Energy Conservation Standards for Small Electric Motors: Public Meeting and Availability of the Preliminary Technical Support Document, 79723-79726 [E8-30985]
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79723
Proposed Rules
Federal Register
Vol. 73, No. 250
Tuesday, December 30, 2008
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE–2007–BT–STD–0007]
RIN 1904–AB70
Energy Conservation Standards for
Small Electric Motors: Public Meeting
and Availability of the Preliminary
Technical Support Document
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AGENCY: Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and
availability of preliminary technical
support document.
SUMMARY: The Department of Energy
(DOE) will hold an informal public
meeting to discuss and receive
comments on the equipment classes that
DOE plans to analyze for purposes of
establishing energy conservation
standards for small electric motors; the
analytical framework, models, and tools
that DOE is using to evaluate standards
for these products; the results of
preliminary analyses performed by DOE
for these products; and potential energy
conservation standard levels derived
from these analyses that DOE could
consider for these products. Also, DOE
encourages written comments on these
subjects. To inform stakeholders and
facilitate this process, DOE has prepared
an agenda, a preliminary Technical
Support Document (preliminary TSD),
and briefing materials, which are
available at: https://www1.eere.energy.
gov/buildings/appliance_standards/
commercial/small_electric_motors.html.
DATES: DOE will hold a public meeting
on Friday, January 30, 2009, from 9 a.m.
to 5 p.m. in Washington, DC. Any
person requesting to speak at the public
meeting should submit such request,
along with an electronic copy of the
statement to be given at the public
meeting, before 4 p.m., Friday, January
23, 2009. Written comments are
welcome, especially following the
public meeting, and should be
submitted March 2, 2009.
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The public meeting will be
held at the U.S. Department of Energy,
Forrestal Building, Room 1E–245, 1000
Independence Avenue, SW.,
Washington, DC 20585–0121. Please
note that foreign nationals participating
in the public meeting are subject to
advance security screening procedures.
If a foreign national wishes to
participate in the public meeting, please
inform DOE of this fact as soon as
possible by contacting Ms. Brenda
Edwards at (202) 586–2945 so that the
necessary procedures can be completed.
Interested persons may submit
comments, identified by docket number
EERE–2007–BT–STD–0007, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: small_electric_motors_std.
rulemaking@hq.doe.gov. Include EERE–
2007–BT–STD–0007 in the subject line
of the message.
• Postal Mail: Ms. Brenda Edwards,
U.S. Department of Energy, Building
Technologies Program, Mailstop EE–2J,
Public Meeting for Small Electric
Motors, EERE–2007–BT–STD–0007,
1000 Independence Avenue, SW.,
Washington, DC 20585–0121.
Telephone (202) 586–2945. Please
submit one signed paper original.
• Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, Sixth
Floor, 950 L’Enfant Plaza, SW.,
Washington, DC 20024. Telephone (202)
586–2945. Please submit one signed
paper original.
Instructions: All submissions received
must include the agency name and
docket number.
Docket: For access to the docket to
read background documents or a copy of
the transcript of the public meeting or
comments received, go to the U.S.
Department of Energy, Sixth Floor, 950
L’Enfant Plaza, SW., Washington, DC
20024, (202) 586–2945, between 9 a.m.
and 4 p.m., Monday through Friday,
except Federal holidays. Please call Ms.
Brenda Edwards at (202) 586–2945 for
additional information regarding
visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information to Mr. James Raba, U.S.
Department of Energy, Office of Energy
Efficiency and Renewable Energy,
Building Technologies, EE–2J, 1000
ADDRESSES:
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Independence Avenue, SW.,
Washington, DC 20585–0121, (202) 586–
8654. E-mail: Jim.Raba@ee.doe.gov. In
the Office of General Counsel, contact
Mr. Michael Kido, U.S. Department of
Energy, Office of General Counsel, GC–
72, 1000 Independence Avenue, SW.,
Washington, DC 20585, (202) 586–8145.
E-mail: Michael.Kido@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
Part A of Title III of the Energy Policy
and Conservation Act (42 U.S.C. 6291 et
seq.) (EPCA) established the Energy
Conservation Program for Consumer
Products Other than Automobiles.
Amendments expanded Title III of
EPCA to include certain commercial
and industrial equipment, including
small electric motors. (42 U.S.C. 6311 et
seq.) In particular, the Energy Policy Act
of 1992, Public Law 102–486 (EPACT
1992) amended EPCA to direct DOE to
prescribe energy conservation standards
for those small electric motors for which
the Secretary determines that standards
‘‘would be technologically feasible and
economically justified, and would result
in significant energy savings.’’ (42
U.S.C. 6317(b)(1)).
Before DOE prescribes any standard
for small electric motors, however, it
must first solicit comments on a
proposed standard. Moreover, DOE will
design each standard for these products
to: (1) Achieve the maximum
improvement in energy efficiency that is
technologically feasible and
economically justified, and (2) result in
significant conservation of energy. (42
U.S.C. 6295(o)(2)(A) and (o)(3), 42
U.S.C. 6316(a), and 42 U.S.C. 6317(b)(1)
and (c)). To determine whether a
proposed standard is economically
justified, DOE must, after receiving
comments on the proposed standard,
determine whether the benefits of the
standard exceed its burdens to the
greatest extent practicable, weighing the
following seven factors:
1. The economic impact of the
standard on manufacturers and
consumers of products subject to the
standard;
2. The savings in operating costs
throughout the estimated average life of
the covered products in the type (or
class) compared to any increase in the
price, initial charges, or maintenance
expenses for the covered products
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which are likely to result from the
imposition of the standard;
3. The total projected amount of
energy savings likely to result directly
from the imposition of the standard;
4. Any lessening of the utility or the
performance of the covered products
likely to result from the imposition of
the standard;
5. The impact of any lessening of
competition, as determined in writing
by the Attorney General, that is likely to
result from the imposition of the
standard;
6. The need for national energy
conservation; and
7. Other factors the Secretary [of
Energy] considers relevant. (42 U.S.C.
6295(o)(2)(B)(i)).
Prior to proposing a standard, DOE
typically seeks public input on the
analytical framework, models, and tools
that will be used to evaluate standards;
the results of preliminary analyses; and
potential energy conservation standard
levels derived from these analyses. DOE
is publishing this document to
announce the availability of the
preliminary technical support document
(preliminary TSD), which detail the
preliminary analyses, discuss the
comments on the Framework document,
and summarize the preliminary results.
In addition, DOE is announcing a public
meeting to solicit feedback from
interested parties on its analytical
framework, models, and preliminary
results.
B. History of Standards Rulemaking for
Small Electric Motors
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1. Background
As indicated above, EPACT 1992
amended EPCA to specifically address
standards for small electric motors. The
amendment requires DOE to prescribe
test procedures and then standards for
those small electric motors for which
DOE has determined that standards
would be technologically feasible and
economically justified and would result
in significant energy savings. (42 U.S.C.
6317(b)(1)). Pursuant to this provision,
on July 10, 2006, the Secretary of Energy
issued the following determination:
Based on its analysis of the information
now available, the Department [of Energy]
has determined that energy conservation
standards for certain small electric motors
appear to be technologically feasible and
economically justified, and are likely to
result in significant energy savings.
Consequently, the Department [of Energy]
will initiate the development of energy
efficiency test procedures and standards for
certain small electric motors.
71 FR 38799 and 38807 (July 10, 2006).
In its determination analysis, DOE
uses the phrase ‘‘certain small electric
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motors’’ to show where DOE is referring
to motors for which it has made a
positive determination. In this way,
DOE is establishing that the Secretary of
Energy has determined that energy
conservation standards appear to be
justified for capacitor-start and
polyphase small electric motors.
The Secretary’s determination was
based in part on DOE’s draft report,
‘‘Analysis of Energy Conservation
Standards for Small Electric Motors,’’
which estimated the likely range of
energy savings and economic benefits
that would result from energy
conservation standards for small electric
motors. DOE made this report available
for comment in June 2003 at https://
www.eere.energy.gov/buildings/
appliance_standards/commercial/
small_electric_motors.html.
2. Current Rulemaking Process
As a result of the Secretary’s positive
determination, DOE prepared and
published a notice announcing the
availability of the framework document,
‘‘Energy Conservation Standards
Rulemaking Framework Document for
Small Electric Motors,’’ and a public
meeting to discuss the proposed
analytical framework for the
rulemaking. 72 FR 44990 (August 10,
2007). DOE also posted the framework
document on its Web site describing the
procedural and analytical approaches
DOE anticipated using to evaluate the
establishment of energy conservation
standards for small electric motors. This
document is available at https://
www.eere.energy.gov/buildings/
appliance_standards/commercial/pdfs/
small_motors_framework_073007.pdf.
DOE held a public meeting on
September 13, 2007, to describe the
various rulemaking analyses DOE would
conduct, such as the engineering
analysis, the life-cycle cost (LCC) and
payback period (PBP) analyses, and the
national impact analysis (NIA); the
methods for conducting them; and the
relationship among the various
analyses. Manufacturers, trade
associations, and environmental
advocates attended the meeting. The
participants discussed eight major
issues: The scope of covered small
electric motors, definitions, test
procedures, horsepower and kilowatt
equivalency, DOE’s engineering
analysis, life-cycle costs, efficiency
levels, and energy savings.
DOE developed two economic
spreadsheets for analyzing the economic
impacts of standard levels-one that
calculates LCC and PBP, and one that
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calculates national impacts.1 DOE
prepared an LCC and PBP spreadsheet
that calculates results for each of the
representative units analyzed. The
spreadsheet includes product efficiency
data that allows users to determine LCC
savings and PBPs based on average
values. The spreadsheets also can be
combined with Crystal Ball (a
commercially available software
program) to generate a Monte Carlo
simulation, which incorporates
uncertainty and variability
considerations. The second economic
spreadsheet, the national impact
analysis spreadsheet, calculates the
impacts of candidate standard levels on
shipments and the national energy
savings (NES) and net present value
(NPV) at various standard levels. There
is one national impact analysis
spreadsheet for all small electric motors.
DOE has posted all of these economic
spreadsheets on its Web site for review
and comment by interested parties.
Comments received since publication
of the framework document have helped
DOE identify and resolve issues
involved in the preliminary analyses.
Chapter 2 of the preliminary TSD,
available at the Web link provided in
the SUMMARY section of this notice,
summarizes and addresses the
comments received in response to the
framework document.
C. Summary of the Analyses Performed
by DOE
For small electric motors currently
under consideration, DOE conducted indepth technical analyses in the
following areas: (1) Engineering, (2)
energy-use characterization, (3) markups
to determine product price, (4) life-cycle
cost (LCC) and payback period (PBP)
analyses, and (5) national impact
analysis (NIA). These analyses resulted
in a preliminary TSD that presents the
methodology and results of each of
these analyses. The preliminary TSD is
available at the Web address given in
the SUMMARY section of this notice. The
analyses are described in more detail
below.
DOE also conducted several other
analyses that either support the five
major analyses or are preliminary
analyses that will be expanded in the
notice of proposed rulemaking (NOPR).2
1 For the notice of proposed rulemaking, DOE will
also develop an economic spreadsheet that will
evaluate the financial impacts on small electric
motors that may result from a standard level.
2 For past rulemakings under EPCA section 325,
DOE was required to issue an Advanced Notice of
Proposed Rulemaking (ANOPR) following
publication of the framework document. The
Energy Independence and Security Act of 2007
(EISA 2007) eliminated the requirement that DOE
issue an ANOPR as part of the standards
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These analyses include the market and
technology assessment, the screening
analysis, which contributes to the
engineering analysis, and the shipments
analysis, which contributes to the NIA.
In addition to these analyses, DOE has
begun some preliminary work on the
manufacturer impact analysis and
identified the methods to be used for the
LCC subgroup analysis, the
environmental assessment, the
employment analysis, the regulatory
impact analysis, and the utility impact
analysis. DOE will expand on these
analyses in the NOPR.
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1. Engineering Analysis
The engineering analysis establishes
the relationship between the
manufacturer selling price and
efficiency of a product DOE is
evaluating for energy conservation
standards. This relationship serves as
the basis for cost-benefit calculations for
individual consumers, manufacturers,
and the Nation. The engineering
analysis identifies representative
baseline equipment, which is the
starting point for analyzing technologies
that provide energy efficiency
improvements. Baseline equipment
refers to a model or models having
features and technologies typically
found in that equipment currently
offered for sale, in this case, small
electric motors. The baseline model in
each equipment class represents the
characteristics of certain small electric
motors in that class. After identifying
the baseline models, DOE estimated
manufacturer selling prices by using a
consistent methodology and pricing
scheme including material and labor
costs and manufacturer’s markups. In
this way, DOE developed these so-called
‘‘manufacturer selling prices’’ for the
baseline and more efficient motor
designs. Later, in its Markups to
Determine Installed Price analysis, DOE
converts these manufacturer selling
prices into installed prices. In the
preliminary TSD, section 2.4 of chapter
2 and chapter 5 each provide detail on
the engineering analysis and the
derivation of the manufacturer selling
prices.
2. Energy Use Characterization
The energy use characterization
provides estimates of annual energy
consumption for small electric motors,
which DOE uses in the LCC and PBP
analyses and the NIA. DOE developed
rulemaking process; see EISA 2007, at sec. 307.
Given EISA 2007’s revisions to EPCA, DOE is now
using an alternative process to provide the same
information and ability for public comment as the
ANOPR, but without publication of analyses in the
Federal Register.
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16:15 Dec 29, 2008
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energy consumption estimates for all of
the equipment classes analyzed in the
engineering analysis, as the basis for its
energy use estimates. In the preliminary
TSD, section 2.5 of chapter 2 and
chapter 7 each provide detail on the
energy use characterization.
3. Markups To Determine Installed Price
DOE derives the installed prices for
products based on manufacturer
markups, retailer markups, distributor
markups, contractor markups, builder
markups, and sales taxes. In deriving
these markups, DOE has determined the
distribution channels for product sales,
the markup associated with each party
in the distribution channels, and the
existence and magnitude of differences
between markups for baseline products
(baseline markups) and for moreefficient products (incremental
markups). DOE calculates both overall
baseline and overall incremental
markups based on the product markups
at each step in the distribution channel.
The overall incremental markup relates
the change in the manufacturer sales
price of higher-efficiency models (the
incremental cost increase) to the change
in the retailer or distributor sales price.
In the preliminary TSD, section 2.6 of
chapter 2 and chapter 6 each provide
detail on the estimation of markups.
4. Life-Cycle Cost and Payback Period
Analyses
The LCC and PBP analyses determine
the economic impact of potential
standards on individual consumers. The
LCC is the total consumer expense for
a product over the life of the product.
The LCC analysis compares the LCCs of
products designed to meet possible
energy conservation standards with the
LCCs of the products likely to be
installed in the absence of standards.
DOE determines LCCs by considering
(1) Total installed cost to the purchaser
(which consists of manufacturer selling
price, sales taxes, distribution chain
markups, and installation cost); (2) the
operating expenses of the products
(energy use and maintenance); (3)
product lifetime; and (4) a discount rate
that reflects the real consumer cost of
capital and puts the LCC in presentvalue terms. The PBP represents the
number of years needed to recover the
increase in purchase price (including
installation cost) of more efficient
products through savings in the
operating cost of the product. It is the
change in total installed cost due to
increased efficiency divided by the
change in annual operating cost from
increased efficiency. In the preliminary
TSD, section 2.7 of chapter 2 and
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79725
chapter 8 each provide detail on the
LCC and PBP analyses.
5. National Impact Analysis
The NIA estimates the NES and the
NPV of total consumer costs and savings
expected to result from new standards at
specific efficiency levels (referred to as
candidate standard levels). DOE
calculated NES and NPV for each level
for each candidate standard for small
electric motors as the difference
between a base-case forecast (without
new standards) and the standards case
forecast (with standards). DOE
determined national annual energy
consumption by multiplying the
number of units in use (by vintage) by
the average unit energy consumption
(also by vintage). Cumulative energy
savings are the sum of the annual NES
determined over a specified time period.
The national NPV is the sum over time
of the discounted net savings each year,
which consists of the difference
between total operating cost savings and
increases in total installed costs. Critical
inputs to this analysis include
shipments projections, retirement rates
(based on estimated product lifetimes),
and estimates of changes in shipments
and retirement rates in response to
changes in product costs due to
standards. In the preliminary TSD,
section 2.9 of chapter 2 and chapter 10
each provide detail on the NIA.
DOE consulted with interested parties
as part of its process for conducting all
of the analyses and invites further input
from the public on these topics. The
preliminary analytical results are
subject to revision following review and
input from the public. A complete and
revised TSD will be made available
upon issuance of a NOPR. The final rule
will contain the final analysis results
and be accompanied by a final rule TSD.
DOE encourages those who wish to
participate in the public meeting to
obtain the preliminary TSD and to be
prepared to discuss its contents. A copy
of the preliminary TSD is available at
the Web address given in the SUMMARY
section of this notice. However, public
meeting participants need not limit their
comments to the topics identified in the
preliminary TSD. DOE is also interested
in receiving views concerning other
relevant issues that participants believe
would affect energy conservation
standards for these products or that DOE
should address in the NOPR.
Furthermore, DOE welcomes all
interested parties, whether or not they
participate in the public meeting, to
submit in writing by March 2, 2009,
comments and information on matters
addressed in the preliminary TSD and
on other matters relevant to
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consideration of standards for small
electric motors.
The public meeting will be conducted
in an informal, conference style. A court
reporter will be present to record the
minutes of the meeting. There shall be
no discussion of proprietary
information, costs or prices, market
shares, or other commercial matters
regulated by United States antitrust
laws.
After the public meeting and the
expiration of the period for submitting
written statements, DOE will consider
all comments and additional
information that is obtained from
interested parties or through further
analyses, and it will prepare a NOPR.
The NOPR will include proposed energy
conservation standards for the products
covered by the rulemaking, and
members of the public will be given an
opportunity to submit written and oral
comments on the proposed standards.
Issued in Washington, DC, on December
19, 2008.
John F. Mizroch,
Acting Assistant Secretary, Energy Efficiency
and Renewable Energy.
[FR Doc. E8–30985 Filed 12–29–08; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 199
RIN 0720–AB28; DoD–2008–HA–0073
TRICARE; Hospital-Based Psychiatric
Partial Hospitalization Programs
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AGENCY: Office of the Secretary,
Department of Defense.
ACTION: Proposed rule.
SUMMARY: This proposed rule will
provide that TRICARE approval of a
hospital is sufficient for its psychiatric
partial hospitalization program (PHP) to
be an authorized TRICARE provider.
Upon implementation of this provision,
separate TRICARE certification of
hospital-based psychiatric PHPs would
no longer be required. This rule will
establish uniform requirements for
recognizing a hospital-based PHP as an
authorized TRICARE provider.
DATES: Written comments received at
the address indicated below by March 2,
2009 will be accepted.
ADDRESSES: You may submit comments,
identified by docket number and/or
Regulatory Information Number (RIN)
number and title, by any of the
following methods:
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16:15 Dec 29, 2008
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• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Federal Docket Management
System Office, 1160 Defense Pentagon,
Washington, DC 20301–1160.
Instructions: All submissions received
must include the agency name and
docket number or RIN for this Federal
Register document. The general policy
for comments and other submissions
from members of the public is to make
these submissions available for public
viewing on the Internet, at https://
www.regulations.gov, as they are
received without change, including any
personal identifiers or contact
information.
FOR FURTHER INFORMATION CONTACT: Mr.
Tariq Shahid, Office of the Assistant
Secretary of Defense (Health Affairs),
TRICARE Management Activity, at (303)
676–3801.
SUPPLEMENTARY INFORMATION:
I. Background
TRICARE certification standards for
psychiatric PHPs are defined in 32 CFR
199.6(b)(4)(xii) and further elaborated
upon in the TRICARE Policy Manual.
Currently, TRICARE authorized
providers of psychiatric PHP services
must have the Joint Commission
accreditation and must comply with
additional, detailed, unique TRICARE
certification standards. Compliance
with at least some of the unique
TRICARE certification standards could
require significant recurring staffing
costs that psychiatric PHPs would not
otherwise incur. Few facilities are
willing or able to undergo this added
TRICARE certification process, and it
could adversely impact beneficiaries’
access to psychiatric PHP care. Further,
substance use disorder rehabilitation
facilities are required to comply with
unique TRICARE certification standards
only if they are free-standing facilities
(i.e., not part of a hospital). TRICARE
does not require separate certification of
hospital-based substance abuse PHPs.
TRICARE approval of a hospital is
sufficient for its substance abuse PHP to
be an authorized TRICARE provider.
In late 2006, TRICARE established a
working group to study the issues
surrounding its behavioral health
benefit. Recently, the working group
completed its recommendations and
developed several initiatives to improve
TRICARE beneficiaries’ access to
behavioral health benefits. One of the
recommendations was that TRICARE no
longer impose its unique certification
standards upon hospital-based
psychiatric PHPs. Rather, TRICARE
approval of a hospital be sufficient to
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establish the hospital as an authorized
provider of its PHP services to TRICARE
beneficiaries.
Through this proposed rule, TRICARE
will adopt the above recommendation. It
will establish uniform requirements for
recognizing a hospital-based PHP as an
authorized TRICARE provider. It will
provide a better balance between quality
of PHP care and access to it than now
exists. It will significantly increase the
number of TRICARE authorized
psychiatric PHPs, thereby potentially
improving TRICARE beneficiaries’
access to PHP care.
In accordance with the
recommendations of the working group,
the above change will be audited for a
period of time to ensure no untoward
effects upon the elimination of any
unique TRICARE certification
standards.
II. Regulatory Procedures
Section 801 of Title 5, United States
Code, and EO 12866 requires certain
regulatory assessments and procedures
for any major rule or significant
regulatory action, defined as one that
would result in an annual effect of $100
million or more on the national
economy, or which would have other
substantial impacts.
This is not a major rule under 5 U.S.C.
801 and it is not economically
significant. It has been reviewed by the
Office of Management and Budget as
required under the provisions of
Executive Order 12866.
It has been certified that this rule does
not contain a Federal mandate that may
result in the expenditure by State, local
and tribal governments, in aggregate, or
by the private sector, of $100 million or
more in any one year.
The Regulatory Flexibility Act
requires that each Federal agency
prepare, and make available for public
comment, a regulatory flexibility
analysis when the agency issues a
regulation which would have a
significant impact on a substantial
number of small entities.
It has been certified that this rule will
not significantly affect a substantial
number of small entities.
This rule will not impose additional
information collection requirements on
the public under the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 55).
We have examined the impact of the
rule under Executive Order (EO) 13132
and it does not have policies that have
federalism implications that would have
substantial direct effects on the States,
on the relationship between the
National Government and the States, or
on the distribution of power and
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]]>Agencies
[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Proposed Rules]
[Pages 79723-79726]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30985]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 /
Proposed Rules
[[Page 79723]]
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2007-BT-STD-0007]
RIN 1904-AB70
Energy Conservation Standards for Small Electric Motors: Public
Meeting and Availability of the Preliminary Technical Support Document
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and availability of preliminary
technical support document.
-----------------------------------------------------------------------
SUMMARY: The Department of Energy (DOE) will hold an informal public
meeting to discuss and receive comments on the equipment classes that
DOE plans to analyze for purposes of establishing energy conservation
standards for small electric motors; the analytical framework, models,
and tools that DOE is using to evaluate standards for these products;
the results of preliminary analyses performed by DOE for these
products; and potential energy conservation standard levels derived
from these analyses that DOE could consider for these products. Also,
DOE encourages written comments on these subjects. To inform
stakeholders and facilitate this process, DOE has prepared an agenda, a
preliminary Technical Support Document (preliminary TSD), and briefing
materials, which are available at: https://www1.eere.energy.gov/
buildings/appliance_standards/commercial/small_electric_motors.html.
DATES: DOE will hold a public meeting on Friday, January 30, 2009, from
9 a.m. to 5 p.m. in Washington, DC. Any person requesting to speak at
the public meeting should submit such request, along with an electronic
copy of the statement to be given at the public meeting, before 4 p.m.,
Friday, January 23, 2009. Written comments are welcome, especially
following the public meeting, and should be submitted March 2, 2009.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 1E-245, 1000 Independence Avenue, SW.,
Washington, DC 20585-0121. Please note that foreign nationals
participating in the public meeting are subject to advance security
screening procedures. If a foreign national wishes to participate in
the public meeting, please inform DOE of this fact as soon as possible
by contacting Ms. Brenda Edwards at (202) 586-2945 so that the
necessary procedures can be completed. Interested persons may submit
comments, identified by docket number EERE-2007-BT-STD-0007, by any of
the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: small_electric_motors_
std.rulemaking@hq.doe.gov. Include EERE-2007-BT-STD-0007 in the subject
line of the message.
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Public Meeting
for Small Electric Motors, EERE-2007-BT-STD-0007, 1000 Independence
Avenue, SW., Washington, DC 20585-0121. Telephone (202) 586-2945.
Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, Sixth Floor, 950 L'Enfant
Plaza, SW., Washington, DC 20024. Telephone (202) 586-2945. Please
submit one signed paper original.
Instructions: All submissions received must include the agency name
and docket number.
Docket: For access to the docket to read background documents or a
copy of the transcript of the public meeting or comments received, go
to the U.S. Department of Energy, Sixth Floor, 950 L'Enfant Plaza, SW.,
Washington, DC 20024, (202) 586-2945, between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays. Please call Ms. Brenda Edwards
at (202) 586-2945 for additional information regarding visiting the
Resource Room.
FOR FURTHER INFORMATION CONTACT: Direct requests for additional
information to Mr. James Raba, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, Building Technologies, EE-2J,
1000 Independence Avenue, SW., Washington, DC 20585-0121, (202) 586-
8654. E-mail: Jim.Raba@ee.doe.gov. In the Office of General Counsel,
contact Mr. Michael Kido, U.S. Department of Energy, Office of General
Counsel, GC-72, 1000 Independence Avenue, SW., Washington, DC 20585,
(202) 586-8145. E-mail: Michael.Kido@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
Part A of Title III of the Energy Policy and Conservation Act (42
U.S.C. 6291 et seq.) (EPCA) established the Energy Conservation Program
for Consumer Products Other than Automobiles. Amendments expanded Title
III of EPCA to include certain commercial and industrial equipment,
including small electric motors. (42 U.S.C. 6311 et seq.) In
particular, the Energy Policy Act of 1992, Public Law 102-486 (EPACT
1992) amended EPCA to direct DOE to prescribe energy conservation
standards for those small electric motors for which the Secretary
determines that standards ``would be technologically feasible and
economically justified, and would result in significant energy
savings.'' (42 U.S.C. 6317(b)(1)).
Before DOE prescribes any standard for small electric motors,
however, it must first solicit comments on a proposed standard.
Moreover, DOE will design each standard for these products to: (1)
Achieve the maximum improvement in energy efficiency that is
technologically feasible and economically justified, and (2) result in
significant conservation of energy. (42 U.S.C. 6295(o)(2)(A) and
(o)(3), 42 U.S.C. 6316(a), and 42 U.S.C. 6317(b)(1) and (c)). To
determine whether a proposed standard is economically justified, DOE
must, after receiving comments on the proposed standard, determine
whether the benefits of the standard exceed its burdens to the greatest
extent practicable, weighing the following seven factors:
1. The economic impact of the standard on manufacturers and
consumers of products subject to the standard;
2. The savings in operating costs throughout the estimated average
life of the covered products in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products
[[Page 79724]]
which are likely to result from the imposition of the standard;
3. The total projected amount of energy savings likely to result
directly from the imposition of the standard;
4. Any lessening of the utility or the performance of the covered
products likely to result from the imposition of the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy conservation; and
7. Other factors the Secretary [of Energy] considers relevant. (42
U.S.C. 6295(o)(2)(B)(i)).
Prior to proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that will be used to
evaluate standards; the results of preliminary analyses; and potential
energy conservation standard levels derived from these analyses. DOE is
publishing this document to announce the availability of the
preliminary technical support document (preliminary TSD), which detail
the preliminary analyses, discuss the comments on the Framework
document, and summarize the preliminary results. In addition, DOE is
announcing a public meeting to solicit feedback from interested parties
on its analytical framework, models, and preliminary results.
B. History of Standards Rulemaking for Small Electric Motors
1. Background
As indicated above, EPACT 1992 amended EPCA to specifically address
standards for small electric motors. The amendment requires DOE to
prescribe test procedures and then standards for those small electric
motors for which DOE has determined that standards would be
technologically feasible and economically justified and would result in
significant energy savings. (42 U.S.C. 6317(b)(1)). Pursuant to this
provision, on July 10, 2006, the Secretary of Energy issued the
following determination:
Based on its analysis of the information now available, the
Department [of Energy] has determined that energy conservation
standards for certain small electric motors appear to be
technologically feasible and economically justified, and are likely
to result in significant energy savings. Consequently, the
Department [of Energy] will initiate the development of energy
efficiency test procedures and standards for certain small electric
motors.
71 FR 38799 and 38807 (July 10, 2006).
In its determination analysis, DOE uses the phrase ``certain small
electric motors'' to show where DOE is referring to motors for which it
has made a positive determination. In this way, DOE is establishing
that the Secretary of Energy has determined that energy conservation
standards appear to be justified for capacitor-start and polyphase
small electric motors.
The Secretary's determination was based in part on DOE's draft
report, ``Analysis of Energy Conservation Standards for Small Electric
Motors,'' which estimated the likely range of energy savings and
economic benefits that would result from energy conservation standards
for small electric motors. DOE made this report available for comment
in June 2003 at https://www.eere.energy.gov/buildings/appliance_
standards/commercial/small_electric_motors.html.
2. Current Rulemaking Process
As a result of the Secretary's positive determination, DOE prepared
and published a notice announcing the availability of the framework
document, ``Energy Conservation Standards Rulemaking Framework Document
for Small Electric Motors,'' and a public meeting to discuss the
proposed analytical framework for the rulemaking. 72 FR 44990 (August
10, 2007). DOE also posted the framework document on its Web site
describing the procedural and analytical approaches DOE anticipated
using to evaluate the establishment of energy conservation standards
for small electric motors. This document is available at https://
www.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/
small_motors_framework_073007.pdf. DOE held a public meeting on
September 13, 2007, to describe the various rulemaking analyses DOE
would conduct, such as the engineering analysis, the life-cycle cost
(LCC) and payback period (PBP) analyses, and the national impact
analysis (NIA); the methods for conducting them; and the relationship
among the various analyses. Manufacturers, trade associations, and
environmental advocates attended the meeting. The participants
discussed eight major issues: The scope of covered small electric
motors, definitions, test procedures, horsepower and kilowatt
equivalency, DOE's engineering analysis, life-cycle costs, efficiency
levels, and energy savings.
DOE developed two economic spreadsheets for analyzing the economic
impacts of standard levels-one that calculates LCC and PBP, and one
that calculates national impacts.\1\ DOE prepared an LCC and PBP
spreadsheet that calculates results for each of the representative
units analyzed. The spreadsheet includes product efficiency data that
allows users to determine LCC savings and PBPs based on average values.
The spreadsheets also can be combined with Crystal Ball (a commercially
available software program) to generate a Monte Carlo simulation, which
incorporates uncertainty and variability considerations. The second
economic spreadsheet, the national impact analysis spreadsheet,
calculates the impacts of candidate standard levels on shipments and
the national energy savings (NES) and net present value (NPV) at
various standard levels. There is one national impact analysis
spreadsheet for all small electric motors. DOE has posted all of these
economic spreadsheets on its Web site for review and comment by
interested parties.
---------------------------------------------------------------------------
\1\ For the notice of proposed rulemaking, DOE will also develop
an economic spreadsheet that will evaluate the financial impacts on
small electric motors that may result from a standard level.
---------------------------------------------------------------------------
Comments received since publication of the framework document have
helped DOE identify and resolve issues involved in the preliminary
analyses. Chapter 2 of the preliminary TSD, available at the Web link
provided in the SUMMARY section of this notice, summarizes and
addresses the comments received in response to the framework document.
C. Summary of the Analyses Performed by DOE
For small electric motors currently under consideration, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering, (2) energy-use characterization, (3) markups to determine
product price, (4) life-cycle cost (LCC) and payback period (PBP)
analyses, and (5) national impact analysis (NIA). These analyses
resulted in a preliminary TSD that presents the methodology and results
of each of these analyses. The preliminary TSD is available at the Web
address given in the SUMMARY section of this notice. The analyses are
described in more detail below.
DOE also conducted several other analyses that either support the
five major analyses or are preliminary analyses that will be expanded
in the notice of proposed rulemaking (NOPR).\2\
[[Page 79725]]
These analyses include the market and technology assessment, the
screening analysis, which contributes to the engineering analysis, and
the shipments analysis, which contributes to the NIA. In addition to
these analyses, DOE has begun some preliminary work on the manufacturer
impact analysis and identified the methods to be used for the LCC
subgroup analysis, the environmental assessment, the employment
analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the NOPR.
---------------------------------------------------------------------------
\2\ For past rulemakings under EPCA section 325, DOE was
required to issue an Advanced Notice of Proposed Rulemaking (ANOPR)
following publication of the framework document. The Energy
Independence and Security Act of 2007 (EISA 2007) eliminated the
requirement that DOE issue an ANOPR as part of the standards
rulemaking process; see EISA 2007, at sec. 307. Given EISA 2007's
revisions to EPCA, DOE is now using an alternative process to
provide the same information and ability for public comment as the
ANOPR, but without publication of analyses in the Federal Register.
---------------------------------------------------------------------------
1. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and efficiency of a product DOE is
evaluating for energy conservation standards. This relationship serves
as the basis for cost-benefit calculations for individual consumers,
manufacturers, and the Nation. The engineering analysis identifies
representative baseline equipment, which is the starting point for
analyzing technologies that provide energy efficiency improvements.
Baseline equipment refers to a model or models having features and
technologies typically found in that equipment currently offered for
sale, in this case, small electric motors. The baseline model in each
equipment class represents the characteristics of certain small
electric motors in that class. After identifying the baseline models,
DOE estimated manufacturer selling prices by using a consistent
methodology and pricing scheme including material and labor costs and
manufacturer's markups. In this way, DOE developed these so-called
``manufacturer selling prices'' for the baseline and more efficient
motor designs. Later, in its Markups to Determine Installed Price
analysis, DOE converts these manufacturer selling prices into installed
prices. In the preliminary TSD, section 2.4 of chapter 2 and chapter 5
each provide detail on the engineering analysis and the derivation of
the manufacturer selling prices.
2. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for small electric motors, which DOE uses in the LCC and
PBP analyses and the NIA. DOE developed energy consumption estimates
for all of the equipment classes analyzed in the engineering analysis,
as the basis for its energy use estimates. In the preliminary TSD,
section 2.5 of chapter 2 and chapter 7 each provide detail on the
energy use characterization.
3. Markups To Determine Installed Price
DOE derives the installed prices for products based on manufacturer
markups, retailer markups, distributor markups, contractor markups,
builder markups, and sales taxes. In deriving these markups, DOE has
determined the distribution channels for product sales, the markup
associated with each party in the distribution channels, and the
existence and magnitude of differences between markups for baseline
products (baseline markups) and for more-efficient products
(incremental markups). DOE calculates both overall baseline and overall
incremental markups based on the product markups at each step in the
distribution channel. The overall incremental markup relates the change
in the manufacturer sales price of higher-efficiency models (the
incremental cost increase) to the change in the retailer or distributor
sales price. In the preliminary TSD, section 2.6 of chapter 2 and
chapter 6 each provide detail on the estimation of markups.
4. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses determine the economic impact of potential
standards on individual consumers. The LCC is the total consumer
expense for a product over the life of the product. The LCC analysis
compares the LCCs of products designed to meet possible energy
conservation standards with the LCCs of the products likely to be
installed in the absence of standards. DOE determines LCCs by
considering (1) Total installed cost to the purchaser (which consists
of manufacturer selling price, sales taxes, distribution chain markups,
and installation cost); (2) the operating expenses of the products
(energy use and maintenance); (3) product lifetime; and (4) a discount
rate that reflects the real consumer cost of capital and puts the LCC
in present-value terms. The PBP represents the number of years needed
to recover the increase in purchase price (including installation cost)
of more efficient products through savings in the operating cost of the
product. It is the change in total installed cost due to increased
efficiency divided by the change in annual operating cost from
increased efficiency. In the preliminary TSD, section 2.7 of chapter 2
and chapter 8 each provide detail on the LCC and PBP analyses.
5. National Impact Analysis
The NIA estimates the NES and the NPV of total consumer costs and
savings expected to result from new standards at specific efficiency
levels (referred to as candidate standard levels). DOE calculated NES
and NPV for each level for each candidate standard for small electric
motors as the difference between a base-case forecast (without new
standards) and the standards case forecast (with standards). DOE
determined national annual energy consumption by multiplying the number
of units in use (by vintage) by the average unit energy consumption
(also by vintage). Cumulative energy savings are the sum of the annual
NES determined over a specified time period. The national NPV is the
sum over time of the discounted net savings each year, which consists
of the difference between total operating cost savings and increases in
total installed costs. Critical inputs to this analysis include
shipments projections, retirement rates (based on estimated product
lifetimes), and estimates of changes in shipments and retirement rates
in response to changes in product costs due to standards. In the
preliminary TSD, section 2.9 of chapter 2 and chapter 10 each provide
detail on the NIA.
DOE consulted with interested parties as part of its process for
conducting all of the analyses and invites further input from the
public on these topics. The preliminary analytical results are subject
to revision following review and input from the public. A complete and
revised TSD will be made available upon issuance of a NOPR. The final
rule will contain the final analysis results and be accompanied by a
final rule TSD.
DOE encourages those who wish to participate in the public meeting
to obtain the preliminary TSD and to be prepared to discuss its
contents. A copy of the preliminary TSD is available at the Web address
given in the SUMMARY section of this notice. However, public meeting
participants need not limit their comments to the topics identified in
the preliminary TSD. DOE is also interested in receiving views
concerning other relevant issues that participants believe would affect
energy conservation standards for these products or that DOE should
address in the NOPR.
Furthermore, DOE welcomes all interested parties, whether or not
they participate in the public meeting, to submit in writing by March
2, 2009, comments and information on matters addressed in the
preliminary TSD and on other matters relevant to
[[Page 79726]]
consideration of standards for small electric motors.
The public meeting will be conducted in an informal, conference
style. A court reporter will be present to record the minutes of the
meeting. There shall be no discussion of proprietary information, costs
or prices, market shares, or other commercial matters regulated by
United States antitrust laws.
After the public meeting and the expiration of the period for
submitting written statements, DOE will consider all comments and
additional information that is obtained from interested parties or
through further analyses, and it will prepare a NOPR. The NOPR will
include proposed energy conservation standards for the products covered
by the rulemaking, and members of the public will be given an
opportunity to submit written and oral comments on the proposed
standards.
Issued in Washington, DC, on December 19, 2008.
John F. Mizroch,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. E8-30985 Filed 12-29-08; 8:45 am]
BILLING CODE 6450-01-P
