Energy Conservation Program: Energy Conservation Standards for Residential Central Air Conditioners and Heat Pumps; Request for Information, 65603-65609 [2014-26247]
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65603
Proposed Rules
Federal Register
Vol. 79, No. 214
Wednesday, November 5, 2014
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DATES:
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On
October 17, 2014, (79 FR 62360), the
NRC published a Proposed Rule to
amend the NRC’s regulations to add
SHINE Medical Technologies, Inc.’s
accelerator-driven subcritical operating
assemblies, as described in the
application assigned docket number 50–
608, to the definition of utilization
facility. That rule incorrectly identified
the docket identification number for the
action as NRC–2013–0053, and the RIN
for the action as 3150–AJ18.
SUPPLEMENTARY INFORMATION:
Correction
Accordingly, in proposed rule FR
Doc. 2014–24733, on page 62360, in the
Friday issue of October 17, 2014 (79 FR
62360), the docket identification
number NRC–2013–0053 in the heading
of the document and in all other
instances on page 62360, is revised to
read NRC–2014–0238. In addition, the
RIN 3150–AJ18 in the heading of the
document is revised to read 3150–AJ48.
Dated at Rockville, Maryland, this 30th day
of October, 2014.
For the Nuclear Regulatory Commission.
Cindy Bladey,
Chief, Rules, Announcements, and Directives
Branch, Division of Administrative Services,
Office of Administration.
[FR Doc. 2014–26253 Filed 11–4–14; 8:45 am]
BILLING CODE 7590–01–P
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DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE–2014–BT–STD–
0048]
RIN 1904–AD37
Energy Conservation Program: Energy
Conservation Standards for
Residential Central Air Conditioners
and Heat Pumps; Request for
Information
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Request for information (RFI).
AGENCY:
The U.S. Department of
Energy (DOE) is initiating an effort to
determine whether to amend the current
energy conservation standards for
residential central air conditioner and
heat pump products. According to the
Energy Policy and Conservation Act’s 6year review requirement (42 U.S.C.
6295(m)(1)), DOE must publish a notice
of proposed rulemaking to propose new
standards for residential central air
conditioner and heat pump products or
a notice of determination that the
existing standards do not need to be
amended by June 6, 2017. This RFI
seeks to solicit information from the
public to help DOE determine whether
amended standards for residential
central air conditioner and heat pump
products would result in a significant
amount of additional energy savings and
whether those standards would be
technologically feasible and
economically justified.
DATES: Written comments and
information are requested on or before
December 5, 2014.
ADDRESSES: Interested parties are
encouraged to submit comments
electronically. However, comments may
be submitted by any of the following
methods:
• Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions for submitting comments.
• Email to the following address: CAC
HeatPump2014STD0048@ee.doe.gov.
Include docket number EERE–2014–BT–
STD–0048 and/or RIN 1904–AD37 in
the subject line of the message. All
comments should clearly identify the
name, address, and, if appropriate,
organization of the commenter.
SUMMARY:
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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules
• Postal Mail: Ms. Brenda Edwards,
U.S. Department of Energy, Building
Technologies Program, Mailstop EE–2J,
Request for Information for Energy
Conservation Standards for Residential
Central Air Conditioners and Heat
Pumps, Docket No. EERE–2014–BT–
STD–0048 and/or RIN 1904–AD37, 1000
Independence Avenue SW.,
Washington, DC 20585–0121. Please
submit one signed paper original.
• Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, Sixth
Floor, 950 L’Enfant Plaza SW.,
Washington, DC 20024. Please submit
one signed paper original.
Instructions: All submissions received
must include the agency name and
docket number and/or RIN for this
rulemaking. No telefacsimiles (faxes)
will be accepted.
Docket: The docket is available for
review at www.regulations.gov,
including Federal Register notices,
comments, and other supporting
documents/materials. All documents in
the docket are listed in the
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;D=EERE-2014-BT-STD0048. This Web page contains a link to
the docket for this notice on the
www.regulations.gov Web site. The
www.regulations.gov Web page contains
simple instructions on how to access all
documents, including public comments,
in the docket.
For information on how to submit a
comment, review other public
comments and the docket, or participate
in the public meeting, contact Ms.
Brenda Edwards at (202) 586–2945 or by
email: Brenda.Edwards@ee.doe.gov.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information may be sent to:
Ms. Ashley Armstrong, 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: 202–586–6590. Email:
Ashley.Armstrong@ee.doe.gov.
Ms. Johanna Hariharan, U.S.
Department of Energy, Office of the
General Counsel, GC–33, 1000
Independence Avenue SW.,
Washington, DC 20585–0121.
Telephone: (202) 287–6307. Email:
johanna.hariharan@hq.doe.gov.
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I. Introduction
A. Authority and Background
B. Rulemaking Process
II. Request for Information and Comments
A. Market Assessment and Screening
Analysis
B. Engineering Analysis
C. Markups Analysis
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period
Analysis
F. Shipments Analysis
G. National Impact Analysis
H. Manufacturer Impact Analysis
I. Submission of Comments
central air conditioners and heat pumps
or a notice of determination that the
existing standards do not need to be
amended. Today’s notice seeks input
from the public to assist DOE with its
determination on whether amended
standards pertaining to residential
central air conditioners and heat pumps
are warranted. In making this
determination, DOE must evaluate
whether more amended standards
would (1) yield a significant savings in
energy use and (2) be both
technologically feasible and
economically justified. (42 U.S.C.
6295(o)(3)(B))
I. Introduction
B. Rulemaking Process
A. Authority and Background
Title III, Part B of the Energy Policy
and Conservation Act of 1975 (EPCA or
the Act), Public Law 94–163, (42 U.S.C.
6291–6309, as codified) sets forth a
variety of provisions designed to
improve energy efficiency and
established the Energy Conservation
Program for Consumer Products Other
Than Automobiles, a program covering
major household appliances
(collectively referred to as ‘‘covered
products’’), including residential central
air conditioners and heat pumps that are
the subject of this rulemaking. (42
U.S.C. 6292(a)(3))
EPCA prescribed energy conservation
standards for central air conditioners
and heat pumps and directed DOE to
conduct two cycles of rulemakings to
determine whether to amend these
standards. (42 U.S.C. 6295(d)(1)–(3))
DOE completed the second of the two
rulemaking cycles by publishing a direct
final rule on June 27, 2011 (2011 Direct
Final Rule). 76 FR 37414. The DFR
amended standards for central air
conditioners and heat pumps
manufactured on or after January 1,
2015. These amended standards differ
by region. (10 CFR 430.32(c)(2)–(5))
DOE seeks comment from interested
parties as to whether DOE should
consider and analyze amended
standards on a national basis or
amended standards that differ by region
for central air conditioners and heat
pumps.
EPCA requires that, not later than 6
years after the issuance of a final rule
establishing or amending a standard,
DOE publish a NOPR proposing new
standards or a notice of determination
that the existing standards do not need
to be amended. (42 U.S.C. 6295(m)(1))
Based on this provision, DOE must
publish by June 6, 2017 either a NOPR
proposing new standards for residential
DOE must follow specific statutory
criteria for prescribing new or amended
standards for covered products. EPCA
requires that any new or amended
energy conservation standard be
designed to achieve the maximum
improvement in energy or water
efficiency that is technologically
feasible and economically justified. To
determine whether a standard is
economically justified, EPCA requires
that DOE determine whether the
benefits of the standard exceed its
burdens by considering, to the greatest
extent practicable, the following:
1. The economic impact of the
standard on the manufacturers and
consumers of the affected products;
2. The savings in operating costs
throughout the estimated average life of
the product compared to any increases
in the initial cost, or maintenance
expense, likely to result from the
imposition of the standard;
3. The total projected amount of
energy savings likely to result directly
from the imposition of the standard;
4. Any lessening of the utility or the
performance of the products likely to
result from the imposition of the
standard;
5. The impact of any lessening of
competition, as determined in writing
by the Attorney General, that is likely to
result from the imposition of the
standard;
6. The need for national energy and
water conservation; and
7. Other factors the Secretary of
Energy (Secretary) considers relevant.
(42 U.S.C. 6295 (o)(2)(B)(i))
DOE fulfills these and other
applicable requirements by conducting
a series of analyses throughout the
rulemaking process. Table B.1 shows
the individual analyses that are
performed to satisfy each of the
requirements within EPCA.
SUPPLEMENTARY INFORMATION:
Table of Contents
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TABLE B.1—EPCA REQUIREMENTS AND CORRESPONDING DOE ANALYSIS
EPCA Requirement
Corresponding DOE analysis
Technological Feasibility ..........................................................................
Economic Justification:
1. Economic impact on manufacturers and consumers ...................
2. Lifetime operating cost savings compared to increased cost for
the product.
3. Total projected energy savings .....................................................
4. Impact on utility or performance ...................................................
5. Impact of any lessening of competition ........................................
6. Need for national energy and water conservation ........................
7. Other factors the Secretary considers relevant ............................
As detailed throughout this RFI, DOE
is specifically publishing this notice as
the first step in the analysis process and
is specifically requesting input and data
from interested parties to aid in the
development of the technical analyses.
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II. Request for Information and
Comments
In the next section, DOE has
identified a variety of questions that
DOE would like to receive input on to
aid in the development of the technical
and economic analyses regarding
whether new standards for residential
central air conditioners and heat pumps
may be warranted. In addition, DOE
welcomes comments on other issues
relevant to the conduct of this
rulemaking that may not specifically be
identified in this notice.
A. Market Assessment and Screening
Analysis
The market and technology
assessment provides information about
the residential central air conditioner
and heat pump industry that would be
used throughout the rulemaking
process. For example, this information
may address technological
improvements used in the design and
manufacturing of such products. DOE
uses qualitative and quantitative
information to characterize the structure
of the residential central air conditioner
and heat pump industry and market. In
this analysis, DOE will identify and
characterize the manufacturers of
residential central air conditioners and
heat pumps, estimate market shares and
trends, address regulatory and non-
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• Market and Technology Assessment.
• Screening Analysis.
• Engineering Analysis.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Manufacturer Impact Analysis.
Life-Cycle Cost and Payback Period Analysis.
Life-Cycle Cost Subgroup Analysis.
Shipments Analysis.
Markups for Product Price Determination.
Energy and Water Use Determination.
Life-Cycle Cost and Payback Period Analysis.
Shipments Analysis.
National Impact Analysis.
Screening Analysis.
Engineering Analysis.
Manufacturer Impact Analysis.
Shipments Analysis.
National Impact Analysis.
Emissions Analysis.
Utility Impact Analysis.
Employment Impact Analysis.
Monetization of Emission Reductions Benefits.
Regulatory Impact Analysis.
Product Classes
(2) Split system heat pumps
(3) Single-package air conditioners
(4) Single-package heat pumps
(5) Small duct, high velocity (SDHV)
systems
(6) Space-constrained air conditioners
(7) Space-constrained heat pumps
For this rulemaking, DOE plans to
maintain the existing product classes for
residential central air conditioners and
heat pumps, as presented above.
Issue A.1 DOE requests feedback on
whether it should consider any changes
to the existing product classes for
residential central air conditioners and
heat pumps.
When evaluating and establishing
energy conservation standards, DOE
may divide covered products into
product classes by the type of energy
used or by capacity or other
performance-related features that would
justify a different standard. In making a
determination whether a performancerelated feature justifies a different
standard, DOE must consider factors
such as the utility to the consumer of
the feature and other factors DOE
determines are appropriate. (42 U.S.C.
6295(q)) The energy conservation
standards for residential central air
conditioners and heat pumps
established by the 2011 Direct Final
Rule will become effective on January 1,
2015. 10 CFR Part 430.32(c)(2) lists the
seven product classes for residential
central air conditioners and heat pumps
and their corresponding energy
conservation standards. The product
classes are:
(1) Split system air conditioners
Technology Assessment and Screening
Analysis
The purpose of the technology
assessment is to develop a preliminary
list of technologies that could
potentially be used to improve the
efficiency of residential central air
conditioners and heat pumps. The
purpose of the screening analysis is to
screen out technologies that are not
appropriate for consideration in the
engineering analysis due to the
following four factors: (1) Technological
feasibility, (2) practicability to
manufacture, install, and service, (3)
impacts on product utility to
consumers, and (4) health and safety.
(10 CFR 430, subpart C, appendix A,
section (4)(a)(4)) The technologies that
pass the screening are called design
options and are considered in the
engineering analysis. DOE uses
information about existing and past
technology options and prototype
designs to help identify technologies
regulatory initiatives intended to
improve energy efficiency or reduce
energy consumption, and explore the
potential for technological
improvements in the design and
manufacturing of residential central air
conditioners and heat pumps. DOE will
also review product literature, industry
publications, and company Web sites.
Additionally, DOE will also consider
conducting interviews with
manufacturers to assess the overall
market for residential central air
conditioners and heat pumps.
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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules
that manufacturers could use to meet
and/or exceed energy conservation
standards.
The 2011 Direct Final Rule identified
several design options that are
employed in central air conditioners
and heat pumps. The design options
used in the 2011 Direct Final Rule
analyses may still be representative of
the range of design options currently
employed by product manufacturers, as
listed below:
A. Higher-efficiency compressors
B. Higher-efficiency fan motors
C. Higher-efficiency fan blades
D. Improvements to baseline coils
E. Micro-channel heat exchangers
F. Flat-tube heat exchangers
G. Heat pump defrost controls
H. Inverter technology
I. High-efficiency expansion valves
However, DOE understands that
manufacturers typically introduce new
design options into the market as
technology evolves over time.
Issue A.2 DOE requests comment on
whether DOE should consider design
options other than those considered in
the analyses supporting the 2011 Direct
Final Rule, as listed above.
B. Engineering Analysis
The engineering analysis estimates
the cost-efficiency relationship of
products at different levels of increased
energy efficiency. This relationship
serves as the basis for the cost-benefit
calculations for consumers,
manufacturers, and the nation. In
determining the cost-efficiency
relationship, DOE estimates the increase
in manufacturer cost associated with
increasing the efficiency of products
above the baseline to the maximum
technologically feasible (‘‘max-tech’’)
efficiency level for each product class.
The baseline model is used as a
reference point for each product class in
the engineering analysis and the lifecycle cost and payback-period analyses.
Efficiency Levels
For each established product class,
DOE selects a baseline model as a
reference point against which any
changes resulting from energy
conservation standards can be
measured. The baseline model in each
product class represents the
characteristics of common or typical
products in that class. Typically, a
baseline model is one that meets the
current minimum energy conservation
standards by a small or zero margin.
In the 2011 Direct Final Rule, DOE
established minimum energy
conservation standards that will become
effective on January 1, 2015.1 DOE
would consider these minimum energy
conservation standards as the baseline
efficiency levels for any analyses
conducted to consider amending the
standards.
During the 2011 DFR rulemaking,
DOE also established maximumtechnology (max-tech) efficiency levels
for residential central air conditioner
and heat pump product classes. DOE
determined each max-tech level by
researching the Air-Conditioning,
Heating, and Refrigeration Institute
(AHRI) directory 2 and the major
manufacturers’ product literature.
DOE also set regional cooling
performance standards for split system
air conditioners as a function of a
Seasonal Energy Efficiency Ratio (SEER)
in the states of Virginia, Maryland,
Kentucky, North and South Carolina,
Tennessee, Georgia, Florida, Alabama,
Mississippi, Arkansas, Louisiana, Texas,
and Oklahoma (South), and regional
performance standards for split system
and single-package air conditioners as a
function of SEER and Energy Efficiency
Ratio (EER) in the states of Arizona,
California, Nevada, or New Mexico
(Southwest). In both cases, DOE has
identified baseline and max-tech
efficiency levels for the respective SEER
and EER values. Table B.1 summarizes
these efficiency levels.
TABLE B.1—BASELINE AND MAX-TECH EFFICIENCY LEVELS OF COVERED PRODUCTS
Product class
Baseline
Max-Tech
SEER or EER (Btu/hr-W)
Split system air conditioner ....................................................................................................................
<45,000 Btu/hr ................................................................................................................................
≥45,000 Btu/hr .................................................................................................................................
Single-package air conditioner ...............................................................................................................
Split system heat pump ..........................................................................................................................
Single-packaged heat pump ..................................................................................................................
Small-duct, high-velocity systems ..........................................................................................................
Space constrained air conditioner ..........................................................................................................
Space constrained heat pump ...............................................................................................................
Issue B.1 DOE requests comment on
the baseline and max-tech efficiency
levels for each product class.
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C. Markups Analysis
To carry out the life-cycle cost (LCC)
and payback period (PBP) calculations,
DOE needs to determine the cost to the
residential consumer of baseline
products that satisfies the currently
applicable standards, and the cost of the
1 In addition, the American Manufacturing
Technical Corrections Act of 2012 established
minimum energy conservation standards for small
duct, high velocity systems that will become
effective on January 1, 2015. These were added to
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SEER
EER
EER
SEER
EER
SEER
SEER
SEER
SEER
SEER
13.0
12.2
11.7
14.0
11.0
14.0
14.0
12.0
12.0
12.0
26.0
16.5
13.0
20.0
13.0
24.0
16.4
12.5
14.0
12.0
more-efficient unit the consumer would
purchase under potential amended
standards. By applying a multiplier
called a ‘‘markup’’ to the manufacturer’s
selling price, DOE is able to estimate the
residential consumer’s price.
For the 2011 Direct Final Rule, DOE
used two distribution channels to
characterize how products pass from the
manufacturer to the customer:
Replacement applications and new
construction. 76 FR 37464–65 (June 27,
2011). For residential central air
conditioning and heat pump products
installed in replacement applications,
the manufacturer sells the equipment to
a wholesaler, who in turn sells it to a
mechanical contractor, who in turns
sells it to the consumer. For products
installed in new construction
applications, an additional link in the
distribution chain for the general
the code of regulations in a December 3, 2013
Technical Amendment. 78 FR 72533.
2 AHRI is the trade association representing
manufacturers of HVACR and water heating
equipment within the global industry. Products of
different manufacturers are certified to AHRI and
listed in the AHRI directory: https://www.ahri
directory.org/ahridirectory/pages/home.aspx.
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contractor is added. In this new
construction distribution channel, the
manufacturer sells the equipment to a
wholesaler, who in turn sells it to a
mechanical contractor, who in turn sells
it to a general contractor, who in turns
sells it to the consumer.
To be consistent with the approach
followed in the 2011 rulemaking and for
other energy consuming product
rulemakings, DOE plans to estimate the
manufacturer markup based on publicly
available data (e.g., SEC 10–K reports,
corporate annual reports) and feedback
obtained from manufacturers during
interviews. DOE also plans to estimate
average wholesaler, mechanical
contractor, and general contractor
markups based on available income
statement data (e.g., Heating, Airconditioning & Refrigeration
Wholesalers International (HARDI)
Profit Planning Reports, Air
Conditioning Contractors of America
(ACCA), U.S. Census Bureau).
Issue C.1 DOE seeks input on
distribution channels relevant for
residential central air conditioners and
heat pumps as well as the percent of
equipment being distributed through the
channels.
Issue C.2 DOE seeks recent data to
establish the markups for the parties
involved with the distribution of the
equipment addressed by today’s notice.
D. Energy Use Analysis
The purpose of the energy analysis is
to assess the energy-savings potential of
different product efficiencies. DOE uses
the annual energy consumption and
energy-savings potential in the LCC and
PBP analyses to establish the savings in
consumer operating costs at various
product efficiency levels. As part of the
energy use analysis, certain assumptions
may be required regarding product
application, including how and under
what conditions the product is operated.
DOE’s energy use analysis estimates
the range of energy use of residential
central air conditioner and heat pump
products in the field, i.e., as they are
actually used by consumers. Because
energy use by such products varies
greatly based on efficiency level,
consumer usage patterns, and
environmental attributes, DOE will
establish a range of energy use.
Because DOE has set regional coolingperformance standards for split system
and single-package air conditioners as
function of SEER and EER, DOE will
analyze the impact of increasing SEER
and EER on cooling energy savings.
Issue D.1 DOE requests stakeholder
input regarding the impact of changes in
SEER and EER on cooling energy
savings.
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In the 2011 Direct Final Rule, DOE
estimated that, based on stakeholder
input, seven-percent of central air
conditioner and heat pump shipments
were utilized in commercial building
applications. DOE utilized simulations
of a reference office building modeled
with EnergyPlus to estimate the
representative space-cooling and spaceheating energy consumption of central
air conditioners and heat pumps in
commercial buildings. For this
rulemaking, DOE is considering using
the same methodology to estimate
energy use in commercial building
applications.
Issue D.2 DOE requests stakeholder
comment on whether a significant
enough percentage of residential central
air conditioners and heat pumps are
utilized in commercial buildings to
warrant considering their use in
commercial applications.
E. Life-Cycle Cost and Payback Period
Analysis
The purpose of the LCC and PBP
analysis is to analyze the effects of
potential amended energy conservation
standards on consumers of residential
central air conditioner and heat pump
products by determining how a
potential amended standard affects the
consumers’ operating expenses (usually
decreased) and total installed costs
(usually increased).
DOE intends to analyze the potential
for variability and uncertainty by
performing the LCC and PBP
calculations on a representative sample
of households from RECS for the
considered product classes using Monte
Carlo simulation and probability
distributions. The analysis results are a
distribution of results showing the range
of LCC savings and PBPs for a given
efficiency level relative to the baseline
level. DOE plans to analyze all seven
product classes of residential central air
conditioner and heat pump products.
Inputs to the LCC and PBP analysis
are categorized as: (1) Inputs for
establishing the purchase expense,
otherwise known as the total installed
cost, and (2) inputs for calculating the
operating expense. The primary inputs
for establishing the total installed cost
are the baseline consumer price,
standard-level consumer price
increases, and installation costs.
Baseline consumer prices and standardlevel consumer price increases will be
determined by applying markups to
manufacturer price estimates. The
installation cost is added to the
consumer price to arrive at a total
installed cost.
In the 2011 Direct Final Rule, DOE
derived the total installed cost from
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65607
central air conditioner data in RS
Means. 76 FR 37472 (June 27, 2011).
DOE plans to use similar data sources
for this rulemaking, with adjustments to
reflect current-day labor and material
prices as well as to scale installation
cost for higher-efficiency products based
on equipment weight.
Issue E.1 DOE seeks input on the
appropriateness to estimate that changes
in installation costs will scale with
equipment weight.
The primary inputs for calculating the
operating costs are product energy
consumption, product efficiency,
electricity and gas prices and forecasts,
maintenance and repair costs, product
lifetime, and discount rates. Both
product lifetime and discount rates are
used to calculate the present value of
future operating expenses.
Maintenance costs are costs
associated with maintaining the
operation of the product. In the 2011
Direct Final Rule, DOE utilized sources
of preventative maintenance pricing to
determine maintenance costs. 76 FR
37476 (June 27, 2011). DOE also
assumed that such maintenance costs do
not change with efficiency. 76 FR
37471, 37476.
Issue E.2 DOE seeks stakeholder
input on the appropriateness to assume
that changes in maintenance costs will
be negligible for more-efficient
products.
Repair costs are costs associated with
a major repair to the product. In the
2011 Direct Final Rule, DOE determined
the costs of major repairs (e.g.,
compressor replacement) from RS
Means and industry literature. 76 FR
37476 (June 27, 2011). DOE also
assumed that repair costs vary in direct
proportion with the product price at
higher efficiency levels as replacement
costs for more-efficient components are
likely to be greater than components in
baseline products. 76 FR 37471, 37476.
Issue E.3 DOE seeks stakeholder
comment on the assumption that repair
costs vary in direct proportion to
product price.
DOE measures LCC and PBP impacts
of potential standard levels relative to a
base case that reflects the market in the
absence of amended standards. DOE
plans to develop market-share efficiency
data (i.e., the distribution of product
shipments by efficiency) for the product
classes DOE is considering, for the year
in which compliance with any amended
or new standards would be required. By
accounting for consumers who already
purchase more efficient products, DOE
avoids overstating the potential benefits
from potential standards.
Issue E.4 DOE seeks stakeholder
input and data on the fraction of central
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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules
air conditioners and heat pumps that are
sold above the minimum energy
efficiency standards. DOE requests such
data to be provided by product class
and, for split system air conditioners, by
region. DOE also requests information
on expected trends in product efficiency
over the next five years.
rmajette on DSK2VPTVN1PROD with PROPOSALS
F. Shipments Analysis
DOE uses shipment projections by
product class and efficiency level in its
analysis of the national impacts of
potential standards, as well as in the
manufacturer impact analysis.
In the 2011 Direct Final Rule, DOE
developed a shipments model for
residential central air conditioner and
heat pump products driven by historical
shipments data, which were used to
build up a product stock and calibrate
the shipments model. 76 FR 37482 (June
27, 2011). Shipments of each product
class were projected for two market
sectors that use these products:
Residential and commercial sectors; for
three product placement channels in
each market sector: New construction,
existing owners, and new owners; and
for three climatic regions: hot-dry, hothumid, and rest of the U.S., which
correspond to the regions for which
DOE ultimately adopted regional
standards.
Issue F.1 DOE seeks stakeholder
input and data showing the distribution
of shipments by product class, market
sector, product placement channel, and
climactic region.
In the 2011 Direct Final Rule, DOE
modeled the decision to repair or
replace equipment for existing owners
and the impact that decision would
have on the shipments model. 76 FR
37482–84. DOE investigated how
increases in product purchase price and
decreases in product operating costs due
to standards impact product shipments
due to standards.
Issue F.2 DOE seeks input and data
on factors that influence a consumer’s
decisions to repair or replace failed
products. In particular, DOE is seeking
historical repair cost data as a function
of efficiency.
G. National Impact Analysis
The purpose of the national impact
analysis (NIA) is to estimate aggregate
impacts of potential efficiency standards
at the national level. Impacts that DOE
reports include the national energy
savings (NES) from potential standards
and the national NPV of the total
consumer benefits. The NIA considers
lifetime impacts of potential standards
on residential central air conditioner
and heat pump products shipped in a
30-year period that begins with the
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15:13 Nov 04, 2014
Jkt 235001
expected compliance date for new or
amended standards. To develop the
NES, DOE calculates annual energy
consumption of products in the building
stock for the base case and each
standards case. To develop the national
NPV of consumer benefits from
potential standards, DOE calculates
national annual energy expenditures
and annual product expenditures for the
base case and the standards cases. DOE
calculates total annual energy
expenditures using data on annual
energy consumption in each case,
forecasted average annual energy prices,
and shipment projections. The
difference each year between operating
cost savings and increased product
expenditures is the net savings or net
costs.
A key component of DOE’s estimates
of NES and NPV is the product energy
efficiency forecasted over time for the
base case and for each of the standards
cases. In the 2011 Direct Final Rule,
DOE based projections of base-case
shipment-weighted efficiency (SWEF)
for the single-packaged and split system
air conditioner and heat pump product
classes off SWEF growth rates
determined from historical data
provided by AHRI. 76 FR 37484–86
(June 27, 2011). Since DOE only
received efficiency data at the national
level, it assumed that the efficiency
distributions and trends developed for
the entire Nation are also representative
at the regional level (i.e., efficiency
distributions and trends do not vary by
region). For this rulemaking, DOE plans
on considering recent trends in
efficiency and input from stakeholders
to update product energy efficiency
forecasts, and maintain the assumption
that efficiency trends developed for the
entire Nation are also representative at
the regional level.
Issue G.1 DOE seeks stakeholder
input and historical SWEF data for
residential central air conditioner and
heat pumps by product class and by
region.
H. Manufacturer Impact Analysis
The purpose of the manufacturer
impact analysis (MIA) is to estimate the
financial impact of potential energy
conservation standards on
manufacturers of residential central air
conditioners and heat pumps and to
evaluate the potential impact of such
standards on employment and
manufacturing capacity. The MIA
includes both quantitative and
qualitative aspects. The quantitative
part of the MIA primarily relies on the
Government Regulatory Impact Model
(GRIM), an industry cash-flow model
used to estimate a range of potential
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Fmt 4702
Sfmt 4702
impacts on manufacturer profitability.
The qualitative part of the MIA
addresses a proposed standard’s
potential impacts on manufacturing
capacity and industry competition, as
well as factors such as product
characteristics, impacts on particular
subgroups of firms, and important
market and product trends.
As part of the MIA, DOE intends to
analyze impacts of potential energy
conservation standards on small
business manufacturers of covered
products. DOE intends to use the Small
Business Administration’s small
business size standards to determine
whether manufacturers qualify as small
businesses. The size standards are listed
by North American Industry
Classification System (NAICS) code and
industry description.3 Manufacturing of
residential central air conditioners and
heat pumps is classified under NAICS
333415, ‘‘Air-Conditioning and Warm
Air Heating Equipment and Commercial
and Industrial Refrigeration Equipment
Manufacturing.’’ The SBA sets a
threshold of 750 employees or less for
an entity to be considered as a small
business for this category. This 750employee threshold would include all
employees in a business’s parent
company and any other subsidiaries.
DOE conducted a market survey using
publicly available information to
identify potential small manufacturers.
DOE’s used DOE’s Compliance
Certification Management System
(CCMS), industry trade association
membership directories (including
AHRI), individual company Web sites,
and market research tools (e.g., Hoovers
reports) to create a list of companies that
manufacture or sell products covered by
this rulemaking. DOE has initially
identified seven domestic small
businesses that manufacture residential
central air conditioners and heat pumps.
The small businesses identified are:
• Aerosys, Inc.
• Bard Manufacturing Company
• First Co.
• Heat Controller, Inc.
• National Refrigeration and Air
Conditioning Products, Inc.
• Style Crest Enterprises, Inc.
• Unico, Inc.
Issue H.1 DOE requests comment on
what small business manufacturers of
residential central air conditioners and
heat pumps have not been identified in
the above list that it should consider in
its analysis.
I. Submission of Comments
DOE invites all interested parties to
submit in writing by December 5, 2014,
3 Available at: https://www.sba.gov/content/smallbusiness-size-standards.
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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules
comments and information on matters
addressed in this notice and on other
matters relevant to DOE’s consideration
of new or amended energy
conservations standards for residential
central air conditioners and heat pumps.
After the close of the comment period,
DOE will begin collecting data,
conducting the analyses, and reviewing
the public comments, as needed. These
actions will be taken to aid in the
development of a NOPR for residential
central air conditioner and heat pump
products if DOE decides to amend the
standards for such products.
DOE considers public participation to
be a very important part of the process
for developing test procedures and
energy conservation standards. DOE
actively encourages the participation
and interaction of the public during the
comment period in each stage of the
rulemaking process. Interactions with
and between members of the public
provide a balanced discussion of the
issues and assist DOE in the rulemaking
process. Anyone who wishes to be
added to the DOE mailing list to receive
future notices and information about
this rulemaking should contact Ms.
Brenda Edwards at (202) 586–2945, or
via email at Brenda.Edwards@ee.doe.
gov.
Issued in Washington, DC, on October 30,
2014.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Energy Efficiency and Renewable
Energy.
[FR Doc. 2014–26247 Filed 11–4–14; 8:45 am]
BILLING CODE 6450–01–P
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 380
[Docket No. 2014–CRB–0001–WR (2016–
2020) (Web IV)]
Digital Performance Right in Sound
Recordings and Ephemeral
Recordings
Copyright Royalty Board,
Library of Congress.
ACTION: Proposed rule.
rmajette on DSK2VPTVN1PROD with PROPOSALS
AGENCY:
The Copyright Royalty Judges
are publishing for comment proposed
regulations governing the rates and
terms for the digital performances of
sound recordings by noncommercial
educational webcasters and for the
making of ephemeral recordings
necessary for the facilitation of such
transmissions for the period
SUMMARY:
VerDate Sep<11>2014
15:13 Nov 04, 2014
Jkt 235001
commencing January 1, 2016, and
ending on December 31, 2020.
DATES: Comments and objections, if any,
are due no later than November 26,
2014.
The proposed rule is posted
on the agency’s Web site (www.loc.gov/
crb). Submit electronic comments
online at https://www.regulations.gov or
via email to crb@loc.gov. Those who
chose not to submit comments
electronically should see How to Submit
Comments in the SUPPLEMENTARY
INFORMATION section below for physical
addresses and further instructions.
FOR FURTHER INFORMATION CONTACT:
Richard Strasser, Senior Attorney, or
Kimberly Whittle, Attorney Advisor, by
telephone at (202) 707–7658, or by
email at crb@loc.gov.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Background
On October 7, 2014, the Copyright
Royalty Judges received a joint motion
from SoundExchange, Inc. and College
Broadcasters, Inc. to adopt a partial
settlement of their interests regarding
Web IV rates and terms for 2016–2020.1
Joint Motion to Adopt Partial
Settlement, Docket No. 2014–CRB–
0001–WR (2016–2020). Their interests
concern the rule setting copyright
royalty minimum fees and terms that
the Judges will establish for compulsory
copyright licenses for certain internet
transmissions of sound recordings by
college radio stations and other
noncommercial educational webcasters
for the period from January 1, 2016,
through December 31, 2020.
SoundExchange, Inc. represents the
interests of sound recording copyright
owners and performers. College
Broadcasters, Inc. represents the
interests of users of the copyrighted
material which users include college,
university and high school radio and
television stations and other electronic
media organizations. The Judges hereby
publish the proposal and request
comments from the public.
Section 114 of the Copyright Act, title
17 of the United States Code, provides
a statutory license that allows for the
public performance of sound recordings
by means of a digital audio transmission
by, among others, eligible
nonsubscription transmission services
and new subscription services.
17 U.S.C. 114(f). For purposes of the
section 114 license, an ‘‘eligible
nonsubscription transmission’’ is a
noninteractive digital audio
1 Web IV is short for Webcasting IV. This
proceeding is the fourth since the compulsory
license for webcasting was established.
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65609
transmission that does not require a
subscription for receiving the
transmission. The transmission must
also be made as part of a service that
provides audio programming consisting
in whole or in part of performances of
sound recordings the purpose of which
is to provide audio or other
entertainment programming, but not to
sell, advertise, or promote particular
goods or services. See 17 U.S.C.
114(j)(6). A ‘‘new subscription service’’
is a ‘‘service that performs sound
recordings by means of noninteractive
subscription digital audio transmissions
and that is not a preexisting
subscription or preexisting satellite
digital audio radio service.’’ 17 U.S.C.
114(j)(8).
Services using the section 114 license
may need to make one or more
temporary or ‘‘ephemeral’’ copies of a
sound recording in order to facilitate the
transmission of that recording. The
section 112 statutory license allows for
the making of these ephemeral
reproductions. 17 U.S.C. 112(e).
Chapter 8 of the Copyright Act
requires the Copyright Royalty Judges
(‘‘Judges’’) to conduct proceedings every
five years to determine the rates and
terms for the sections 114 and 112
statutory licenses. 17 U.S.C. 801(b)(1),
804(b)(3)(A). The current proceeding
commenced in January 2014 for rates
and terms that will become effective on
January 1, 2016, and end on December
31, 2020. Pursuant to section
804(b)(3)(A), the Judges published in the
Federal Register a notice commencing
the proceeding and requesting that
interested parties submit their petitions
to participate. 79 FR 412 (January 3,
2014). The following parties submitted
Petitions to Participate: 8tracks, Inc.;
AccuRadio, LLC; Amazon.com, Inc.;
Apple Inc; Beats Music, LLC; Clear
Channel; CMN, Inc.; College
Broadcasters, Inc. (CBI);
CustomChannels.net, LLC; Digital
Media Association (DiMA); Digitally
Imported, Inc.; Educational Media
Foundation; Feed Media, Inc.; Geo
Music Group; Harvard Radio
Broadcasting Inc. (WHRB); idobi
Network; Intercollegiate Broadcasting
System, Inc. (IBS); Music Reports Inc.;
National Association of Broadcasters
(NAB); National Music Publishers
Association (NMPA); National Public
Radio (NPR); National Religious
Broadcasters Noncommercial Music
License Committee (NRBNMLC);
Pandora Media Inc.; Rhapsody
International, Inc.; Sirius XM Radio Inc.;
E:\FR\FM\05NOP1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Proposed Rules]
[Pages 65603-65609]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26247]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE-2014-BT-STD-0048]
RIN 1904-AD37
Energy Conservation Program: Energy Conservation Standards for
Residential Central Air Conditioners and Heat Pumps; Request for
Information
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Request for information (RFI).
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) is initiating an effort to
determine whether to amend the current energy conservation standards
for residential central air conditioner and heat pump products.
According to the Energy Policy and Conservation Act's 6-year review
requirement (42 U.S.C. 6295(m)(1)), DOE must publish a notice of
proposed rulemaking to propose new standards for residential central
air conditioner and heat pump products or a notice of determination
that the existing standards do not need to be amended by June 6, 2017.
This RFI seeks to solicit information from the public to help DOE
determine whether amended standards for residential central air
conditioner and heat pump products would result in a significant amount
of additional energy savings and whether those standards would be
technologically feasible and economically justified.
DATES: Written comments and information are requested on or before
December 5, 2014.
ADDRESSES: Interested parties are encouraged to submit comments
electronically. However, comments may be submitted by any of the
following methods:
Federal eRulemaking Portal: www.regulations.gov. Follow
the instructions for submitting comments.
Email to the following address:
CACHeatPump2014STD0048@ee.doe.gov. Include docket number EERE-2014-BT-
STD-0048 and/or RIN 1904-AD37 in the subject line of the message. All
comments should clearly identify the name, address, and, if
appropriate, organization of the commenter.
[[Page 65604]]
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Request for
Information for Energy Conservation Standards for Residential Central
Air Conditioners and Heat Pumps, Docket No. EERE-2014-BT-STD-0048 and/
or RIN 1904-AD37, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, Sixth Floor, 950 L'Enfant
Plaza SW., Washington, DC 20024. Please submit one signed paper
original.
Instructions: All submissions received must include the agency name
and docket number and/or RIN for this rulemaking. No telefacsimiles
(faxes) will be accepted.
Docket: The docket is available for review at www.regulations.gov,
including Federal Register notices, comments, and other supporting
documents/materials. All documents in the docket are listed in the
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;D=EERE-2014-BT-STD-0048. This Web
page contains a link to the docket for this notice on the
www.regulations.gov Web site. The www.regulations.gov Web page contains
simple instructions on how to access all documents, including public
comments, in the docket.
For information on how to submit a comment, review other public
comments and the docket, or participate in the public meeting, contact
Ms. Brenda Edwards at (202) 586-2945 or by email:
Brenda.Edwards@ee.doe.gov.
FOR FURTHER INFORMATION CONTACT: Direct requests for additional
information may be sent to:
Ms. Ashley Armstrong, 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:
202-586-6590. Email: Ashley.Armstrong@ee.doe.gov.
Ms. Johanna Hariharan, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 287-6307. Email: johanna.hariharan@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority and Background
B. Rulemaking Process
II. Request for Information and Comments
A. Market Assessment and Screening Analysis
B. Engineering Analysis
C. Markups Analysis
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period Analysis
F. Shipments Analysis
G. National Impact Analysis
H. Manufacturer Impact Analysis
I. Submission of Comments
I. Introduction
A. Authority and Background
Title III, Part B of the Energy Policy and Conservation Act of 1975
(EPCA or the Act), Public Law 94-163, (42 U.S.C. 6291-6309, as
codified) sets forth a variety of provisions designed to improve energy
efficiency and established the Energy Conservation Program for Consumer
Products Other Than Automobiles, a program covering major household
appliances (collectively referred to as ``covered products''),
including residential central air conditioners and heat pumps that are
the subject of this rulemaking. (42 U.S.C. 6292(a)(3))
EPCA prescribed energy conservation standards for central air
conditioners and heat pumps and directed DOE to conduct two cycles of
rulemakings to determine whether to amend these standards. (42 U.S.C.
6295(d)(1)-(3)) DOE completed the second of the two rulemaking cycles
by publishing a direct final rule on June 27, 2011 (2011 Direct Final
Rule). 76 FR 37414. The DFR amended standards for central air
conditioners and heat pumps manufactured on or after January 1, 2015.
These amended standards differ by region. (10 CFR 430.32(c)(2)-(5)) DOE
seeks comment from interested parties as to whether DOE should consider
and analyze amended standards on a national basis or amended standards
that differ by region for central air conditioners and heat pumps.
EPCA requires that, not later than 6 years after the issuance of a
final rule establishing or amending a standard, DOE publish a NOPR
proposing new standards or a notice of determination that the existing
standards do not need to be amended. (42 U.S.C. 6295(m)(1)) Based on
this provision, DOE must publish by June 6, 2017 either a NOPR
proposing new standards for residential central air conditioners and
heat pumps or a notice of determination that the existing standards do
not need to be amended. Today's notice seeks input from the public to
assist DOE with its determination on whether amended standards
pertaining to residential central air conditioners and heat pumps are
warranted. In making this determination, DOE must evaluate whether more
amended standards would (1) yield a significant savings in energy use
and (2) be both technologically feasible and economically justified.
(42 U.S.C. 6295(o)(3)(B))
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products. EPCA requires that any new or
amended energy conservation standard be designed to achieve the maximum
improvement in energy or water efficiency that is technologically
feasible and economically justified. To determine whether a standard is
economically justified, EPCA requires that DOE determine whether the
benefits of the standard exceed its burdens by considering, to the
greatest extent practicable, the following:
1. The economic impact of the standard on the manufacturers and
consumers of the affected products;
2. The savings in operating costs throughout the estimated average
life of the product compared to any increases in the initial cost, or
maintenance expense, likely to result from the imposition of the
standard;
3. The total projected amount of energy savings likely to result
directly from the imposition of the standard;
4. Any lessening of the utility or the performance of the products
likely to result from the imposition of the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy and water conservation; and
7. Other factors the Secretary of Energy (Secretary) considers
relevant. (42 U.S.C. 6295 (o)(2)(B)(i))
DOE fulfills these and other applicable requirements by conducting
a series of analyses throughout the rulemaking process. Table B.1 shows
the individual analyses that are performed to satisfy each of the
requirements within EPCA.
[[Page 65605]]
Table B.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
EPCA requirement Corresponding DOE analysis
------------------------------------------------------------------------
Technological Feasibility........ Market and Technology
Assessment.
Screening Analysis.
Engineering Analysis.
Economic Justification:
1. Economic impact on Manufacturer Impact
manufacturers and consumers. Analysis.
Life-Cycle Cost and Payback
Period Analysis.
Life-Cycle Cost Subgroup
Analysis.
Shipments Analysis.
2. Lifetime operating cost Markups for Product Price
savings compared to Determination.
increased cost for the Energy and Water Use
product. Determination.
Life-Cycle Cost and Payback
Period Analysis.
3. Total projected energy Shipments Analysis.
savings.
National Impact Analysis.
4. Impact on utility or Screening Analysis.
performance.
Engineering Analysis.
5. Impact of any lessening of Manufacturer Impact
competition. Analysis.
6. Need for national energy Shipments Analysis.
and water conservation.
National Impact Analysis.
7. Other factors the Emissions Analysis.
Secretary considers relevant.
Utility Impact Analysis.
Employment Impact Analysis.
Monetization of Emission
Reductions Benefits.
Regulatory Impact Analysis.
------------------------------------------------------------------------
As detailed throughout this RFI, DOE is specifically publishing
this notice as the first step in the analysis process and is
specifically requesting input and data from interested parties to aid
in the development of the technical analyses.
II. Request for Information and Comments
In the next section, DOE has identified a variety of questions that
DOE would like to receive input on to aid in the development of the
technical and economic analyses regarding whether new standards for
residential central air conditioners and heat pumps may be warranted.
In addition, DOE welcomes comments on other issues relevant to the
conduct of this rulemaking that may not specifically be identified in
this notice.
A. Market Assessment and Screening Analysis
The market and technology assessment provides information about the
residential central air conditioner and heat pump industry that would
be used throughout the rulemaking process. For example, this
information may address technological improvements used in the design
and manufacturing of such products. DOE uses qualitative and
quantitative information to characterize the structure of the
residential central air conditioner and heat pump industry and market.
In this analysis, DOE will identify and characterize the manufacturers
of residential central air conditioners and heat pumps, estimate market
shares and trends, address regulatory and non-regulatory initiatives
intended to improve energy efficiency or reduce energy consumption, and
explore the potential for technological improvements in the design and
manufacturing of residential central air conditioners and heat pumps.
DOE will also review product literature, industry publications, and
company Web sites. Additionally, DOE will also consider conducting
interviews with manufacturers to assess the overall market for
residential central air conditioners and heat pumps.
Product Classes
When evaluating and establishing energy conservation standards, DOE
may divide covered products into product classes by the type of energy
used or by capacity or other performance-related features that would
justify a different standard. In making a determination whether a
performance-related feature justifies a different standard, DOE must
consider factors such as the utility to the consumer of the feature and
other factors DOE determines are appropriate. (42 U.S.C. 6295(q)) The
energy conservation standards for residential central air conditioners
and heat pumps established by the 2011 Direct Final Rule will become
effective on January 1, 2015. 10 CFR Part 430.32(c)(2) lists the seven
product classes for residential central air conditioners and heat pumps
and their corresponding energy conservation standards. The product
classes are:
(1) Split system air conditioners
(2) Split system heat pumps
(3) Single-package air conditioners
(4) Single-package heat pumps
(5) Small duct, high velocity (SDHV) systems
(6) Space-constrained air conditioners
(7) Space-constrained heat pumps
For this rulemaking, DOE plans to maintain the existing product
classes for residential central air conditioners and heat pumps, as
presented above.
Issue A.1 DOE requests feedback on whether it should consider any
changes to the existing product classes for residential central air
conditioners and heat pumps.
Technology Assessment and Screening Analysis
The purpose of the technology assessment is to develop a
preliminary list of technologies that could potentially be used to
improve the efficiency of residential central air conditioners and heat
pumps. The purpose of the screening analysis is to screen out
technologies that are not appropriate for consideration in the
engineering analysis due to the following four factors: (1)
Technological feasibility, (2) practicability to manufacture, install,
and service, (3) impacts on product utility to consumers, and (4)
health and safety. (10 CFR 430, subpart C, appendix A, section
(4)(a)(4)) The technologies that pass the screening are called design
options and are considered in the engineering analysis. DOE uses
information about existing and past technology options and prototype
designs to help identify technologies
[[Page 65606]]
that manufacturers could use to meet and/or exceed energy conservation
standards.
The 2011 Direct Final Rule identified several design options that
are employed in central air conditioners and heat pumps. The design
options used in the 2011 Direct Final Rule analyses may still be
representative of the range of design options currently employed by
product manufacturers, as listed below:
A. Higher-efficiency compressors
B. Higher-efficiency fan motors
C. Higher-efficiency fan blades
D. Improvements to baseline coils
E. Micro-channel heat exchangers
F. Flat-tube heat exchangers
G. Heat pump defrost controls
H. Inverter technology
I. High-efficiency expansion valves
However, DOE understands that manufacturers typically introduce new
design options into the market as technology evolves over time.
Issue A.2 DOE requests comment on whether DOE should consider
design options other than those considered in the analyses supporting
the 2011 Direct Final Rule, as listed above.
B. Engineering Analysis
The engineering analysis estimates the cost-efficiency relationship
of products at different levels of increased energy efficiency. This
relationship serves as the basis for the cost-benefit calculations for
consumers, manufacturers, and the nation. In determining the cost-
efficiency relationship, DOE estimates the increase in manufacturer
cost associated with increasing the efficiency of products above the
baseline to the maximum technologically feasible (``max-tech'')
efficiency level for each product class. The baseline model is used as
a reference point for each product class in the engineering analysis
and the life-cycle cost and payback-period analyses.
Efficiency Levels
For each established product class, DOE selects a baseline model as
a reference point against which any changes resulting from energy
conservation standards can be measured. The baseline model in each
product class represents the characteristics of common or typical
products in that class. Typically, a baseline model is one that meets
the current minimum energy conservation standards by a small or zero
margin.
In the 2011 Direct Final Rule, DOE established minimum energy
conservation standards that will become effective on January 1,
2015.\1\ DOE would consider these minimum energy conservation standards
as the baseline efficiency levels for any analyses conducted to
consider amending the standards.
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\1\ In addition, the American Manufacturing Technical
Corrections Act of 2012 established minimum energy conservation
standards for small duct, high velocity systems that will become
effective on January 1, 2015. These were added to the code of
regulations in a December 3, 2013 Technical Amendment. 78 FR 72533.
---------------------------------------------------------------------------
During the 2011 DFR rulemaking, DOE also established maximum-
technology (max-tech) efficiency levels for residential central air
conditioner and heat pump product classes. DOE determined each max-tech
level by researching the Air-Conditioning, Heating, and Refrigeration
Institute (AHRI) directory \2\ and the major manufacturers' product
literature.
---------------------------------------------------------------------------
\2\ AHRI is the trade association representing manufacturers of
HVACR and water heating equipment within the global industry.
Products of different manufacturers are certified to AHRI and listed
in the AHRI directory: https://www.ahridirectory.org/ahridirectory/pages/home.aspx.
---------------------------------------------------------------------------
DOE also set regional cooling performance standards for split
system air conditioners as a function of a Seasonal Energy Efficiency
Ratio (SEER) in the states of Virginia, Maryland, Kentucky, North and
South Carolina, Tennessee, Georgia, Florida, Alabama, Mississippi,
Arkansas, Louisiana, Texas, and Oklahoma (South), and regional
performance standards for split system and single-package air
conditioners as a function of SEER and Energy Efficiency Ratio (EER) in
the states of Arizona, California, Nevada, or New Mexico (Southwest).
In both cases, DOE has identified baseline and max-tech efficiency
levels for the respective SEER and EER values. Table B.1 summarizes
these efficiency levels.
Table B.1--Baseline and Max-Tech Efficiency Levels of Covered Products
------------------------------------------------------------------------
Product class Baseline Max-Tech
------------------------------------------------------------------------
SEER or EER (Btu/hr-W)
------------------------------------------------------------------------
Split system air conditioner SEER 13.0 26.0
<45,000 Btu/hr.......... EER 12.2 16.5
>=45,000 Btu/hr......... EER 11.7 13.0
Single-package air SEER 14.0 20.0
conditioner.
EER 11.0 13.0
Split system heat pump...... SEER 14.0 24.0
Single-packaged heat pump... SEER 14.0 16.4
Small-duct, high-velocity SEER 12.0 12.5
systems.
Space constrained air SEER 12.0 14.0
conditioner.
Space constrained heat pump. SEER 12.0 12.0
------------------------------------------------------------------------
Issue B.1 DOE requests comment on the baseline and max-tech
efficiency levels for each product class.
C. Markups Analysis
To carry out the life-cycle cost (LCC) and payback period (PBP)
calculations, DOE needs to determine the cost to the residential
consumer of baseline products that satisfies the currently applicable
standards, and the cost of the more-efficient unit the consumer would
purchase under potential amended standards. By applying a multiplier
called a ``markup'' to the manufacturer's selling price, DOE is able to
estimate the residential consumer's price.
For the 2011 Direct Final Rule, DOE used two distribution channels
to characterize how products pass from the manufacturer to the
customer: Replacement applications and new construction. 76 FR 37464-65
(June 27, 2011). For residential central air conditioning and heat pump
products installed in replacement applications, the manufacturer sells
the equipment to a wholesaler, who in turn sells it to a mechanical
contractor, who in turns sells it to the consumer. For products
installed in new construction applications, an additional link in the
distribution chain for the general
[[Page 65607]]
contractor is added. In this new construction distribution channel, the
manufacturer sells the equipment to a wholesaler, who in turn sells it
to a mechanical contractor, who in turn sells it to a general
contractor, who in turns sells it to the consumer.
To be consistent with the approach followed in the 2011 rulemaking
and for other energy consuming product rulemakings, DOE plans to
estimate the manufacturer markup based on publicly available data
(e.g., SEC 10-K reports, corporate annual reports) and feedback
obtained from manufacturers during interviews. DOE also plans to
estimate average wholesaler, mechanical contractor, and general
contractor markups based on available income statement data (e.g.,
Heating, Air-conditioning & Refrigeration Wholesalers International
(HARDI) Profit Planning Reports, Air Conditioning Contractors of
America (ACCA), U.S. Census Bureau).
Issue C.1 DOE seeks input on distribution channels relevant for
residential central air conditioners and heat pumps as well as the
percent of equipment being distributed through the channels.
Issue C.2 DOE seeks recent data to establish the markups for the
parties involved with the distribution of the equipment addressed by
today's notice.
D. Energy Use Analysis
The purpose of the energy analysis is to assess the energy-savings
potential of different product efficiencies. DOE uses the annual energy
consumption and energy-savings potential in the LCC and PBP analyses to
establish the savings in consumer operating costs at various product
efficiency levels. As part of the energy use analysis, certain
assumptions may be required regarding product application, including
how and under what conditions the product is operated.
DOE's energy use analysis estimates the range of energy use of
residential central air conditioner and heat pump products in the
field, i.e., as they are actually used by consumers. Because energy use
by such products varies greatly based on efficiency level, consumer
usage patterns, and environmental attributes, DOE will establish a
range of energy use.
Because DOE has set regional cooling-performance standards for
split system and single-package air conditioners as function of SEER
and EER, DOE will analyze the impact of increasing SEER and EER on
cooling energy savings.
Issue D.1 DOE requests stakeholder input regarding the impact of
changes in SEER and EER on cooling energy savings.
In the 2011 Direct Final Rule, DOE estimated that, based on
stakeholder input, seven-percent of central air conditioner and heat
pump shipments were utilized in commercial building applications. DOE
utilized simulations of a reference office building modeled with
EnergyPlus to estimate the representative space-cooling and space-
heating energy consumption of central air conditioners and heat pumps
in commercial buildings. For this rulemaking, DOE is considering using
the same methodology to estimate energy use in commercial building
applications.
Issue D.2 DOE requests stakeholder comment on whether a significant
enough percentage of residential central air conditioners and heat
pumps are utilized in commercial buildings to warrant considering their
use in commercial applications.
E. Life-Cycle Cost and Payback Period Analysis
The purpose of the LCC and PBP analysis is to analyze the effects
of potential amended energy conservation standards on consumers of
residential central air conditioner and heat pump products by
determining how a potential amended standard affects the consumers'
operating expenses (usually decreased) and total installed costs
(usually increased).
DOE intends to analyze the potential for variability and
uncertainty by performing the LCC and PBP calculations on a
representative sample of households from RECS for the considered
product classes using Monte Carlo simulation and probability
distributions. The analysis results are a distribution of results
showing the range of LCC savings and PBPs for a given efficiency level
relative to the baseline level. DOE plans to analyze all seven product
classes of residential central air conditioner and heat pump products.
Inputs to the LCC and PBP analysis are categorized as: (1) Inputs
for establishing the purchase expense, otherwise known as the total
installed cost, and (2) inputs for calculating the operating expense.
The primary inputs for establishing the total installed cost are the
baseline consumer price, standard-level consumer price increases, and
installation costs. Baseline consumer prices and standard-level
consumer price increases will be determined by applying markups to
manufacturer price estimates. The installation cost is added to the
consumer price to arrive at a total installed cost.
In the 2011 Direct Final Rule, DOE derived the total installed cost
from central air conditioner data in RS Means. 76 FR 37472 (June 27,
2011). DOE plans to use similar data sources for this rulemaking, with
adjustments to reflect current-day labor and material prices as well as
to scale installation cost for higher-efficiency products based on
equipment weight.
Issue E.1 DOE seeks input on the appropriateness to estimate that
changes in installation costs will scale with equipment weight.
The primary inputs for calculating the operating costs are product
energy consumption, product efficiency, electricity and gas prices and
forecasts, maintenance and repair costs, product lifetime, and discount
rates. Both product lifetime and discount rates are used to calculate
the present value of future operating expenses.
Maintenance costs are costs associated with maintaining the
operation of the product. In the 2011 Direct Final Rule, DOE utilized
sources of preventative maintenance pricing to determine maintenance
costs. 76 FR 37476 (June 27, 2011). DOE also assumed that such
maintenance costs do not change with efficiency. 76 FR 37471, 37476.
Issue E.2 DOE seeks stakeholder input on the appropriateness to
assume that changes in maintenance costs will be negligible for more-
efficient products.
Repair costs are costs associated with a major repair to the
product. In the 2011 Direct Final Rule, DOE determined the costs of
major repairs (e.g., compressor replacement) from RS Means and industry
literature. 76 FR 37476 (June 27, 2011). DOE also assumed that repair
costs vary in direct proportion with the product price at higher
efficiency levels as replacement costs for more-efficient components
are likely to be greater than components in baseline products. 76 FR
37471, 37476.
Issue E.3 DOE seeks stakeholder comment on the assumption that
repair costs vary in direct proportion to product price.
DOE measures LCC and PBP impacts of potential standard levels
relative to a base case that reflects the market in the absence of
amended standards. DOE plans to develop market-share efficiency data
(i.e., the distribution of product shipments by efficiency) for the
product classes DOE is considering, for the year in which compliance
with any amended or new standards would be required. By accounting for
consumers who already purchase more efficient products, DOE avoids
overstating the potential benefits from potential standards.
Issue E.4 DOE seeks stakeholder input and data on the fraction of
central
[[Page 65608]]
air conditioners and heat pumps that are sold above the minimum energy
efficiency standards. DOE requests such data to be provided by product
class and, for split system air conditioners, by region. DOE also
requests information on expected trends in product efficiency over the
next five years.
F. Shipments Analysis
DOE uses shipment projections by product class and efficiency level
in its analysis of the national impacts of potential standards, as well
as in the manufacturer impact analysis.
In the 2011 Direct Final Rule, DOE developed a shipments model for
residential central air conditioner and heat pump products driven by
historical shipments data, which were used to build up a product stock
and calibrate the shipments model. 76 FR 37482 (June 27, 2011).
Shipments of each product class were projected for two market sectors
that use these products: Residential and commercial sectors; for three
product placement channels in each market sector: New construction,
existing owners, and new owners; and for three climatic regions: hot-
dry, hot-humid, and rest of the U.S., which correspond to the regions
for which DOE ultimately adopted regional standards.
Issue F.1 DOE seeks stakeholder input and data showing the
distribution of shipments by product class, market sector, product
placement channel, and climactic region.
In the 2011 Direct Final Rule, DOE modeled the decision to repair
or replace equipment for existing owners and the impact that decision
would have on the shipments model. 76 FR 37482-84. DOE investigated how
increases in product purchase price and decreases in product operating
costs due to standards impact product shipments due to standards.
Issue F.2 DOE seeks input and data on factors that influence a
consumer's decisions to repair or replace failed products. In
particular, DOE is seeking historical repair cost data as a function of
efficiency.
G. National Impact Analysis
The purpose of the national impact analysis (NIA) is to estimate
aggregate impacts of potential efficiency standards at the national
level. Impacts that DOE reports include the national energy savings
(NES) from potential standards and the national NPV of the total
consumer benefits. The NIA considers lifetime impacts of potential
standards on residential central air conditioner and heat pump products
shipped in a 30-year period that begins with the expected compliance
date for new or amended standards. To develop the NES, DOE calculates
annual energy consumption of products in the building stock for the
base case and each standards case. To develop the national NPV of
consumer benefits from potential standards, DOE calculates national
annual energy expenditures and annual product expenditures for the base
case and the standards cases. DOE calculates total annual energy
expenditures using data on annual energy consumption in each case,
forecasted average annual energy prices, and shipment projections. The
difference each year between operating cost savings and increased
product expenditures is the net savings or net costs.
A key component of DOE's estimates of NES and NPV is the product
energy efficiency forecasted over time for the base case and for each
of the standards cases. In the 2011 Direct Final Rule, DOE based
projections of base-case shipment-weighted efficiency (SWEF) for the
single-packaged and split system air conditioner and heat pump product
classes off SWEF growth rates determined from historical data provided
by AHRI. 76 FR 37484-86 (June 27, 2011). Since DOE only received
efficiency data at the national level, it assumed that the efficiency
distributions and trends developed for the entire Nation are also
representative at the regional level (i.e., efficiency distributions
and trends do not vary by region). For this rulemaking, DOE plans on
considering recent trends in efficiency and input from stakeholders to
update product energy efficiency forecasts, and maintain the assumption
that efficiency trends developed for the entire Nation are also
representative at the regional level.
Issue G.1 DOE seeks stakeholder input and historical SWEF data for
residential central air conditioner and heat pumps by product class and
by region.
H. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (MIA) is to
estimate the financial impact of potential energy conservation
standards on manufacturers of residential central air conditioners and
heat pumps and to evaluate the potential impact of such standards on
employment and manufacturing capacity. The MIA includes both
quantitative and qualitative aspects. The quantitative part of the MIA
primarily relies on the Government Regulatory Impact Model (GRIM), an
industry cash-flow model used to estimate a range of potential impacts
on manufacturer profitability. The qualitative part of the MIA
addresses a proposed standard's potential impacts on manufacturing
capacity and industry competition, as well as factors such as product
characteristics, impacts on particular subgroups of firms, and
important market and product trends.
As part of the MIA, DOE intends to analyze impacts of potential
energy conservation standards on small business manufacturers of
covered products. DOE intends to use the Small Business
Administration's small business size standards to determine whether
manufacturers qualify as small businesses. The size standards are
listed by North American Industry Classification System (NAICS) code
and industry description.\3\ Manufacturing of residential central air
conditioners and heat pumps is classified under NAICS 333415, ``Air-
Conditioning and Warm Air Heating Equipment and Commercial and
Industrial Refrigeration Equipment Manufacturing.'' The SBA sets a
threshold of 750 employees or less for an entity to be considered as a
small business for this category. This 750-employee threshold would
include all employees in a business's parent company and any other
subsidiaries.
---------------------------------------------------------------------------
\3\ Available at: https://www.sba.gov/content/small-business-size-standards.
---------------------------------------------------------------------------
DOE conducted a market survey using publicly available information
to identify potential small manufacturers. DOE's used DOE's Compliance
Certification Management System (CCMS), industry trade association
membership directories (including AHRI), individual company Web sites,
and market research tools (e.g., Hoovers reports) to create a list of
companies that manufacture or sell products covered by this rulemaking.
DOE has initially identified seven domestic small businesses that
manufacture residential central air conditioners and heat pumps. The
small businesses identified are:
Aerosys, Inc.
Bard Manufacturing Company
First Co.
Heat Controller, Inc.
National Refrigeration and Air Conditioning Products, Inc.
Style Crest Enterprises, Inc.
Unico, Inc.
Issue H.1 DOE requests comment on what small business manufacturers
of residential central air conditioners and heat pumps have not been
identified in the above list that it should consider in its analysis.
I. Submission of Comments
DOE invites all interested parties to submit in writing by December
5, 2014,
[[Page 65609]]
comments and information on matters addressed in this notice and on
other matters relevant to DOE's consideration of new or amended energy
conservations standards for residential central air conditioners and
heat pumps. After the close of the comment period, DOE will begin
collecting data, conducting the analyses, and reviewing the public
comments, as needed. These actions will be taken to aid in the
development of a NOPR for residential central air conditioner and heat
pump products if DOE decides to amend the standards for such products.
DOE considers public participation to be a very important part of
the process for developing test procedures and energy conservation
standards. DOE actively encourages the participation and interaction of
the public during the comment period in each stage of the rulemaking
process. Interactions with and between members of the public provide a
balanced discussion of the issues and assist DOE in the rulemaking
process. Anyone who wishes to be added to the DOE mailing list to
receive future notices and information about this rulemaking should
contact Ms. Brenda Edwards at (202) 586-2945, or via email at
Brenda.Edwards@ee.doe.gov.
Issued in Washington, DC, on October 30, 2014.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and
Renewable Energy.
[FR Doc. 2014-26247 Filed 11-4-14; 8:45 am]
BILLING CODE 6450-01-P
