Energy Conservation Program: Energy Conservation Standards for Direct Heating Equipment, 43941-43953 [2011-18310]
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
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Section 236 under its authority to
protect ‘‘the common defense and
security.’’
The Staff believes that Option 1 does
not accomplish the objectives of
increasing the deterrence of malevolent
acts against NRC- and Agreement Stateregulated facilities, radioactive material,
nuclear material, or property. Option 2
is limited in scope to facilities or
installations with risk-significant
radioactive material and would not
provide the desired deterrent value of
consistent Federal criminal sanctions
for certain other nuclear material or
property, particularly during transport.
Because Section 236 offers greater
flexibility and greater capability for
punishment than Section 229, Option 3
would likely have a greater deterrent
value than Option 2. Option 3 would be
simpler for licensees, the NRC, and
Agreement States. Option 4
accomplishes the greatest increase in
deterrence.
III. Specific Questions
To assist the NRC in evaluating
whether additional rulemaking should
be undertaken to implement the
criminal penalty provisions of Sections
229 and 236 of the AEA, the NRC is
seeking stakeholder input on the
following specific questions:
Q1.1. Should the NRC conduct further
rulemaking to implement the authority
of Section 229 or Section 236 of the
AEA, or both?
Q1.2. Should the NRC forgo further
rulemaking and rely on State criminal
statutes (for both Agreement States and
non-Agreement States) to deter
individuals with malevolent intentions?
Why?
Q1.3. If the commenter’s view is that
the NRC should conduct a rulemaking,
which option for rulemaking is best?
Why? The available options (1 through
4) include no-action, rulemaking
implementing the authority of Section
229 alone, Section 236 alone, or both
Sections 229 and 236.
If a rulemaking is undertaken, the
NRC is also seeking stakeholder input
on the following questions:
Q2.1. Should the NRC include the
range of radioactive materials specified
in Appendix I to 10 CFR Part 73 in
quantities equal to or exceeding the
Category 2 threshold limits?
Q2.2. Alternatively, should the NRC
use a different list of radionuclides, or
different quantity limits? If so, what
does the commenter suggest? Why?
Q3.1. Should the NRC include the
waste materials recommended by the
NRC staff, specifically SNF from
production reactors and naval reactors?
These new requirements would apply
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only to activities regulated by the NRC,
not to facilities or activities regulated by
the U.S. Department of Energy.
Q3.2. Should the NRC include source
material in the form of UF6? This would
include both natural uranium and
depleted uranium but not SNM, which
is already covered as ‘‘nuclear fuel’’
under the current language of Section
236a.(3). Additionally, the NRC notes
that uranium conversion and fuel
fabrication facilities are already covered
under the current language of Section
236a.(4). Thus, adding source material
and depleted uranium in the form of
UF6 would allow for prosecution of
malevolent acts against these materials
while they are in transit.
Q3.3. Should the NRC include the
other property recommended by its
staff, specifically, classified enrichment
technology components? Since the
language of Section 236a.(4) currently
includes uranium enrichment facilities,
adding this classified material would
allow for the prosecution of malevolent
acts against classified enrichment
technology while these components are
in transit.
Q4.1. If the NRC conducts a
rulemaking to implement the authority
of Section 229 (Option 2), should it use
a ‘‘public health and safety’’ basis or a
‘‘common defense and security’’ basis?
Why? As noted above, the NRC is not
recommending further rulemaking using
the authority of Section 229; however,
the agency is seeking stakeholder views
on this issue.
Q4.2. If the NRC conducts a
rulemaking to implement the authority
of Section 236 (Option 3), should it use
a ‘‘public health and safety’’ basis or a
‘‘common defense and security’’ basis?
Why? As noted above, the NRC is
recommending conducting a rulemaking
to implement the authority of Section
236, using a ‘‘common defense and
security’’ basis; however, the agency is
seeking stakeholder views on this issue.
Q4.3. Should the NRC conduct a
rulemaking implementing the combined
authority of Sections 229 and 236
(Option 4), using either a ‘‘public health
and safety’’ basis or a ‘‘common defense
and security’’ basis? Why?
Q4.4. If the NRC conducts a
rulemaking implementing the authority
of Section 229, Section 236, or a
combination of both, and uses a ‘‘public
health and safety’’ basis, what is the
appropriate Agreement State
compatibility category for this
rulemaking? Why?
IV. Public Webinar
To facilitate the understanding of the
public and other stakeholders of these
issues and the submission of informed
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comments, the NRC staff is planning to
schedule a Webinar in August or
September, 2011. Participants must
register to participate in the Webinar.
Registration closes 1 day before the
Webinar. When the Webinar is
scheduled, registration information may
be found at the NRC’s public Web site
under the headings Public Meetings &
Involvement > Public Meeting
Schedule; see Web page https://
www.nrc.gov/public-involve/publicmeetings/index.cfm.
Dated this 8th day of July 2011.
For the Nuclear Regulatory Commission.
Michael C. Layton,
Acting Director, Division of Security Policy,
Office of Nuclear Security and Incident
Response.
[FR Doc. 2011–18608 Filed 7–21–11; 8:45 am]
BILLING CODE 7590–01–P
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE–2011–BT–STD–
0047]
RIN 1904–AC56
Energy Conservation Program: Energy
Conservation Standards for Direct
Heating Equipment
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of proposed rulemaking
and announcement of public meeting.
AGENCY:
The Energy Policy and
Conservation Act of 1975 (EPCA), as
amended, prescribes energy
conservation standards for various
consumer products and certain
commercial and industrial equipment,
including direct heating equipment. In
this notice, the U.S. Department of
Energy (DOE) proposes to amend its
definitions pertaining to direct heating
equipment. Specifically, DOE is
proposing to change to the definition of
‘‘vented hearth heater,’’ a type of direct
heating equipment, to clarify the scope
of the current exclusion for those vented
hearth heaters that are decorative hearth
products. The proposed modification to
the existing exclusion would shift the
focus from the current maximum input
capacity limitation (i.e., 9,000 Btu/h) to
a number of other factors, including the
absence of a standing pilot light or other
continuously burning ignition source.
DOE has tentatively concluded that
these amendments would result in
increased energy savings overall, as well
as for the types of units under the
exclusion. The notice also announces a
SUMMARY:
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
public meeting to receive comment on
these proposed amendments to the
definition for ‘‘vented hearth heater’’
and associated analyses and results.
DATES: DOE will hold a public meeting
on September 1, 2011 from 9 a.m. to
4 p.m., at DOE headquarters in
Washington, DC. The meeting will also
be broadcast as a webinar. See section
VII, ‘‘Public Participation,’’ for webinar
registration information, participant
instructions, and information about the
capabilities available to webinar
participants.
DOE will accept comments, data, and
information regarding this notice of
proposed rulemaking (NOPR) before and
after the public meeting, but no later
than September 20, 2011. See section V,
‘‘Public Participation,’’ for details.
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. To attend,
please notify Ms. Brenda Edwards at
(202) 586–2945. Please note that foreign
nationals visiting DOE Headquarters are
subject to advance security screening
procedures. Any foreign national
wishing to participate in the meeting
should advise DOE as soon as possible
by contacting Ms. Edwards to initiate
the necessary procedures. Please also
note that those wishing to bring laptops
into the Forrestal Building will be
required to obtain a property pass.
Visitors should avoid bringing laptops,
or allow an extra 45 minutes. Persons
can attend the public meeting via
webinar. For more information, refer to
the section V, ‘‘Public Participation,’’
near the end of this notice.
Any comments submitted must
identify the NOPR on Energy
Conservation Standards for Direct
Heating Equipment, and provide docket
number EERE–2011–BT–STD–0047
and/or regulatory information number
(RIN) 1904–AC56. 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: DHE–2011–STD–
0047@ee.doe.gov. Include Docket
Number EERE–2011–BT–STD–0047
and/or RIN 1904–AC56 in the subject
line of the message.
3. Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J,
1000 Independence Avenue, SW.,
Washington, DC 20585–0121. If
possible, please submit all items on a
compact disc (CD), in which case it is
not necessary to include printed copies.
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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. If possible, please
submit all items on a CD, in which case
it is not necessary to include printed
copies.
No telefacsimiles will be accepted.
Written comments regarding the
burden-hour estimates or other aspects
of the collection-of-information
requirements contained in this proposed
rule may be submitted to the Office of
Energy Efficiency and Renewable
Energy through the methods listed
above and by e-mail to Christine_J.
_Kymn@omb.eop.gov.
For detailed instructions on
submitting comments and additional
information on the rulemaking process,
see section V of this document (Public
Participation).
Docket: The docket is available for
review at https://www.regulations.gov,
including Federal Register notices,
public meeting attendee lists and
transcripts, comments, and other
supporting documents/materials. All
documents in the docket are listed in
the https://www.regulations.gov index.
However, not all documents listed in
the index may be publicly available,
such as information that is exempt from
public disclosure.
A link to the docket Web page can be
found at: https://www.regulations.gov/#
!docketDetail;dct=FR+PR+N+O
+SR+PS;rpp=250;so=DESC;sb=posted
Date;po=0;D=EERE–2011–BT–STD–
0047. This Web page contains a link to
the docket for this notice on the https://
www.regulations.gov site. The https://
www.regulations.gov Web page contains
simple instructions on how to access all
documents, including public comments,
in the docket. See section V, ‘‘Public
Participation,’’ for further information
on how to submit comments through
https://www.regulations.gov.
For further information on how to
submit a public comment, review other
public comments and the docket, or
participate in the public meeting,
contact Ms. Brenda Edwards at (202)
586–2945 or by e-mail:
Brenda.Edwards@ee.doe.gov.
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.
FOR FURTHER INFORMATION CONTACT:
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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) 586–9507. E-mail:
Eric.Stas@hq.doe.gov.
For information on how to submit or
review public comments, contact Ms.
Brenda Edwards, 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) 586–2945. E-mail:
Brenda.Edwards@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Summary of the Proposed Rule
II. History of the Energy Conservation
Standards Rulemaking and Current
Standards
III. Discussion
A. Scope of Coverage of Vented Hearth
Products
1. Description of Vented Hearth Products
2. Definitions for ‘‘Direct Heating
Equipment’’
a. Application to Vented Hearth Products
b. Application to Vented Gas Log Sets
B. Proposed Definition for ‘‘Vented Hearth
Heater’’
C. Description of Criteria for Classification
as Decorative Vented Hearth Products
D. National Energy Savings
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866
and 13563
B. Review Under the Regulatory Flexibility
Act
C. Review Under the Paperwork Reduction
Act of 1995
D. Review Under the National
Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates
Reform Act of 1995
H. Review Under the Treasury and General
Government Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General
Government Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Review Under the Information Quality
Bulletin for Peer Review
V. Public Participation
A. Attendance at the Public Meeting
B. Procedure for Submitting Prepared
General Statements for Distribution
C. Conduct of the Public Meeting
D. Submission of Comments
E. Issues on Which DOE Seeks Comment
VI. Approval of the Office of the Secretary
I. Summary of the Proposed Rule
Title III, Part B 1 of the Energy Policy
and Conservation Act of 1975 (EPCA or
the Act), Public Law 94–163 (42 U.S.C.
1 For editorial reasons, upon codification in the
U.S. Code, Part B was redesignated Part A.
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
6291–6309, as codified), established the
Energy Conservation Program for
Consumer Products Other Than
Automobiles, which includes the types
of direct heating equipment that are the
subject of this rulemaking. (42 U.S.C.
6292(a)(9)) Pursuant to EPCA, any new
or amended energy conservation
standard that DOE prescribes for certain
products, such as direct heating
equipment, 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, the
new or amended standard must result in
a significant conservation of energy. (42
U.S.C. 6295(o)(3)(B)). On April 16, 2010,
DOE published a final rule (hereafter
referred to as the April 2010 final rule)
in accordance with these statutory
provisions and other statutory
requirements discussed in the final rule,
which, in relevant part, promulgated
definitions and energy conservation
standards for vented gas hearth direct
heating equipment. 75 FR 20112.
In establishing the definitions
pertaining to direct heating equipment
in the April 2010 final rule, DOE
recognized the aesthetic appeal of
certain gas hearth products and
included a provision in its definition of
‘‘vented hearth heater’’ that considered
certain gas hearth products to be
decorative in nature, and excluded them
from having to comply with DOE’s
minimum energy conservation standard
otherwise applicable to vented gas
hearth direct heating equipment. The
April 2010 final rule did not address
vented gas log sets, which DOE also
considers decorative in nature. DOE
clarified its position on vented gas log
sets in a document published on DOE’s
Web site titled ‘‘Frequently Asked
Questions: ‘Vented Hearth Heater’
Definition.’’ 2 In this notice, DOE
proposes to further amend its
definitions pertaining to direct heating
equipment. Specifically, DOE is
proposing to amend its definition of
‘‘vented hearth heater’’ to modify the
conditions contained in the existing
definition for the subset of such
products to be considered decorative in
nature and, therefore, not subject to the
DOE’s minimum energy conservation
standards for vented hearth heaters. In
addition, DOE is proposing to include
vented gas log sets in the definition of
‘‘vented hearth heater,’’ and to add a
similar set of criteria for exclusion for
vented gas log sets. DOE has tentatively
2 This document is available on DOE’s Web site
at: https://www1.eere.energy.gov/buildings/
appliance_standards/residential/pdfs/
htgp_finalrule_faq.pdf.
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concluded that vented gas log sets
warrant similar treatment to vented
hearth products, due to the similarities
between the two types of products. Both
provide heat and aesthetic appeal for
consumers, and they have certain
similar characteristics, such as the
presence of a flame and ceramic logs.
The definition of ‘‘vented hearth heater’’
in the April 2010 final rule stated that
‘‘[t]hose heaters with a maximum input
capacity less than or equal to 9,000
British thermal units per hour (Btu/h),
as measured using DOE’s test procedure
for vented home heating equipment (10
CFR Part 430, subpart B, appendix O),
are considered purely decorative and
are excluded from DOE’s regulations.’’
75 FR 20112, 20234 (April 16, 2010). In
this notice, DOE proposes to amend the
definition for ‘‘vented hearth heater’’ to
base the exclusion for decorative vented
hearth products and vented gas log sets
on several criteria, including the
American National Standards Institute
(ANSI) standard to which the product is
certified. The proposed amended
definition reads as set forth in the
amendment to 10 CFR 430.2 later in this
proposed rule.
DOE believes the amended definition
of ‘‘vented hearth heater’’ would
provide benefits to both consumers and
the gas hearth products industry in
terms of energy savings and product
choice, by allowing manufacturers to
continue to offer decorative hearth
products across a broad range of input
ratings, rather than limiting decorative
hearth products to input ratings below
the current limitation of 9,000 Btu/h. By
eliminating the use of standing pilot
lights in all decorative vented gas hearth
products and vented gas log sets
beginning on July 1, 2014, DOE believes
the amended definition would result in
a significant increase in overall energy
savings, including those types of units
eligible for the decorative products
exclusion. At the same time, this
proposal would lessen the impacts and
burden on manufacturers of vented
hearth heaters, while promoting a
variety of available models for
consumers. For vented gas log sets, the
proposal would keep their treatment
consistent with decorative vented
hearth products, and would result in
substantial energy savings. DOE
estimates that the elimination of
standing pilot lights in decorative
vented hearth heater products and
vented gas log sets would result in an
additional 0.12 quads of additional
energy savings over the 30-year period
from 2014 through 2043, beyond those
savings already achieved by the April
2010 final rule. Manufacturers who
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43943
choose not to avail themselves of the
exclusion would be subject to the
energy conservation standards for
vented hearth heaters promulgated in
the April 2010 final rule.
Therefore, DOE has tentatively
concluded that the proposed amended
definition of ‘‘vented hearth heater’’
would improve the existing definitions
pertaining to direct heating equipment
and further clarify the scope of the
current exclusion from the energy
conservation standards for those vented
hearth heaters that are decorative hearth
products. In addition, the proposal
would result in significant additional
energy savings, preserve consumer
choice, and reduce the burden on
industry. For these reasons, DOE has
tentatively concluded that the proposed
amendments to DOE’s definition of
‘‘vented hearth heater’’ would provide
substantial benefits that outweigh the
burden of the new requirements for
products to be considered decorative
hearth products, and accordingly, DOE
proposes to adopt them in this notice.
DOE’s rationale is presented in further
detail immediately below.
II. History of the Energy Conservation
Standards Rulemaking and Current
Standards
Prior to being amended in 1987, EPCA
included home heating equipment as
covered products. The amendments to
EPCA effected by the National
Appliance Energy Conservation Act of
1987 (NAECA; Pub. L. 100–12) included
replacing the term ‘‘home heating
equipment’’ with ‘‘direct heating
equipment,’’ establishing standards for
the direct heating equipment, and
requiring that DOE determine whether
these standards should be amended. (42
U.S.C. 6295(e)(3)–(4)) Nowhere in the
statute is the term ‘‘direct heating
equipment’’ defined. DOE amended the
statutorily-prescribed standards for
direct heating equipment for the first
time in a final rule published on April
16, 2010 (i.e., the April 2010 final rule),
which prescribed the current energy
conservation standards for direct
heating equipment manufactured on or
after April 16, 2013. 75 FR 20112. Of
particular relevance here, the April 2010
final rule created a definition for
‘‘vented hearth heater,’’ established
product classes for gas hearth direct
heating equipment (i.e., vented hearth
heaters), and amended the minimum
standards for direct heating equipment,
including gas hearth direct heating
equipment. The April 2010 final rule
defined ‘‘vented hearth heater’’ at 10
CFR 430.2.
In addition, the April 2010 final rule
amended the definition of ‘‘vented
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thereby making it difficult to
differentiate between the two types of
hearth products. DOE notes that the
primary difference between the two
types of vented hearth heaters is that
decorative units provide ambiance and
aesthetic utility associated with a solid
fuel (e.g., wood-burning) fireplace in
addition to heat output to the living
space, whereas heating hearth products
tend to focus on providing heat to the
living space. Products intended for use
TABLE II.1—FEDERAL ENERGY EFFI- as a heater are often shipped with or
CIENCY
STANDARDS FOR GAS designed to be easily retrofitted with
HEARTH DIRECT HEATING EQUIP- additional accessories that decorative
products do not have, such as
MENT
thermostats to control the heat output.
Standard level However, DOE research has shown that
such accessories are typically optional
(Compliance
Product class
date:
and, thus, not definitive in
4/16/2013)
distinguishing between heaters and
decorative units. To be clear, all vented
Gas hearth up to 20,000 Btu/
h ........................................ AFUE* = 61% hearth products constitute direct
heating equipment where a gasGas hearth over 20,000 Btu/
h and up to 27,000 Btu/h ..
AFUE = 66% consuming device is inserted into the
residential living space, but DOE
Gas hearth over 27,000 Btu/
h and up to 46,000 Btu/h ..
AFUE = 67% believes that today’s proposal to modify
Gas hearth over 46,000 Btu/
the exclusion for decorative hearth
h ........................................
AFUE = 68% products strikes an appropriate balance
between energy savings and consumer
* Annual Fuel Utilization Efficiency.
choice for such units.
Following DOE’s adoption of the
2. Definitions for ‘‘Direct Heating
April 2010 final rule, the Hearth, Patio
Equipment’’
& Barbecue Association (HPBA) sued
DOE in the United States Court of
As discussed in section II above,
Appeals for the District of Columbia
before the enactment of NAECA, EPCA
Circuit to invalidate the rule as it
included ‘‘home heating equipment’’ in
pertained to vented gas hearth products. DOE’s appliance standards program.
Statement of Issues to Be Raised,
EPCA did not define ‘‘home heating
Hearth, Patio, & Barbecue Association v. equipment,’’ however. NAECA’s
Department of Energy, et al., No. 10–
amendments to EPCA replaced the term
1113 (DC Cir. filed June 1, 2010).
‘‘home heating equipment’’ with ‘‘direct
Litigation is pending; however, if this
heating equipment,’’ and specified
rule is adopted as proposed, it may
energy conservation standards for
make it unnecessary for the Court to
‘‘direct heating equipment,’’ but once
resolve some of the issues surrounding
again, the statute did not define the term
the April 2010 final rule.
‘‘direct heating equipment.’’ In the
absence of an unambiguous statutory
III. Discussion
definition, DOE has discretion to
establish a reasonable regulatory
A. Scope of Coverage of Vented Hearth
definition. With that said, Congress’s
Products
use of such broad terminology signals
1. Description of Vented Hearth
that the definition is open to
Products
accommodate future technological
Vented hearth products include gaschanges in the marketplace in keeping
fired products such as fireplaces,
with DOE’s energy-saving mandate
fireplace inserts, stoves, and log sets
under EPCA.
that typically include aesthetic features
Prior to the April 2010 final rule, DOE
(e.g., yellow flame, large flame) and that had previously defined ‘‘home heating
provide space heating. A vented hearth
equipment’’ and related terms in its
product can be intended to be a used as
regulations, which can be found at 10
only a heating appliance or as a heat
CFR 430.2. In the April 2010 final rule,
source with an aesthetic appeal.
DOE added a new definition of ‘‘direct
Characteristic of this duality of purpose, heating equipment,’’ defining the term
units designed as a heating appliance
in the same manner that it had
and those units that also have a
previously defined home heating
decorative nature often share very
equipment. 75 FR 20112, 20128, 20234
similar external appearances, unit
(April 16, 2010). DOE defines both
construction, and input capacities,
‘‘home heating equipment’’ and ‘‘direct
srobinson on DSK4SPTVN1PROD with PROPOSALS
home heating equipment or vented
heater’’ to include vented hearth
heaters, along with the other types of
heaters (i.e., vented wall furnace, vented
floor furnace, and vented room heater)
that were already defined as vented
home heating equipment.
The amended standards established in
the April 2010 final rule for gas hearth
direct heating equipment are set forth in
Table II.1.
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heating equipment’’ as meaning ‘‘vented
home heating equipment and unvented
home heating equipment.’’ In its
definitions at 10 CFR 430.2, DOE goes
on to define both ‘‘vented home heating
equipment’’ and ‘‘unvented home
heating equipment.’’ Prior to being
amended in the April 2010 final rule,
the definition of ‘‘vented home heating
equipment,’’ relevant here, read as
published in 10 CFR Parts 400–499,
revised as of January 1, 2010.
a. Application to Vented Hearth
Products
In the April 2010 final rule, DOE
concluded that vented hearth products
(i.e., gas-fired products such as
fireplaces, fireplace inserts, stoves, and
log sets) meet its definition of ‘‘vented
home heating equipment,’’ because their
designs furnish warmed air to the living
space of a residence. DOE also
concluded, therefore, that they are
covered products under EPCA and are
properly classified as direct heating
equipment. 75 FR 20112, 20128 (April
16, 2010). Accordingly, DOE adopted a
new definition of ‘‘vented hearth
heater’’ and amended its definition of
‘‘vented home heating equipment or
vented heater’’ to explicitly include
vented hearth heaters, reading as
published at 10 CFR 430.2.
DOE notes that the terminology
‘‘designed to furnish warmed air’’ in the
definition of ‘‘vented home heating
equipment’’ is not limited to furnishing
warmed air through mechanical means
by expelling or discharging such air, but
can also refer to furnishing heat which
warms the living space air through any
method of heat transfer. Because of the
very nature of hearth products (i.e., the
presence of a flame), all hearth products
create heat, and hearth products provide
some amount of that heat to the
surrounding living space, including
radiant heat. As a result, DOE believes
that all vented hearth products are
designed to furnish warm air, regardless
of whether they have a mechanical
means for furnishing the air (such as a
blower) or grills through which the
warm air can be circulated via natural
convection.
Based upon the above reasoning, DOE
determined that decorative vented
hearth products are a subset of vented
hearth heaters. Further, DOE has
concluded previously that all vented
hearth heaters (including decorative
vented hearth products) are included in
the broader classification of direct
heating equipment. However, because
DOE recognizes the aesthetic aspects of
vented hearth products that are
decorative in nature, DOE adopted an
exclusion for those products from the
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energy conservation standards that were
promulgated in the April 2010 final
rule. DOE continues to support this
conclusion today, but is proposing to
change the scope of the exclusion in
order to achieve greater energy savings,
promote consumer product choice, and
ease manufacturer burdens.
Given the lack of a statutory
definition for ‘‘direct heating
equipment,’’ DOE seeks comment
regarding whether its interpretation that
decorative vented hearth products are a
type of direct heating equipment is
reasonable. This is identified as Issue 1
in section V.E, ‘‘Issues on Which DOE
Seeks Comment.’’
srobinson on DSK4SPTVN1PROD with PROPOSALS
b. Application to Vented Gas Log Sets
In the April 2010 final rule, DOE did
not specifically address vented gas log
sets under the broader classification of
direct heating equipment. However,
given their decorative nature, DOE
published a document on DOE’s Web
site titled ‘‘Frequently Asked Questions:
‘Vented Hearth Heater’ Definition.’’ 3 In
that document, DOE stated that because
gas log sets are not constructed as part
of an entire enclosure (i.e., there is no
surrounding box or viewing pane) or a
sealed system, they do not provide the
same heating function as gas fireplaces,
gas fireplace inserts, and gas stoves,
which are constructed as enclosed
systems. Due to these differences, DOE
stated that vented gas log sets are
intended to be installed for decorative
purposes, and as a result, are not vented
hearth heaters.
Upon reconsidering the definitions of
‘‘direct heating equipment,’’ ‘‘vented
home heating equipment,’’ and ‘‘vented
hearth heater’’ for this notice, DOE has
determined that vented gas log sets are
heating appliances (albeit relatively
inefficient ones) and would be included
as covered products under DOE’s
definitions. This approach is consistent
with DOE’s treatment of vented hearth
products that provide both heat and
aesthetic appeal. As noted above, DOE
has determined that the terminology
‘‘designed to furnish warmed air’’ in the
definition of ‘‘vented home heating
equipment’’ is not limited to furnishing
warmed air through mechanical means
by expelling or discharging such air, but
instead, it can refer to furnishing heat
which warms the living space air
through any method of heat transfer.
Nor is the phrase ‘‘designed to furnish
warmed air’’ dependent on a
manufacturer’s principal intention in
3 This document is available on DOE’s Web site
at: https://www1.eere.energy.gov/buildings/
appliance_standards/residential/pdfs/
htgp_finalrule_faq.pdf.
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designing, manufacturing, or marketing
such products. Because vented gas log
sets will provide some amount of heat
to the living space, DOE believes that all
vented gas log sets are designed to
furnish warm air and, thus, are a subset
of vented hearth heaters. As with
decorative vented gas hearth products,
DOE recognizes that vented gas log sets
are typically decorative in nature, and is
proposing to exclude them from DOE’s
standards for vented hearth heaters if
they meet the specific set of criteria
outlined in section III.B and discussed
in detail in section III.C.
Given the lack of a statutory
definition for ‘‘direct heating
equipment,’’ DOE seeks comment
regarding whether its interpretation that
vented gas log sets are a type of direct
heating equipment is reasonable. This is
identified as Issue 1 in section V.E,
‘‘Issues on Which DOE Seeks
Comment.’’
B. Proposed Definition for ‘‘Vented
Hearth Heater’’
The amended definition for ‘‘vented
hearth heater’’ that DOE is proposing in
today’s document reads as as set forth
in the amendment to 10 CFR 430.2 later
in this proposed rule.
The amendments to the definition of
‘‘vented hearth heater’’ being proposed
in this notice are related to the scope of
the exclusion for the subset of such
heaters that DOE has determined should
not be subject to the current energy
conservation standards otherwise
applicable to vented hearth heaters. In
the April 2010 final rule, DOE defined
the exclusion for decorative vented
hearth products as those with input
ratings below 9,000 Btu/h. 75 FR 20112,
20129, 20234 (April 16, 2010). The
changes to the definition that DOE is
proposing in this notice are twofold and
are discussed in the paragraphs that
follow.
First, DOE is proposing to exclude
vented gas log sets from being subject to
the energy conservation standards for
vented hearth heaters, provided that
they meet the set of criteria outlined in
the definition of ‘‘vented hearth heater.’’
These products were previously not
considered to be subject to standards for
direct heating equipment; however, as
noted in section III.A.2.b, DOE now
believes these products should be
subject to standards, unless they qualify
for an exclusion along the lines of that
proposed for vented gas hearth
products.
Second, DOE is also proposing a
specific set of criteria (rather than the
9,000 Btu/h input rating limitation) for
establishing that a subset of vented
hearth products should be excluded
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43945
from the energy conservation standards
because such units are decorative in
nature. DOE believes that the conditions
outlined in the definition for classifying
a vented hearth product as decorative
will create a clear division between
vented hearth products that will be
subject to DOE’s standards for gas
hearth direct heating equipment and
those vented hearth products that focus
primarily on providing ambiance and
aesthetic utility, which will not be
subject to DOE’s standards. DOE also
expects that the proposed amendments
to the definition would lessen the
burden on manufacturers and allow
DOE to achieve greater energy savings
than under the previous definition,
while still achieving the energy
efficiency mandate of EPCA, primarily
through elimination of standing pilot
lights or other continuously-burning
ignition sources. In fact, DOE’s analysis
suggests that amendments associated
with the proposed definition would
result in significant energy savings that
will be greater than the savings under
the definition adopted in the April 2010
final rule, both overall as well as for the
types of units eligible for the exclusion.
(See section III.D of this notice for
details on the estimated energy savings.)
C. Description of Criteria for
Classification as Decorative Vented
Hearth Products
As noted above, DOE’s proposed
amendments to the definition of
‘‘vented hearth heater’’ provide an
exclusion for products that are
decorative in nature, provided that they
meet the criteria outlined in the
definition. The exclusion criteria for
vented gas log sets and vented hearth
products are essentially the same (with
the only exception being the first
criterion), and are discussed together in
the paragraphs below.
The first criterion that a product must
meet to be considered a decorative
vented hearth product or vented gas log
set is that it must be certified to a certain
ANSI standard. Specifically, for vented
hearth products, it must be certified to
ANSI Standard Z21.50, Vented Gas
Fireplaces, and not be certified to ANSI
Standard Z21.88, Vented Gas Fireplace
Heaters. For vented gas log sets, it must
be certified to ANSI Standard Z21.60,
Decorative Gas Fireplaces for
Installation in a Solid-Fuel Fireplace.
DOE recognizes that the hearth products
industry has attempted to distinguish
between heater and decorative products
using the certification under one of
these standards as the criterion for
classification into one category or the
other. Further, ANSI Standard Z21.88
contains provisions that allow the main
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
burners to be thermostaticallycontrolled. Therefore, DOE believes this
criterion would be helpful in
differentiating between vented hearth
heaters and vented hearth products that
are decorative in nature. In addition, the
criterion for gas log sets would ensure
that any products that meet the
conditions for exclusion from energy
conservation standards are certified to
ensure safety and proper operation as a
gas log set.
The second criterion in the proposed
definition is that the product must be
sold without a thermostat and with a
warranty provision expressly voiding all
manufacturer warranties in the event
the product is used with a thermostat.
Hearth products intended for heating
sometimes use thermostats to
automatically turn on and off based on
the temperature of the surrounding
space. Often, thermostats are optional
equipment that may be installed in the
field. DOE believes that there should be
no reason for a product intended to be
used primarily for decorative purposes
would need to employ a thermostat. In
addition, DOE believes a provision in
the warranty that voids it if a thermostat
is installed will discourage the misuse
of vented hearth products that are
intended to be decorative and also
discourage evasion of energy
conservation standards by those who
purchase decorative products and seek
to use them as heaters.
The third criterion is that the product
must expressly and conspicuously be
identified on its rating plate and in all
manufacturer advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance.’’ This
requirement will provide additional
clarification for consumers and
installers and make it obvious that the
product is intended for decorative
purposes only.
In the final criterion, which is
perhaps of the greatest significance,
DOE is proposing that products
manufactured on or after July 1, 2014
must not be equipped with a standing
pilot light or other continuouslyburning ignition source in order to
qualify for exclusion from energy
conservation standards for vented
hearth heaters. According to DOE’s
market research, more than half of the
decorative hearth product market and
more than three-quarters of the vented
gas log market would not be impacted,
because the products already utilize
alternatives to a standing pilot light,
such as an intermittent pilot or
electronic ignition. However, if DOE
adopts the proposed definition of
‘‘vented hearth heater’’ in a final rule,
DOE notes that some products on the
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market would need to be: (1)
Redesigned to eliminate the use of
standing pilot lights or other
continuously-burning ignition source;
(2) redesigned by April 16, 2013 to meet
the required standard level for gas
hearth direct heating equipment
established by the April 2010 final rule;
or (3) removed from the market prior to
July 1, 2014. DOE believes that given the
prevalence of the technological
alternatives to standing pilot lights and
other continuously-burning ignition
sources (e.g., electronic ignition,
intermittent pilot) and the experience of
manufacturers in implementing these
alternatives, a compliance date of July 1,
2014 allows a reasonable amount of
time for manufacturers to redesign or
remove from the market their products
with standing pilots or shift production
to product lines without a standing pilot
or other continuously-burning ignition
source. DOE is interested in receiving
comment from interested parties on the
proposed compliance date for vented
gas hearth products and vented gas log
sets, including specific rationales and
accompanying data as to why a different
timeline for eliminating standing pilots
or other continuously-burning ignition
sources from decorative vented gas
hearth products or vented gas log sets
may or may not be warranted. This is
identified as Issue 2 in section V.E,
‘‘Issues on Which DOE Seeks
Comment.’’
In addition, DOE seeks comments on
all aspects of the proposed definition for
‘‘vented hearth heater,’’ in particular,
the criteria for exclusion of vented
hearth products and vented gas log sets
that are decorative in nature. This is
identified as Issue 3 in section V.E,
‘‘Issues on Which DOE Seeks
Comment.’’
D. National Energy Savings
As noted above, DOE is proposing
that to qualify for an exclusion from the
current energy conservation standards
for products that are decorative in
nature, vented gas hearth products and
vented gas log sets manufactured on or
after July 1, 2014 must not be equipped
with a standing pilot light or other
continuously-burning ignition source.
DOE analyzed the energy savings
expected to result from exclusion of the
standing pilot light or other
continuously-burning ignition source in
the amended ‘‘vented hearth heater’’
definition. Based on information about
vented hearth product models available
in the market,4 DOE estimated that
4 U.S. Department of Energy-Office of Codes and
Standards, Analytical Tools: Energy Conservation
Standards for Residential Water Heaters, Direct
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about 38 percent of the vented
decorative hearth models on the market
would need to be redesigned to
eliminate the use of standing pilot lights
or other continuously-burning ignition
sources. DOE also estimated that 20
percent of vented gas logs would have
standing pilot lights or other
continuously-burning ignition sources,
based on a 1997 GTI study.5 The
remaining portion of the market is
assumed to already utilize ignition
alternatives, such as an intermittent
pilot or electronic ignition.
To estimate the energy savings
associated with today’s proposal, DOE
assumed that all decorative hearth
products and vented gas log models
with standing pilot lights or other
continuously-burning ignition sources
would be replaced with an intermittent
pilot ignition, and would have an
average duration of the pilot operation
of about 37.5 h/yr (the same as the main
burner operating hours 6). On average,
continuous pilot energy use is about 350
Btu/h 7 for decorative vented hearth
products 8 and 1,250 Btu/h for vented
gas logs.9 For both vented hearth
products and vented gas log sets, DOE
assumed that pilot lights operate year
round (i.e., 8,760 h/yr) for 75 percent of
the installations and that for the
remaining 25 percent, the consumer
operates the pilot for about one-fourth of
the year (i.e., 2190 h/yr). Thus, the
average annual energy savings amount
to 2.67 million Btu per unit for
Heating Equipment, and Pool Heaters (April 27,
2010).
5 Menkedick, J., Hartford, P., Collins, S.,
Chumaker, S., Wells, D. Topic Report: Hearth
Products Study (1995–1997). Gas Research Institute
(GRI). September 1997. GRI–97/0298.
6 Houck, James, ‘‘Residential Decorative Gas
Fireplace Usage Characteristics’’ (Report prepared
for HPBA) (2010).
7 U.S. Department of Energy-Office of Codes and
Standards, Technical Support Document: Energy
Conservation Standards for Residential Water
Heaters, Direct Heating Equipment, and Pool
Heaters (April 27, 2010).
8 U.S. Department of Energy-Office of Codes and
Standards, Technical Support Document: Energy
Conservation Standards for Residential Water
Heaters, Direct Heating Equipment, and Pool
Heaters (April 27, 2010).
9 This value was derived from data collected on
the following manufacturer Web sites:
Pittsburgh Gas Grill and Heater Co. Frequently
Asked Questions. (URL: https://
www.pittsburghgasgrill.com/faq.html).
Hargrove Hearth Products. Frequently Asked
Questions. (URL: https://www.hargrovegaslogs.com/
faq.htm).
Leonard’s Stone & Fireplace. Frequently Asked
Questions. (URL: https://
www.leonardsstoneandfireplace.net/faq.html).
Fireside Hearth & Home. Frequently Asked
Questions. (URL: https://
www.firesidehearthandhome.com/faq.php).
Heatilator. Common Questions. (URL: https://
www.heatilator.com/customerCare/
searchFaq.asp?c=Gas).
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
decorative vented hearth products and
9.53 million Btu per unit for vented gas
logs. DOE assumed an average lifetime
of 15 years for both decorative vented
hearth and vented gas logs units and
average annual shipments of 460,000
decorative vented hearth units and
103,000 vented gas logs units.
In the April 2010 final rule, DOE
estimated the national energy savings
over the analysis period (2013–2042) for
the vented hearth heaters to be 0.19
quads. 75 FR 20112, 20185 (April 16,
2010). Based on current information,
DOE has determined that approximately
70 percent of the vented hearth products
considered in 2010 are decorative
hearth products. If one assumes that
manufacturers were to avail themselves
of the exclusion proposed in this
rulemaking for all such products, DOE’s
revised national energy savings (NES)
estimates show that the savings for the
vented hearth heaters under the April
2010 standards would be 0.06 quads,
which does not include any energy
savings from products considered
decorative in nature. Using the above
assumptions, DOE calculated the
national energy savings over the
analysis period to be 0.17 quads for
decorative hearth products and 0.07
quads for vented gas log sets under the
proposed revised definition of ‘‘vented
hearth heater’’ in today’s rule which
would eliminate the standing pilot
lights on those units. Accounting for the
approximately 0.13 quad reduction in
energy savings for 2010 final rule (from
assuming that all decorative products
avail themselves of the exclusion
proposed in this rulemaking), DOE
estimated that the net additional
national energy savings compared to the
2010 final rule would be 0.12 quads
(rounded to two significant figures).
srobinson on DSK4SPTVN1PROD with PROPOSALS
IV. Procedural Issues and Regulatory
Review
A. Review Under Executive Orders
12866 and 13563
Section 1(b)(1) of Executive Order
12866, ‘‘Regulatory Planning and
Review,’’ 58 FR 51735 (Oct. 4, 1993),
requires each agency to identify the
problem that it intends to address,
including, where applicable, the failures
of private markets or public institutions
that warrant new agency action, as well
as to assess the significance of that
problem. The problems that the
standards in this rule address are as
follows:
(1) There is a lack of consumer
information and/or information
processing capability about energy
efficiency opportunities in the home
appliance market.
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(2) There is asymmetric information
(one party to a transaction has more and
better information than the other) and/
or high transactions costs (costs of
gathering information and affecting
exchanges of goods and services).
(3) There are external benefits
resulting from improved energy
efficiency of direct heating equipment
that are not captured by the users of
such equipment. These benefits include
externalities related to environmental
protection and energy security that are
not reflected in energy prices, such as
reduced emissions of greenhouse gases.
In addition, DOE has determined that
today’s regulatory action is not an
‘‘economically significant regulatory
action’’ under section 3(f)(1) of
Executive Order 12866. Accordingly,
DOE has not prepared a regulatory
impact analysis (RIA) on today’s rule,
and the Office of Information and
Regulatory Affairs (OIRA) in the Office
of Management and Budget (OMB) is
not required to review this rule.
DOE has also reviewed this regulation
pursuant to Executive Order 13563,
issued on January 18, 2011 (76 FR 3281
(Jan. 21, 2011)). Executive Order 13563
is supplemental to and explicitly
reaffirms the principles, structures, and
definitions governing regulatory review
established in Executive Order 12866.
To the extent permitted by law, agencies
are required by Executive Order 13563
to: (1) Propose or adopt a regulation
only upon a reasoned determination
that its benefits justify its costs
(recognizing that some benefits and
costs are difficult to quantify); (2) tailor
regulations to impose the least burden
on society, consistent with obtaining
regulatory objectives, taking into
account, among other things, and to the
extent practicable, the costs of
cumulative regulations; (3) select, in
choosing among alternative regulatory
approaches, those approaches that
maximize net benefits (including
potential economic, environmental,
public health and safety, and other
advantages; distributive impacts; and
equity); (4) to the extent feasible, specify
performance objectives, rather than
specifying the behavior or manner of
compliance that regulated entities must
adopt; and (5) identify and assess
available alternatives to direct
regulation, including providing
economic incentives to encourage the
desired behavior, such as user fees or
marketable permits, or providing
information upon which choices can be
made by the public.
DOE emphasizes as well that
Executive Order 13563 requires agencies
to use the best available techniques to
quantify anticipated present and future
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43947
benefits and costs as accurately as
possible. In its guidance, the Office of
Information and Regulatory Affairs has
emphasized that such techniques may
include identifying changing future
compliance costs that might result from
technological innovation or anticipated
behavioral changes. For the reasons
stated in the preamble, DOE believes
that today’s NOPR is consistent with
these principles, including the
requirement that, to the extent
permitted by law, agencies adopt a
regulation only upon a reasoned
determination that its benefits justify its
costs and, in choosing among alternative
regulatory approaches, those approaches
maximize net benefits.
B. Review Under the Regulatory
Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires preparation
of an initial regulatory flexibility
analysis (IRFA) for any rule that by law
must be proposed for public comment,
unless the agency certifies that the rule,
if promulgated, will not have a
significant economic impact on a
substantial number of small entities. As
required by Executive Order 13272,
‘‘Proper Consideration of Small Entities
in Agency Rulemaking,’’ 67 FR 53461
(August 16, 2002), DOE published
procedures and policies on February 19,
2003, to ensure that the potential
impacts of its rules on small entities are
properly considered during the
rulemaking process. 68 FR 7990. DOE
has made its procedures and policies
available on the Office of the General
Counsel’s Web site (https://
www.gc.doe.gov).
DOE reviewed the impacts of the
proposed amendments in today’s NOPR
under the provisions of the Regulatory
Flexibility Act and the procedures and
policies discussed above. As a result of
this review, DOE has prepared an IRFA
for vented hearth products, a copy of
which DOE will transmit to the Chief
Counsel for Advocacy of the SBA for
review under 5 U.S.C. 605(b). As
presented and discussed below, the
IFRA describes potential impacts on
small manufacturers of vented hearth
products associated with the required
capital and product conversion costs
from the proposed amended definition
for ‘‘vented hearth heater,’’ which
would change the scope of the exclusion
from the applicable energy conservation
standard.
1. Statement of the Need for, and
Objectives of, the Rule
The reasons why DOE is proposing to
amend the definition of ‘‘vented hearth
heater’’ in today’s NOPR and the
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objectives of this and other related
amendments are provided elsewhere in
the preamble and not repeated here.
2. Description and Estimated Number of
Small Entities Regulated
For manufacturers of direct heating
equipment, the Small Business
Administration (SBA) has set a size
threshold, which defines those entities
classified as ‘‘small businesses’’ for the
purposes of the statute. DOE used the
SBA’s small business size standards to
determine whether any small entities
would be subject to the requirements of
the rule. 65 FR 30836, 30848 (May 15,
2000), as amended at 65 FR 53533,
53544 (Sept. 5, 2000) and codified at 13
CFR Part 121. The size standards are
listed by North American Industry
Classification System (NAICS) code and
industry description, which are
available at: https://www.sba.gov/sites/
default/files/Size_Standards_Table.pdf.
Direct heating equipment manufacturing
is classified under NAICS 333414,
‘‘Heating Equipment (except Warm Air
Furnaces) Manufacturing.’’ The SBA
sets a threshold of 500 employees or less
for an entity to be considered as a small
business for this category.
In preparation for the April 2010 final
rule, DOE conducted a market survey
using all available public information to
identify potential small manufacturers
of the type of products that are the
subject of this rulemaking. DOE’s
research included the HPBA
membership directory, AirConditioning, Heating, and Refrigeration
Institute (AHRI) product databases, and
individual company Web sites to find
potential small business manufacturers.
DOE also asked stakeholders and
industry representatives if they were
aware of any other small manufacturers
during manufacturer interviews and at
previous DOE public meetings. DOE
reviewed all publicly-available data and
contacted various companies, as
necessary, to determine whether they
met the SBA’s definition of a small
business manufacturer of covered
residential direct heating equipment.
DOE screened out companies that did
not offer products covered by this
rulemaking, did not meet the definition
of a ‘‘small business,’’ or are foreign
owned and operated. In the April 2010
final rule, DOE identified 10 small
manufacturers of vented gas hearth
products, and DOE believes that the
vented hearth heater market has not
changed significantly since the time of
the April 2010 final rule. Before issuing
the NOPR that lead to the April 2010
final rule, DOE attempted to contact the
small business manufacturers of vented
hearth products. One of the small
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businesses consented to being
interviewed during the MIA interviews,
and DOE received feedback from an
additional two small businesses through
survey responses. DOE also obtained
information about small business
impacts while interviewing
manufacturers that exceed the small
business size threshold of 500
employees in this industry. The
remaining small businesses that DOE
identified in the rule did not respond to
requests for additional information or
interviews.
For this rulemaking, DOE also
identified seven small business
manufacturers of vented gas log sets. Of
these manufacturers, three are also
small business manufacturers of
decorative hearth products and,
consequently, were previously
identified. The only covered products
made by the remaining four small
business manufacturers are vented gas
log sets. DOE attempted to contact the
four small business manufacturers of gas
log sets that it identified. Additionally,
DOE believes that given the similarities
in these types of products, the
compliance costs of small business
manufacturers of vented gas log sets
resulting from this rulemaking can be
reasonably assumed to be largely the
same as the compliance costs of small
business manufacturers of vented gas
hearth products.
3. Description and Estimate of
Compliance Requirements
For the April 2010 final rule, DOE
calculated the anticipated capital and
product development costs for vented
hearth heaters by estimating per-line
cost and average number of product
lines for a typical small business
manufacturer. DOE used certification
databases, product catalogs, interviews
with manufacturers, and sources of
public information to estimate the
impacts of the rule on small business
manufacturers. In the final rule, DOE
concluded that because a typical
manufacturer of vented hearth products
already offers multiple product lines
that meet and exceed the required
efficiencies and because most product
lines that did not meet the proposed
standard could be upgraded with
relatively minor changes,
manufacturers, including the small
business manufacturers, would be able
to maintain a viable number of product
offerings. 75 FR 20112, 20231 (April 16,
2010).
In order to comply with the energy
conservation standards promulgated in
the April 2010 final rule, manufacturers
of decorative hearth products with
efficiencies lower than the minimum
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allowable standard and input ratings
above 9,000 Btu/h would need to either:
(1) Redesign their products to meet the
required standard level for gas hearth
direct heating equipment; (2) redesign
their products to ensure that input
ratings are below 9,000 Btu/h; or (3)
discontinue manufacturing those
products. In the April 2010 final rule,
DOE assumed manufacturers would
redesign their products with input
rating below 9,000 Btu/h with relatively
minor changes to existing decorative
products. 75 FR 20112, 20129 (April 16,
2010). Under the amended definition of
‘‘vented hearth heater’’ proposed in this
notice, the 9,000 Btu/h limitation would
no longer apply for purposes of
exclusion from the energy conservation
standard. Instead, vented hearth
products (regardless of input rating)
would not be subject to the minimum
standard for vented hearth heaters if
they comply with the four criteria
outlined above (i.e., (1) Certified to
ANSI Standard Z21.50 and not to ANSI
Standard Z21.88); (2) sold without a
thermostat and with a warranty
provision expressly voiding all
manufacturer warranties in the event
the product is used with a thermostat;
(3) expressly and conspicuously
identified on its rating plate and in all
manufacturer’s advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance’’; and
(4) with respect to products sold after
July 1, 2014, not equipped with a
standing pilot light or other
continuously-burning ignition source).
Under the April 2010 final rule, vented
gas log sets were not addressed.
However, under today’s proposal,
vented gas log sets would be required to
either meet the energy conservation
standard for vented hearth heaters or to
meet the four criteria outlined above for
their exclusion (which are the same as
the criteria for vented hearth products,
except that they must be certified to
ANSI Z21.60, rather than ANSI Z21.50,
as it is the applicable standard for gas
log sets).
Each of the definitional criteria for
decorative gas hearth products and
vented gas log sets would have differing
impacts on small business
manufacturers. The first criterion (that
the product must be certified to ANSI
Standard Z21.50 and not ANSI Standard
Z21.88 for decorative hearth products,
and that the product must be certified
to ANSI Z21.60 for gas log sets) would
not impose new conversion costs on
small businesses since DOE is not aware
of any vented hearth products on the
market that are not already certified to
one of these standards. Products
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considered by manufacturers to be
decorative in nature are already certified
to ANSI Standard Z21.50 (vented hearth
products), and to ANSI Z21.60 (vented
gas log sets). For these reasons, DOE
believes that this criterion would not
cause any additional compliance
requirements for manufacturers,
including small businesses.
Complying with the second and third
criteria would require manufacturers to
clearly identify the decorative nature of
the vented hearth product and vented
gas log set, as well as further detail the
warranty provisions of the hearth
product. These provisions would
require an update of the product and
marketing literature and product
labeling, which DOE believes would
result in added product conversion
costs. However, DOE notes that product
conversion costs to update manufacturer
literature and labels will also be
required under the definition and
standards for gas hearth direct heating
equipment (i.e., vented hearth heaters)
set forth by the April 2010 final rule,
due to the requirements for making
representations of the AFUE as well as
certifying compliance to the
Department. Under the April 2010 final
rule, all of the product and marketing
materials would have to have been
revised to reflect the test AFUE. Because
the compliance date for the standards
promulgated in the April 2010 final rule
is April 2013, DOE believes that
manufacturers have likely not already
updated product literature in
preparation for compliance with those
standards. Consequently, DOE estimated
that all manufacturers, including small
businesses, would continue to incur
these product conversion cost under
both rules for those products affected by
the definitional change. Regarding the
second criterion that eliminates the
option for manufacturers to offer a
thermostat with any decorative hearths,
DOE does not believe that this would
impose any additional costs or burdens
because thermostats are optional
features and their removal would not
require any redesign of existing product
lines. Further, many decorative hearths
are not offered with an optional
thermostat from the point of sale by the
manufacturer, so DOE believes this
criterion alone would have little impact
on the existing market, but would
provide additional assurance that
decorative products are not being
installed as heating appliances.
Consequently, DOE believes that the
second and third criteria would simply
result in revising product specifications,
marketing materials, and products labels
to make clear the intended use of
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decorative hearths, which DOE believes
would have a minimal impact on
manufacturers, including small
businesses.
Lastly, DOE considered the impacts of
the final criterion to qualify for the
decorative exclusion from the energy
conservation standards for vented
hearth heaters and vented gas log sets.
That criterion requires manufacturers to
eliminate standing pilot lights and other
continuously-burning ignition devices
from decorative vented hearth products
by July 1, 2014 which would cause
manufacturers to incur conversion costs
to qualify for the proposed exclusion
from the energy conservation standards.
To calculate the conversion costs for
decorative hearth products to remove
standing pilots, DOE approximated the
total number of product lines for
decorative vented hearth products using
the average number of annual shipments
of decorative gas hearth products per
product line, along with the average
total shipments assumed for the analysis
of national energy savings (i.e., 460,000
units per year). To determine the
average number of annual shipments of
decorative gas hearth products per
product line, DOE assumed that each
decorative vented gas hearth product
line has approximately the same
number of annual shipments per line as
the gas hearth products analyzed for the
April 2010 final rule. Using this
method, DOE found approximately 110
total decorative product lines. Using the
assumption that 38 percent of
decorative gas hearth products would
have to remove standing pilots, 42 of
these product lines would have to be
upgraded by July 1, 2014. To calculate
the conversion costs for vented gas log
sets, DOE used market data and the
assumptions for the per line conversion
costs to remove standing pilots from gas
hearth products. To determine the
number of vented gas log product lines
with standing pilots, DOE reviewed the
company Web sites for all
manufacturers of gas hearth products
and all manufacturers that certify gas
space heaters with the California Energy
Commission (CEC) and are listed in
CEC’s appliance efficiency directory.
DOE also conducted product searches to
verify that it had captured all vented gas
log sets that use a standing pilot. If it
was not clear from the literature
whether the vented gas log sets had a
standing pilot, DOE assumed the
product used a standing pilot. DOE
found 35 vented gas log product lines
that would need to be updated to
remove the standing pilot ignition
system by the July 1, 2014 deadline set
in the proposed exclusion.
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DOE believes that the elimination of
standing pilot would only result in
product conversion costs associated
with testing and recertification to the
ANSI safety standards for the newly
designed products. If all 77 product
lines need to be retested and recertified
as a result of the incorporation of
standing pilots into the system, the
estimated product conversion cost
would be approximately $693,000 for
the industry to comply with the
proposed July 1, 2014 exclusion criteria
for both decorative gas hearth products
and vented gas log sets. DOE does not
believe any capital conversion costs
would be needed for manufacturers to
comply with the criterion for
elimination of the standing pilot,
because manufacturers would not need
to make any changes to their existing
facilities to incorporate this design
change into their product lines. Overall,
the total conversion costs with today’s
proposed amendments would be
expected to be slightly lower than the
total conversion costs for manufacturers
of vented gas hearth heaters for the
April 2010 final rule.
In considering the impacts of this
requirement, DOE compared it to the
alternative of leaving in place the
requirements in the April 2010 final
rule, assuming manufacturers chose not
to design for a Btu rating lower than
9,000 Btu/h. If the definition of ‘‘vented
hearth heater’’ were to remain as it was
in the April 2010 final rule,
manufacturers would have to redesign
all decorative hearth products with
input ratings over 9,000 Btu/h either to
meet the minimum standard for gas
hearth direct heating equipment or to
have an input rating below 9,000 Btu/
h, or discontinue manufacturing those
products. Under the newly proposed
definition, instead of completely
redesigning those products to improve
energy efficiency, manufacturers could
make a comparatively minor
engineering change of replacing the
standing pilot or other continuouslyburning ignition with an alternative
technology such as an electronic
ignition or interrupted ignition device.
DOE believes that replacing the standing
pilot or other continuously-burning
ignition device with an alternative
technology would be less burdensome
to manufacturers than a complete
redesign of decorative hearth products
to meet the minimum standard or to
have an input rating below 9,000 Btu/
h. Moreover, a redesign to comply with
the energy conservation standard would
likely necessitate elimination of any
standing pilot on units so equipped
anyway, along with additional
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engineering changes to improve
efficiency. In addition, manufacturers
would be required to test and certify
their equipment to DOE efficiency’s
standards along with the ANSI safety
standards, further increasing the cost
and burden of compliance with the
energy conservation standard in
comparison to simply replacing the
standing pilot or continuously-burning
ignition with an alternative technology.
As a result of the considerations
discussed above, DOE has concluded
that today’s proposal would not
disproportionately impact small
manufacturers of vented hearth
products and vented gas logs. DOE
requests comment on its assessment of
the impact of today’s proposal on small
business manufacturers.
4. Duplication, Overlap, and Conflict
with Other Rules and Regulations
DOE is not aware of any rules or
regulations that duplicate, overlap, or
conflict with the rule being considered
today.
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5. Significant Alternatives to the
Proposed Rule
The discussion above analyzes
impacts on small businesses that would
result from the amended definition for
‘‘vented hearth heater,’’ due to its effect
on which units will be subject to energy
conservation standards. DOE believes
that the amended definition proposed in
this notice would represent a similar
burden on industry, including small
business manufacturers, in comparison
to the definition included in the April
2010 final rule. In that rule, DOE
rejected the other alternatives to the rule
because of the lower energy savings that
associated with those alternatives.
DOE continues to seek input from
businesses that would be affected by
this rulemaking and will consider
comments received in response to the
NOPR for the development of final rule.
This is identified as Issue 4 in section
V.E, ‘‘Issues on Which DOE Seeks
Comment.’’
C. Review Under the Paperwork
Reduction Act of 1995
Manufacturers of direct heating
equipment must certify to DOE that
their products comply with any
applicable energy conservation
standards. In certifying compliance,
manufacturers must test their products
according to the DOE test procedures for
direct heating equipment, including any
amendments adopted for those test
procedures. DOE has established
regulations for the certification and
recordkeeping requirements for all
covered consumer products and
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commercial equipment, including direct
heating equipment. (76 FR 12422
(March 7, 2011). The collection-ofinformation requirement for the
certification and recordkeeping is
subject to review and approval by OMB
under the Paperwork Reduction Act
(PRA). (44 U.S.C. 3501 et seq.) This
requirement has been approved by OMB
under OMB control number 1910–1400.
Public reporting burden for the
certification is estimated to average 20
hours per response, including the time
for reviewing instructions, searching
existing data sources, gathering and
maintaining the data needed, and
completing and reviewing the collection
of information.
Notwithstanding any other provision
of the law, no person is required to
respond to, nor shall any person be
subject to a penalty for failure to comply
with, a collection of information subject
to the requirements of the PRA, unless
that collection of information displays a
currently valid OMB Control Number.
D. Review Under the National
Environmental Policy Act of 1969
DOE has prepared a draft
environmental assessment (EA) of the
impacts of the proposed rule pursuant
to the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.), the
regulations of the Council on
Environmental Quality (40 CFR Parts
1500–1508), and DOE’s regulations for
compliance with the National
Environmental Policy Act of 1969 (10
CFR Part 1021). This assessment, which
has been placed in the docket for this
rulemaking, includes an examination of
the potential effects of emission
reductions likely to result from the rule
in the context of global climate change,
as well as other types of environmental
impacts. The estimated additional
cumulative CO2 and NOX emissions
reductions for these proposed
amendments to the energy conservation
standards are 5.0 million metric tons
(Mt) for CO2 and 3.9 thousand metric
tons (kt) for NOX. Before issuing a final
rule for direct heating equipment, DOE
will consider public comments and, as
appropriate, determine whether to issue
a finding of no significant impact
(FONSI) as part of a final EA or to
prepare an environmental impact
statement (EIS) for this rulemaking.
E. Review Under Executive Order 13132
Executive Order 13132, ‘‘Federalism,’’
64 FR 43255 (Aug. 10, 1999) imposes
certain requirements on Federal
agencies formulating and implementing
policies or regulations that preempt
State law or that have Federalism
implications. The Executive Order
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requires agencies to examine the
constitutional and statutory authority
supporting any action that would limit
the policymaking discretion of the
States and to carefully assess the
necessity for such actions. The
Executive Order also requires agencies
to have an accountable process to
ensure meaningful and timely input by
State and local officials in the
development of regulatory policies that
have Federalism implications. On
March 14, 2000, DOE published a
statement of policy describing the
intergovernmental consultation process
it will follow in the development of
such regulations. 65 FR 13735. EPCA
governs and prescribes Federal
preemption of State regulations as to
energy conservation for the products
that are the subject of today’s proposed
rule. States can petition DOE for
exemption from such preemption to the
extent, and based on criteria, set forth in
EPCA. (42 U.S.C. 6297) No further
action is required by Executive Order
13132.
F. Review Under Executive Order 12988
With respect to the review of existing
regulations and the promulgation of
new regulations, section 3(a) of
Executive Order 12988, ‘‘Civil Justice
Reform,’’ imposes on Federal agencies
the general duty to adhere to the
following requirements: (1) Eliminate
drafting errors and ambiguity; (2) write
regulations to minimize litigation; and
(3) provide a clear legal standard for
affected conduct rather than a general
standard and promote simplification
and burden reduction. 61 FR 4729 (Feb.
7, 1996). Section 3(b) of Executive Order
12988 specifically requires that
Executive agencies make every
reasonable effort to ensure that the
regulation: (1) Clearly specifies the
preemptive effect, if any; (2) clearly
specifies any effect on existing Federal
law or regulation; (3) provides a clear
legal standard for affected conduct
while promoting simplification and
burden reduction; (4) specifies the
retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses
other important issues affecting clarity
and general draftsmanship under any
guidelines issued by the Attorney
General. Section 3(c) of Executive Order
12988 requires Executive agencies to
review regulations in light of applicable
standards in section 3(a) and section
3(b) to determine whether they are met
or it is unreasonable to meet one or
more of them. DOE has completed the
required review and determined that, to
the extent permitted by law, this
proposed rule meets the relevant
standards of Executive Order 12988.
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G. Review Under the Unfunded
Mandates Reform Act of 1995
prepare a Family Policymaking
Assessment.
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
each Federal agency to assess the effects
of Federal regulatory actions on State,
local, and Tribal governments and the
private sector. Public Law 104–4, sec.
201 (codified at 2 U.S.C. 1531). For a
regulatory action likely to result in a
rule that may cause the expenditure by
State, local, and Tribal governments, in
the aggregate, or by the private sector of
$100 million or more in any one year
(adjusted annually for inflation), section
202 of UMRA requires a Federal agency
to publish a written statement that
estimates the resulting costs, benefits,
and other effects on the national
economy. (2 U.S.C. 1532(a), (b)) The
UMRA also requires a Federal agency to
develop an effective process to permit
timely input by elected officers of State,
local, and Tribal governments on a
proposed ‘‘significant intergovernmental
mandate,’’ and requires an agency plan
for giving notice and opportunity for
timely input to potentially affected
small governments before establishing
any requirements that might
significantly or uniquely affect small
governments. On March 18, 1997, DOE
published a statement of policy on its
process for intergovernmental
consultation under UMRA. 62 FR
12820. DOE’s policy statement is also
available at https://www.gc.doe.gov.
Today’s proposed rule does not
contain a Federal intergovernmental
mandate, because it will not require
expenditures of $100 million or more by
State, local, and Tribal governments, in
the aggregate, or by the private sector.
DOE has considered expenditures that
will result from updating manufacturer
literature, product labels, and making
design changes to decorative hearth
products to eliminate the standing pilot
light or other continuously-burning
ignition source, and concluded that
these expenditures will total less than
$100 million. Accordingly, no further
action is required under the UMRA.
I. Review Under Executive Order 12630
DOE has determined, under Executive
Order 12630, ‘‘Governmental Actions
and Interference with Constitutionally
Protected Property Rights,’’ 53 FR 8859
(Mar. 18, 1988), that this regulation
would not result in any takings that
might require compensation under the
Fifth Amendment to the U.S.
Constitution.
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H. Review Under the Treasury and
General Government Appropriations
Act, 1999
Section 654 of the Treasury and
General Government Appropriations
Act, 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any rule
that may affect family well-being. This
rule would not have any impact on the
autonomy or integrity of the family as
an institution. Accordingly, DOE has
concluded that it is not necessary to
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J. Review Under the Treasury and
General Government Appropriations
Act, 2001
Section 515 of the Treasury and
General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note)
provides for Federal agencies to review
most disseminations of information to
the public under guidelines established
by each agency pursuant to general
guidelines issued by OMB. OMB’s
guidelines were published at 67 FR
8452 (Feb. 22, 2002), and DOE’s
guidelines were published at 67 FR
62446 (Oct. 7, 2002). DOE has reviewed
today’s NOPR under the OMB and DOE
guidelines and has concluded that it is
consistent with applicable policies in
those guidelines.
K. Review Under Executive Order 13211
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use,’’ 66 FR 28355 (May
22, 2001), requires Federal agencies to
prepare and submit to OIRA at OMB, a
Statement of Energy Effects for any
proposed significant energy action. A
‘‘significant energy action’’ is defined as
any action by an agency that
promulgates or is expected to lead to
promulgation of a final rule, and that:
(1) Is a significant regulatory action
under Executive Order 12866, or any
successor order; and (2) is likely to have
a significant adverse effect on the
supply, distribution, or use of energy, or
(3) is designated by the Administrator of
OIRA as a significant energy action. For
any proposed significant energy action,
the agency must give a detailed
statement of any adverse effects on
energy supply, distribution, or use
should the proposal be implemented,
and of reasonable alternatives to the
action and their expected benefits on
energy supply, distribution, and use.
DOE has tentatively concluded that
today’s regulatory action, which sets
forth amended definitions for direct
heating equipment, is not a significant
energy action because the proposed
standards are not likely to have a
significant adverse effect on the supply,
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43951
distribution, or use of energy, nor has it
been designated as such by the
Administrator at OIRA. Accordingly,
DOE has not prepared a Statement of
Energy Effects on the proposed rule.
L. Review Under the Information
Quality Bulletin for Peer Review
On December 16, 2004, OMB, in
consultation with the Office of Science
and Technology Policy (OSTP), issued
its Final Information Quality Bulletin
for Peer Review (the Bulletin). 70 FR
2664 (Jan. 14, 2005). The Bulletin
establishes that certain scientific
information shall be peer reviewed by
qualified specialists before it is
disseminated by the Federal
Government, including influential
scientific information related to agency
regulatory actions. The purpose of the
bulletin is to enhance the quality and
credibility of the Government’s
scientific information. Under the
Bulletin, the energy conservation
standards rulemaking analyses are
‘‘influential scientific information,’’
which the Bulletin defines as ‘‘scientific
information the agency reasonably can
determine will have, or does have, a
clear and substantial impact on
important public policies or private
sector decisions.’’ Id. at 2667.
In response to OMB’s Bulletin, DOE
conducted formal in-progress peer
reviews of the energy conservation
standards development process and
analyses and has prepared a Peer
Review Report pertaining to the energy
conservation standards rulemaking
analyses. Generation of this report
involved a rigorous, formal, and
documented evaluation using objective
criteria and qualified and independent
reviewers to make a judgment as to the
technical/scientific/business merit, the
actual or anticipated results, and the
productivity and management
effectiveness of programs and/or
projects. The ‘‘Energy Conservation
Standards Rulemaking Peer Review
Report’’ dated February 2007 has been
disseminated and is available at the
following Web site: https://
www1.eere.energy.gov/buildings/
appliance_standards/peer_review.html.
V. Public Participation
A. Attendance at the Public Meeting
The time, date, and location of the
public meeting are listed in the DATES
and ADDRESSES sections at the beginning
of this notice. If you plan to attend the
public meeting, please notify Ms.
Brenda Edwards at (202) 586–2945 or
Brenda.Edwards@ee.doe.gov. As
explained in the ADDRESSES section,
foreign nationals visiting DOE
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Headquarters are subject to advance
security screening procedures.
In addition, you can attend the public
meeting via webinar. Webinar
registration information, participant
instructions, and information about the
capabilities available to webinar
participants will be published on DOE’s
Web site at: https://www.eere.energy.gov/
buildings/appliance_standards/
residential/direct_heating.html.
Participants are responsible for ensuring
their systems are compatible with the
webinar software.
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B. Procedure for Submitting Prepared
General Statements for Distribution
Any person who has plans to present
a prepared general statement may
request that copies of his or her
statement be made available at the
public meeting. Such persons may
submit requests, along with an advance
electronic copy of their statement in
PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file
format, to the appropriate address
shown in the ADDRESSES section at the
beginning of this notice. The request
and advance copy of statements must be
received at least one week before the
public meeting and may be e-mailed,
hand-delivered, or sent by mail. DOE
prefers to receive requests and advance
copies via e-mail. Please include a
telephone number to enable DOE staff to
make follow-up contact, if needed.
C. Conduct of the Public Meeting
DOE will designate a DOE official to
preside at the public meeting and may
also use a professional facilitator to aid
discussion. The meeting will not be a
judicial or evidentiary-type public
hearing, but DOE will conduct it in
accordance with section 336 of EPCA
(42 U.S.C. 6306). There shall not be
discussion of proprietary information,
costs or prices, market share, or other
commercial matters regulated by U.S.
anti-trust laws. A court reporter will be
present to record the proceedings and
prepare a transcript. DOE reserves the
right to schedule the order of
presentations and to establish the
procedures governing the conduct of the
public meeting. After the public
meeting, interested parties may submit
further comments on the proceedings as
well as on any aspect of the rulemaking
until the end of the comment period.
The public meeting will be conducted
in an informal, conference style. DOE
will present summaries of comments
received before the public meeting,
allow time for prepared general
statements by participants, and
encourage all interested parties to share
their views on issues affecting this
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rulemaking. Each participant will be
allowed to make a general statement
(within time limits determined by DOE),
before the discussion of specific topics.
DOE will allow, as time permits, other
participants to comment briefly on any
general statements.
At the end of all prepared statements
on a topic, DOE will permit participants
to clarify their statements briefly and
comment on statements made by others.
Participants should be prepared to
answer questions by DOE and by other
participants concerning these issues.
DOE representatives may also ask
questions of participants concerning
other matters relevant to this
rulemaking. The official conducting the
public meeting will accept additional
comments or questions from those
attending, as time permits. The
presiding official will announce any
further procedural rules or modification
of the above procedures that may be
needed for the proper conduct of the
public meeting.
A transcript of the public meeting will
be included in the docket, which can be
viewed as described in the Docket
section at the beginning of this notice.
In addition, copies of the transcript will
be posted on the DOE Web site, and any
person may buy a copy of the transcript
from the transcribing reporter.
D. Submission of Comments
DOE will accept comments, data, and
information regarding this proposed
rule before or after the public meeting,
but no later than the date provided in
the DATES section at the beginning of
this proposed rule. Interested parties
may submit comments, data, and other
information using any of the methods
described in the ADDRESSES section at
the beginning of this notice.
Submitting comments via https://
www.regulations.gov. The https://
www.regulations.gov Web page will
require you to provide your name and
contact information. Your contact
information will be viewable to DOE
Building Technologies staff only. Your
contact information will not be publicly
viewable except for your first and last
names, organization name (if any), and
submitter representative name (if any).
If your comment is not processed
properly because of technical
difficulties, DOE will use this
information to contact you. If DOE
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, DOE may not be
able to consider your comment.
However, your contact information
will be publicly viewable if you include
it in the comment itself or in any
documents attached to your comment.
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Any information that you do not want
to be publicly viewable should not be
included in your comment, nor in any
document attached to your comment.
Otherwise, persons viewing comments
will see only first and last names,
organization names, correspondence
containing comments, and any
documents submitted with the
comments.
Do not submit to https://
www.regulations.gov information for
which disclosure is restricted by statute,
such as trade secrets and commercial or
financial information (hereinafter
referred to as Confidential Business
Information (CBI)). Comments
submitted through https://
www.regulations.gov cannot be claimed
as CBI. Comments received through the
Web site will waive any CBI claims for
the information submitted. For
information on submitting CBI, see the
Confidential Business Information
section below.
DOE processes submissions made
through https://www.regulations.gov
before posting. Normally, comments
will be posted within a few days of
being submitted. However, if large
volumes of comments are being
processed simultaneously, your
comment may not be viewable for up to
several weeks. Please keep the comment
tracking number that https://
www.regulations.gov provides after you
have successfully uploaded your
comment.
Submitting comments via e-mail,
hand delivery/courier, or mail.
Comments and documents submitted
via e-mail, hand delivery, or mail also
will be posted to https://
www.regulations.gov. If you do not want
your personal contact information to be
publicly viewable, do not include it in
your comment or any accompanying
documents. Instead, provide your
contact information in a cover letter.
Include your first and last names, e-mail
address, telephone number, and
optional mailing address. The cover
letter will not be publicly viewable as
long as it does not include any
comments.
Include contact information each time
you submit comments, data, documents,
and other information to DOE. If you
submit via mail or hand delivery/
courier, please provide all items on a
CD, if feasible, in which case it is not
necessary to submit printed copies. No
facsimiles (faxes) will be accepted.
Comments, data, and other
information submitted to DOE
electronically should be provided in
PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file
format. Provide documents that are not
E:\FR\FM\22JYP1.SGM
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Proposed Rules
srobinson on DSK4SPTVN1PROD with PROPOSALS
secured, that are written in English, and
that are free of any defects or viruses.
Documents should not contain special
characters or any form of encryption
and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit
campaign form letters by the originating
organization in batches of between 50 to
500 form letters per PDF or as one form
letter with a list of supporters’ names
compiled into one or more PDFs. This
reduces comment processing and
posting time.
Confidential Business Information.
Pursuant to 10 CFR 1004.11, any person
submitting information that he or she
believes to be confidential and exempt
by law from public disclosure should
submit via e-mail, postal mail, or hand
delivery/courier two well-marked
copies: one copy of the document
marked confidential including all the
information believed to be confidential,
and one copy of the document marked
non-confidential with the information
believed to be confidential deleted.
Submit these documents via e-mail or
on a CD, if feasible. DOE will make its
own determination about the
confidential status of the information
and treat it according to its
determination.
Factors of interest to DOE when
evaluating requests to treat submitted
information as confidential include: (1)
A description of the items; (2) whether
and why such items are customarily
treated as confidential within the
industry; (3) whether the information is
generally known by or available from
other sources; (4) whether the
information has previously been made
available to others without obligation
concerning its confidentiality; (5) an
explanation of the competitive injury to
the submitting person which would
result from public disclosure; (6) when
such information might lose its
confidential character due to the
passage of time; and (7) why disclosure
of the information would be contrary to
the public interest.
It is DOE’s policy that all comments
may be included in the public docket,
without change and as received,
including any personal information
provided in the comments (except
information deemed to be exempt from
public disclosure).
E. Issues on Which DOE Seeks Comment
Although DOE welcomes comments
on any aspect of this proposal, DOE is
particularly interested in receiving
comments and views of interested
parties concerning the following issues:
1. Given the lack of a statutory
definition for ‘‘direct heating
VerDate Mar<15>2010
17:15 Jul 21, 2011
Jkt 223001
equipment,’’ whether DOE’s
interpretation that decorative vented
hearth products and vented gas log sets
are types of direct heating equipment is
reasonable.
2. The proposed compliance date for
vented gas hearth products and vented
gas log sets, including specific
rationales and accompanying data as to
why a different timeline for eliminating
standing pilots or other continuouslyburning ignition sources from
decorative gas hearth products may or
may not be warranted.
3. The proposed exclusion as a
decorative vented hearth product or
vented gas log set from the energy
conservation standard.
4. Impacts of the proposed amended
definition of ‘‘vented hearth heater’’ on
small business manufacturers of
decorative vented hearth products or
vented gas log sets.
VI. Approval of the Office of the
Secretary
The Secretary of Energy has approved
publication of today’s proposed rule.
List of Subjects in 10 CFR Part 430
Administrative practice and
procedure, Confidential business
information, Energy conservation,
Household appliances, Imports,
Intergovernmental relations, Reporting
and recordkeeping requirements, and
Small businesses.
Issued in Washington, DC, on July 14,
2011.
Kathleen Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Office of Technology
Development, Energy Efficiency and
Renewable Energy.
For the reasons set forth in the
preamble, DOE proposes to amend Part
430 of Chapter II, Subchapter D, of Title
10 of the Code of Federal Regulations,
to read as set forth below:
PART 430—ENERGY CONSERVATION
PROGRAM FOR CONSUMER
PRODUCTS
1. The authority citation for part 430
continues to read as follows:
Authority: 42 U.S.C. 6291–6309; 28 U.S.C.
2461 note.
2. Section 430.2 is amended by
revising the definition for ‘‘vented
hearth heater’’ to read as follows:
§ 430.2
Definitions.
*
*
*
*
*
Vented hearth heater means a vented
appliance which simulates a solid fuel
fireplace and is designed to furnish
warm air, with or without duct
connections, to the space in which it is
PO 00000
Frm 00018
Fmt 4702
Sfmt 4702
43953
installed. The circulation of heated
room air may be by gravity or
mechanical means. A vented hearth
heater may be freestanding, recessed,
zero clearance, or a gas fireplace insert
or stove. The following products are not
subject to the energy conservation
standards for vented hearth heaters:
(1) Vented gas log sets that meet all of
the following four criteria:
(i) Certified to ANSI Standard Z21.60;
(ii) Sold without a thermostat and with
a warranty provision expressly voiding
all manufacturer warranties in the event
the product is used with a thermostat;
(iii) Expressly and conspicuously
identified on its rating plate and in all
manufacturer’s advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance’’; and
(iv) With respect to products sold after
July 1, 2014, not equipped with a
standing pilot light or other
continuously-burning ignition source;
and
(2) Vented gas hearth products that
meet all of the following four criteria:
(i) Certified to ANSI Standard Z21.50
and not to ANSI Standard Z21.88; (ii)
Sold without a thermostat and with a
warranty provision expressly voiding all
manufacturer warranties in the event
the product is used with a thermostat;
(iii) Expressly and conspicuously
identified on its rating plate and in all
manufacturer’s advertising and product
literature as a ‘‘Decorative Product: Not
For Use As A Heating Appliance’’; and
(iv) With respect to products sold after
July 1, 2014, not equipped with a
standing pilot light or other
continuously-burning ignition source.
*
*
*
*
*
[FR Doc. 2011–18310 Filed 7–21–11; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP–1427]
Continued Application of Regulations
to Savings and Loan Holding
Companies
Board of Governors of the
Federal Reserve System.
ACTION: Notice of intent and request for
comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (‘‘Board’’) is
issuing this notice of its intention to
continue to enforce certain regulations
previously issued by the Office of Thrift
Supervision (‘‘OTS’’) after assuming
supervisory responsibility for savings
and loan holding companies (‘‘SLHCs’’)
SUMMARY:
E:\FR\FM\22JYP1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 141 (Friday, July 22, 2011)]
[Proposed Rules]
[Pages 43941-43953]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18310]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE-2011-BT-STD-0047]
RIN 1904-AC56
Energy Conservation Program: Energy Conservation Standards for
Direct Heating Equipment
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of proposed rulemaking and announcement of public
meeting.
-----------------------------------------------------------------------
SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as
amended, prescribes energy conservation standards for various consumer
products and certain commercial and industrial equipment, including
direct heating equipment. In this notice, the U.S. Department of Energy
(DOE) proposes to amend its definitions pertaining to direct heating
equipment. Specifically, DOE is proposing to change to the definition
of ``vented hearth heater,'' a type of direct heating equipment, to
clarify the scope of the current exclusion for those vented hearth
heaters that are decorative hearth products. The proposed modification
to the existing exclusion would shift the focus from the current
maximum input capacity limitation (i.e., 9,000 Btu/h) to a number of
other factors, including the absence of a standing pilot light or other
continuously burning ignition source. DOE has tentatively concluded
that these amendments would result in increased energy savings overall,
as well as for the types of units under the exclusion. The notice also
announces a
[[Page 43942]]
public meeting to receive comment on these proposed amendments to the
definition for ``vented hearth heater'' and associated analyses and
results.
DATES: DOE will hold a public meeting on September 1, 2011 from 9 a.m.
to 4 p.m., at DOE headquarters in Washington, DC. The meeting will also
be broadcast as a webinar. See section VII, ``Public Participation,''
for webinar registration information, participant instructions, and
information about the capabilities available to webinar participants.
DOE will accept comments, data, and information regarding this
notice of proposed rulemaking (NOPR) before and after the public
meeting, but no later than September 20, 2011. See section V, ``Public
Participation,'' for details.
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. To attend, please notify Ms. Brenda Edwards at
(202) 586-2945. Please note that foreign nationals visiting DOE
Headquarters are subject to advance security screening procedures. Any
foreign national wishing to participate in the meeting should advise
DOE as soon as possible by contacting Ms. Edwards to initiate the
necessary procedures. Please also note that those wishing to bring
laptops into the Forrestal Building will be required to obtain a
property pass. Visitors should avoid bringing laptops, or allow an
extra 45 minutes. Persons can attend the public meeting via webinar.
For more information, refer to the section V, ``Public Participation,''
near the end of this notice.
Any comments submitted must identify the NOPR on Energy
Conservation Standards for Direct Heating Equipment, and provide docket
number EERE-2011-BT-STD-0047 and/or regulatory information number (RIN)
1904-AC56. 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: DHE-2011-STD-0047@ee.doe.gov. Include Docket Number
EERE-2011-BT-STD-0047 and/or RIN 1904-AC56 in the subject line of the
message.
3. Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building
Technologies Program, Mailstop EE-2J, 1000 Independence Avenue, SW.,
Washington, DC 20585-0121. If possible, please submit all items on a
compact disc (CD), in which case it is not necessary to include printed
copies.
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. If possible,
please submit all items on a CD, in which case it is not necessary to
include printed copies.
No telefacsimiles will be accepted. Written comments regarding the
burden-hour estimates or other aspects of the collection-of-information
requirements contained in this proposed rule may be submitted to the
Office of Energy Efficiency and Renewable Energy through the methods
listed above and by e-mail to Christine_J._Kymn@omb.eop.gov.
For detailed instructions on submitting comments and additional
information on the rulemaking process, see section V of this document
(Public Participation).
Docket: The docket is available for review at https://www.regulations.gov, including Federal Register notices, public meeting
attendee lists and transcripts, comments, and other supporting
documents/materials. All documents in the docket are listed in the
https://www.regulations.gov index. However, not all documents listed in
the index may be publicly available, such as information that is exempt
from public disclosure.
A link to the docket Web page can be found at: https://www.regulations.gov/#!docketDetail;dct=FR+PR+N+O+SR+PS;rpp=250;so=DESC;sb=postedDate;po=0;D=
EERE-2011-BT-STD-0047. This Web page contains a link to the docket for
this notice on the https://www.regulations.gov site. The https://www.regulations.gov Web page contains simple instructions on how to
access all documents, including public comments, in the docket. See
section V, ``Public Participation,'' for further information on how to
submit comments through https://www.regulations.gov.
For further information on how to submit a public comment, review
other public comments and the docket, or participate in the public
meeting, contact Ms. Brenda Edwards at (202) 586-2945 or by e-mail:
Brenda.Edwards@ee.doe.gov.
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) 586-9507. E-mail: Eric.Stas@hq.doe.gov.
For information on how to submit or review public comments, contact
Ms. Brenda Edwards, 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) 586-2945. E-mail: Brenda.Edwards@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Summary of the Proposed Rule
II. History of the Energy Conservation Standards Rulemaking and
Current Standards
III. Discussion
A. Scope of Coverage of Vented Hearth Products
1. Description of Vented Hearth Products
2. Definitions for ``Direct Heating Equipment''
a. Application to Vented Hearth Products
b. Application to Vented Gas Log Sets
B. Proposed Definition for ``Vented Hearth Heater''
C. Description of Criteria for Classification as Decorative
Vented Hearth Products
D. National Energy Savings
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act of 1995
D. Review Under the National Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government
Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General Government
Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Review Under the Information Quality Bulletin for Peer Review
V. Public Participation
A. Attendance at the Public Meeting
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Public Meeting
D. Submission of Comments
E. Issues on Which DOE Seeks Comment
VI. Approval of the Office of the Secretary
I. Summary of the Proposed Rule
Title III, Part B \1\ of the Energy Policy and Conservation Act of
1975 (EPCA or the Act), Public Law 94-163 (42 U.S.C.
[[Page 43943]]
6291-6309, as codified), established the Energy Conservation Program
for Consumer Products Other Than Automobiles, which includes the types
of direct heating equipment that are the subject of this rulemaking.
(42 U.S.C. 6292(a)(9)) Pursuant to EPCA, any new or amended energy
conservation standard that DOE prescribes for certain products, such as
direct heating equipment, 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, the new
or amended standard must result in a significant conservation of
energy. (42 U.S.C. 6295(o)(3)(B)). On April 16, 2010, DOE published a
final rule (hereafter referred to as the April 2010 final rule) in
accordance with these statutory provisions and other statutory
requirements discussed in the final rule, which, in relevant part,
promulgated definitions and energy conservation standards for vented
gas hearth direct heating equipment. 75 FR 20112.
---------------------------------------------------------------------------
\1\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
---------------------------------------------------------------------------
In establishing the definitions pertaining to direct heating
equipment in the April 2010 final rule, DOE recognized the aesthetic
appeal of certain gas hearth products and included a provision in its
definition of ``vented hearth heater'' that considered certain gas
hearth products to be decorative in nature, and excluded them from
having to comply with DOE's minimum energy conservation standard
otherwise applicable to vented gas hearth direct heating equipment. The
April 2010 final rule did not address vented gas log sets, which DOE
also considers decorative in nature. DOE clarified its position on
vented gas log sets in a document published on DOE's Web site titled
``Frequently Asked Questions: `Vented Hearth Heater' Definition.'' \2\
In this notice, DOE proposes to further amend its definitions
pertaining to direct heating equipment. Specifically, DOE is proposing
to amend its definition of ``vented hearth heater'' to modify the
conditions contained in the existing definition for the subset of such
products to be considered decorative in nature and, therefore, not
subject to the DOE's minimum energy conservation standards for vented
hearth heaters. In addition, DOE is proposing to include vented gas log
sets in the definition of ``vented hearth heater,'' and to add a
similar set of criteria for exclusion for vented gas log sets. DOE has
tentatively concluded that vented gas log sets warrant similar
treatment to vented hearth products, due to the similarities between
the two types of products. Both provide heat and aesthetic appeal for
consumers, and they have certain similar characteristics, such as the
presence of a flame and ceramic logs. The definition of ``vented hearth
heater'' in the April 2010 final rule stated that ``[t]hose heaters
with a maximum input capacity less than or equal to 9,000 British
thermal units per hour (Btu/h), as measured using DOE's test procedure
for vented home heating equipment (10 CFR Part 430, subpart B, appendix
O), are considered purely decorative and are excluded from DOE's
regulations.'' 75 FR 20112, 20234 (April 16, 2010). In this notice, DOE
proposes to amend the definition for ``vented hearth heater'' to base
the exclusion for decorative vented hearth products and vented gas log
sets on several criteria, including the American National Standards
Institute (ANSI) standard to which the product is certified. The
proposed amended definition reads as set forth in the amendment to 10
CFR 430.2 later in this proposed rule.
---------------------------------------------------------------------------
\2\ This document is available on DOE's Web site at: https://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/htgp_finalrule_faq.pdf.
---------------------------------------------------------------------------
DOE believes the amended definition of ``vented hearth heater''
would provide benefits to both consumers and the gas hearth products
industry in terms of energy savings and product choice, by allowing
manufacturers to continue to offer decorative hearth products across a
broad range of input ratings, rather than limiting decorative hearth
products to input ratings below the current limitation of 9,000 Btu/h.
By eliminating the use of standing pilot lights in all decorative
vented gas hearth products and vented gas log sets beginning on July 1,
2014, DOE believes the amended definition would result in a significant
increase in overall energy savings, including those types of units
eligible for the decorative products exclusion. At the same time, this
proposal would lessen the impacts and burden on manufacturers of vented
hearth heaters, while promoting a variety of available models for
consumers. For vented gas log sets, the proposal would keep their
treatment consistent with decorative vented hearth products, and would
result in substantial energy savings. DOE estimates that the
elimination of standing pilot lights in decorative vented hearth heater
products and vented gas log sets would result in an additional 0.12
quads of additional energy savings over the 30-year period from 2014
through 2043, beyond those savings already achieved by the April 2010
final rule. Manufacturers who choose not to avail themselves of the
exclusion would be subject to the energy conservation standards for
vented hearth heaters promulgated in the April 2010 final rule.
Therefore, DOE has tentatively concluded that the proposed amended
definition of ``vented hearth heater'' would improve the existing
definitions pertaining to direct heating equipment and further clarify
the scope of the current exclusion from the energy conservation
standards for those vented hearth heaters that are decorative hearth
products. In addition, the proposal would result in significant
additional energy savings, preserve consumer choice, and reduce the
burden on industry. For these reasons, DOE has tentatively concluded
that the proposed amendments to DOE's definition of ``vented hearth
heater'' would provide substantial benefits that outweigh the burden of
the new requirements for products to be considered decorative hearth
products, and accordingly, DOE proposes to adopt them in this notice.
DOE's rationale is presented in further detail immediately below.
II. History of the Energy Conservation Standards Rulemaking and Current
Standards
Prior to being amended in 1987, EPCA included home heating
equipment as covered products. The amendments to EPCA effected by the
National Appliance Energy Conservation Act of 1987 (NAECA; Pub. L. 100-
12) included replacing the term ``home heating equipment'' with
``direct heating equipment,'' establishing standards for the direct
heating equipment, and requiring that DOE determine whether these
standards should be amended. (42 U.S.C. 6295(e)(3)-(4)) Nowhere in the
statute is the term ``direct heating equipment'' defined. DOE amended
the statutorily-prescribed standards for direct heating equipment for
the first time in a final rule published on April 16, 2010 (i.e., the
April 2010 final rule), which prescribed the current energy
conservation standards for direct heating equipment manufactured on or
after April 16, 2013. 75 FR 20112. Of particular relevance here, the
April 2010 final rule created a definition for ``vented hearth
heater,'' established product classes for gas hearth direct heating
equipment (i.e., vented hearth heaters), and amended the minimum
standards for direct heating equipment, including gas hearth direct
heating equipment. The April 2010 final rule defined ``vented hearth
heater'' at 10 CFR 430.2.
In addition, the April 2010 final rule amended the definition of
``vented
[[Page 43944]]
home heating equipment or vented heater'' to include vented hearth
heaters, along with the other types of heaters (i.e., vented wall
furnace, vented floor furnace, and vented room heater) that were
already defined as vented home heating equipment.
The amended standards established in the April 2010 final rule for
gas hearth direct heating equipment are set forth in Table II.1.
Table II.1--Federal Energy Efficiency Standards for Gas Hearth Direct
Heating Equipment
------------------------------------------------------------------------
Standard level
(Compliance
Product class date: 4/16/
2013)
------------------------------------------------------------------------
Gas hearth up to 20,000 Btu/h........................... AFUE* = 61%
Gas hearth over 20,000 Btu/h and up to 27,000 Btu/h..... AFUE = 66%
Gas hearth over 27,000 Btu/h and up to 46,000 Btu/h..... AFUE = 67%
Gas hearth over 46,000 Btu/h............................ AFUE = 68%
------------------------------------------------------------------------
* Annual Fuel Utilization Efficiency.
Following DOE's adoption of the April 2010 final rule, the Hearth,
Patio & Barbecue Association (HPBA) sued DOE in the United States Court
of Appeals for the District of Columbia Circuit to invalidate the rule
as it pertained to vented gas hearth products. Statement of Issues to
Be Raised, Hearth, Patio, & Barbecue Association v. Department of
Energy, et al., No. 10-1113 (DC Cir. filed June 1, 2010). Litigation is
pending; however, if this rule is adopted as proposed, it may make it
unnecessary for the Court to resolve some of the issues surrounding the
April 2010 final rule.
III. Discussion
A. Scope of Coverage of Vented Hearth Products
1. Description of Vented Hearth Products
Vented hearth products include gas-fired products such as
fireplaces, fireplace inserts, stoves, and log sets that typically
include aesthetic features (e.g., yellow flame, large flame) and that
provide space heating. A vented hearth product can be intended to be a
used as only a heating appliance or as a heat source with an aesthetic
appeal. Characteristic of this duality of purpose, units designed as a
heating appliance and those units that also have a decorative nature
often share very similar external appearances, unit construction, and
input capacities, thereby making it difficult to differentiate between
the two types of hearth products. DOE notes that the primary difference
between the two types of vented hearth heaters is that decorative units
provide ambiance and aesthetic utility associated with a solid fuel
(e.g., wood-burning) fireplace in addition to heat output to the living
space, whereas heating hearth products tend to focus on providing heat
to the living space. Products intended for use as a heater are often
shipped with or designed to be easily retrofitted with additional
accessories that decorative products do not have, such as thermostats
to control the heat output. However, DOE research has shown that such
accessories are typically optional and, thus, not definitive in
distinguishing between heaters and decorative units. To be clear, all
vented hearth products constitute direct heating equipment where a gas-
consuming device is inserted into the residential living space, but DOE
believes that today's proposal to modify the exclusion for decorative
hearth products strikes an appropriate balance between energy savings
and consumer choice for such units.
2. Definitions for ``Direct Heating Equipment''
As discussed in section II above, before the enactment of NAECA,
EPCA included ``home heating equipment'' in DOE's appliance standards
program. EPCA did not define ``home heating equipment,'' however.
NAECA's amendments to EPCA replaced the term ``home heating equipment''
with ``direct heating equipment,'' and specified energy conservation
standards for ``direct heating equipment,'' but once again, the statute
did not define the term ``direct heating equipment.'' In the absence of
an unambiguous statutory definition, DOE has discretion to establish a
reasonable regulatory definition. With that said, Congress's use of
such broad terminology signals that the definition is open to
accommodate future technological changes in the marketplace in keeping
with DOE's energy-saving mandate under EPCA.
Prior to the April 2010 final rule, DOE had previously defined
``home heating equipment'' and related terms in its regulations, which
can be found at 10 CFR 430.2. In the April 2010 final rule, DOE added a
new definition of ``direct heating equipment,'' defining the term in
the same manner that it had previously defined home heating equipment.
75 FR 20112, 20128, 20234 (April 16, 2010). DOE defines both ``home
heating equipment'' and ``direct heating equipment'' as meaning
``vented home heating equipment and unvented home heating equipment.''
In its definitions at 10 CFR 430.2, DOE goes on to define both ``vented
home heating equipment'' and ``unvented home heating equipment.'' Prior
to being amended in the April 2010 final rule, the definition of
``vented home heating equipment,'' relevant here, read as published in
10 CFR Parts 400-499, revised as of January 1, 2010.
a. Application to Vented Hearth Products
In the April 2010 final rule, DOE concluded that vented hearth
products (i.e., gas-fired products such as fireplaces, fireplace
inserts, stoves, and log sets) meet its definition of ``vented home
heating equipment,'' because their designs furnish warmed air to the
living space of a residence. DOE also concluded, therefore, that they
are covered products under EPCA and are properly classified as direct
heating equipment. 75 FR 20112, 20128 (April 16, 2010). Accordingly,
DOE adopted a new definition of ``vented hearth heater'' and amended
its definition of ``vented home heating equipment or vented heater'' to
explicitly include vented hearth heaters, reading as published at 10
CFR 430.2.
DOE notes that the terminology ``designed to furnish warmed air''
in the definition of ``vented home heating equipment'' is not limited
to furnishing warmed air through mechanical means by expelling or
discharging such air, but can also refer to furnishing heat which warms
the living space air through any method of heat transfer. Because of
the very nature of hearth products (i.e., the presence of a flame), all
hearth products create heat, and hearth products provide some amount of
that heat to the surrounding living space, including radiant heat. As a
result, DOE believes that all vented hearth products are designed to
furnish warm air, regardless of whether they have a mechanical means
for furnishing the air (such as a blower) or grills through which the
warm air can be circulated via natural convection.
Based upon the above reasoning, DOE determined that decorative
vented hearth products are a subset of vented hearth heaters. Further,
DOE has concluded previously that all vented hearth heaters (including
decorative vented hearth products) are included in the broader
classification of direct heating equipment. However, because DOE
recognizes the aesthetic aspects of vented hearth products that are
decorative in nature, DOE adopted an exclusion for those products from
the
[[Page 43945]]
energy conservation standards that were promulgated in the April 2010
final rule. DOE continues to support this conclusion today, but is
proposing to change the scope of the exclusion in order to achieve
greater energy savings, promote consumer product choice, and ease
manufacturer burdens.
Given the lack of a statutory definition for ``direct heating
equipment,'' DOE seeks comment regarding whether its interpretation
that decorative vented hearth products are a type of direct heating
equipment is reasonable. This is identified as Issue 1 in section V.E,
``Issues on Which DOE Seeks Comment.''
b. Application to Vented Gas Log Sets
In the April 2010 final rule, DOE did not specifically address
vented gas log sets under the broader classification of direct heating
equipment. However, given their decorative nature, DOE published a
document on DOE's Web site titled ``Frequently Asked Questions: `Vented
Hearth Heater' Definition.'' \3\ In that document, DOE stated that
because gas log sets are not constructed as part of an entire enclosure
(i.e., there is no surrounding box or viewing pane) or a sealed system,
they do not provide the same heating function as gas fireplaces, gas
fireplace inserts, and gas stoves, which are constructed as enclosed
systems. Due to these differences, DOE stated that vented gas log sets
are intended to be installed for decorative purposes, and as a result,
are not vented hearth heaters.
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\3\ This document is available on DOE's Web site at: https://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/htgp_finalrule_faq.pdf.
---------------------------------------------------------------------------
Upon reconsidering the definitions of ``direct heating equipment,''
``vented home heating equipment,'' and ``vented hearth heater'' for
this notice, DOE has determined that vented gas log sets are heating
appliances (albeit relatively inefficient ones) and would be included
as covered products under DOE's definitions. This approach is
consistent with DOE's treatment of vented hearth products that provide
both heat and aesthetic appeal. As noted above, DOE has determined that
the terminology ``designed to furnish warmed air'' in the definition of
``vented home heating equipment'' is not limited to furnishing warmed
air through mechanical means by expelling or discharging such air, but
instead, it can refer to furnishing heat which warms the living space
air through any method of heat transfer. Nor is the phrase ``designed
to furnish warmed air'' dependent on a manufacturer's principal
intention in designing, manufacturing, or marketing such products.
Because vented gas log sets will provide some amount of heat to the
living space, DOE believes that all vented gas log sets are designed to
furnish warm air and, thus, are a subset of vented hearth heaters. As
with decorative vented gas hearth products, DOE recognizes that vented
gas log sets are typically decorative in nature, and is proposing to
exclude them from DOE's standards for vented hearth heaters if they
meet the specific set of criteria outlined in section III.B and
discussed in detail in section III.C.
Given the lack of a statutory definition for ``direct heating
equipment,'' DOE seeks comment regarding whether its interpretation
that vented gas log sets are a type of direct heating equipment is
reasonable. This is identified as Issue 1 in section V.E, ``Issues on
Which DOE Seeks Comment.''
B. Proposed Definition for ``Vented Hearth Heater''
The amended definition for ``vented hearth heater'' that DOE is
proposing in today's document reads as as set forth in the amendment to
10 CFR 430.2 later in this proposed rule.
The amendments to the definition of ``vented hearth heater'' being
proposed in this notice are related to the scope of the exclusion for
the subset of such heaters that DOE has determined should not be
subject to the current energy conservation standards otherwise
applicable to vented hearth heaters. In the April 2010 final rule, DOE
defined the exclusion for decorative vented hearth products as those
with input ratings below 9,000 Btu/h. 75 FR 20112, 20129, 20234 (April
16, 2010). The changes to the definition that DOE is proposing in this
notice are twofold and are discussed in the paragraphs that follow.
First, DOE is proposing to exclude vented gas log sets from being
subject to the energy conservation standards for vented hearth heaters,
provided that they meet the set of criteria outlined in the definition
of ``vented hearth heater.'' These products were previously not
considered to be subject to standards for direct heating equipment;
however, as noted in section III.A.2.b, DOE now believes these products
should be subject to standards, unless they qualify for an exclusion
along the lines of that proposed for vented gas hearth products.
Second, DOE is also proposing a specific set of criteria (rather
than the 9,000 Btu/h input rating limitation) for establishing that a
subset of vented hearth products should be excluded from the energy
conservation standards because such units are decorative in nature. DOE
believes that the conditions outlined in the definition for classifying
a vented hearth product as decorative will create a clear division
between vented hearth products that will be subject to DOE's standards
for gas hearth direct heating equipment and those vented hearth
products that focus primarily on providing ambiance and aesthetic
utility, which will not be subject to DOE's standards. DOE also expects
that the proposed amendments to the definition would lessen the burden
on manufacturers and allow DOE to achieve greater energy savings than
under the previous definition, while still achieving the energy
efficiency mandate of EPCA, primarily through elimination of standing
pilot lights or other continuously-burning ignition sources. In fact,
DOE's analysis suggests that amendments associated with the proposed
definition would result in significant energy savings that will be
greater than the savings under the definition adopted in the April 2010
final rule, both overall as well as for the types of units eligible for
the exclusion. (See section III.D of this notice for details on the
estimated energy savings.)
C. Description of Criteria for Classification as Decorative Vented
Hearth Products
As noted above, DOE's proposed amendments to the definition of
``vented hearth heater'' provide an exclusion for products that are
decorative in nature, provided that they meet the criteria outlined in
the definition. The exclusion criteria for vented gas log sets and
vented hearth products are essentially the same (with the only
exception being the first criterion), and are discussed together in the
paragraphs below.
The first criterion that a product must meet to be considered a
decorative vented hearth product or vented gas log set is that it must
be certified to a certain ANSI standard. Specifically, for vented
hearth products, it must be certified to ANSI Standard Z21.50, Vented
Gas Fireplaces, and not be certified to ANSI Standard Z21.88, Vented
Gas Fireplace Heaters. For vented gas log sets, it must be certified to
ANSI Standard Z21.60, Decorative Gas Fireplaces for Installation in a
Solid-Fuel Fireplace. DOE recognizes that the hearth products industry
has attempted to distinguish between heater and decorative products
using the certification under one of these standards as the criterion
for classification into one category or the other. Further, ANSI
Standard Z21.88 contains provisions that allow the main
[[Page 43946]]
burners to be thermostatically-controlled. Therefore, DOE believes this
criterion would be helpful in differentiating between vented hearth
heaters and vented hearth products that are decorative in nature. In
addition, the criterion for gas log sets would ensure that any products
that meet the conditions for exclusion from energy conservation
standards are certified to ensure safety and proper operation as a gas
log set.
The second criterion in the proposed definition is that the product
must be sold without a thermostat and with a warranty provision
expressly voiding all manufacturer warranties in the event the product
is used with a thermostat. Hearth products intended for heating
sometimes use thermostats to automatically turn on and off based on the
temperature of the surrounding space. Often, thermostats are optional
equipment that may be installed in the field. DOE believes that there
should be no reason for a product intended to be used primarily for
decorative purposes would need to employ a thermostat. In addition, DOE
believes a provision in the warranty that voids it if a thermostat is
installed will discourage the misuse of vented hearth products that are
intended to be decorative and also discourage evasion of energy
conservation standards by those who purchase decorative products and
seek to use them as heaters.
The third criterion is that the product must expressly and
conspicuously be identified on its rating plate and in all manufacturer
advertising and product literature as a ``Decorative Product: Not For
Use As A Heating Appliance.'' This requirement will provide additional
clarification for consumers and installers and make it obvious that the
product is intended for decorative purposes only.
In the final criterion, which is perhaps of the greatest
significance, DOE is proposing that products manufactured on or after
July 1, 2014 must not be equipped with a standing pilot light or other
continuously-burning ignition source in order to qualify for exclusion
from energy conservation standards for vented hearth heaters. According
to DOE's market research, more than half of the decorative hearth
product market and more than three-quarters of the vented gas log
market would not be impacted, because the products already utilize
alternatives to a standing pilot light, such as an intermittent pilot
or electronic ignition. However, if DOE adopts the proposed definition
of ``vented hearth heater'' in a final rule, DOE notes that some
products on the market would need to be: (1) Redesigned to eliminate
the use of standing pilot lights or other continuously-burning ignition
source; (2) redesigned by April 16, 2013 to meet the required standard
level for gas hearth direct heating equipment established by the April
2010 final rule; or (3) removed from the market prior to July 1, 2014.
DOE believes that given the prevalence of the technological
alternatives to standing pilot lights and other continuously-burning
ignition sources (e.g., electronic ignition, intermittent pilot) and
the experience of manufacturers in implementing these alternatives, a
compliance date of July 1, 2014 allows a reasonable amount of time for
manufacturers to redesign or remove from the market their products with
standing pilots or shift production to product lines without a standing
pilot or other continuously-burning ignition source. DOE is interested
in receiving comment from interested parties on the proposed compliance
date for vented gas hearth products and vented gas log sets, including
specific rationales and accompanying data as to why a different
timeline for eliminating standing pilots or other continuously-burning
ignition sources from decorative vented gas hearth products or vented
gas log sets may or may not be warranted. This is identified as Issue 2
in section V.E, ``Issues on Which DOE Seeks Comment.''
In addition, DOE seeks comments on all aspects of the proposed
definition for ``vented hearth heater,'' in particular, the criteria
for exclusion of vented hearth products and vented gas log sets that
are decorative in nature. This is identified as Issue 3 in section V.E,
``Issues on Which DOE Seeks Comment.''
D. National Energy Savings
As noted above, DOE is proposing that to qualify for an exclusion
from the current energy conservation standards for products that are
decorative in nature, vented gas hearth products and vented gas log
sets manufactured on or after July 1, 2014 must not be equipped with a
standing pilot light or other continuously-burning ignition source. DOE
analyzed the energy savings expected to result from exclusion of the
standing pilot light or other continuously-burning ignition source in
the amended ``vented hearth heater'' definition. Based on information
about vented hearth product models available in the market,\4\ DOE
estimated that about 38 percent of the vented decorative hearth models
on the market would need to be redesigned to eliminate the use of
standing pilot lights or other continuously-burning ignition sources.
DOE also estimated that 20 percent of vented gas logs would have
standing pilot lights or other continuously-burning ignition sources,
based on a 1997 GTI study.\5\ The remaining portion of the market is
assumed to already utilize ignition alternatives, such as an
intermittent pilot or electronic ignition.
---------------------------------------------------------------------------
\4\ U.S. Department of Energy-Office of Codes and Standards,
Analytical Tools: Energy Conservation Standards for Residential
Water Heaters, Direct Heating Equipment, and Pool Heaters (April 27,
2010).
\5\ Menkedick, J., Hartford, P., Collins, S., Chumaker, S.,
Wells, D. Topic Report: Hearth Products Study (1995-1997). Gas
Research Institute (GRI). September 1997. GRI-97/0298.
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To estimate the energy savings associated with today's proposal,
DOE assumed that all decorative hearth products and vented gas log
models with standing pilot lights or other continuously-burning
ignition sources would be replaced with an intermittent pilot ignition,
and would have an average duration of the pilot operation of about 37.5
h/yr (the same as the main burner operating hours \6\). On average,
continuous pilot energy use is about 350 Btu/h \7\ for decorative
vented hearth products \8\ and 1,250 Btu/h for vented gas logs.\9\ For
both vented hearth products and vented gas log sets, DOE assumed that
pilot lights operate year round (i.e., 8,760 h/yr) for 75 percent of
the installations and that for the remaining 25 percent, the consumer
operates the pilot for about one-fourth of the year (i.e., 2190 h/yr).
Thus, the average annual energy savings amount to 2.67 million Btu per
unit for
[[Page 43947]]
decorative vented hearth products and 9.53 million Btu per unit for
vented gas logs. DOE assumed an average lifetime of 15 years for both
decorative vented hearth and vented gas logs units and average annual
shipments of 460,000 decorative vented hearth units and 103,000 vented
gas logs units.
---------------------------------------------------------------------------
\6\ Houck, James, ``Residential Decorative Gas Fireplace Usage
Characteristics'' (Report prepared for HPBA) (2010).
\7\ U.S. Department of Energy-Office of Codes and Standards,
Technical Support Document: Energy Conservation Standards for
Residential Water Heaters, Direct Heating Equipment, and Pool
Heaters (April 27, 2010).
\8\ U.S. Department of Energy-Office of Codes and Standards,
Technical Support Document: Energy Conservation Standards for
Residential Water Heaters, Direct Heating Equipment, and Pool
Heaters (April 27, 2010).
\9\ This value was derived from data collected on the following
manufacturer Web sites:
Pittsburgh Gas Grill and Heater Co. Frequently Asked Questions.
(URL: https://www.pittsburghgasgrill.com/faq.html).
Hargrove Hearth Products. Frequently Asked Questions. (URL:
https://www.hargrovegaslogs.com/faq.htm).
Leonard's Stone & Fireplace. Frequently Asked Questions. (URL:
https://www.leonardsstoneandfireplace.net/faq.html).
Fireside Hearth & Home. Frequently Asked Questions. (URL: https://www.firesidehearthandhome.com/faq.php).
Heatilator. Common Questions. (URL: https://www.heatilator.com/customerCare/searchFaq.asp?c=Gas).
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In the April 2010 final rule, DOE estimated the national energy
savings over the analysis period (2013-2042) for the vented hearth
heaters to be 0.19 quads. 75 FR 20112, 20185 (April 16, 2010). Based on
current information, DOE has determined that approximately 70 percent
of the vented hearth products considered in 2010 are decorative hearth
products. If one assumes that manufacturers were to avail themselves of
the exclusion proposed in this rulemaking for all such products, DOE's
revised national energy savings (NES) estimates show that the savings
for the vented hearth heaters under the April 2010 standards would be
0.06 quads, which does not include any energy savings from products
considered decorative in nature. Using the above assumptions, DOE
calculated the national energy savings over the analysis period to be
0.17 quads for decorative hearth products and 0.07 quads for vented gas
log sets under the proposed revised definition of ``vented hearth
heater'' in today's rule which would eliminate the standing pilot
lights on those units. Accounting for the approximately 0.13 quad
reduction in energy savings for 2010 final rule (from assuming that all
decorative products avail themselves of the exclusion proposed in this
rulemaking), DOE estimated that the net additional national energy
savings compared to the 2010 final rule would be 0.12 quads (rounded to
two significant figures).
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
Section 1(b)(1) of Executive Order 12866, ``Regulatory Planning and
Review,'' 58 FR 51735 (Oct. 4, 1993), requires each agency to identify
the problem that it intends to address, including, where applicable,
the failures of private markets or public institutions that warrant new
agency action, as well as to assess the significance of that problem.
The problems that the standards in this rule address are as follows:
(1) There is a lack of consumer information and/or information
processing capability about energy efficiency opportunities in the home
appliance market.
(2) There is asymmetric information (one party to a transaction has
more and better information than the other) and/or high transactions
costs (costs of gathering information and affecting exchanges of goods
and services).
(3) There are external benefits resulting from improved energy
efficiency of direct heating equipment that are not captured by the
users of such equipment. These benefits include externalities related
to environmental protection and energy security that are not reflected
in energy prices, such as reduced emissions of greenhouse gases.
In addition, DOE has determined that today's regulatory action is
not an ``economically significant regulatory action'' under section
3(f)(1) of Executive Order 12866. Accordingly, DOE has not prepared a
regulatory impact analysis (RIA) on today's rule, and the Office of
Information and Regulatory Affairs (OIRA) in the Office of Management
and Budget (OMB) is not required to review this rule.
DOE has also reviewed this regulation pursuant to Executive Order
13563, issued on January 18, 2011 (76 FR 3281 (Jan. 21, 2011)).
Executive Order 13563 is supplemental to and explicitly reaffirms the
principles, structures, and definitions governing regulatory review
established in Executive Order 12866. To the extent permitted by law,
agencies are required by Executive Order 13563 to: (1) Propose or adopt
a regulation only upon a reasoned determination that its benefits
justify its costs (recognizing that some benefits and costs are
difficult to quantify); (2) tailor regulations to impose the least
burden on society, consistent with obtaining regulatory objectives,
taking into account, among other things, and to the extent practicable,
the costs of cumulative regulations; (3) select, in choosing among
alternative regulatory approaches, those approaches that maximize net
benefits (including potential economic, environmental, public health
and safety, and other advantages; distributive impacts; and equity);
(4) to the extent feasible, specify performance objectives, rather than
specifying the behavior or manner of compliance that regulated entities
must adopt; and (5) identify and assess available alternatives to
direct regulation, including providing economic incentives to encourage
the desired behavior, such as user fees or marketable permits, or
providing information upon which choices can be made by the public.
DOE emphasizes as well that Executive Order 13563 requires agencies
to use the best available techniques to quantify anticipated present
and future benefits and costs as accurately as possible. In its
guidance, the Office of Information and Regulatory Affairs has
emphasized that such techniques may include identifying changing future
compliance costs that might result from technological innovation or
anticipated behavioral changes. For the reasons stated in the preamble,
DOE believes that today's NOPR is consistent with these principles,
including the requirement that, to the extent permitted by law,
agencies adopt a regulation only upon a reasoned determination that its
benefits justify its costs and, in choosing among alternative
regulatory approaches, those approaches maximize net benefits.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis (IRFA) for
any rule that by law must be proposed for public comment, unless the
agency certifies that the rule, if promulgated, will not have a
significant economic impact on a substantial number of small entities.
As required by Executive Order 13272, ``Proper Consideration of Small
Entities in Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE
published procedures and policies on February 19, 2003, to ensure that
the potential impacts of its rules on small entities are properly
considered during the rulemaking process. 68 FR 7990. DOE has made its
procedures and policies available on the Office of the General
Counsel's Web site (https://www.gc.doe.gov).
DOE reviewed the impacts of the proposed amendments in today's NOPR
under the provisions of the Regulatory Flexibility Act and the
procedures and policies discussed above. As a result of this review,
DOE has prepared an IRFA for vented hearth products, a copy of which
DOE will transmit to the Chief Counsel for Advocacy of the SBA for
review under 5 U.S.C. 605(b). As presented and discussed below, the
IFRA describes potential impacts on small manufacturers of vented
hearth products associated with the required capital and product
conversion costs from the proposed amended definition for ``vented
hearth heater,'' which would change the scope of the exclusion from the
applicable energy conservation standard.
1. Statement of the Need for, and Objectives of, the Rule
The reasons why DOE is proposing to amend the definition of
``vented hearth heater'' in today's NOPR and the
[[Page 43948]]
objectives of this and other related amendments are provided elsewhere
in the preamble and not repeated here.
2. Description and Estimated Number of Small Entities Regulated
For manufacturers of direct heating equipment, the Small Business
Administration (SBA) has set a size threshold, which defines those
entities classified as ``small businesses'' for the purposes of the
statute. DOE used the SBA's small business size standards to determine
whether any small entities would be subject to the requirements of the
rule. 65 FR 30836, 30848 (May 15, 2000), as amended at 65 FR 53533,
53544 (Sept. 5, 2000) and codified at 13 CFR Part 121. The size
standards are listed by North American Industry Classification System
(NAICS) code and industry description, which are available at: https://www.sba.gov/sites/default/files/Size_Standards_Table.pdf. Direct
heating equipment manufacturing is classified under NAICS 333414,
``Heating Equipment (except Warm Air Furnaces) Manufacturing.'' The SBA
sets a threshold of 500 employees or less for an entity to be
considered as a small business for this category.
In preparation for the April 2010 final rule, DOE conducted a
market survey using all available public information to identify
potential small manufacturers of the type of products that are the
subject of this rulemaking. DOE's research included the HPBA membership
directory, Air-Conditioning, Heating, and Refrigeration Institute
(AHRI) product databases, and individual company Web sites to find
potential small business manufacturers. DOE also asked stakeholders and
industry representatives if they were aware of any other small
manufacturers during manufacturer interviews and at previous DOE public
meetings. DOE reviewed all publicly-available data and contacted
various companies, as necessary, to determine whether they met the
SBA's definition of a small business manufacturer of covered
residential direct heating equipment. DOE screened out companies that
did not offer products covered by this rulemaking, did not meet the
definition of a ``small business,'' or are foreign owned and operated.
In the April 2010 final rule, DOE identified 10 small manufacturers of
vented gas hearth products, and DOE believes that the vented hearth
heater market has not changed significantly since the time of the April
2010 final rule. Before issuing the NOPR that lead to the April 2010
final rule, DOE attempted to contact the small business manufacturers
of vented hearth products. One of the small businesses consented to
being interviewed during the MIA interviews, and DOE received feedback
from an additional two small businesses through survey responses. DOE
also obtained information about small business impacts while
interviewing manufacturers that exceed the small business size
threshold of 500 employees in this industry. The remaining small
businesses that DOE identified in the rule did not respond to requests
for additional information or interviews.
For this rulemaking, DOE also identified seven small business
manufacturers of vented gas log sets. Of these manufacturers, three are
also small business manufacturers of decorative hearth products and,
consequently, were previously identified. The only covered products
made by the remaining four small business manufacturers are vented gas
log sets. DOE attempted to contact the four small business
manufacturers of gas log sets that it identified. Additionally, DOE
believes that given the similarities in these types of products, the
compliance costs of small business manufacturers of vented gas log sets
resulting from this rulemaking can be reasonably assumed to be largely
the same as the compliance costs of small business manufacturers of
vented gas hearth products.
3. Description and Estimate of Compliance Requirements
For the April 2010 final rule, DOE calculated the anticipated
capital and product development costs for vented hearth heaters by
estimating per-line cost and average number of product lines for a
typical small business manufacturer. DOE used certification databases,
product catalogs, interviews with manufacturers, and sources of public
information to estimate the impacts of the rule on small business
manufacturers. In the final rule, DOE concluded that because a typical
manufacturer of vented hearth products already offers multiple product
lines that meet and exceed the required efficiencies and because most
product lines that did not meet the proposed standard could be upgraded
with relatively minor changes, manufacturers, including the small
business manufacturers, would be able to maintain a viable number of
product offerings. 75 FR 20112, 20231 (April 16, 2010).
In order to comply with the energy conservation standards
promulgated in the April 2010 final rule, manufacturers of decorative
hearth products with efficiencies lower than the minimum allowable
standard and input ratings above 9,000 Btu/h would need to either: (1)
Redesign their products to meet the required standard level for gas
hearth direct heating equipment; (2) redesign their products to ensure
that input ratings are below 9,000 Btu/h; or (3) discontinue
manufacturing those products. In the April 2010 final rule, DOE assumed
manufacturers would redesign their products with input rating below
9,000 Btu/h with relatively minor changes to existing decorative
products. 75 FR 20112, 20129 (April 16, 2010). Under the amended
definition of ``vented hearth heater'' proposed in this notice, the
9,000 Btu/h limitation would no longer apply for purposes of exclusion
from the energy conservation standard. Instead, vented hearth products
(regardless of input rating) would not be subject to the minimum
standard for vented hearth heaters if they comply with the four
criteria outlined above (i.e., (1) Certified to ANSI Standard Z21.50
and not to ANSI Standard Z21.88); (2) sold without a thermostat and
with a warranty provision expressly voiding all manufacturer warranties
in the event the product is used with a thermostat; (3) expressly and
conspicuously identified on its rating plate and in all manufacturer's
advertising and product literature as a ``Decorative Product: Not For
Use As A Heating Appliance''; and (4) with respect to products sold
after July 1, 2014, not equipped with a standing pilot light or other
continuously-burning ignition source). Under the April 2010 final rule,
vented gas log sets were not addressed. However, under today's
proposal, vented gas log sets would be required to either meet the
energy conservation standard for vented hearth heaters or to meet the
four criteria outlined above for their exclusion (which are the same as
the criteria for vented hearth products, except that they must be
certified to ANSI Z21.60, rather than ANSI Z21.50, as it is the
applicable standard for gas log sets).
Each of the definitional criteria for decorative gas hearth
products and vented gas log sets would have differing impacts on small
business manufacturers. The first criterion (that the product must be
certified to ANSI Standard Z21.50 and not ANSI Standard Z21.88 for
decorative hearth products, and that the product must be certified to
ANSI Z21.60 for gas log sets) would not impose new conversion costs on
small businesses since DOE is not aware of any vented hearth products
on the market that are not already certified to one of these standards.
Products
[[Page 43949]]
considered by manufacturers to be decorative in nature are already
certified to ANSI Standard Z21.50 (vented hearth products), and to ANSI
Z21.60 (vented gas log sets). For these reasons, DOE believes that this
criterion would not cause any additional compliance requirements for
manufacturers, including small businesses.
Complying with the second and third criteria would require
manufacturers to clearly identify the decorative nature of the vented
hearth product and vented gas log set, as well as further detail the
warranty provisions of the hearth product. These provisions would
require an update of the product and marketing literature and product
labeling, which DOE believes would result in added product conversion
costs. However, DOE notes that product conversion costs to update
manufacturer literature and labels will also be required under the
definition and standards for gas hearth direct heating equipment (i.e.,
vented hearth heaters) set forth by the April 2010 final rule, due to
the requirements for making representations of the AFUE as well as
certifying compliance to the Department. Under the April 2010 final
rule, all of the product and marketing materials would have to have
been revised to reflect the test AFUE. Because the compliance date for
the standards promulgated in the April 2010 final rule is April 2013,
DOE believes that manufacturers have likely not already updated product
literature in preparation for compliance with those standards.
Consequently, DOE estimated that all manufacturers, including small
businesses, would continue to incur these product conversion cost under
both rules for those products affected by the definitional change.
Regarding the second criterion that eliminates the option for
manufacturers to offer a thermostat with any decorative hearths, DOE
does not believe that this would impose any additional costs or burdens
because thermostats are optional features and their removal would not
require any redesign of existing product lines. Further, many
decorative hearths are not offered with an optional thermostat from the
point of sale by the manufacturer, so DOE believes this criterion alone
would have little impact on the existing market, but would provide
additional assurance that decorative products are not being installed
as heating appliances. Consequently, DOE believes that the second and
third criteria would simply result in revising product specifications,
marketing materials, and products labels to make clear the intended use
of decorative hearths, which DOE believes would have a minimal impact
on manufacturers, including small businesses.
Lastly, DOE considered the impacts of the final criterion to
qualify for the decorative exclusion from the energy conservation
standards for vented hearth heaters and vented gas log sets. That
criterion requires manufacturers to eliminate standing pilot lights and
other continuously-burning ignition devices from decorative vented
hearth products by July 1, 2014 which would cause manufacturers to
incur conversion costs to qualify for the proposed exclusion from the
energy conservation standards. To calculate the conversion costs for
decorative hearth products to remove standing pilots, DOE approximated
the total number of product lines for decorative vented hearth products
using the average number of annual shipments of decorative gas hearth
products per product line, along with the average total shipments
assumed for the analysis of national energy savings (i.e., 460,000
units per year). To determine the average number of annual shipments of
decorative gas hearth products per product line, DOE assumed that each
decorative vented gas hearth product line has approximately the same
number of annual shipments per line as the gas hearth products analyzed
for the April 2010 final rule. Using this method, DOE found
approximately 110 total decorative product lines. Using the assumption
that 38 percent of decorative gas hearth products would have to remove
standing pilots, 42 of these product lines would have to be upgraded by
July 1, 2014. To calculate the conversion costs for vented gas log
sets, DOE used market data and the assumptions for the per line
conversion costs to remove standing pilots from gas hearth products. To
determine the number of vented gas log product lines with standing
pilots, DOE reviewed the company Web sites for all manufacturers of gas
hearth products and all manufacturers that certify gas space heaters
with the California Energy Commission (CEC) and are listed in CEC's
appliance efficiency directory. DOE also conducted product searches to
verify that it had captured all vented gas log sets that use a standing
pilot. If it was not clear from the literature whether the vented gas
log sets had a standing pilot, DOE assumed the product used a standing
pilot. DOE found 35 vented gas log product lines that would need to be
updated to remove the standing pilot ignition system by the July 1,
2014 deadline set in the proposed exclusion.
DOE believes that the elimination of standing pilot would only
result in product conversion costs associated with testing and
recertification to the ANSI safety standards for the newly designed
products. If all 77 product lines need to be retested and recertified
as a result of the incorporation of standing pilots into the system,
the estimated product conversion cost would be approximately $693,000
for the industry to comply with the proposed July 1, 2014 exclusion
criteria for both decorative gas hearth products and vented gas log
sets. DOE does not believe any capital conversion costs would be needed
for manufacturers to comply with the criterion for elimination of the
standing pilot, because manufacturers would not need to make any
changes to their existing facilities to incorporate this design change
into their product lines. Overall, the total conversion costs with
today's proposed amendments would be expected to be slightly lower than
the total conversion costs for manufacturers of vented gas hearth
heaters for the April 2010 final rule.
In considering the impacts of this requirement, DOE compared it to
the alternative of leaving in place the requirements in the April 2010
final rule, assuming manufacturers chose not to design for a Btu rating
lower than 9,000 Btu/h. If the definition of ``vented hearth heater''
were to remain as it was in the April 2010 final rule, manufacturers
would have to redesign all decorative hearth products with input
ratings over 9,000 Btu/h either to meet the minimum standard for gas
hearth direct heating equipment or to have an input rating below 9,000
Btu/h, or discontinue manufacturing those products. Under the newly
proposed definition, instead of completely redesigning those products
to improve energy efficiency, manufacturers could make a comparatively
minor engineering change of replacing the standing pilot or other
continuously-burning ignition with an alternative technology such as an
electronic ignition or interrupted ignition device. DOE believes that
replacing the standing pilot or other continuously-burning ignition
device with an alternative technology would be less burdensome to
manufacturers than a complete redesign of decorative hearth products to
meet the minimum standard or to have an input rating below 9,000 Btu/h.
Moreover, a redesign to comply with the energy conservation standard
would likely necessitate elimination of any standing pilot on units so
equipped anyway, along with additional
[[Page 43950]]
engineering changes to improve efficiency. In addition, manufacturers
would be required to test and certify their equipment to DOE
efficiency's standards along with the ANSI safety standards, further
increasing the cost and burden of compliance with the energy
conservation standard in comparison to simply replacing the standing
pilot or continuously-burning ignition with an alternative technology.
As a result of the considerations discussed above, DOE has
concluded that today's proposal would not disproportionately impact
small manufacturers of vented hearth products and vented gas logs. DOE
requests comment on its assessment of the impact of today's proposal on
small business manufacturers.
4. Duplication, Overlap, and Conflict with Other Rules and Regulations
DOE is not aware of any rules or regulations that duplicate,
overlap, or conflict with the rule being
