Energy Conservation Standards for Distribution Transformers: Public Meeting and Availability of the Preliminary Technical Support Document, 11396-11399 [2011-4607]
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Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules
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minimal amount of burden on society to
obtain regulatory objectives. The
Executive Order also emphasizes the
importance of meaningful public
participation in the rulemaking process,
and encourages agencies to increase
their use of online technologies to
simplify and facilitate participation for
all stakeholders. Executive Order 13563
also requires agencies to coordinate,
simplify, and harmonize regulations to
reduce costs and promote certainty for
businesses and the public.
The Executive Order recognizes that
these principles should not only guide
the federal government’s approach to
new regulations, but to existing ones as
well. To that end, agencies are required
to review existing significant regulations
to determine if they are outmoded,
ineffective, insufficient or excessively
burdensome. Executive Order 13563
also requires that each agency develop
and submit to the Office of Management
and Budget’s Office of Information and
Regulatory Affairs a preliminary plan
for periodically reviewing existing
significant regulations to determine
whether they should be modified,
streamlined, expanded, or repealed so
as to make the agency’s regulatory
program more effective or less
burdensome in achieving regulatory
objectives.
II. This Notice—HUD’s Implementation
of Executive Order 13563
Through this notice, HUD announces
several steps that it is undertaking to
comply with the regulatory review
requirements of Executive Order 13563.
The steps announced in this notice will
help HUD to ensure that its regulations
are updated and remain necessary, are
properly tailored, and effectively
achieve regulatory objectives without
imposing unwarranted costs.
First, pursuant to the Executive Order,
HUD is developing a preliminary plan
for periodically analyzing existing
significant regulations. Consistent with
the principles articulated in the
Executive Order, and HUD’s
commitment to public participation in
the rulemaking process, HUD is
beginning this process by soliciting
views from the public on defined
methods for identifying rules that may
be obsolete, unnecessary, unjustified,
excessively burdensome, or
counterproductive. HUD intends for its
preliminary plan to include an initial
list of candidate rules for review.
Accordingly, HUD also seeks
suggestions for specific current
regulations that may be outmoded,
ineffective, or excessively burdensome,
and therefore should be included on the
list.
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HUD has also established an e-mail
inbox at RegulatoryReview@hud.gov
which interested parties may use, on an
ongoing basis, to identify regulations
that may be in need of review. The
email box may also be used for the
submission of comments in response to
this notice. Irrespective of how they are
submitted, HUD will make all
comments received in response to this
notice publicly available on https://
www.regulations.gov. Please see the
ADDRESSES section of this notice for
additional information regarding the
submission of comments.
5. Are there any HUD regulatory
requirements that have been overtaken
by technological developments? Can
new technologies be used to modify,
streamline, or do away with these
requirements?
6. Are there any existing HUD
requirements that duplicate or conflict
with requirements of another Federal
agency? Can the requirement be
modified to eliminate the conflict?
7. Are there HUD regulations that are
working well and that can be expanded
or used as a model for other HUD
programs?
III. Issues for Public Comment
The following is the list of topics on
which HUD specifically seeks
comments. The topics represent a
preliminary attempt to identify issues
raised by HUD’s effort to develop a
preliminary plan for the retrospective
analysis of its regulations and to
identify regulations on which it should
focus. With regards to specific existing
regulations, HUD is particularly
interested in receiving comments on
regulations that have been in effect for
a sufficient amount of time to warrant
a fair evaluation. Comments should
reference a specific regulation by
citation to the Code of Federal
Regulations, and provide information on
the perceived problem and the rationale
for any recommended solution.
Commenters should focus on rule
changes that will achieve a broad public
impact, rather than an individual
personal or corporate benefit.
This is a non-exhaustive list that is
meant to assist in the formulation of
comments and is not intended to limit
the issues that commenters may choose
to address.
1. How can HUD best obtain and
consider accurate, objective information
and data about the cost, burdens, and
benefits of existing regulations? Are
there existing sources of data available
that HUD can use to evaluate the effects
of its regulations over time?
2. What factors should HUD use to
select and prioritize rules and reporting
requirements for review?
3. Are there any specific existing HUD
regulatory requirements that are illadvised or so burdensome as to merit
elimination?
4. Are there any specific existing HUD
regulatory requirements that, while
necessary, are ineffective and in need of
streamlining or other modification to
achieve their objectives? Why are these
requirements ineffective—are they
unnecessarily complicated,
burdensome, or outdated? What changes
to the regulations would increase their
usefulness and meet HUD’s objectives?
Dated: February 22, 2011.
Helen R. Kanovsky,
General Counsel.
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[FR Doc. 2011–4563 Filed 3–1–11; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE–2010–BT–STD–0048]
RIN 1904–AC04
Energy Conservation Standards for
Distribution Transformers: Public
Meeting and Availability of the
Preliminary Technical Support
Document
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and
availability of preliminary technical
support document.
AGENCY:
The U.S. Department of
Energy (DOE or Department) will hold
a public meeting to discuss and receive
comments on the following issues: The
equipment classes DOE plans to analyze
for the purpose of considering the
amendment of energy conservation
standards for distribution transformers;
the analytical framework, models, and
tools DOE is using to evaluate standards
for this type of equipment; the results of
preliminary analyses performed by DOE
for this equipment; and potential energy
conservation standard levels derived
from these analyses that DOE could
consider for this equipment. DOE also
encourages interested parties to submit
written comments on these subjects. To
inform stakeholders and facilitate the
public meeting and comment process,
DOE has prepared an agenda, a
preliminary technical support document
(TSD), and briefing materials, which are
available at: https://
www.eere.energy.gov/buildings/
appliance_standards/commercial/
distribution_transformers.html.
SUMMARY:
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Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules
The Department will hold a
public meeting on Tuesday, April 5,
2011, 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., Tuesday, March 29, 2011. Written
comments are welcome, especially
following the public meeting, and
should be submitted by April 18, 2011.
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 the notice title,
the Notice of Public Meeting (NOPM)
for Energy Conservation Standards for
Distribution Transformers, and provide
the docket number EERE–2010–BT–
STD–0048 and/or regulatory
information number (RIN) 1904–AC04.
Comments may be submitted using any
of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: DistributionTransformers2010-STD-0048@ee.doe.gov. Include
EERE–2010–BT–STD–0048 and/or RIN
1904–AC04 in the subject line of the
message.
• Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J,
Public Meeting for Distribution
Transformers, EERE–2010–BT–STD–
0048 and/or RIN 1904–AC04, 1000
Independence Avenue, SW.,
Washington, DC 20585–0121. Phone:
(202) 586–2945. Please submit one
signed paper original.
• Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, 6th
Floor, 950 L’Enfant Plaza, SW.,
Washington, DC 20024. Phone: (202)
586–2945. Please submit one signed
paper original.
Instructions: All submissions received
must include the agency name and
docket number or RIN for this proposed
rulemaking.
Docket: For access to the docket to
read background documents, a copy of
the transcript of the public meeting, or
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DATES:
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comments received, go to the U.S.
Department of Energy, 6th Floor, 950
L’Enfant Plaza, SW., Washington, DC
20024, between 9 a.m. and 4 p.m.,
Monday through Friday, except Federal
holidays. Please call Ms. Brenda
Edwards for additional information
regarding visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT: Mr.
Jim Raba, 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) 586–8654. E-mail:
Jim.Raba@ee.doe.gov.
Ms. Jennifer Tiedeman, U.S.
Department of Energy, Office of the
General Counsel, GC–71, 1000
Independence Avenue, SW.,
Washington, DC 20585. Telephone:
(202) 287–6111. E-mail:
mailto:Jennifer.Tiedeman@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Statutory Authority
II. History of Standards Rulemaking for
Distribution Transformers
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by
the U.S. Department of Energy
A. Engineering Analysis
B. Markups to Determine Equipment Prices
C. Energy Use Analysis
D. Life-Cycle Cost and Payback Period
Analyses
E. National Impact Analysis
I. Statutory Authority
Title III, Part C of the Energy Policy
and Conservation Act of 1975 (EPCA),
Public Law 94–163 (42 U.S.C. 6311–
6317, as codified), added by Public Law
95–619, Title IV, § 441(a), established
the Energy Conservation Program for
Certain Industrial Equipment, a program
covering distribution transformers, the
focus of this notice.1 EPCA, as amended
by the Energy Policy Act of 1992, Public
Law 102–486, directs the U.S.
Department of Energy (DOE or the
Department) to prescribe energy
conservation standards for those
distribution transformers for which the
Secretary of Energy (Secretary)
determines that standards ‘‘would be
technologically feasible and
economically justified, and would result
in significant energy savings.’’ (42 U.S.C.
6317(a)) As discussed below in section
II.A, DOE issued a final rule that
prescribed standards for distribution
transformers. 72 FR 58190 (October 12,
1 For editorial reasons, upon codification in the
U.S. Code, Part C was re-designated Part A–1.
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2007) (the 2007 final rule); see 10 CFR
431.196(b)–(c).
Following the 2007 final rule, several
interested parties filed petitions alleging
that DOE’s environmental assessment,
conducted for the rulemaking, failed to
address employment impacts, the value
of reduced carbon dioxide emissions,
and impacts on the price of energy, as
required by the National Environmental
Policy Act of 1969. Under the terms of
a settlement agreement dated July 10,
2009, DOE is required to review the
standards for liquid-immersed and
medium-voltage dry-type (MVDT)
distribution transformers and publish,
no later than October 1, 2011, in the
Federal Register either a determination
that standards for these products do not
need to be amended, or a notice of
proposed rulemaking including any new
proposed standards for these products.
If it is determined that an amendment
to the standards is warranted, DOE is
required to publish a final rule in the
Federal Register no later than October
1, 2012.
Before DOE amends any standard for
distribution transformers, however, it
must first solicit comments on a
proposed standard. Moreover, DOE will
design each standard for this equipment
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(a)
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 customers of equipment
subject to the standard;
2. The savings in operating costs
throughout the estimated average life of the
covered equipment in the type (or class)
compared to any increase in the price, initial
charges, or maintenance expenses for the
covered equipment 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 equipment 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 considers
relevant.
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Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules
(42 U.S.C. 6295(o)(2)(B)(i) and 6316(a))
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. With
this notice, DOE is announcing the
availability of the preliminary technical
support document (preliminary (TSD)),
which details the preliminary analyses
and summarizes 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.
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II. History of Standards Rulemaking for
Distribution Transformers
The following sections provide a brief
summary of DOE’s rulemaking activities
for distribution transformer energy
conservation standards.
A. Background
DOE published a final rule in October
2007 that established energy
conservation standards for liquidimmersed and MVDT distribution
transformers. 72 FR 58190 (October 12,
2007); see 10 CFR 431.196(b)–(c).
During the course of that rulemaking,
the Energy Policy Act of 2005 (EPACT
2005), Public Law 109–58, amended
EPCA to set standards for low-voltage
dry-type (LVDT) distribution
transformers. (EPACT 2005, Section
135(c); codified at 42 U.S.C. 6295(y))
Consequently, DOE removed these
transformers from the scope of that
rulemaking. 72 FR at 58191 (October 12,
2007).
After publication of the 2007 final
rule, certain parties filed petitions for
review in the United States Courts of
Appeals for the Second and Ninth
Circuits, challenging the final rule, and
several additional parties were
permitted to intervene in support of
these petitions. (All of these parties are
referred to below collectively as
‘‘petitioners.’’) The petitioners alleged
that, in developing energy conservation
standards for distribution transformers,
DOE did not comply with certain
applicable provisions of EPCA and of
the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4321 et seq.
DOE and the petitioners subsequently
entered into a settlement agreement to
resolve that litigation. The settlement
agreement outlined an expedited
timeline for the Department to
determine whether to amend the energy
conservation standards for liquidimmersed and MVDT distribution
transformers. Under the terms of the
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settlement agreement, DOE must
publish by October 1, 2011 either a
determination that the standards for
these distribution transformers do not
need to be amended or a notice of
public rulemaking (NOPR) that includes
any new proposed standards and that
meets all applicable requirements of
EPCA and NEPA. If DOE finds that
amended standards are warranted, DOE
must publish a final rule containing
such amended standards by October 1,
2012. This notice is the Department’s
first step in satisfying the requirements
of the settlement agreement.
B. Current Rulemaking Process
DOE is initiating this rulemaking at
the preliminary analysis stage rather
than the framework document stage. In
considering new or amended standards
for a given product or type of
equipment, DOE’s historic practice,
generally, is to publish a framework
document as the first step in the
rulemaking process, and to
subsequently issue a preliminary TSD
that contains the Department’s
preliminary analyses as to potential
standards. The framework document
generally advises interested parties of
the analytical methods, data sources,
and key assumptions DOE plans to use
in considering the adoption of standards
for the product or equipment type.
Typically the document does not
contain any analysis of the data.
On November 16, 2010, DOE
announced a number of steps meant to
streamline its regulatory process.
Among these measures was the concept
that, in appropriate circumstances, DOE
might forego certain preliminary stages
of the rulemaking process and gather
data in more efficient ways. Because the
previous rulemaking to develop
standards for distribution transformers
was completed in 2007, DOE has a set
of methodologies, data sources and
assumptions that have recently been
vetted and revised according to public
comments that the Department can use
to perform the analyses needed for this
rulemaking. Therefore, while DOE will
conduct the analyses referenced by the
petitioners’ complaint and required by
EPCA and NEPA according to standard
practices for energy conservation
standard rulemakings, DOE is not
issuing a framework document for this
rulemaking. Rather, DOE is initiating
this rulemaking at the preliminary
analysis stage and has prepared a
preliminary TSD about which it is
requesting comment.
At present, DOE plans to examine in
this rulemaking amended standards for
LVDT distribution transformers, as well
as amended standards for liquid-
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immersed and MVDT transformers. DOE
is not required to consider LVDT
distribution transformers as part of the
settlement agreement. As such, DOE
may subsequently opt to conduct a
separate rulemaking for LVDT
transformers with a different timeline.
However, the preliminary analysis
considers LVDT distribution
transformers along with liquidimmersed and MVDT distribution
transformers.
III. Summary of the Analyses
Performed by the U.S. Department of
Energy
For each type of equipment under
consideration in this rulemaking, DOE
conducted in-depth technical analyses
in the following areas: (1) Engineering,
(2) markups to determine equipment
price, (3) energy use, (4) life-cycle cost
(LCC) and payback period (PBP)
analyses, and (5) national impact
analysis (NIA). The preliminary TSD
presents the methodology and results of
each of these analyses. It 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
aforementioned analyses or are
preliminary analyses that will be
expanded upon for the NOPR. 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 completed
preliminary work on the manufacturer
impact analysis (MIA) and identified the
methods to be used for the LCC
subgroup analysis, the environmental
assessment, the employment impact
analysis, the regulatory impact analysis,
and the utility impact analysis. DOE
will expand on these analyses in the
NOPR. In conducting these analyses,
DOE will specifically consider
employment impacts, the value of
reduced carbon dioxide emissions,
impacts on the price of energy, and
cumulative climate change impacts,
which were the focus of the petitioners’
complaint from the previous
rulemaking.
A. Engineering Analysis
The engineering analysis establishes
the relationship between the cost and
efficiency of the equipment DOE is
evaluating. This relationship serves as
the basis for cost-benefit calculations for
individual customers, manufacturers,
and the nation. The engineering analysis
identifies representative baseline
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Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules
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 equipment currently
offered for sale. The baseline model in
each equipment class represents the
characteristics of the least efficient
equipment in that class and, for
equipment already subject to energy
conservation standards, usually is a
model that just meets the current
standard. Chapter 5 of the preliminary
TSD discusses the engineering analysis.
B. Markups To Determine Equipment
Prices
DOE derives customer prices for
equipment from data on manufacturer
costs, manufacturer markups, retailer
markups, distributor markups, and sales
taxes. In deriving these markups, DOE
has determined (1) The distribution
channels for equipment sales; (2) the
markup associated with each party in
the distribution chain; and (3) the
existence and magnitude of differences
between markups for baseline
equipment (baseline markups) and for
more efficient equipment (incremental
markups). DOE calculates both overall
baseline and overall incremental
markups based on the equipment
markups at each step in the distribution
chain. 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. Chapter 6 of the preliminary TSD
discusses estimating markups.
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C. Energy Use Analysis
The energy use analysis provides
estimates of the annual energy
consumption of distribution
transformers. DOE uses these values in
the LCC and PBP analyses and in the
NIA. DOE developed energy
consumption estimates for all
equipment analyzed in the engineering
analysis and for those non-analyzed
equipment classes included in the NIA.
Chapter 7 of the preliminary TSD
discusses the energy use analysis.
D. Life-Cycle Cost and Payback Period
Analyses
The LCC and PBP analyses determine
the economic impact of potential
standards on individual customers. The
LCC is the total customer expense for
equipment over the life of the
equipment. The LCC analysis compares
the LCCs of equipment designed to meet
possible energy conservation standards
with the LCCs of the equipment likely
to be installed in the absence of
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amended standards. DOE determines
LCCs by considering (1) Total or
incremental 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 equipment (energy use
and maintenance); (3) expected
equipment lifetime; and (4) a discount
rate that reflects the real consumer cost
of capital and puts the LCC in presentvalue terms. The PBP is the number of
years needed to recover the increase in
purchase price (including installation
cost) of more efficient equipment
through savings in the operating cost of
the equipment. It is the quotient of the
change in total installed cost due to
increased efficiency divided by the
change in annual operating cost from
increased efficiency. Chapter 8 of the
preliminary TSD discusses the LCC and
PBP analyses.
E. National Impact Analysis
The NIA estimates the national energy
savings (NES) and the net present value
(NPV) of total customer costs and
savings expected to result from
amended standards at specific efficiency
levels. DOE calculated NES and NPV for
each candidate standard level as the
difference between a base case forecast
(without amended standards) and the
standards case forecast (with standards
at that particular level). Cumulative
energy savings are the sum of the annual
NES determined over a specified
analysis 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,
estimated equipment lifetimes, and
estimates of changes in shipments in
response to changes in equipment costs
due to standards. Chapter 10 of the
preliminary TSD discusses 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. The final rule
will contain the final analysis results.
The Department 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
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TSD. The Department is also interested
in receiving views concerning other
relevant issues that participants believe
would affect energy conservation
standards for this equipment or that
DOE should address in the NOPR.
Furthermore, the Department invites
all interested parties, regardless of
whether they participate in the public
meeting, to submit in writing by April
18, 2011, comments and information on
matters addressed in the preliminary
TSD and on other matters relevant to
consideration of standards for
distribution transformers.
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, the Department will
consider all comments and additional
information that it obtains from
interested parties or through further
analyses. Afterwards, the Department
will publish either a determination that
the standards for distribution
transformers need not be amended or a
NOPR proposing to amend those
standards. Any NOPR will include
proposed energy conservation standards
for the equipment covered by this
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 23,
2011.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and
Renewable Energy.
[FR Doc. 2011–4607 Filed 3–1–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 73
[Docket No. FAA–2011–0104; Airspace
Docket No. 11–AEA–2]
Proposed Amendment to and
Establishment of Restricted Areas,
Warren Grove; NJ
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
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]]>Agencies
[Federal Register Volume 76, Number 41 (Wednesday, March 2, 2011)]
[Proposed Rules]
[Pages 11396-11399]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4607]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2010-BT-STD-0048]
RIN 1904-AC04
Energy Conservation Standards for Distribution Transformers:
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 U.S. Department of Energy (DOE or Department) will hold a
public meeting to discuss and receive comments on the following issues:
The equipment classes DOE plans to analyze for the purpose of
considering the amendment of energy conservation standards for
distribution transformers; the analytical framework, models, and tools
DOE is using to evaluate standards for this type of equipment; the
results of preliminary analyses performed by DOE for this equipment;
and potential energy conservation standard levels derived from these
analyses that DOE could consider for this equipment. DOE also
encourages interested parties to submit written comments on these
subjects. To inform stakeholders and facilitate the public meeting and
comment process, DOE has prepared an agenda, a preliminary technical
support document (TSD), and briefing materials, which are available at:
https://www.eere.energy.gov/buildings/appliance_standards/commercial/distribution_transformers.html.
[[Page 11397]]
DATES: The Department will hold a public meeting on Tuesday, April 5,
2011, 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., Tuesday, March 29, 2011. Written comments are welcome,
especially following the public meeting, and should be submitted by
April 18, 2011.
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 the notice
title, the Notice of Public Meeting (NOPM) for Energy Conservation
Standards for Distribution Transformers, and provide the docket number
EERE-2010-BT-STD-0048 and/or regulatory information number (RIN) 1904-
AC04. Comments may be submitted using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: DistributionTransformers-2010-STD-0048@ee.doe.gov.
Include EERE-2010-BT-STD-0048 and/or RIN 1904-AC04 in the subject line
of the message.
Mail: Ms. Brenda Edwards, U.S. Department of Energy,
Building Technologies Program, Mailstop EE-2J, Public Meeting for
Distribution Transformers, EERE-2010-BT-STD-0048 and/or RIN 1904-AC04,
1000 Independence Avenue, SW., Washington, DC 20585-0121. Phone: (202)
586-2945. Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, 6th Floor, 950 L'Enfant
Plaza, SW., Washington, DC 20024. Phone: (202) 586-2945. Please submit
one signed paper original.
Instructions: All submissions received must include the agency name
and docket number or RIN for this proposed rulemaking.
Docket: For access to the docket to read background documents, a
copy of the transcript of the public meeting, or comments received, go
to the U.S. Department of Energy, 6th Floor, 950 L'Enfant Plaza, SW.,
Washington, DC 20024, between 9 a.m. and 4 p.m., Monday through Friday,
except Federal holidays. Please call Ms. Brenda Edwards for additional
information regarding visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT: Mr. Jim Raba, 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) 586-8654. E-mail: Jim.Raba@ee.doe.gov.
Ms. Jennifer Tiedeman, U.S. Department of Energy, Office of the
General Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC
20585. Telephone: (202) 287-6111. E-mail:
mailto:Jennifer.Tiedeman@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Statutory Authority
II. History of Standards Rulemaking for Distribution Transformers
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by the U.S. Department of
Energy
A. Engineering Analysis
B. Markups to Determine Equipment Prices
C. Energy Use Analysis
D. Life-Cycle Cost and Payback Period Analyses
E. National Impact Analysis
I. Statutory Authority
Title III, Part C of the Energy Policy and Conservation Act of 1975
(EPCA), Public Law 94-163 (42 U.S.C. 6311-6317, as codified), added by
Public Law 95-619, Title IV, Sec. 441(a), established the Energy
Conservation Program for Certain Industrial Equipment, a program
covering distribution transformers, the focus of this notice.\1\ EPCA,
as amended by the Energy Policy Act of 1992, Public Law 102-486,
directs the U.S. Department of Energy (DOE or the Department) to
prescribe energy conservation standards for those distribution
transformers for which the Secretary of Energy (Secretary) determines
that standards ``would be technologically feasible and economically
justified, and would result in significant energy savings.'' (42 U.S.C.
6317(a)) As discussed below in section II.A, DOE issued a final rule
that prescribed standards for distribution transformers. 72 FR 58190
(October 12, 2007) (the 2007 final rule); see 10 CFR 431.196(b)-(c).
---------------------------------------------------------------------------
\1\ For editorial reasons, upon codification in the U.S. Code,
Part C was re-designated Part A-1.
---------------------------------------------------------------------------
Following the 2007 final rule, several interested parties filed
petitions alleging that DOE's environmental assessment, conducted for
the rulemaking, failed to address employment impacts, the value of
reduced carbon dioxide emissions, and impacts on the price of energy,
as required by the National Environmental Policy Act of 1969. Under the
terms of a settlement agreement dated July 10, 2009, DOE is required to
review the standards for liquid-immersed and medium-voltage dry-type
(MVDT) distribution transformers and publish, no later than October 1,
2011, in the Federal Register either a determination that standards for
these products do not need to be amended, or a notice of proposed
rulemaking including any new proposed standards for these products. If
it is determined that an amendment to the standards is warranted, DOE
is required to publish a final rule in the Federal Register no later
than October 1, 2012.
Before DOE amends any standard for distribution transformers,
however, it must first solicit comments on a proposed standard.
Moreover, DOE will design each standard for this equipment 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(a) 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
customers of equipment subject to the standard;
2. The savings in operating costs throughout the estimated
average life of the covered equipment in the type (or class)
compared to any increase in the price, initial charges, or
maintenance expenses for the covered equipment 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 equipment 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 considers relevant.
[[Page 11398]]
(42 U.S.C. 6295(o)(2)(B)(i) and 6316(a))
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. With
this notice, DOE is announcing the availability of the preliminary
technical support document (preliminary (TSD)), which details the
preliminary analyses and summarizes 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.
II. History of Standards Rulemaking for Distribution Transformers
The following sections provide a brief summary of DOE's rulemaking
activities for distribution transformer energy conservation standards.
A. Background
DOE published a final rule in October 2007 that established energy
conservation standards for liquid-immersed and MVDT distribution
transformers. 72 FR 58190 (October 12, 2007); see 10 CFR 431.196(b)-
(c). During the course of that rulemaking, the Energy Policy Act of
2005 (EPACT 2005), Public Law 109-58, amended EPCA to set standards for
low-voltage dry-type (LVDT) distribution transformers. (EPACT 2005,
Section 135(c); codified at 42 U.S.C. 6295(y)) Consequently, DOE
removed these transformers from the scope of that rulemaking. 72 FR at
58191 (October 12, 2007).
After publication of the 2007 final rule, certain parties filed
petitions for review in the United States Courts of Appeals for the
Second and Ninth Circuits, challenging the final rule, and several
additional parties were permitted to intervene in support of these
petitions. (All of these parties are referred to below collectively as
``petitioners.'') The petitioners alleged that, in developing energy
conservation standards for distribution transformers, DOE did not
comply with certain applicable provisions of EPCA and of the National
Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq. DOE and
the petitioners subsequently entered into a settlement agreement to
resolve that litigation. The settlement agreement outlined an expedited
timeline for the Department to determine whether to amend the energy
conservation standards for liquid-immersed and MVDT distribution
transformers. Under the terms of the settlement agreement, DOE must
publish by October 1, 2011 either a determination that the standards
for these distribution transformers do not need to be amended or a
notice of public rulemaking (NOPR) that includes any new proposed
standards and that meets all applicable requirements of EPCA and NEPA.
If DOE finds that amended standards are warranted, DOE must publish a
final rule containing such amended standards by October 1, 2012. This
notice is the Department's first step in satisfying the requirements of
the settlement agreement.
B. Current Rulemaking Process
DOE is initiating this rulemaking at the preliminary analysis stage
rather than the framework document stage. In considering new or amended
standards for a given product or type of equipment, DOE's historic
practice, generally, is to publish a framework document as the first
step in the rulemaking process, and to subsequently issue a preliminary
TSD that contains the Department's preliminary analyses as to potential
standards. The framework document generally advises interested parties
of the analytical methods, data sources, and key assumptions DOE plans
to use in considering the adoption of standards for the product or
equipment type. Typically the document does not contain any analysis of
the data.
On November 16, 2010, DOE announced a number of steps meant to
streamline its regulatory process. Among these measures was the concept
that, in appropriate circumstances, DOE might forego certain
preliminary stages of the rulemaking process and gather data in more
efficient ways. Because the previous rulemaking to develop standards
for distribution transformers was completed in 2007, DOE has a set of
methodologies, data sources and assumptions that have recently been
vetted and revised according to public comments that the Department can
use to perform the analyses needed for this rulemaking. Therefore,
while DOE will conduct the analyses referenced by the petitioners'
complaint and required by EPCA and NEPA according to standard practices
for energy conservation standard rulemakings, DOE is not issuing a
framework document for this rulemaking. Rather, DOE is initiating this
rulemaking at the preliminary analysis stage and has prepared a
preliminary TSD about which it is requesting comment.
At present, DOE plans to examine in this rulemaking amended
standards for LVDT distribution transformers, as well as amended
standards for liquid-immersed and MVDT transformers. DOE is not
required to consider LVDT distribution transformers as part of the
settlement agreement. As such, DOE may subsequently opt to conduct a
separate rulemaking for LVDT transformers with a different timeline.
However, the preliminary analysis considers LVDT distribution
transformers along with liquid-immersed and MVDT distribution
transformers.
III. Summary of the Analyses Performed by the U.S. Department of Energy
For each type of equipment under consideration in this rulemaking,
DOE conducted in-depth technical analyses in the following areas: (1)
Engineering, (2) markups to determine equipment price, (3) energy use,
(4) life-cycle cost (LCC) and payback period (PBP) analyses, and (5)
national impact analysis (NIA). The preliminary TSD presents the
methodology and results of each of these analyses. It 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 aforementioned analyses or are preliminary analyses that will be
expanded upon for the NOPR. 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 completed preliminary
work on the manufacturer impact analysis (MIA) and identified the
methods to be used for the LCC subgroup analysis, the environmental
assessment, the employment impact analysis, the regulatory impact
analysis, and the utility impact analysis. DOE will expand on these
analyses in the NOPR. In conducting these analyses, DOE will
specifically consider employment impacts, the value of reduced carbon
dioxide emissions, impacts on the price of energy, and cumulative
climate change impacts, which were the focus of the petitioners'
complaint from the previous rulemaking.
A. Engineering Analysis
The engineering analysis establishes the relationship between the
cost and efficiency of the equipment DOE is evaluating. This
relationship serves as the basis for cost-benefit calculations for
individual customers, manufacturers, and the nation. The engineering
analysis identifies representative baseline
[[Page 11399]]
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
equipment currently offered for sale. The baseline model in each
equipment class represents the characteristics of the least efficient
equipment in that class and, for equipment already subject to energy
conservation standards, usually is a model that just meets the current
standard. Chapter 5 of the preliminary TSD discusses the engineering
analysis.
B. Markups To Determine Equipment Prices
DOE derives customer prices for equipment from data on manufacturer
costs, manufacturer markups, retailer markups, distributor markups, and
sales taxes. In deriving these markups, DOE has determined (1) The
distribution channels for equipment sales; (2) the markup associated
with each party in the distribution chain; and (3) the existence and
magnitude of differences between markups for baseline equipment
(baseline markups) and for more efficient equipment (incremental
markups). DOE calculates both overall baseline and overall incremental
markups based on the equipment markups at each step in the distribution
chain. 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. Chapter 6 of the preliminary TSD discusses estimating markups.
C. Energy Use Analysis
The energy use analysis provides estimates of the annual energy
consumption of distribution transformers. DOE uses these values in the
LCC and PBP analyses and in the NIA. DOE developed energy consumption
estimates for all equipment analyzed in the engineering analysis and
for those non-analyzed equipment classes included in the NIA. Chapter 7
of the preliminary TSD discusses the energy use analysis.
D. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses determine the economic impact of potential
standards on individual customers. The LCC is the total customer
expense for equipment over the life of the equipment. The LCC analysis
compares the LCCs of equipment designed to meet possible energy
conservation standards with the LCCs of the equipment likely to be
installed in the absence of amended standards. DOE determines LCCs by
considering (1) Total or incremental 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 equipment (energy use and maintenance); (3) expected
equipment lifetime; and (4) a discount rate that reflects the real
consumer cost of capital and puts the LCC in present-value terms. The
PBP is the number of years needed to recover the increase in purchase
price (including installation cost) of more efficient equipment through
savings in the operating cost of the equipment. It is the quotient of
the change in total installed cost due to increased efficiency divided
by the change in annual operating cost from increased efficiency.
Chapter 8 of the preliminary TSD discusses the LCC and PBP analyses.
E. National Impact Analysis
The NIA estimates the national energy savings (NES) and the net
present value (NPV) of total customer costs and savings expected to
result from amended standards at specific efficiency levels. DOE
calculated NES and NPV for each candidate standard level as the
difference between a base case forecast (without amended standards) and
the standards case forecast (with standards at that particular level).
Cumulative energy savings are the sum of the annual NES determined over
a specified analysis 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,
estimated equipment lifetimes, and estimates of changes in shipments in
response to changes in equipment costs due to standards. Chapter 10 of
the preliminary TSD discusses 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. The final rule
will contain the final analysis results.
The Department 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. The Department is also interested in
receiving views concerning other relevant issues that participants
believe would affect energy conservation standards for this equipment
or that DOE should address in the NOPR.
Furthermore, the Department invites all interested parties,
regardless of whether they participate in the public meeting, to submit
in writing by April 18, 2011, comments and information on matters
addressed in the preliminary TSD and on other matters relevant to
consideration of standards for distribution transformers.
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, the Department will consider all
comments and additional information that it obtains from interested
parties or through further analyses. Afterwards, the Department will
publish either a determination that the standards for distribution
transformers need not be amended or a NOPR proposing to amend those
standards. Any NOPR will include proposed energy conservation standards
for the equipment covered by this 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 23, 2011.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2011-4607 Filed 3-1-11; 8:45 am]
BILLING CODE 6450-01-P
