Energy Conservation Standards for Central Air Conditioners and Heat Pumps: Availability of Provisional Analysis Tools, 52206-52210 [2015-21321]

Download as PDF 52206 Proposed Rules Federal Register Vol. 80, No. 167 Friday, August 28, 2015 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. DEPARTMENT OF ENERGY 10 CFR Part 430 [Docket No. EERE–2014–BT–STD–0048] RIN 1904–AD37 Energy Conservation Standards for Central Air Conditioners and Heat Pumps: Availability of Provisional Analysis Tools Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Notice of data availability. AGENCY: The U.S. Department of Energy (DOE) has completed a provisional analysis of the potential economic impacts and energy savings that could result from promulgating amended energy conservation standards for central air conditioners and heat pumps. At this time, DOE is not proposing any energy conservation standards for central air conditioners and heat pumps. Instead, this analysis will be used in support of the Appliance Standards Federal Rulemaking Advisory Committee (ASRAC) central air conditioners and heat pumps working group, which has been established to negotiate potential proposed amended energy conservation standards for central air conditioners and heat pumps standards and to discuss certain aspects of the proposed Federal test procedure. The analysis for this NODA is available at: https://www1.eere.energy.gov/ buildings/appliance_standards/ rulemaking.aspx?ruleid=104. DOE encourages stakeholders to provide any additional data or information that may improve the analysis during the course of the working group meetings. DATES: DOE will accept comments, data, and other information regarding this NODA and its related analyses no later than December 31, 2015. See section IV, ‘‘Submission of Comments,’’ of this NODA for further details. ADDRESSES: Any comments submitted must identify the NODA on Energy Conservation Standards for Central Air Lhorne on DSK5TPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 12:57 Aug 27, 2015 Jkt 235001 Conditioners and Heat Pumps, and provide docket number EERE–2014– BT–STD–0048 and/or Regulatory Identification Number (RIN) 1904– AD37. Comments may be submitted using any of the following methods: 1. Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for submitting comments. 2. Email: ASRAC@ee.doe.gov. Include the docket number and/or RIN in the subject line of the message. Submit electronic comments in WordPerfect, Microsoft Word, PDF, or ASCII file format, and avoid the use of special characters or any form of encryption. 3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Office, Mailstop EE–5B, 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 Office, 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 telefacsimilies (faxes) will be accepted. For detailed instructions on submitting comments and additional information on the rulemaking process, see section IV of this document (Submission of Comments). Docket: The docket, which includes Federal Register notices, comments, and other supporting documents/ materials, is available for review at www.regulations.gov. 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. The www.regulations.gov Web page contains instructions on how to access all documents in the docket, including public comments. For detailed instructions on submitting comments and additional information on the rulemaking process, see section IV, ‘‘Submission of Comments,’’ of this document. For PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 further information on how to submit a comment or review other public comments and the docket, contact Ms. Brenda Edwards at (202) 586–2945 or by email: Brenda.Edwards@ee.doe.gov. FOR FURTHER INFORMATION CONTACT: Mr. Antonio Bouza, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE–5B, 1000 Independence Avenue SW., Washington, DC 20585–0121. Telephone: (202) 586–4563. Email: central air conditioners and heat pumps@ee.doe.gov. Mr. Eric Stas or 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) 5869507 or (202) 287– 6307. Email: Eric.Stas@hq.doe.gov or Johanna.Hariharan@hq.doe.gov. For further information on how to review other public comments and the docket, contact Ms. Brenda Edwards at (202) 586–2945 or by email: Brenda.Edwards@ee.doe.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. Authority II. History of the Energy Conservation Standards Rulemaking for Central Air Conditioners and Heat Pumps A. Background B. Current Status III. Summary of the Analyses Performed by DOE A. Engineering Analysis B. Life-Cycle Cost and Payback Period Analyses C. National Impact Analysis D. Manufacturer Impact Analysis IV. Submission of Comments V. Approval of the Office of the Secretary I. Authority Title III, Part B 1 of the Energy Policy and Conservation Act of 1975, as amended, (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 most major household appliances (collectively referred to as ‘‘covered products’’), which includes the residential central air conditioners 1 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A. E:\FR\FM\28AUP1.SGM 28AUP1 Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules Lhorne on DSK5TPTVN1PROD with PROPOSALS and heat pumps that are the subject of this rulemaking.2 (42 U.S.C. 6292(a)(3)) The National Appliance Energy Conservation Act of 1987 (NAECA), Public Law 100–12, included amendments to EPCA that established the original energy conservation standards for central air conditioners and heat pumps. (42 U.S.C. 6295(d)(1)– (2)) EPCA, as amended, also requires DOE to conduct two cycles of rulemakings to determine whether to amend the energy conservation standards for central air conditioners and heat pumps. (42 U.S.C. 6295(d)(3)) More recently, EPCA was amended to require DOE to review the standards for each of its consumer products not later than every six years to determine whether such standards should be amended. (42 U.S.C. 6295(m)(1)) Under this ‘‘six-yearlookback’’ authority, DOE must publish a notice of proposed rulemaking (NOPR) to propose amended standards for residential central air conditioners and heat pumps, or a notice of determination that the existing standards do not need to be amended. Id. EPCA provides criteria for prescribing amended energy conservation standards for residential central air conditioners and heat pumps. More specifically, DOE is required to consider standards that: (1) Achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified; and (2) result in significant conservation of energy. (42 U.S.C. 6295(o)(2)(A) and (o)(3)(B)) To determine whether a proposed standard is economically justified, DOE will, after receiving comments on the proposed standard, determine whether the benefits of the standard exceed its burdens by, to the greatest extent practicable, considering the following seven factors: 1. The economic impact of the standard on manufacturers and consumers of products subject to the standard; 2. The savings in operating costs throughout the estimated average life of the covered products in the type (or class) compared to any increase in the price, initial charges, or maintenance expenses for the covered products which are likely to result from the standard; 3. The total projected amount of energy savings likely to result directly from the standard; 4. Any lessening of the utility or the performance of the covered products likely to result from the standard; 2 All referenced to EPCA in this document refer to the statute as amended through the Energy Efficiency Improvement Act of 2015 (EEIA 2015), Public Law 114–11 (April 30, 2015). VerDate Sep<11>2014 12:57 Aug 27, 2015 Jkt 235001 5. The impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the standard; 6. The need for national energy conservation; and 7. Other factors the Secretary of Energy considers relevant. (42 U.S.C. 6295(o)(2)(B)(i)) EPCA also directs that DOE may not prescribe an amended or new standard if the standard is likely to result in the unavailability in the United States in any covered product type (or class) of performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as those generally available in the United States at the time that the standard is prescribed. (42 U.S.C. 6295(o)(4)) Before proposing a standard, DOE typically seeks public input on the analytical framework, models, and tools that DOE will use to evaluate standards for the product at issue and the results of preliminary analyses DOE performed for the product. This notice announces the availability of the preliminary analysis of the economic impacts and energy savings of potential amended energy conservation standards. II. History of the Energy Conservation Standards Rulemaking for Central Air Conditioners and Heat Pumps A. Background As noted above, EPCA, as amended, established energy conservation standards for central air conditioners and heat pumps, as well as requirements for DOE to conduct two cycles of rulemaking to determine whether these standards should be amended. (42 U.S.C. 6295(d)(1)–(3)) The first cycle culminated in a final rule published in the Federal Register on August 17, 2004 (the August 2004 Rule), which prescribed energy conservation standards for central air conditioners and heat pumps manufactured or imported on and after January 23, 2006. 69 FR 50997. 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 37408. The 2011 Direct Final Rule (2011 DFR) amended standards for central air conditioners and heat pumps manufactured or imported on or after January 1, 2015. Pursuant to the EPCA’s six-year review requirement under 42 U.S.C. 6295(m)(1), DOE must publish a notice of proposed rulemaking to propose amended standards for residential air conditioners and heat pumps, or a notice of determination that the existing standards do not need to be amended, PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 52207 by June 6, 2017 (i.e., the date six years after issuance of the last amended standards for these products). In furtherance of this process, DOE published a request for information (‘‘the RFI’’) regarding central air conditioners and heat pumps on November 5, 2014. 79 FR 65603. DOE published the RFI to solicit comments on whether to amend the current energy conservation standards for residential central air conditioner and heat pump products. The RFI also described the procedural and analytical approaches that DOE anticipated to use in order to evaluate energy conservation standards for central air conditioners and heat pumps. B. Current Status The analyses described in this NODA were developed to support a potential energy conservation standard for central air conditioners and heat pumps. The Appliance Standards and Rulemaking Federal Advisory Committee (ASRAC) recently established a working group in accordance with the Federal Advisory Committee Act (FACA) and the Negotiated Rulemaking Act (NRA) to negotiate proposed amended energy conservation standards for central air conditioners and heat pumps standards and to discuss certain aspects of the proposed Federal test procedure. 80 FR 40938 (July 14, 2015) The purpose of the working group will be to discuss and, if possible, reach consensus on a proposed rule for amended energy conservation standards for central air conditioners and heat pumps and provide recommendations to DOE regarding certain aspects of the proposed test procedure. The working group consists of representatives of parties having a defined stake in the outcome of the proposed standards and amended test procedure, and will consult as appropriate with a range of experts on technical issues. To examine these issues, and others as necessary, DOE will provide to all parties in the negotiation data and an analytical framework complete and accurate enough to support their deliberations. DOE is publishing this analysis to inform a prospective negotiation. In this NODA, DOE is not proposing any energy conservation standards for central air conditioners and heat pumps. DOE may revise the analyses presented in this NODA based on any new or updated information or data it obtains during the course of the negotiations. DOE encourages interested parties to provide any additional data or information that may improve the analysis. E:\FR\FM\28AUP1.SGM 28AUP1 52208 Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules III. Summary of the Analyses Performed by DOE DOE conducted provisional analyses of central air conditioners and heat pumps in the following areas: (1) Engineering; (2) consumer impacts (lifecycle cost and payback period); (3) national impacts (including energy savings); and (4) manufacturer impacts. The tools used in preparing these analyses and their respective results are available at: https://www.regulations.gov/ #!docketDetail;D=EERE-2014-BT-STD0048. Each individual spreadsheet includes an introduction that provides an overview of the contents of the spreadsheet. These spreadsheets present the various inputs and outputs to the analysis and, where necessary, instructions. Brief descriptions of the provisional analyses and of the supporting spreadsheet tools are provided below. DOE also prepared a technical support document (TSD) containing a detailed written account of the provisional analyses and the results generated from these analyses, which are described for the four major anlyses below. The TSD is available at: https:// www.regulations.gov/ #!docketDetail;D=EERE-2014-BT-STD0048. Lhorne on DSK5TPTVN1PROD with PROPOSALS A. Engineering Analysis The engineering analysis establishes the relationship between the manufacturer production cost (MPC) and efficiency levels of central air conditioners and heat pumps. This relationship serves as the basis for calculations performed in the other analytical tools to estimate the costs and benefits to individual consumers, manufacturers, and the Nation. The engineering analysis identifies representative baseline products, which is the starting point for analyzing technologies that provide energy efficiency improvements. ‘‘Baseline product’’ refers to a model or models having features and technologies typically found in minimally-efficient products currently available on the market and, for products already subject to energy conservation standards, a model that just meets the current standard. After identifying the baseline models, DOE estimated manufacturer selling prices by using a consistent methodology and pricing scheme that includes material costs and manufacturer markups. B. Life-Cycle Cost and Payback Period Analyses The LCC and PBP analyses determine the economic impact of potential VerDate Sep<11>2014 12:57 Aug 27, 2015 Jkt 235001 standards on individual consumers, starting in the compliance year. The LCC is the total cost of purchasing, installing, and operating a central air conditioner or heat pump over the course of its lifetime. The LCC analysis compares the LCCs of products designed to meet possible energy conservation standards with the LCC of the product likely to be installed in the absence of standards. DOE determines the LCC by considering: (1) The total installed cost to the consumer (which consists of manufacturer selling price, distribution channel markups, installation costs, and sales taxes); (2) the range of annual energy consumption of central air conditioners and heat pumps as they are used in the field; (3) the operating and maintenance costs of central air conditioners and heat pumps (e.g., energy cost); (4) product lifetime; and (5) a discount rate that reflects the real consumer cost of capital and puts the LCC in present-value terms. The PBP represents the number of years needed to recover the increase in purchase price (including installation costs) of higher-efficiency central air conditioners and heat pumps through savings in the operating cost. PBP is calculated by dividing the incremental increase in installed cost of the higherefficiency product, compared to the baseline product, by the annual savings in operating costs. For each considered standards case corresponding to each efficiency level, DOE measures the change in LCC relative to the no-standards case, which reflects the market in the absence of amended energy conservation standards, including market trends for products that exceed the current energy conservation standards. DOE developed nationallyrepresentative household samples for central air conditioners and heat pumps from the 2009 residential energy consumption survey (RECS). DOE analyzed the net effect of potential amended central air conditioner and heat pump standards on consumers by calculating the LCC savings and PBP for each household by efficiency level. Inputs to the LCC calculation include the installed cost to the consumer (purchase price, including sales tax where appropriate, plus installation cost), operating costs (energy expenses, repair costs, and maintenance costs), the lifetime of the product, and a discount rate. Inputs to the payback period calculation include the installed cost to the consumer and first-year operating costs. DOE performed the LCC and PBP analyses using a spreadsheet model PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 combined with Crystal Ball 3 to account for uncertainty and variability among the input variables. Each Monte Carlo simulation consists of 10,000 LCC and PBP calculations using input values that are either sampled from probability distributions and household samples or characterized with single-point values. The analytical results include a distribution of 10,000 data points showing the range of LCC savings for a given efficiency level relative to the nostandards-case efficiency distribution. In performing an iteration of the Monte Carlo simulation for a given consumer, product efficiency is chosen based on its probability. If the chosen product efficiency is greater than or equal to the efficiency of the standard level under consideration, the LCC and PBP calculation reveals that a consumer is not impacted by the standard level. By accounting for consumers who already purchase more-efficient products, DOE avoids overstating the potential benefits from increasing product efficiency through amended energy conservation standards. For each potential standard level, the primary outputs of the LCC and PBP analyses are: (1) Average LCC; (2) average PBPs; (3) average LCC savings relative to the no-new-standards case; and (4) the percentage of consumers that experience a net cost. C. National Impact Analysis The national impacts analysis (NIA) estimates the national energy savings (NES) and the net present value (NPV) of total consumer costs and savings expected to result from potential amended standards. DOE calculated NES and NPV for central air conditioners and heat pumps as the difference between a case without amended standards and each standards case. DOE calculated the national annual energy consumption for each case using the appropriate per-unit annual energy use data multiplied by the projected central air conditioner and heat pump shipments for each year. Cumulative energy savings are the sum of the annual NES determined for the lifetime of central air conditioner or heat pumps shipped during a 30-year period assumed to start in the expected compliance year. The analysis period is 30 years, which is consistent with other 3 Crystal Ball is a commercial software program used to conduct stochastic analysis using Monte Carlo simulation. A Monte Carlo simulation uses random sampling over many iterations of the simulation to obtain a probability distribution of results. Certain key inputs to the analysis are defined as probability distributions rather than single-point values. E:\FR\FM\28AUP1.SGM 28AUP1 Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules Lhorne on DSK5TPTVN1PROD with PROPOSALS rulemakings and sufficiently long to cover the expected life of the product. Energy savings include the full-fuelcycle energy savings (i.e., the energy needed to extract, process, and deliver primary fuel sources such as coal and natural gas, and the conversion and distribution losses of generating electricity from those fuel sources). To develop the national NPV of consumer benefits from potential energy conservation standards, DOE calculated projected annual operating costs (energy costs and repair and maintenance costs) and annual installation costs for the nonew-standards case and the standards cases. DOE calculated annual energy expenditures from annual energy consumption using forecasted energy prices (based on the Energy Information Administration’s most recent Annual Energy Outlook) in each year. DOE calculated annual product expenditures by multiplying the price per unit times the projected shipments in each year. The aggregate difference each year between operating cost savings and increased installation costs is the net savings or net costs. DOE multiplies the net savings in future years by a discount factor to determine their present value. The national NPV is the sum over time of the discounted net savings each year. Critical inputs to this analysis include shipments projections, estimated product lifetimes, product installed costs and operating costs, product annual energy consumption, the nonew-standard-case efficiency projection, and discount rates. DOE estimates the NPV of consumer benefits using both a 3-percent and a 7-percent real discount rate, in accordance with guidance provided by the Office of Management and Budget (OMB) to Federal agencies on the development of regulatory analysis.4 D. Manufacturer Impact Analysis DOE performed a manufacturer impact analysis (MIA) to estimate the potential financial impact of potential amended energy conservation standards on manufacturers of central air conditioners and heat pumps. The MIA relied on the Government Regulatory Impact Model (GRIM), an industry cashflow model used to estimate changes in industry value as a result of amended energy conservation standards. The primary quantitative output of this model is the industry net present value (INPV), which DOE calculates as the sum of industry annual cash flows, 4 Office of Management and Budget, OMB Circular A–4, section E, Identifying and Measuring Benefits and Costs (2003) (Available at: https:// www.whitehouse.gov/omb/memoranda/m0321.html). VerDate Sep<11>2014 12:57 Aug 27, 2015 Jkt 235001 52209 it in the comment itself or in any documents attached to your comment. 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 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 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 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 www.regulations.gov provides after you have successfully IV. Submission of Comments uploaded your comment. DOE will accept comments, data, and Submitting comments via email, hand information regarding all of the analyses delivery/courier, or mail. Comments and described above, but no later than the documents submitted via email, hand date provided in the DATES section at the delivery/courier, or mail also will be beginning of this NODA. Interested posted to www.regulations.gov. If you parties may submit comments, data, and do not want your personal contact information to be publicly viewable, do any other information using any of the not include it in your comment or any methods described in the ADDRESSES accompanying documents. Instead, section at the beginning of this provide your contact information in a document. Submitting comments via cover letter. Include your first and last www.regulations.gov. The names, email address, telephone www.regulations.gov Web page will number, and optional mailing address. require you to provide your name and The cover letter will not be publicly contact information. Your contact viewable as long as it does not include information will be viewable to DOE any comments. Include contact information each time Building Technologies staff only. Your contact information will not be publicly you submit comments, data, documents, and other information to DOE. If you viewable except for your first and last submit via mail or hand delivery/ names, organization name (if any), and courier, please provide all items on a submitter representative name (if any). CD, if feasible, in which case it is not If your comment is not processed necessary to submit printed copies. No properly because of technical telefacsimiles (faxes) will be accepted. difficulties, DOE will use this Comments, data, and other information to contact you. If DOE information submitted to DOE cannot read your comment due to technical difficulties and cannot contact electronically should be provided in PDF (preferred), Microsoft Word or you for clarification, DOE may not be Excel, WordPerfect, or text (ASCII) file able to consider your comment. format. Provide documents that are not However, your contact information will be publicly viewable if you include secured, that are written in English, and discounted to the present day using an industry-specific weighted average cost of capital, or manufacturer discount rate. The GRIM estimates the impacts of more-stringent energy conservation standards on the industry by comparing changes in INPV between a no-newstandards case and standards cases. Key GRIM inputs include manufacturer production cost estimates from the Engineering Analysis and annual shipments forecast estimates from the National Impact Analysis. As part of the MIA, DOE also develops an analysis of industry financial parameters (e.g., average industry tax rate, working capital rate, research and development expense rate, depreciation rate) and estimates conversion costs manufacturers would likely incur in order to comply with amended standards. Additionally, DOE develops multiple manufacturer markup scenarios in order to capture uncertainty surrounding manufacturer pricing strategy following amended standards. For the central air conditioner and heat pump industry, DOE modeled three standards-case markup scenarios: (1) A preservation of baseline markup scenario; (2) a preservation of per-unit operating profit markup scenario; and (3) a tiered markup scenario. These scenarios result in varying revenue and cash flow impacts. PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 E:\FR\FM\28AUP1.SGM 28AUP1 Lhorne on DSK5TPTVN1PROD with PROPOSALS 52210 Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Proposed Rules 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 latter 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 email, 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 email 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 that 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). V. Approval of the Office of the Secretary The Secretary of Energy has approved publication of this NODA. VerDate Sep<11>2014 12:57 Aug 27, 2015 Jkt 235001 Issued in Washington, DC, on August 21, 2015. Kathleen B. Hogan, Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and Renewable Energy. [FR Doc. 2015–21321 Filed 8–27–15; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY 10 CFR Part 431 [Docket Number EERE–2014–BT–STD– 0027] RIN 1904–AD31 Energy Conservation Program for Consumer Products: Energy Conservation Standards for Commercial Prerinse Spray Valves Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Extension of public comment period. AGENCY: This document announces an extension of the time period for submitting comments, data, and information concerning the notice of proposed rulemaking for commercial prerinse spray valves, published on July 9, 2015. The comment period is extended to September 22, 2015. DATES: The comment period for the notice of proposed rulemaking for commercial prerinse spray valves, published on July 9, 2015 (80 FR 39486) is extended to September 22, 2015. ADDRESSES: Interested persons may submit comments by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: SprayValves20104STD0027@ee.doe.gov. Include EERE–2014–BT–STD–0027 and/or regulation identifier number (RIN) 1904–AD31 in the subject line of the message. All comments should clearly identify the name, address, and, if appropriate, organization of the commenter. Submit electronic comments in WordPerfect, Microsoft Word, portable data format (PDF), or American Standard Code for Information Interchange (ASCII) file format, and avoid the use of special characters or any form of encryption. • Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Office, Mailstop EE–5B, Notice of Proposed Rulemaking for Commercial Prerinse Spray Valves, EERE–2014–BT–STD–0027 and/or RIN SUMMARY: PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 1904–AD31, 1000 Independence Avenue SW., Washington, DC 20585– 0121. Phone: (202) 586–2945. If possible, please submit all items on a compact disc (CD), in which case it is not necessary to include printed copies. (Please note that comments sent by mail are often delayed and may be damaged by mail screening processes.) • Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Office, 6th Floor, 950 L’Enfant Plaza SW., Washington, DC 20024. Phone: (202) 586–2945. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies. All submissions received must include docket number EERE–2014–BT– STD–0027 and/or regulatory identification number (RIN) 1904– AD31. Docket: The docket is available for review at https://www.regulations.gov, and will include Federal Register notices, framework document, notice of proposed rulemaking, public meeting attendee lists and transcripts, comments, and other supporting documents/materials throughout the rulemaking process. The regulations.gov Web page contains simple instructions about how to access all documents, including public comments, in the docket. The docket can be accessed by searching for docket number EERE– 2014–BT–STD–0027 on the regulations.gov Web site. 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. FOR FURTHER INFORMATION CONTACT: Mr. James Raba, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE–5B, 1000 Independence Avenue SW., Washington, DC 20585–0121. Telephone: (202) 586–8654. Email: commercial_pre-rinse-spray_valves@ ee.doe.gov. In the Office of General Counsel, contact Mr. Peter Cochran, U.S. Department of Energy, Office of the General Counsel, GC–33, 1000 Independence Avenue SW., Washington, DC 20585–0121. Telephone: (202) 586–9496. Email: Peter.Cochran@hq.doe.gov. SUPPLEMENTARY INFORMATION: On July 9, 2015, the U.S. Department of Energy (DOE) published a document in the Federal Register proposing amended energy conservation standards for commercial prerinse spray valves. The E:\FR\FM\28AUP1.SGM 28AUP1

Agencies

[Federal Register Volume 80, Number 167 (Friday, August 28, 2015)]
[Proposed Rules]
[Pages 52206-52210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21321]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / 
Proposed Rules

[[Page 52206]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2014-BT-STD-0048]
RIN 1904-AD37


Energy Conservation Standards for Central Air Conditioners and 
Heat Pumps: Availability of Provisional Analysis Tools

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notice of data availability.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) has completed a 
provisional analysis of the potential economic impacts and energy 
savings that could result from promulgating amended energy conservation 
standards for central air conditioners and heat pumps. At this time, 
DOE is not proposing any energy conservation standards for central air 
conditioners and heat pumps. Instead, this analysis will be used in 
support of the Appliance Standards Federal Rulemaking Advisory 
Committee (ASRAC) central air conditioners and heat pumps working 
group, which has been established to negotiate potential proposed 
amended energy conservation standards for central air conditioners and 
heat pumps standards and to discuss certain aspects of the proposed 
Federal test procedure. The analysis for this NODA is available at: 
https://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=104. DOE encourages stakeholders to provide any 
additional data or information that may improve the analysis during the 
course of the working group meetings.

DATES: DOE will accept comments, data, and other information regarding 
this NODA and its related analyses no later than December 31, 2015. See 
section IV, ``Submission of Comments,'' of this NODA for further 
details.

ADDRESSES: Any comments submitted must identify the NODA on Energy 
Conservation Standards for Central Air Conditioners and Heat Pumps, and 
provide docket number EERE-2014-BT-STD-0048 and/or Regulatory 
Identification Number (RIN) 1904-AD37. Comments may be submitted using 
any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: ASRAC@ee.doe.gov. Include the docket number and/or RIN in 
the subject line of the message. Submit electronic comments in 
WordPerfect, Microsoft Word, PDF, or ASCII file format, and avoid the 
use of special characters or any form of encryption.
    3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Office, Mailstop EE-5B, 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 Office, 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 telefacsimilies (faxes) will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section IV of this document (Submission of 
Comments).
    Docket: The docket, which includes Federal Register notices, 
comments, and other supporting documents/materials, is available for 
review at www.regulations.gov. 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. The 
www.regulations.gov Web page contains instructions on how to access all 
documents in the docket, including public comments.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section IV, ``Submission of 
Comments,'' of this document. For further information on how to submit 
a comment or review other public comments and the docket, contact Ms. 
Brenda Edwards at (202) 586-2945 or by email: 
Brenda.Edwards@ee.doe.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Antonio Bouza, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, 
DC 20585-0121. Telephone: (202) 586-4563. Email: central air 
conditioners and heat pumps@ee.doe.gov.
    Mr. Eric Stas or 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) 5869507 or (202) 287-6307. 
Email: Eric.Stas@hq.doe.gov or Johanna.Hariharan@hq.doe.gov.
    For further information on how to review other public comments and 
the docket, contact Ms. Brenda Edwards at (202) 586-2945 or by email: 
Brenda.Edwards@ee.doe.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Authority
II. History of the Energy Conservation Standards Rulemaking for 
Central Air Conditioners and Heat Pumps
    A. Background
    B. Current Status
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Life-Cycle Cost and Payback Period Analyses
    C. National Impact Analysis
    D. Manufacturer Impact Analysis
IV. Submission of Comments
V. Approval of the Office of the Secretary

I. Authority

    Title III, Part B \1\ of the Energy Policy and Conservation Act of 
1975, as amended, (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 most major household appliances (collectively referred to as 
``covered products''), which includes the residential central air 
conditioners

[[Page 52207]]

and heat pumps that are the subject of this rulemaking.\2\ (42 U.S.C. 
6292(a)(3))
---------------------------------------------------------------------------

    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \2\ All referenced to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act of 2015 
(EEIA 2015), Public Law 114-11 (April 30, 2015).
---------------------------------------------------------------------------

    The National Appliance Energy Conservation Act of 1987 (NAECA), 
Public Law 100-12, included amendments to EPCA that established the 
original energy conservation standards for central air conditioners and 
heat pumps. (42 U.S.C. 6295(d)(1)-(2))
    EPCA, as amended, also requires DOE to conduct two cycles of 
rulemakings to determine whether to amend the energy conservation 
standards for central air conditioners and heat pumps. (42 U.S.C. 
6295(d)(3)) More recently, EPCA was amended to require DOE to review 
the standards for each of its consumer products not later than every 
six years to determine whether such standards should be amended. (42 
U.S.C. 6295(m)(1)) Under this ``six-year-lookback'' authority, DOE must 
publish a notice of proposed rulemaking (NOPR) to propose amended 
standards for residential central air conditioners and heat pumps, or a 
notice of determination that the existing standards do not need to be 
amended. Id.
    EPCA provides criteria for prescribing amended energy conservation 
standards for residential central air conditioners and heat pumps. More 
specifically, DOE is required to consider standards that: (1) Achieve 
the maximum improvement in energy efficiency that is technologically 
feasible and economically justified; and (2) result in significant 
conservation of energy. (42 U.S.C. 6295(o)(2)(A) and (o)(3)(B)) To 
determine whether a proposed standard is economically justified, DOE 
will, after receiving comments on the proposed standard, determine 
whether the benefits of the standard exceed its burdens by, to the 
greatest extent practicable, considering the following seven factors:

1. The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
2. The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for 
the covered products which are likely to result from the standard;
3. The total projected amount of energy savings likely to result 
directly from the standard;
4. Any lessening of the utility or the performance of the covered 
products likely to result from 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 
standard;
6. The need for national energy conservation; and
7. Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6295(o)(2)(B)(i))

    EPCA also directs that DOE may not prescribe an amended or new 
standard if the standard is likely to result in the unavailability in 
the United States in any covered product type (or class) of performance 
characteristics (including reliability), features, sizes, capacities, 
and volumes that are substantially the same as those generally 
available in the United States at the time that the standard is 
prescribed. (42 U.S.C. 6295(o)(4))
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that DOE will use to 
evaluate standards for the product at issue and the results of 
preliminary analyses DOE performed for the product. This notice 
announces the availability of the preliminary analysis of the economic 
impacts and energy savings of potential amended energy conservation 
standards.

II. History of the Energy Conservation Standards Rulemaking for Central 
Air Conditioners and Heat Pumps

A. Background

    As noted above, EPCA, as amended, established energy conservation 
standards for central air conditioners and heat pumps, as well as 
requirements for DOE to conduct two cycles of rulemaking to determine 
whether these standards should be amended. (42 U.S.C. 6295(d)(1)-(3)) 
The first cycle culminated in a final rule published in the Federal 
Register on August 17, 2004 (the August 2004 Rule), which prescribed 
energy conservation standards for central air conditioners and heat 
pumps manufactured or imported on and after January 23, 2006. 69 FR 
50997. 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 37408. The 2011 Direct Final Rule (2011 DFR) amended 
standards for central air conditioners and heat pumps manufactured or 
imported on or after January 1, 2015.
    Pursuant to the EPCA's six-year review requirement under 42 U.S.C. 
6295(m)(1), DOE must publish a notice of proposed rulemaking to propose 
amended standards for residential air conditioners and heat pumps, or a 
notice of determination that the existing standards do not need to be 
amended, by June 6, 2017 (i.e., the date six years after issuance of 
the last amended standards for these products). In furtherance of this 
process, DOE published a request for information (``the RFI'') 
regarding central air conditioners and heat pumps on November 5, 2014. 
79 FR 65603. DOE published the RFI to solicit comments on whether to 
amend the current energy conservation standards for residential central 
air conditioner and heat pump products. The RFI also described the 
procedural and analytical approaches that DOE anticipated to use in 
order to evaluate energy conservation standards for central air 
conditioners and heat pumps.

B. Current Status

    The analyses described in this NODA were developed to support a 
potential energy conservation standard for central air conditioners and 
heat pumps. The Appliance Standards and Rulemaking Federal Advisory 
Committee (ASRAC) recently established a working group in accordance 
with the Federal Advisory Committee Act (FACA) and the Negotiated 
Rulemaking Act (NRA) to negotiate proposed amended energy conservation 
standards for central air conditioners and heat pumps standards and to 
discuss certain aspects of the proposed Federal test procedure. 80 FR 
40938 (July 14, 2015) The purpose of the working group will be to 
discuss and, if possible, reach consensus on a proposed rule for 
amended energy conservation standards for central air conditioners and 
heat pumps and provide recommendations to DOE regarding certain aspects 
of the proposed test procedure. The working group consists of 
representatives of parties having a defined stake in the outcome of the 
proposed standards and amended test procedure, and will consult as 
appropriate with a range of experts on technical issues.
    To examine these issues, and others as necessary, DOE will provide 
to all parties in the negotiation data and an analytical framework 
complete and accurate enough to support their deliberations. DOE is 
publishing this analysis to inform a prospective negotiation.
    In this NODA, DOE is not proposing any energy conservation 
standards for central air conditioners and heat pumps. DOE may revise 
the analyses presented in this NODA based on any new or updated 
information or data it obtains during the course of the negotiations. 
DOE encourages interested parties to provide any additional data or 
information that may improve the analysis.

[[Page 52208]]

III. Summary of the Analyses Performed by DOE

    DOE conducted provisional analyses of central air conditioners and 
heat pumps in the following areas: (1) Engineering; (2) consumer 
impacts (life-cycle cost and payback period); (3) national impacts 
(including energy savings); and (4) manufacturer impacts. The tools 
used in preparing these analyses and their respective results are 
available at: https://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-
STD-0048. Each individual spreadsheet includes an introduction that 
provides an overview of the contents of the spreadsheet. These 
spreadsheets present the various inputs and outputs to the analysis 
and, where necessary, instructions. Brief descriptions of the 
provisional analyses and of the supporting spreadsheet tools are 
provided below.
    DOE also prepared a technical support document (TSD) containing a 
detailed written account of the provisional analyses and the results 
generated from these analyses, which are described for the four major 
anlyses below. The TSD is available at: https://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0048.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer production cost (MPC) and efficiency levels of central air 
conditioners and heat pumps. This relationship serves as the basis for 
calculations performed in the other analytical tools to estimate the 
costs and benefits to individual consumers, manufacturers, and the 
Nation. The engineering analysis identifies representative baseline 
products, which is the starting point for analyzing technologies that 
provide energy efficiency improvements. ``Baseline product'' refers to 
a model or models having features and technologies typically found in 
minimally-efficient products currently available on the market and, for 
products already subject to energy conservation standards, a model that 
just meets the current standard. After identifying the baseline models, 
DOE estimated manufacturer selling prices by using a consistent 
methodology and pricing scheme that includes material costs and 
manufacturer markups.

B. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers, starting in the compliance year. The 
LCC is the total cost of purchasing, installing, and operating a 
central air conditioner or heat pump over the course of its lifetime. 
The LCC analysis compares the LCCs of products designed to meet 
possible energy conservation standards with the LCC of the product 
likely to be installed in the absence of standards. DOE determines the 
LCC by considering: (1) The total installed cost to the consumer (which 
consists of manufacturer selling price, distribution channel markups, 
installation costs, and sales taxes); (2) the range of annual energy 
consumption of central air conditioners and heat pumps as they are used 
in the field; (3) the operating and maintenance costs of central air 
conditioners and heat pumps (e.g., energy cost); (4) product lifetime; 
and (5) a discount rate that reflects the real consumer cost of capital 
and puts the LCC in present-value terms.
    The PBP represents the number of years needed to recover the 
increase in purchase price (including installation costs) of higher-
efficiency central air conditioners and heat pumps through savings in 
the operating cost. PBP is calculated by dividing the incremental 
increase in installed cost of the higher-efficiency product, compared 
to the baseline product, by the annual savings in operating costs.
    For each considered standards case corresponding to each efficiency 
level, DOE measures the change in LCC relative to the no-standards 
case, which reflects the market in the absence of amended energy 
conservation standards, including market trends for products that 
exceed the current energy conservation standards.
    DOE developed nationally-representative household samples for 
central air conditioners and heat pumps from the 2009 residential 
energy consumption survey (RECS). DOE analyzed the net effect of 
potential amended central air conditioner and heat pump standards on 
consumers by calculating the LCC savings and PBP for each household by 
efficiency level. Inputs to the LCC calculation include the installed 
cost to the consumer (purchase price, including sales tax where 
appropriate, plus installation cost), operating costs (energy expenses, 
repair costs, and maintenance costs), the lifetime of the product, and 
a discount rate. Inputs to the payback period calculation include the 
installed cost to the consumer and first-year operating costs.
    DOE performed the LCC and PBP analyses using a spreadsheet model 
combined with Crystal Ball \3\ to account for uncertainty and 
variability among the input variables. Each Monte Carlo simulation 
consists of 10,000 LCC and PBP calculations using input values that are 
either sampled from probability distributions and household samples or 
characterized with single-point values. The analytical results include 
a distribution of 10,000 data points showing the range of LCC savings 
for a given efficiency level relative to the no-standards-case 
efficiency distribution. In performing an iteration of the Monte Carlo 
simulation for a given consumer, product efficiency is chosen based on 
its probability. If the chosen product efficiency is greater than or 
equal to the efficiency of the standard level under consideration, the 
LCC and PBP calculation reveals that a consumer is not impacted by the 
standard level. By accounting for consumers who already purchase more-
efficient products, DOE avoids overstating the potential benefits from 
increasing product efficiency through amended energy conservation 
standards.
---------------------------------------------------------------------------

    \3\ Crystal Ball is a commercial software program used to 
conduct stochastic analysis using Monte Carlo simulation. A Monte 
Carlo simulation uses random sampling over many iterations of the 
simulation to obtain a probability distribution of results. Certain 
key inputs to the analysis are defined as probability distributions 
rather than single-point values.
---------------------------------------------------------------------------

    For each potential standard level, the primary outputs of the LCC 
and PBP analyses are: (1) Average LCC; (2) average PBPs; (3) average 
LCC savings relative to the no-new-standards case; and (4) the 
percentage of consumers that experience a net cost.

C. National Impact Analysis

    The national impacts analysis (NIA) estimates the national energy 
savings (NES) and the net present value (NPV) of total consumer costs 
and savings expected to result from potential amended standards. DOE 
calculated NES and NPV for central air conditioners and heat pumps as 
the difference between a case without amended standards and each 
standards case.
    DOE calculated the national annual energy consumption for each case 
using the appropriate per-unit annual energy use data multiplied by the 
projected central air conditioner and heat pump shipments for each 
year. Cumulative energy savings are the sum of the annual NES 
determined for the lifetime of central air conditioner or heat pumps 
shipped during a 30-year period assumed to start in the expected 
compliance year. The analysis period is 30 years, which is consistent 
with other

[[Page 52209]]

rulemakings and sufficiently long to cover the expected life of the 
product. Energy savings include the full-fuel-cycle energy savings 
(i.e., the energy needed to extract, process, and deliver primary fuel 
sources such as coal and natural gas, and the conversion and 
distribution losses of generating electricity from those fuel sources).
    To develop the national NPV of consumer benefits from potential 
energy conservation standards, DOE calculated projected annual 
operating costs (energy costs and repair and maintenance costs) and 
annual installation costs for the no-new-standards case and the 
standards cases. DOE calculated annual energy expenditures from annual 
energy consumption using forecasted energy prices (based on the Energy 
Information Administration's most recent Annual Energy Outlook) in each 
year. DOE calculated annual product expenditures by multiplying the 
price per unit times the projected shipments in each year.
    The aggregate difference each year between operating cost savings 
and increased installation costs is the net savings or net costs. DOE 
multiplies the net savings in future years by a discount factor to 
determine their present value. The national NPV is the sum over time of 
the discounted net savings each year. Critical inputs to this analysis 
include shipments projections, estimated product lifetimes, product 
installed costs and operating costs, product annual energy consumption, 
the no-new-standard-case efficiency projection, and discount rates. DOE 
estimates the NPV of consumer benefits using both a 3-percent and a 7-
percent real discount rate, in accordance with guidance provided by the 
Office of Management and Budget (OMB) to Federal agencies on the 
development of regulatory analysis.\4\
---------------------------------------------------------------------------

    \4\ Office of Management and Budget, OMB Circular A-4, section 
E, Identifying and Measuring Benefits and Costs (2003) (Available 
at: https://www.whitehouse.gov/omb/memoranda/m03-21.html).
---------------------------------------------------------------------------

D. Manufacturer Impact Analysis

    DOE performed a manufacturer impact analysis (MIA) to estimate the 
potential financial impact of potential amended energy conservation 
standards on manufacturers of central air conditioners and heat pumps. 
The MIA relied on the Government Regulatory Impact Model (GRIM), an 
industry cash-flow model used to estimate changes in industry value as 
a result of amended energy conservation standards. The primary 
quantitative output of this model is the industry net present value 
(INPV), which DOE calculates as the sum of industry annual cash flows, 
discounted to the present day using an industry-specific weighted 
average cost of capital, or manufacturer discount rate. The GRIM 
estimates the impacts of more-stringent energy conservation standards 
on the industry by comparing changes in INPV between a no-new-standards 
case and standards cases.
    Key GRIM inputs include manufacturer production cost estimates from 
the Engineering Analysis and annual shipments forecast estimates from 
the National Impact Analysis. As part of the MIA, DOE also develops an 
analysis of industry financial parameters (e.g., average industry tax 
rate, working capital rate, research and development expense rate, 
depreciation rate) and estimates conversion costs manufacturers would 
likely incur in order to comply with amended standards.
    Additionally, DOE develops multiple manufacturer markup scenarios 
in order to capture uncertainty surrounding manufacturer pricing 
strategy following amended standards. For the central air conditioner 
and heat pump industry, DOE modeled three standards-case markup 
scenarios: (1) A preservation of baseline markup scenario; (2) a 
preservation of per-unit operating profit markup scenario; and (3) a 
tiered markup scenario. These scenarios result in varying revenue and 
cash flow impacts.

IV. Submission of Comments

    DOE will accept comments, data, and information regarding all of 
the analyses described above, but no later than the date provided in 
the DATES section at the beginning of this NODA. Interested parties may 
submit comments, data, and any other information using any of the 
methods described in the ADDRESSES section at the beginning of this 
document.
    Submitting comments via www.regulations.gov. The 
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. 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 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 
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 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 www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or mail. 
Comments and documents submitted via email, hand delivery/courier, or 
mail also will be posted to 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, email 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 
telefacsimiles (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 secured, that are written in English, and

[[Page 52210]]

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 latter 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 
email, 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 email 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 that 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).

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this NODA.

    Issued in Washington, DC, on August 21, 2015.
 Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2015-21321 Filed 8-27-15; 8:45 am]
 BILLING CODE 6450-01-P
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