Energy Conservation Program for Consumer Products: Energy Conservation Standards for Residential Furnaces, 12144-12148 [2010-5564]
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12144
Proposed Rules
Federal Register
Vol. 75, No. 49
Monday, March 15, 2010
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 430
[Docket No. EE–2009–BT–STD–0022]
RIN 1904–AC06
Energy Conservation Program for
Consumer Products: Energy
Conservation Standards for
Residential Furnaces
AGENCY: Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and
availability of a rulemaking analysis
plan.
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SUMMARY: The U.S. Department of
Energy (DOE) will hold a public meeting
to discuss and receive comments on the
product classes that DOE plans to
analyze for purposes of amending
energy conservation standards for
certain residential furnaces, and the
analytical approach, models, and tools
that DOE is using to evaluate amended
standards for these products. DOE also
encourages written comments on these
subjects. A detailed discussion of these
topics can be found in the rulemaking
analysis plan (RAP) for residential
furnaces, which is available at: https://
www.eere.energy.gov/buildings/
appliance_standards/residential/
furnaces_boilers.html.
DATES: DOE will hold a public meeting
on Wednesday, March 31, 2010, from 9
a.m. to 5 p.m. in Washington, DC. Any
person requesting to speak at the public
meeting should submit such a request,
along with an electronic copy of the
statement to be given at the public
meeting, before 4 p.m., Wednesday,
March 24, 2010. Written comments are
welcome, especially following the
public meeting and should be submitted
by April 14, 2010.
ADDRESSES: The public meeting will be
held at the U.S. Department of Energy,
Forrestal Building, Room 8E–089, 1000
Independence Avenue, SW.,
Washington, DC 20585–0121. Please
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note that foreign nationals visiting DOE
Headquarters are subject to advance
security screening procedures. If a
foreign national wishes to participate in
the 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 the
notice title, the NOPM for Energy
Conservation Standards for Residential
Furnaces, and provide the docket
number EE–2009–BT–STD–0022 and/or
regulatory identifier number (RIN)
1904–AC06. Comments may be
submitted using any of the following
methods:
1. Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
2. E-mail: Res-Furnaces-2009-STD0022@ee.doe.gov. Include docket
number EE–2009–BT–STD–0022 and/or
RIN, 1904–AC06 in the subject line of
the message.
3. Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J,
NOPM for Energy Conservation
Standards for Residential Furnaces,
1000 Independence Avenue, SW.,
Washington, DC, 20585–0121. Please
submit one signed paper original.
4. Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, 950
L’Enfant Plaza, SW., Suite 600,
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
comments received, visit the U.S.
Department of Energy, Resource Room
of the Building Technologies Program,
950 L’Enfant Plaza, SW., Suite 600,
Washington, DC, (202) 586–2945,
between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays.
Please call Ms. Brenda Edwards at the
above telephone number for additional
information regarding visiting the
Resource Room.
FOR FURTHER INFORMATION CONTACT: Mr.
Mohammed Khan, U.S. Department of
Energy, Office of Energy Efficiency and
Renewable Energy, Building
Technologies Program, EE–2J, 1000
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Independence Avenue, SW.,
Washington, DC, 20585–0121.
Telephone: (202) 586–7892. E-mail:
Mohammed.Khan@ee.doe.gov.
Mr. Eric Stas, U.S. Department of
Energy, Office of the General Counsel,
GC–71, 1000 Independence Avenue,
SW., Washington, DC, 20585–0121.
Telephone: (202) 586–5827. E-mail:
Eric.Stas@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
1. General
Title III of the Energy Policy and
Conservation Act (EPCA) sets forth a
variety of provisions designed to
improve energy efficiency. Part A 1 of
Title III (42 U.S.C. 6291–6309)
establishes the Energy Conservation
Program for Consumer Products Other
Than Automobiles. The program covers
consumer products and certain
commercial equipment (referred to
hereafter as ‘‘covered products’’),
including the residential furnaces that
are subject to this rulemaking. (42
U.S.C. 6292(a)(5)) EPCA prescribed the
initial energy conservation standards for
residential furnaces. (42 U.S.C.
6295(f)(1)–(2)) The statute further
provides DOE with the authority to
conduct rulemakings to determine
whether to amend these standards. (42
U.S.C. 6295(f)(4)).
EPCA provides criteria for prescribing
new or amended standards for covered
products. Any new or amended
standard for a covered product must be
designed to achieve the maximum
improvement in energy efficiency that is
technologically feasible and
economically justified. (42 U.S.C.
6295(o)(2)(A)) Furthermore, EPCA
precludes DOE from adopting any
standard that would not result in
significant conservation of energy. (42
U.S.C. 6295(o)(3)(B)) EPCA also
provides that, in deciding whether a
standard is economically justified, DOE
must determine whether the benefits of
the standard exceed its burdens. (42
U.S.C. 6295(o)(2)(B)(i)) DOE must do so
after receiving comments on the
proposed standard and by considering,
to the greatest extent practicable, the
following seven factors:
1 This part was originally titled Part B. It was
redesignated Part A in the United States Code for
editorial reasons.
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1. The economic impact of the standard on
manufacturers and consumers of the
products subject to the standard;
2. The savings in operating costs
throughout the estimated average life of the
covered products in the type (or class)
compared to any increase in the price, initial
charges, or maintenance expenses for the
covered products that are likely to result
from the imposition of the standard;
3. The total projected amount of energy (or,
as applicable, water) savings likely to result
directly from the imposition of the standard;
4. Any lessening of the utility or the
performance of the covered products likely to
result from the imposition of the standard;
5. The impact of any lessening of
competition, as determined in writing by the
Attorney General, that is likely to result from
the imposition of the standard;
6. The need for national energy and water
conservation; and
7. Other factors the Secretary considers
relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)–(VII))
Prior to proposing a standard, DOE
typically seeks public input on the
analytical framework, models, and tools
that will be used to evaluate standards.
DOE is publishing this notice of public
meeting (NOPM) to announce the
availability of the rulemaking analysis
plan (RAP), which details the plans for
the rulemaking approach, key data
sources DOE plans to use in its analyses,
and a list of key issues DOE would like
comment upon. In addition, DOE is
announcing a public meeting to solicit
feedback from interested parties on the
RAP, models, and data sources.
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2. Regional Standards
a. General
Section 306(a) of the Energy
Independence and Security Act of 2007
(EISA 2007; Pub. L. 110–140) amended
EPCA to allow DOE to consider the
establishment of separate regional
standards for furnaces. (42 U.S.C.
6295(o)(6)(A)) Specifically, EPCA allows
for the establishment of a single morerestrictive regional standard in addition
to the base national standard. (42 U.S.C.
6295(o)(6)(B)) EPCA stipulates that the
regions must include only contiguous
states (with the exception of Alaska and
Hawaii, which can be included in
regions that they are not contiguous
with), and that each state may be placed
in only one region (i.e., a state cannot
be divided among two regions). (42
U.S.C. 6295(o)(6)(C))
EPCA mandates that a regional
standard must produce significant
energy savings in comparison to a single
national standard. Further, EPCA
provides that DOE must determine that
the additional standards are
economically justified and consider the
impact of the additional regional
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standards on consumers, manufacturers,
and other market participants, including
product distributors, dealers,
contractors, and installers. (42 U.S.C.
6295(o)(6)(C)–(D)) For this rulemaking,
DOE will consider the impacts of
regional standards in addition to
national standards. The RAP gives an
overview of DOE’s proposed
methodology for analyzing impacts of a
regional standard for furnaces, and
additional detail about DOE’s proposed
approach is provided throughout the
RAP in the applicable sections and
subsections.
B. History of the Standards Rulemaking
for Residential Furnaces
1. Background
Energy conservation standards for
residential furnaces were initially
specified by EPCA in terms of annual
fuel utilization efficiency (AFUE). EPCA
set minimum standards for all furnaces
except for mobile home furnaces and
‘‘small’’ furnaces (i.e., those units with
an input capacity less than 45,000
British thermal units per hour (Btu/h))
at 78-percent AFUE, with a compliance
date of January 1, 1992. EPCA specified
a separate 75-percent AFUE standard for
mobile home furnaces with a
compliance date of September 1, 1990.
(42 U.S.C. 6295(f)(1)–(2)) For furnaces
with an input capacity less than 45,000
Btu/h, DOE published a final rule on
November 17, 1989 that set the
minimum standard for those products at
78-percent AFUE, with a compliance
date of January 1, 1992. 54 FR 47916.
On November 19, 2007, DOE
published a final rule (hereafter referred
to as the ‘‘November 2007 final rule’’)
amending the minimum energy
conservation standards for four product
classes of residential furnaces (i.e., nonweatherized gas, weatherized gas,
mobile home gas, and non-weatherized
oil). 72 FR 65136. This rulemaking set
standards that would apply to any
covered products manufactured for sale
in the United States, or imported into
the United States, on or after November
19, 2015.
In response to the November 2007
final rule, the state of New York, city of
New York, state of Connecticut,
commonwealth of Massachusetts, and
Natural Resources Defense Council filed
a joint lawsuit against DOE in the
United States Court of Appeals for the
Second Circuit. The petitioners asserted
that the standards for residential
furnaces promulgated by the November
2007 final rule did not reflect the
‘‘maximum improvement in energy
efficiency’’ that ‘‘is technologically
feasible and economically justified,’’ as
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required by section 325(o)(2)(A) of
EPCA. On April 16, 2009, DOE and the
petitioners agreed to a voluntary remand
that would require DOE to revisit its
initial conclusions outlined in the
November 2007 final rule. As part of the
remand agreement, DOE has until May
1, 2011 to issue a final rule amending
the energy conservation standards for
residential furnaces.
In addition, section 310(3) of the
Energy Independence and Security Act
of 2007 (EISA 2007) amended EPCA to
require that energy conservation
standards address standby mode and off
mode energy use for a certain subset of
products. (42 U.S.C. 6295(gg))
Specifically, when DOE adopts new or
amended standards for certain covered
products after July 1, 2010, the final rule
must, if justified by the criteria for
adoption of standards in section 325(o)
of EPCA, incorporate standby mode and
off mode energy use into a single
standard if feasible, or otherwise adopt
a separate standard for such energy use
for that product. (42 U.S.C. 6295(gg)(3))
Because this rulemaking is scheduled
for issuance after July 1, 2010, DOE
plans to address the standby mode and
off mode energy use in this rulemaking.
Additional discussions of the standby
mode and off mode energy use for
residential furnaces can be found in the
RAP.
2. Current Rulemaking for Energy
Conservation Standards for Residential
Furnaces
Section 307 of EISA 2007 amended
EPCA by removing the requirement for
DOE to publish an advanced notice of
proposed rulemaking (ANOPR) when
amending standards for consumer
products. DOE believes, however, that
early opportunities for DOE to vet its
assumptions and analyses and for
interested parties to provide comments
and data can be valuable in developing
energy conservation standards. For this
rulemaking, DOE developed an
alternative rulemaking pathway,
consisting of a NOPM and RAP. These
documents represent the first step in the
process of revising the energy
conservation standards set forth in the
November 2007 final rule for residential
furnaces. DOE is issuing this NOPM to
receive feedback on the methodologies,
data, and key assumptions that will be
used for the analyses before performing
the notice of proposed rulemaking
(NOPR) analyses. The analyses and
proposed methodologies that will be
used for the NOPR phase of this
rulemaking are described in detail in the
RAP, available at the Web link provided
in the SUMMARY section of this notice.
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Subsequently, DOE intends to issue the
NOPR for public comment.
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C. Specific Issues for Which DOE Is
Seeking Comment
DOE is specifically presenting two
issues regarding the energy conservation
standards rulemaking for residential
furnaces in today’s notice. DOE presents
additional issues throughout the RAP
for which DOE also seeks comment. The
issues for which DOE seeks comment
are presented throughout the RAP and
summarized at the end.
1. Consensus Agreement
On January 26, 2010, the AirConditioning, Heating and Refrigeration
Institute (AHRI), American Council for
an Energy Efficient Economy (ACEEE),
Alliance to Save Energy (ASE),
Appliance Standards Awareness Project
(ASAP), Natural Resources Defense
Council (NRDC), and Northeast Energy
Efficiency Partnerships (NEEP)
submitted a joint comment (hereafter
referred to as the Join Comment) to DOE
recommending minimum energy
conservation standards for residential
central air conditioners, heat pumps,
and furnaces. (AHRI, ACEEE, ASE,
ASAP, NRDC, and NEEP, the Joint
Comment, No. 1 at pp. 1–33) The Joint
Comment stated the original consensus
agreement was completed on October
13, 2009 and had 15 signatories,
including AHRI, ACEEE, ASE, NRDC,
ASAP, NEEP, Northwest Power and
Conservation Council (NPCC),
California Energy Commission (CEC),
Bard Manufacturing Company Inc.,
Carrier Residential and Light
Commercial Systems, Goodman Global
Inc., Lennox Residential, Mitsubishi
Electric & Electronics USA, National
Comfort Products, and Trane
Residential.
The Joint Comment recommends
standards that divide the nation into
three regions for residential central air
conditioners and two regions for
residential furnaces based on the
population-weighted number of heating
degree days (HDD) of each state. States
with 5000 HDD or more are considered
as part of the northern region, while
states with less than 5000 HDD are
considered part of the southern region.
For residential central air conditioners,
the Joint Comment establishes a third
region—the ‘‘southwest’’ region—which
is comprised of California, Arizona,
New Mexico, and Nevada. For furnaces,
the southwest region states are included
in the southern region. The compliance
date specified in the agreement is May
1, 2013 for non-weatherized furnaces
and January 1, 2015 for weatherized
furnaces.
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In addition to the RAP, DOE is
making available on its Web site the
Joint comment, which can be found:
https://www1.eere.energy.gov/buildings/
appliance_standards/residential/
furnaces_boilers.html. DOE specifically
invites comment from interested parties
on the Joint Comment. In particular,
DOE is interested in comments relating
to the proposed AFUE requirements, the
proposed regional divisions, and the
proposed compliance dates for
residential furnace standards.
D. Summary of the Analyses To Be
Performed by DOE
For residential furnaces, DOE is
planning to conduct in-depth technical
analyses for the NOPR in the following
areas: (1) Engineering, (2) markups to
determine product price, (3) energy-use
characterization, (4) life-cycle cost (LCC)
and payback period (PBP), (5) national
impacts, (6) manufacturer impacts, (7)
utility impacts, (8) environmental
impacts, (9) employment impacts, and
(10) regulatory impacts.
2. Combined Rulemaking Approach
DOE is currently conducting or
planning separate standards
rulemakings for three interrelated
products: (1) Central air conditioners
and heat pumps; (2) gas furnaces; and
(3) furnace fans. DOE is required by a
Court-ordered consent decree to publish
a final rule addressing the energy
conservation standards for residential
central air conditioners and heat pumps
by June 30, 2011. A final rule published
by DOE in November 2007 amending
the minimum energy conservation
standards for gas furnaces was
remanded by the Courts to DOE under
the mandate that DOE publish a new
final rule by May 1, 2011. EISA 2007
amended EPCA to require that DOE
publish a final rule establishing energy
conservation standards for ‘‘the
electricity used for purposes of
circulating air through duct work’’ (i.e.,
the electrical energy consumed by
furnace fans) by January 1, 2013. (42
U.S.C. 6295(f)(4)(D))
Rather than analyze each set of
products separately, DOE is considering
combining the analyses to examine how
the interaction between the three
products impacts the cost to consumers
and the energy savings resulting from
potential amended standards. If DOE
conducts such an analysis and the
results indicate that a combined
approach yields additional savings
beyond what can be achieved by
considering each product separately,
DOE may decide to pursue a combined
standards rulemaking that addresses all
three products, or two of the three
products (i.e., central air conditioners
and heat pumps and residential
furnaces), simultaneously. If such a
combined rulemaking is pursued, DOE
would be required to publish the
combined final rule by May 1, 2011 in
order to comply with the conditions of
the remand agreement for residential
furnaces. DOE is seeking comment from
interested parties relating to a combined
rulemaking regarding energy
conservation standards for residential
central air conditioners and heat pumps,
residential furnaces, and furnace fans.
1. Engineering Analysis
The engineering analysis establishes
the relationship between the cost and
efficiency of a product DOE is
evaluating for amended energy
conservation standards. This
relationship serves as the basis for costbenefit calculations for individual
consumers, manufacturers, and the
nation. The engineering analysis will
identify representative baseline
products, which is the starting point for
analyzing technologies that provide
energy efficiency improvements.
Baseline product refers to a model or
models having features and technologies
typically found in products currently
offered for sale. The baseline model in
each product class represents the
characteristics of products in that class
and, for products already subject to
energy conservation standards, usually
is a model that just meets the current
standard.
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2. Markups To Determine Product Price
DOE uses markups to convert the
manufacturer costs estimated in the
engineering analysis to consumer prices,
which then are used in the life-cycle
cost (LCC) and payback period (PBP)
and manufacturer impact analyses. DOE
calculates markups for baseline
products (baseline markups) and for
more efficient products (incremental
markups). The 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. To develop markups, DOE
identifies how the products are
distributed from the manufacturer to the
customer. After establishing appropriate
distribution channels, DOE relies on
economic data from the U.S. Census
Bureau and other sources to define how
prices are marked up as the products
pass from the manufacturer to the
customer.
3. Energy Use Characterization
The purpose of the energy use
analysis is to determine the annual
energy consumption of residential
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furnaces in representative U.S. homes
and to assess the energy-savings
potential of increased product
efficiencies. DOE will estimate the
annual energy consumption of
residential furnaces at specified energy
efficiency levels across a range of
climate zones. The annual energy
consumption includes use of natural gas
or oil for heat production as well as use
of electricity for the blower and
auxiliary components. The annual
energy consumption of residential
furnaces will be used in subsequent
analyses, including the LCC, PBP, and
National Impact Analyses.
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4. Life-Cycle Cost and Payback Period
Analyses
The LCC and PBP analyses evaluate
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 will compare the LCC
of products designed to meet possible
energy conservation standards with the
LCC of products likely to be installed in
the absence of standards. DOE will
determine 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 repair and maintenance); (3)
product lifetime; and (4) a discount rate
that 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.
5. National Impacts Analysis
The NIA estimates the national energy
savings (NES) and the net present value
(NPV) of total consumer costs and
savings expected to result from new
standards at specific efficiency levels.
DOE calculates NES and NPV for each
efficiency level as the difference
between a base-case forecast (without
new standards) and the standards case
forecast (with standards). DOE
determines 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,
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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
in response to changes in product costs
due to standards.
6. Manufacturer Impact Analysis
The purpose of the manufacturer
impact analysis (MIA) is to identify and
quantify the likely impacts of amended
energy conservation standards on
manufacturers of residential furnaces.
Using industry research, public
comments, and interviews with
manufacturers and other interested
parties, DOE will analyze and consider
a wide range of quantitative and
qualitative industry impacts that may
occur due to amended energy
conservation standards. Based on the
information gathered during interviews
and other research, DOE will assess
impacts on competition, manufacturing
capacity, employment, and regulatory
burden.
7. Utility Impact Analysis
The utility impact analysis examines
the effects of amended energy
conservation standards on the installed
generation capacity of electric, gas, and
oil utilities. The utility impact analysis
reports the changes in installed capacity
and generation between the base case
and the standards cases that result from
each standard level by plant type.
8. Environmental Impact Analysis
The purpose of the environmental
impact analysis is to quantify and
consider the environmental effects of
amended energy conservation standards
for furnaces. The environmental
analysis will assess impacts of amended
energy conservation standards on the
following types of energy-related
emissions—carbon dioxide (CO2),
oxides of nitrogen (NOX), sulfur dioxide
(SO2), and mercury (Hg). As part of the
environmental impacts analysis, DOE
plans to monetize the benefits
associated with emissions reductions
using a range of values.
9. Employment Analysis
The employment analysis will
estimate indirect national job creation or
elimination resulting from possible
standards. Indirect employment impacts
may result from expenditures shifting
between goods (the substitution effect)
and changes in income and overall
expenditure levels (the income effect)
that occur due to the standards. DOE
defines indirect employment impacts
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from standards as net jobs eliminated or
created in the general economy as a
result of increased spending driven by
increased equipment prices and reduced
spending on energy.
10. Regulatory Impact Analysis
The regulatory impact analysis
addresses the potential for nonregulatory approaches to supplant or
augment energy conservation standards
in order to improve the energy
efficiency or reduce the energy
consumption of the products covered
under this rulemaking. DOE will base its
assessment on the actual impacts of any
such initiatives to date, but will also
consider information presented
regarding the impacts that any existing
initiative might have in the future.
11. Additional Supporting Analyses
DOE will also conduct several
analyses that support the analyses listed
above, including the market and
technology assessment and the
screening analysis, which contribute to
the engineering analysis, and the
shipments analysis, which contributes
to the NIA. DOE also conducts an LCC
subgroup analysis, which evaluates
economic impacts on selected groups of
consumers who might be adversely
affected by a change in the national
energy conservation standards for the
considered products.
DOE further describes each analysis,
including the methodologies, key data
sources, and issues for which DOE seeks
public comment in the RAP. The RAP
is available at the Web address given in
the SUMMARY section of this notice.
DOE considers public participation to
be a very important part of the process
for setting energy conservation
standards. DOE actively encourages the
participation and interaction of the
public during the comment period in
each stage of the rulemaking process.
Beginning with the NOPM, and during
each subsequent public meeting and
comment period, interactions with and
between members of the public provide
a balanced discussion of the issues to
assist DOE in the standards rulemaking
process.
Accordingly, DOE encourages those
who wish to participate in the public
meeting to obtain the RAP from DOE’s
Web site and to be prepared to discuss
its contents. A copy of the RAP 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 RAP. DOE is also
interested in receiving views concerning
other relevant issues that participants
believe would affect energy
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[Docket No. FAA–2010–0102; Directorate
Identifier 2010–NE–09–AD]
J210761. This proposed AD would
require removal of the affected propeller
governors from service. This proposed
AD results from three reports received
of failed propeller governors. We are
proposing this AD to prevent loss of
propeller pitch control, damage to the
propeller governor, and internal damage
to the engine, which could prevent
continued safe flight or safe landing.
DATES: We must receive any comments
on this proposed AD by May 14, 2010.
ADDRESSES: Use one of the following
addresses to comment on this proposed
AD.
• Federal eRulemaking Portal: Go to
https://www.regulations.gov and follow
the instructions for sending your
comments electronically.
• Mail: Docket Management Facility,
U.S. Department of Transportation, 1200
New Jersey Avenue, SE., West Building
Ground Floor, Room W12–140,
Washington, DC 20590–0001.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
• Fax: (202) 493–2251.
Contact Ontic Engineering and
Manufacturing, Inc., 20400 Plummer
Sreet, Chatsworth, CA 91311, e-mail:
Bill.nolan@ontic.com; telephone (818)
725–2323; fax (818) 725–2535; or e-mail:
Susan.hunt@ontic.com; telephone (818)
725–2121; fax (818) 725–2535, or on the
Web at https://www.ontic.com/pdf/SB–
DES–353_Rev_A.pdf for a copy of the
service information identified in this
proposed AD.
FOR FURTHER INFORMATION CONTACT:
Roger Pesuit, Aerospace Engineer, Los
Angeles Aircraft Certification Office,
FAA, Transport Airplane Directorate,
3960 Paramount Blvd., Lakewood, CA
90712; e-mail: roger.pesuit@faa.gov;
telephone (562) 627–5251, fax (562)
627–5210.
SUPPLEMENTARY INFORMATION:
RIN 2120–AA64
Comments Invited
conservation standards for residential
furnaces or that DOE should address in
the NOPR.
Furthermore, DOE welcomes all
interested parties, regardless of whether
they participate in the public meeting,
to submit in writing by April 14, 2010,
comments and information on matters
addressed in the RAP and on other
matters relevant to consideration of
standards for residential furnaces.
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 February 22,
2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and
Renewable Energy.
[FR Doc. 2010–5564 Filed 3–12–10; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
emcdonald on DSK2BSOYB1PROD with PROPOSALS
Airworthiness Directives; Ontic
Engineering and Manufacturing, Inc.
Propeller Governors, Part Numbers
C210776, T210761, D210760, and
J210761
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
SUMMARY: The FAA proposes to adopt a
new airworthiness directive (AD) for
certain serial numbers (S/Ns) of Ontic
Engineering and Manufacturing, Inc.
propeller governors, part numbers (P/
Ns) C210776, T210761, D210760, and
VerDate Nov<24>2008
14:02 Mar 12, 2010
Jkt 220001
We invite you to send us any written
relevant data, views, or arguments
regarding this proposal. Send your
comments to an address listed under
ADDRESSES. Include ‘‘Docket No. FAA–
2010–0102; Directorate Identifier 2010–
NE–09–AD’’ in the subject line of your
comments. We specifically invite
comments on the overall regulatory,
economic, environmental, and energy
aspects of the proposed AD. We will
consider all comments received by the
closing date and may amend the
proposed AD in light of those
comments.
We will post all comments we
receive, without change, to https://
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
www.regulations.gov, including any
personal information you provide. We
will also post a report summarizing each
substantive verbal contact with FAA
personnel concerning this proposed AD.
Using the search function of the Web
site, anyone can find and read the
comments in any of our dockets,
including, if provided, the name of the
individual who sent the comment (or
signed the comment on behalf of an
association, business, labor union, etc.).
You may review the DOT’s complete
Privacy Act Statement in the Federal
Register published on April 11, 2000
(65 FR 19477–78).
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov; or in person at the
Docket Operations office between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Operations
office (telephone (800) 647–5527) is the
same as the Mail address provided in
the ADDRESSES section. Comments will
be available in the AD docket shortly
after receipt.
Discussion
We received three reports of failure of
Ontic Engineering and Manufacturing,
Inc. propeller governors. One of the
reports was of a Diamond DA–40
airplane losing propeller pitch control
during flight. The propeller governor
controls propeller pitch by regulating oil
pressure to the propeller pitch change
mechanism. Changes in governor oil
pressure are made by small changes in
axial displacement of the governor’s
pilot valve plunger assembly. A fly
weight governor opposes a compressed
spring that rides on a collar which forms
a part of the pilot valve plunger
assembly. Investigation revealed that the
set screw securing the collar to the pilot
valve plunger assembly shaft may not be
installed properly on a batch of parts
permitting the pilot valve plunger to
float on the shaft. The pilot valve shaft
plunger and captive thrust bearing are
then free to move axially along the pilot
valve shaft. When the pilot valve is
unconstrained in the axial direction, the
propeller governor cannot control oil
pressure to the propeller pitch control
mechanism. This results in a loss of
propeller pitch control. Further,
concurrent thrust bearing failure
permits bearing debris to flow with the
oil into the engine lubrication system.
The engine in the incident airplane was
internally damaged as a result of a
E:\FR\FM\15MRP1.SGM
15MRP1
Agencies
[Federal Register Volume 75, Number 49 (Monday, March 15, 2010)]
[Proposed Rules]
[Pages 12144-12148]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5564]
========================================================================
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. 75, No. 49 / Monday, March 15, 2010 /
Proposed Rules
[[Page 12144]]
=======================================================================
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DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EE-2009-BT-STD-0022]
RIN 1904-AC06
Energy Conservation Program for Consumer Products: Energy
Conservation Standards for Residential Furnaces
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and availability of a rulemaking
analysis plan.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) will hold a public meeting
to discuss and receive comments on the product classes that DOE plans
to analyze for purposes of amending energy conservation standards for
certain residential furnaces, and the analytical approach, models, and
tools that DOE is using to evaluate amended standards for these
products. DOE also encourages written comments on these subjects. A
detailed discussion of these topics can be found in the rulemaking
analysis plan (RAP) for residential furnaces, which is available at:
https://www.eere.energy.gov/buildings/appliance_standards/residential/furnaces_boilers.html.
DATES: DOE will hold a public meeting on Wednesday, March 31, 2010,
from 9 a.m. to 5 p.m. in Washington, DC. Any person requesting to speak
at the public meeting should submit such a request, along with an
electronic copy of the statement to be given at the public meeting,
before 4 p.m., Wednesday, March 24, 2010. Written comments are welcome,
especially following the public meeting and should be submitted by
April 14, 2010.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 8E-089, 1000 Independence Avenue, SW.,
Washington, DC 20585-0121. Please note that foreign nationals visiting
DOE Headquarters are subject to advance security screening procedures.
If a foreign national wishes to participate in the 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 the
notice title, the NOPM for Energy Conservation Standards for
Residential Furnaces, and provide the docket number EE-2009-BT-STD-0022
and/or regulatory identifier number (RIN) 1904-AC06. Comments may be
submitted using any of the following methods:
1. Federal eRulemaking Portal: https://www.regulations.gov. Follow
the instructions for submitting comments.
2. E-mail: Res-Furnaces-2009-STD-0022@ee.doe.gov. Include docket
number EE-2009-BT-STD-0022 and/or RIN, 1904-AC06 in the subject line of
the message.
3. Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building
Technologies Program, Mailstop EE-2J, NOPM for Energy Conservation
Standards for Residential Furnaces, 1000 Independence Avenue, SW.,
Washington, DC, 20585-0121. Please submit one signed paper original.
4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, 950 L'Enfant Plaza, SW., Suite
600, 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
comments received, visit the U.S. Department of Energy, Resource Room
of the Building Technologies Program, 950 L'Enfant Plaza, SW., Suite
600, Washington, DC, (202) 586-2945, between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays. Please call Ms. Brenda Edwards
at the above telephone number for additional information regarding
visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT: Mr. Mohammed Khan, U.S. Department of
Energy, Office of Energy Efficiency and Renewable Energy, Building
Technologies Program, EE-2J, 1000 Independence Avenue, SW., Washington,
DC, 20585-0121. Telephone: (202) 586-7892. E-mail:
Mohammed.Khan@ee.doe.gov.
Mr. Eric Stas, U.S. Department of Energy, Office of the General
Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC, 20585-
0121. Telephone: (202) 586-5827. E-mail: Eric.Stas@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
1. General
Title III of the Energy Policy and Conservation Act (EPCA) sets
forth a variety of provisions designed to improve energy efficiency.
Part A \1\ of Title III (42 U.S.C. 6291-6309) establishes the Energy
Conservation Program for Consumer Products Other Than Automobiles. The
program covers consumer products and certain commercial equipment
(referred to hereafter as ``covered products''), including the
residential furnaces that are subject to this rulemaking. (42 U.S.C.
6292(a)(5)) EPCA prescribed the initial energy conservation standards
for residential furnaces. (42 U.S.C. 6295(f)(1)-(2)) The statute
further provides DOE with the authority to conduct rulemakings to
determine whether to amend these standards. (42 U.S.C. 6295(f)(4)).
---------------------------------------------------------------------------
\1\ This part was originally titled Part B. It was redesignated
Part A in the United States Code for editorial reasons.
---------------------------------------------------------------------------
EPCA provides criteria for prescribing new or amended standards for
covered products. Any new or amended standard for a covered product
must be designed to achieve the maximum improvement in energy
efficiency that is technologically feasible and economically justified.
(42 U.S.C. 6295(o)(2)(A)) Furthermore, EPCA precludes DOE from adopting
any standard that would not result in significant conservation of
energy. (42 U.S.C. 6295(o)(3)(B)) EPCA also provides that, in deciding
whether a standard is economically justified, DOE must determine
whether the benefits of the standard exceed its burdens. (42 U.S.C.
6295(o)(2)(B)(i)) DOE must do so after receiving comments on the
proposed standard and by considering, to the greatest extent
practicable, the following seven factors:
[[Page 12145]]
1. The economic impact of the standard on manufacturers and
consumers of the products subject to the standard;
2. The savings in operating costs throughout the estimated
average life of the covered products in the type (or class) compared
to any increase in the price, initial charges, or maintenance
expenses for the covered products that are likely to result from the
imposition of the standard;
3. The total projected amount of energy (or, as applicable,
water) savings likely to result directly from the imposition of the
standard;
4. Any lessening of the utility or the performance of the
covered products likely to result from the imposition of the
standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy and water conservation; and
7. Other factors the Secretary considers relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
Prior to proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that will be used to
evaluate standards. DOE is publishing this notice of public meeting
(NOPM) to announce the availability of the rulemaking analysis plan
(RAP), which details the plans for the rulemaking approach, key data
sources DOE plans to use in its analyses, and a list of key issues DOE
would like comment upon. In addition, DOE is announcing a public
meeting to solicit feedback from interested parties on the RAP, models,
and data sources.
2. Regional Standards
a. General
Section 306(a) of the Energy Independence and Security Act of 2007
(EISA 2007; Pub. L. 110-140) amended EPCA to allow DOE to consider the
establishment of separate regional standards for furnaces. (42 U.S.C.
6295(o)(6)(A)) Specifically, EPCA allows for the establishment of a
single more-restrictive regional standard in addition to the base
national standard. (42 U.S.C. 6295(o)(6)(B)) EPCA stipulates that the
regions must include only contiguous states (with the exception of
Alaska and Hawaii, which can be included in regions that they are not
contiguous with), and that each state may be placed in only one region
(i.e., a state cannot be divided among two regions). (42 U.S.C.
6295(o)(6)(C))
EPCA mandates that a regional standard must produce significant
energy savings in comparison to a single national standard. Further,
EPCA provides that DOE must determine that the additional standards are
economically justified and consider the impact of the additional
regional standards on consumers, manufacturers, and other market
participants, including product distributors, dealers, contractors, and
installers. (42 U.S.C. 6295(o)(6)(C)-(D)) For this rulemaking, DOE will
consider the impacts of regional standards in addition to national
standards. The RAP gives an overview of DOE's proposed methodology for
analyzing impacts of a regional standard for furnaces, and additional
detail about DOE's proposed approach is provided throughout the RAP in
the applicable sections and subsections.
B. History of the Standards Rulemaking for Residential Furnaces
1. Background
Energy conservation standards for residential furnaces were
initially specified by EPCA in terms of annual fuel utilization
efficiency (AFUE). EPCA set minimum standards for all furnaces except
for mobile home furnaces and ``small'' furnaces (i.e., those units with
an input capacity less than 45,000 British thermal units per hour (Btu/
h)) at 78-percent AFUE, with a compliance date of January 1, 1992. EPCA
specified a separate 75-percent AFUE standard for mobile home furnaces
with a compliance date of September 1, 1990. (42 U.S.C. 6295(f)(1)-(2))
For furnaces with an input capacity less than 45,000 Btu/h, DOE
published a final rule on November 17, 1989 that set the minimum
standard for those products at 78-percent AFUE, with a compliance date
of January 1, 1992. 54 FR 47916.
On November 19, 2007, DOE published a final rule (hereafter
referred to as the ``November 2007 final rule'') amending the minimum
energy conservation standards for four product classes of residential
furnaces (i.e., non-weatherized gas, weatherized gas, mobile home gas,
and non-weatherized oil). 72 FR 65136. This rulemaking set standards
that would apply to any covered products manufactured for sale in the
United States, or imported into the United States, on or after November
19, 2015.
In response to the November 2007 final rule, the state of New York,
city of New York, state of Connecticut, commonwealth of Massachusetts,
and Natural Resources Defense Council filed a joint lawsuit against DOE
in the United States Court of Appeals for the Second Circuit. The
petitioners asserted that the standards for residential furnaces
promulgated by the November 2007 final rule did not reflect the
``maximum improvement in energy efficiency'' that ``is technologically
feasible and economically justified,'' as required by section
325(o)(2)(A) of EPCA. On April 16, 2009, DOE and the petitioners agreed
to a voluntary remand that would require DOE to revisit its initial
conclusions outlined in the November 2007 final rule. As part of the
remand agreement, DOE has until May 1, 2011 to issue a final rule
amending the energy conservation standards for residential furnaces.
In addition, section 310(3) of the Energy Independence and Security
Act of 2007 (EISA 2007) amended EPCA to require that energy
conservation standards address standby mode and off mode energy use for
a certain subset of products. (42 U.S.C. 6295(gg)) Specifically, when
DOE adopts new or amended standards for certain covered products after
July 1, 2010, the final rule must, if justified by the criteria for
adoption of standards in section 325(o) of EPCA, incorporate standby
mode and off mode energy use into a single standard if feasible, or
otherwise adopt a separate standard for such energy use for that
product. (42 U.S.C. 6295(gg)(3)) Because this rulemaking is scheduled
for issuance after July 1, 2010, DOE plans to address the standby mode
and off mode energy use in this rulemaking. Additional discussions of
the standby mode and off mode energy use for residential furnaces can
be found in the RAP.
2. Current Rulemaking for Energy Conservation Standards for Residential
Furnaces
Section 307 of EISA 2007 amended EPCA by removing the requirement
for DOE to publish an advanced notice of proposed rulemaking (ANOPR)
when amending standards for consumer products. DOE believes, however,
that early opportunities for DOE to vet its assumptions and analyses
and for interested parties to provide comments and data can be valuable
in developing energy conservation standards. For this rulemaking, DOE
developed an alternative rulemaking pathway, consisting of a NOPM and
RAP. These documents represent the first step in the process of
revising the energy conservation standards set forth in the November
2007 final rule for residential furnaces. DOE is issuing this NOPM to
receive feedback on the methodologies, data, and key assumptions that
will be used for the analyses before performing the notice of proposed
rulemaking (NOPR) analyses. The analyses and proposed methodologies
that will be used for the NOPR phase of this rulemaking are described
in detail in the RAP, available at the Web link provided in the SUMMARY
section of this notice.
[[Page 12146]]
Subsequently, DOE intends to issue the NOPR for public comment.
C. Specific Issues for Which DOE Is Seeking Comment
DOE is specifically presenting two issues regarding the energy
conservation standards rulemaking for residential furnaces in today's
notice. DOE presents additional issues throughout the RAP for which DOE
also seeks comment. The issues for which DOE seeks comment are
presented throughout the RAP and summarized at the end.
1. Consensus Agreement
On January 26, 2010, the Air-Conditioning, Heating and
Refrigeration Institute (AHRI), American Council for an Energy
Efficient Economy (ACEEE), Alliance to Save Energy (ASE), Appliance
Standards Awareness Project (ASAP), Natural Resources Defense Council
(NRDC), and Northeast Energy Efficiency Partnerships (NEEP) submitted a
joint comment (hereafter referred to as the Join Comment) to DOE
recommending minimum energy conservation standards for residential
central air conditioners, heat pumps, and furnaces. (AHRI, ACEEE, ASE,
ASAP, NRDC, and NEEP, the Joint Comment, No. 1 at pp. 1-33) The Joint
Comment stated the original consensus agreement was completed on
October 13, 2009 and had 15 signatories, including AHRI, ACEEE, ASE,
NRDC, ASAP, NEEP, Northwest Power and Conservation Council (NPCC),
California Energy Commission (CEC), Bard Manufacturing Company Inc.,
Carrier Residential and Light Commercial Systems, Goodman Global Inc.,
Lennox Residential, Mitsubishi Electric & Electronics USA, National
Comfort Products, and Trane Residential.
The Joint Comment recommends standards that divide the nation into
three regions for residential central air conditioners and two regions
for residential furnaces based on the population-weighted number of
heating degree days (HDD) of each state. States with 5000 HDD or more
are considered as part of the northern region, while states with less
than 5000 HDD are considered part of the southern region. For
residential central air conditioners, the Joint Comment establishes a
third region--the ``southwest'' region--which is comprised of
California, Arizona, New Mexico, and Nevada. For furnaces, the
southwest region states are included in the southern region. The
compliance date specified in the agreement is May 1, 2013 for non-
weatherized furnaces and January 1, 2015 for weatherized furnaces.
In addition to the RAP, DOE is making available on its Web site the
Joint comment, which can be found: https://www1.eere.energy.gov/buildings/appliance_standards/residential/furnaces_boilers.html. DOE
specifically invites comment from interested parties on the Joint
Comment. In particular, DOE is interested in comments relating to the
proposed AFUE requirements, the proposed regional divisions, and the
proposed compliance dates for residential furnace standards.
2. Combined Rulemaking Approach
DOE is currently conducting or planning separate standards
rulemakings for three interrelated products: (1) Central air
conditioners and heat pumps; (2) gas furnaces; and (3) furnace fans.
DOE is required by a Court-ordered consent decree to publish a final
rule addressing the energy conservation standards for residential
central air conditioners and heat pumps by June 30, 2011. A final rule
published by DOE in November 2007 amending the minimum energy
conservation standards for gas furnaces was remanded by the Courts to
DOE under the mandate that DOE publish a new final rule by May 1, 2011.
EISA 2007 amended EPCA to require that DOE publish a final rule
establishing energy conservation standards for ``the electricity used
for purposes of circulating air through duct work'' (i.e., the
electrical energy consumed by furnace fans) by January 1, 2013. (42
U.S.C. 6295(f)(4)(D))
Rather than analyze each set of products separately, DOE is
considering combining the analyses to examine how the interaction
between the three products impacts the cost to consumers and the energy
savings resulting from potential amended standards. If DOE conducts
such an analysis and the results indicate that a combined approach
yields additional savings beyond what can be achieved by considering
each product separately, DOE may decide to pursue a combined standards
rulemaking that addresses all three products, or two of the three
products (i.e., central air conditioners and heat pumps and residential
furnaces), simultaneously. If such a combined rulemaking is pursued,
DOE would be required to publish the combined final rule by May 1, 2011
in order to comply with the conditions of the remand agreement for
residential furnaces. DOE is seeking comment from interested parties
relating to a combined rulemaking regarding energy conservation
standards for residential central air conditioners and heat pumps,
residential furnaces, and furnace fans.
D. Summary of the Analyses To Be Performed by DOE
For residential furnaces, DOE is planning to conduct in-depth
technical analyses for the NOPR in the following areas: (1)
Engineering, (2) markups to determine product price, (3) energy-use
characterization, (4) life-cycle cost (LCC) and payback period (PBP),
(5) national impacts, (6) manufacturer impacts, (7) utility impacts,
(8) environmental impacts, (9) employment impacts, and (10) regulatory
impacts.
1. Engineering Analysis
The engineering analysis establishes the relationship between the
cost and efficiency of a product DOE is evaluating for amended energy
conservation standards. This relationship serves as the basis for cost-
benefit calculations for individual consumers, manufacturers, and the
nation. The engineering analysis will identify representative baseline
products, which is the starting point for analyzing technologies that
provide energy efficiency improvements. Baseline product refers to a
model or models having features and technologies typically found in
products currently offered for sale. The baseline model in each product
class represents the characteristics of products in that class and, for
products already subject to energy conservation standards, usually is a
model that just meets the current standard.
2. Markups To Determine Product Price
DOE uses markups to convert the manufacturer costs estimated in the
engineering analysis to consumer prices, which then are used in the
life-cycle cost (LCC) and payback period (PBP) and manufacturer impact
analyses. DOE calculates markups for baseline products (baseline
markups) and for more efficient products (incremental markups). The
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. To develop markups,
DOE identifies how the products are distributed from the manufacturer
to the customer. After establishing appropriate distribution channels,
DOE relies on economic data from the U.S. Census Bureau and other
sources to define how prices are marked up as the products pass from
the manufacturer to the customer.
3. Energy Use Characterization
The purpose of the energy use analysis is to determine the annual
energy consumption of residential
[[Page 12147]]
furnaces in representative U.S. homes and to assess the energy-savings
potential of increased product efficiencies. DOE will estimate the
annual energy consumption of residential furnaces at specified energy
efficiency levels across a range of climate zones. The annual energy
consumption includes use of natural gas or oil for heat production as
well as use of electricity for the blower and auxiliary components. The
annual energy consumption of residential furnaces will be used in
subsequent analyses, including the LCC, PBP, and National Impact
Analyses.
4. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses evaluate 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
will compare the LCC of products designed to meet possible energy
conservation standards with the LCC of products likely to be installed
in the absence of standards. DOE will determine 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 repair and maintenance); (3) product lifetime; and (4) a
discount rate that 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.
5. National Impacts Analysis
The NIA estimates the national energy savings (NES) and the net
present value (NPV) of total consumer costs and savings expected to
result from new standards at specific efficiency levels. DOE calculates
NES and NPV for each efficiency level as the difference between a base-
case forecast (without new standards) and the standards case forecast
(with standards). DOE determines 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 in
response to changes in product costs due to standards.
6. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (MIA) is to
identify and quantify the likely impacts of amended energy conservation
standards on manufacturers of residential furnaces. Using industry
research, public comments, and interviews with manufacturers and other
interested parties, DOE will analyze and consider a wide range of
quantitative and qualitative industry impacts that may occur due to
amended energy conservation standards. Based on the information
gathered during interviews and other research, DOE will assess impacts
on competition, manufacturing capacity, employment, and regulatory
burden.
7. Utility Impact Analysis
The utility impact analysis examines the effects of amended energy
conservation standards on the installed generation capacity of
electric, gas, and oil utilities. The utility impact analysis reports
the changes in installed capacity and generation between the base case
and the standards cases that result from each standard level by plant
type.
8. Environmental Impact Analysis
The purpose of the environmental impact analysis is to quantify and
consider the environmental effects of amended energy conservation
standards for furnaces. The environmental analysis will assess impacts
of amended energy conservation standards on the following types of
energy-related emissions--carbon dioxide (CO2), oxides of
nitrogen (NOX), sulfur dioxide (SO2), and mercury
(Hg). As part of the environmental impacts analysis, DOE plans to
monetize the benefits associated with emissions reductions using a
range of values.
9. Employment Analysis
The employment analysis will estimate indirect national job
creation or elimination resulting from possible standards. Indirect
employment impacts may result from expenditures shifting between goods
(the substitution effect) and changes in income and overall expenditure
levels (the income effect) that occur due to the standards. DOE defines
indirect employment impacts from standards as net jobs eliminated or
created in the general economy as a result of increased spending driven
by increased equipment prices and reduced spending on energy.
10. Regulatory Impact Analysis
The regulatory impact analysis addresses the potential for non-
regulatory approaches to supplant or augment energy conservation
standards in order to improve the energy efficiency or reduce the
energy consumption of the products covered under this rulemaking. DOE
will base its assessment on the actual impacts of any such initiatives
to date, but will also consider information presented regarding the
impacts that any existing initiative might have in the future.
11. Additional Supporting Analyses
DOE will also conduct several analyses that support the analyses
listed above, including the market and technology assessment and the
screening analysis, which contribute to the engineering analysis, and
the shipments analysis, which contributes to the NIA. DOE also conducts
an LCC subgroup analysis, which evaluates economic impacts on selected
groups of consumers who might be adversely affected by a change in the
national energy conservation standards for the considered products.
DOE further describes each analysis, including the methodologies,
key data sources, and issues for which DOE seeks public comment in the
RAP. The RAP is available at the Web address given in the SUMMARY
section of this notice.
DOE considers public participation to be a very important part of
the process for setting energy conservation standards. DOE actively
encourages the participation and interaction of the public during the
comment period in each stage of the rulemaking process. Beginning with
the NOPM, and during each subsequent public meeting and comment period,
interactions with and between members of the public provide a balanced
discussion of the issues to assist DOE in the standards rulemaking
process.
Accordingly, DOE encourages those who wish to participate in the
public meeting to obtain the RAP from DOE's Web site and to be prepared
to discuss its contents. A copy of the RAP 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 RAP. DOE is also interested in receiving views
concerning other relevant issues that participants believe would affect
energy
[[Page 12148]]
conservation standards for residential furnaces or that DOE should
address in the NOPR.
Furthermore, DOE welcomes all interested parties, regardless of
whether they participate in the public meeting, to submit in writing by
April 14, 2010, comments and information on matters addressed in the
RAP and on other matters relevant to consideration of standards for
residential furnaces.
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 February 22, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-5564 Filed 3-12-10; 8:45 am]
BILLING CODE 6450-01-P