  Subsequent to the submission of New                  September 17, 2013)), and 2014 (Case                  waiver’’). 82 FR 33099. DOE received no
                                               Shunxiang’s petition, DOE issued a final                No. RF–041, 79 FR 55769; September                    comments in response to the notice of
                                               rule that, among other things,                          17, 2014)). On October 4, 2012, DOE                   petition for waiver. DOE has determined
                                               established test procedures for                         issued a notice of correction to its                  that applying the DOE test procedure to
                                               miscellaneous refrigeration products                    Decision and Order in Case No. RF–022                 the basic model of combination cooler
                                               (‘‘MREFs’’), which includes coolers and                 by incorporating a K-factor (correction               refrigeration product listed in New
                                               combination cooler refrigeration                        factor) value of 0.85 when calculating                Shunxiang’s petition for waiver (i.e.,
                                               products. 81 FR 46768 (July 18, 2016);                  the energy consumption of the affected                basic model JG50–2D1) would yield
                                               81 FR 49868 (July 29, 2016). The final                  models. 77 FR 60688. On January 26,                   results unrepresentative of the
                                               rule also added new definitions to                      2016, due to issues with the equations                efficiency of that product in use.
                                               DOE’s regulations, including for cooler-                detailed in the prior waiver decisions,                  In this Decision and Order, DOE is
                                               refrigerator and combination cooler                     DOE issued a proposed modification of                 requiring that New Shunxiang test and
                                               refrigeration products, and amended the                 its prior waivers and granted PAPRSA                  rate the combination cooler refrigeration
                                               definition of refrigerator. 81 FR 46791–                an interim waiver (81 FR 4270) under                  product for which it has requested a
                                               46792. Under the new and amended                        Case No. RF–043 to correct these known                waiver according to the alternate test
                                               definitions, the basic model for which                  issues. In May 2017, DOE issued a                     procedure specified in this Decision and
                                               New Shunxiang seeks a waiver                            Decision and Order granting PAPRSA                    Order, which is identical to that
                                               currently meets the definition of both                  with a waiver. See 82 FR 21209 (May 5,                proposed in the notice of petition for
                                               combination cooler refrigeration                        2017). DOE also previously granted a                  waiver.
                                               product and refrigerator, and the basic                 similar waiver to Sub-Zero Group Inc.                    In its petition, New Shunxiang sought
                                               model will continue to meet the                         through an interim waiver (79 FR 55772;               a test procedure waiver for a single basic
                                               definition of refrigerator until October                September 17, 2014) and a subsequent                  model. This Decision and Order is
                                               28, 2019, the compliance date of                        Decision and Order (80 FR 7854;                       applicable only to the basic model listed
                                               standards for MREFs, including                          February 12, 2015) under Case No. RF–                 and does not extend to any other basic
                                               combination cooler refrigeration                        040. More recently, DOE granted a                     models.
                                               products. Id.                                           similar waiver to AGA Marvel through                     Consistent with 10 CFR 430.27(j), not
                                                  The amended test procedure adopted                   an interim waiver (81 FR 41531; June                  later than 60 days after March 16, 2018
                                               in the final rule contains provisions                   27, 2016) and a subsequent Decision                   any manufacturer currently distributing
                                               specific to combination cooler                          and Order (82 FR 21211; May 5, 2017)                  in commerce in the United States a
                                               refrigeration products, including a                     under case RF–045.                                    product employing a technology or
                                               standardized cooler compartment                            While the recent amendments to                     characteristic that results in the same
                                               temperature of 55 °F and a correction                   Appendix A include provisions                         need for a waiver from the applicable
                                               factor of 0.55. However, a prefatory note               designed to test for compliance with the              test procedure must submit a petition
                                               to Appendix A states that use of these                  combination cooler refrigeration                      for waiver.
                                               provisions for representations of energy                product standards, such compliance is                    Manufacturers not currently
                                               use for combination cooler refrigeration                not yet required. The basic models for                distributing such a product in
                                               products is not required until the                      which DOE most recently granted                       commerce in the United States must
                                               compliance date of any energy                           waivers to PAPRSA and AGA Marvel                      petition for and be granted a waiver
                                               conservation standards for these                        are still required to comply with the                 prior to the distribution in commerce of
                                               products, October 28, 2019. 81 FR                       energy conservation standards for                     that product in the United States.
                                               46795. As explained in the July 2016                    refrigerators. DOE determined in                      Manufacturers may also submit a
                                               final rule, prior to the compliance date                previous waivers that a correction factor             request for interim waiver pursuant to
                                               of the MREF energy conservation                         of 0.85 is appropriate to account for the             the requirements of 10 CFR 430.27.
                                               standards, combination cooler                           thermal load from loading warm items
                                               refrigeration products, including the                   and from door openings in these                       III. Consultations With Other Agencies
                                               product identified in New Shunxiang’s                   products when subject to the current                     In accordance with 10 CFR
                                               petition, are subject to the energy                     refrigerator energy conservation                      430.27(f)(2), DOE consulted with the
                                               conservation standards for refrigerators                standards. Thus, the PAPRSA and AGA                   Federal Trade Commission (‘‘FTC’’) staff
                                               based on testing according to relevant                  Marvel waivers effectively required that              concerning the New Shunxiang petition
                                               test procedure waivers. 81 FR 46771.                    the manufacturers test the basic models               for waiver. The FTC staff did not have
                                                  DOE granted a waiver for products                    using the test procedure specified for                any objections to granting a waiver to
                                               similar to those identified in New                      combination cooler refrigeration                      New Shunxiang.
                                               Shunxiang’s petition for wavier—                        products,4 with one exception. The
                                               products combining a high-temperature                                                                         IV. Order
                                                                                                       waivers required that the manufacturers
                                               compartment (a cooler) with a                           apply a correction factor of 0.85 rather                After careful consideration of all the
                                               refrigerator—to Panasonic Appliances                    than the 0.55 established in the MREF                 material that was submitted by New
                                               Refrigeration Systems Corporation of                    test procedure for combination cooler                 Shunxiang, DOE grants a waiver
                                               America (‘‘PAPRSA’’) in 2012 (under                     refrigeration products.                               regarding the basic model specified
                                               PAPRSA’s previous corporate name,                          DOE published a notice on July 19,                 below. Therefore, in accordance with 10
                                               Sanyo E&E Corporation) (Case No. RF–                    2017, announcing receipt of New                       CFR 430.2, it is ordered that:
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                                                                                                                                                               (1) New Shunxiang must test and rate
                                                 3 See the relevant 2011 guidance documents for          4 Waivers granted prior to the effective date of    the following New Shunxiang basic
                                               consumer refrigerators and freezers available at        recent amendments to Appendix A specified a           model as set forth in paragraph (2) of
                                               https://www1.eere.energy.gov/buildings/appliance_       standardized temperature of 55 °F for cooler          this section: JG50–2D1.
                                               standards/pdfs/hybridwinechiller_faq3_2011-02-          compartments. The more recent waivers do not
                                               10.pdf and https://www1.eere.energy.gov/buildings/      specify this, as it is included in the amended test
                                                                                                                                                               (2) The alternate test procedure for the
                                               appliance_standards/pdfs/hybridwinechiller_faq_         procedure as applied to combination cooler            basic model specified in paragraph (1)
                                               2011-02-10.pdf.                                         refrigeration products.                               of this section is the test procedure for


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                                                                               Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Notices                                                   11745

                                               combination cooler refrigeration                          Signed in Washington, DC, on March 9,               Independence Avenue SW, Washington,
                                               products specified in 10 CFR part 430,                  2018.                                                 DC 20585, (202) 586–9793; (202) 586–
                                               subpart B, appendix A, with the                         Kathleen B. Hogan,                                    8499.
                                               exception that New Shunxiang must                       Deputy Assistant Secretary for Energy
                                                                                                                                                             SUPPLEMENTARY INFORMATION:
                                               calculate energy consumption using a                    Efficiency, Energy Efficiency and Renewable
                                               correction factor (‘‘K-factor’’) of 0.85,               Energy.                                               Summary of Change in Control
                                               instead of the prescribed 0.55.                         [FR Doc. 2018–05366 Filed 3–15–18; 8:45 am]
                                                                                                                                                                As noted, ALM filed a Notice of
                                                  (3) Representations. New Shunxiang                   BILLING CODE 6450–01–P
                                                                                                                                                             Change in Control in the above-
                                               must make representations about the                                                                           referenced dockets.1 In the Notice, ALM
                                               energy use of the specified basic model                                                                       asserts that the change in control results
                                               identified in paragraph (1) of this                     DEPARTMENT OF ENERGY
                                                                                                                                                             from the acquisition of its ultimate
                                               section for compliance, marketing, or                   [FE Docket Nos. 14–209–LNG, 15–19–LNG,                parent company, Fortress, by an
                                               other purposes only to the extent that                  and 16–33–LNG]                                        indirect, wholly-owned subsidiary of
                                               such product has been tested in                                                                               SoftBank Group Corp. (SoftBank). ALM
                                               accordance with the provisions outlined                 American LNG Marketing, LLC                           states that SoftBank is a global holding
                                               above and such representations fairly                                                                         company headquartered in Tokyo,
                                               disclose the results of such testing in                 AGENCY:   Office of Fossil Energy, DOE.
                                                                                                       ACTION:   Notice of change in control.                Japan.2 According to ALM, this
                                               accordance with 10 CFR part 430,                                                                              acquisition was consummated on
                                               subpart B, appendix A and 10 CFR                                                                              December 27, 2017 (Transaction). As a
                                                                                                       SUMMARY:   The Office of Fossil Energy
                                               429.14.                                                                                                       result of this Transaction, SoftBank—
                                                                                                       (FE) of the Department of Energy (DOE)
                                                  (4) This waiver shall remain in effect               gives notice of receipt of a Notice of                through Fortress—ultimately controls
                                               consistent with the provisions of 10 CFR                Change in Control (Notice) filed January              the manager of investment funds that
                                               430.27. This Decision and Order will                    9, 2018, by American LNG Marketing,                   indirectly own the equity interests in
                                               terminate on October 28, 2019, in                       LLC (ALM) in the above-referenced                     ALM. ALM further states that: (i) The
                                               conjunction with the compliance date of                 dockets. The Notice describes a change                Transaction has no effect on ALM’s day-
                                               the recently published standards for                    in control of Fortress Investment Group               to-day management or operation; (ii)
                                               MREFs. Testing to demonstrate                           LLC (Fortress), the ultimate parent                   ALM retains its current form and
                                               compliance with those standards, and                    company of ALM. The Notice was filed                  domicile as a Delaware limited liability
                                               any other representations of energy use                 under section 3 of the Natural Gas Act                company with its principal place of
                                               made on or after October 28, 2019, will                 (NGA).                                                business in New York, New York; and
                                               require manufacturers to use the                                                                              (iii) ALM continues to be the holder of
                                                                                                       DATES: Protests, motions to intervene, or
                                               relevant test procedure for these                                                                             the DOE/FE authorizations issued in the
                                               products.                                               notices of intervention, as applicable,
                                                                                                       and written comments are to be filed                  above-referenced dockets.3
                                                  (5) This waiver is issued on the                                                                              Additional details can be found in
                                               condition that the statements,                          using procedures detailed in the Public
                                                                                                       Comment Procedures section no later                   ALM’s Notice, posted on the DOE/FE
                                               representations, and documentary                                                                              website at: https://www.energy.gov/
                                               materials provided by the petitioner are                than 4:30 p.m., Eastern time, April 2,
                                                                                                       2018.                                                 sites/prod/files/2018/01/f46/
                                               valid. DOE may revoke or modify this                                                                          AmericanLNGMktgCIC01_09_18.pdf
                                               waiver at any time if it determines the                 ADDRESSES:                                            (Jan. 9, 2018).
                                               factual basis underlying the petition for                 Electronic Filing by Email: fergas@
                                               waiver is incorrect, or the results from                hq.doe.gov.                                           DOE/FE Evaluation
                                               the alternate test procedure are                          Regular Mail: U.S. Department of                      DOE/FE will review ALM’s Notice in
                                               unrepresentative of the basic model’s                   Energy (FE–34), Office of Regulation                  accordance with its Procedures for
                                               true energy consumption characteristics.                and International Engagement, Office of               Changes in Control Affecting
                                               10 CFR 430.27(k)(1). Likewise, New                      Fossil Energy, P.O. Box 44375,                        Applications and Authorizations to
                                               Shunxiang may request that DOE                          Washington, DC 20026–4375.                            Import or Export Natural Gas (CIC
                                               rescind or modify the waiver if New                       Hand Delivery or Private Delivery                   Revised Procedures).4 Consistent with
                                               Shunxiang discovers an error in the                     Services (e.g., FedEx, UPS, etc.): U.S.
                                               information provided to DOE as part of                  Department of Energy (FE–34), Office of                  1 American LNG Marketing, LLC, FE Docket Nos.
                                               its petition, determines that the waiver                Regulation and International                          14–209–LNG, 15–19–LNG, and 16–33–LNG, Notice
                                               is no longer needed, or for other                       Engagement, Office of Fossil Energy,                  of Change in Control (Jan. 9, 2018) [hereinafter ALM
                                               appropriate reasons. 10 CFR                             Forrestal Building, Room 3E–042, 1000                 Notice].
                                                                                                                                                                2 ALM states that SoftBank holds ownership
                                               430.27(k)(2). If New Shunxiang believes                 Independence Avenue SW, Washington,
                                                                                                                                                             interests in a wide range of telecommunications and
                                               that a test method other than that                      DC 20585.                                             technology ventures, including broadband, fixed-
                                               specified in this Decision and Order                    FOR FURTHER INFORMATION CONTACT:                      line and wireless telecommunications, e-commerce,
                                               provides representative results and is                    Larine Moore or Amy Sweeney, U.S.                   technology services, advanced energy technology,
                                                                                                                                                             finance, and semiconductor design. SoftBank
                                               less burdensome, New Shunxiang may                      Department of Energy (FE–34), Office of               conducts its business through various subsidiaries
                                               submit a request for modification under                 Regulation and International                          and partnerships with companies located in Japan
                                               10 CFR 430.27(k)(2) that explains why                   Engagement, Office of Fossil Energy,                  and other countries, including the United States.
                                               DOE should adopt the test procedure                     Forrestal Building, Room 3E–042, 1000                 See ALM Notice at 1–2.
                                                                                                                                                                3 ALM is advised that its described change in
                                               submitted by New Shunxiang and                          Independence Avenue SW, Washington,
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                                                                                                                                                             control may also require the approval of the
                                               addresses the reasons for DOE’s                         DC 20585, (202) 586–9478; (202) 586–                  Committee on Foreign Investment in the United
                                               modifications provided in this Decision                 2627.                                                 States (CFIUS). DOE expresses no opinion regarding
                                               and Order.                                                Cassandra Bernstein or Ronald (R.J.)                the need for review by CFIUS. Additional
                                                  (6) Granting of this waiver does not                 Colwell, U.S. Department of Energy                    information may be obtained at: http://
                                                                                                                                                             www.treasury.gov/resource-center/international/
                                               release New Shunxiang from the                          (GC–76), Office of the Assistant General              Pages/Committee-on-Foreign-Investment-in-
                                               certification requirements set forth at 10              Counsel for Electricity and Fossil                    US.aspx.
                                               CFR part 429.                                           Energy, Forrestal Building, 1000                         4 79 FR 65541 (Nov. 5, 2014).




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Document Created: 2018-03-16 01:11:49
Document Modified: 2018-03-16 01:11:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of decision and order.
DatesThis Decision and Order is effective on March 16, 2018.
ContactMs. Lucy deButts, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 287-1604. Email: [email protected]
FR Citation83 FR 11743 

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