Energy Conservation Standards for Pool Heaters, 65169-65173 [2015-27203]
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65169
Proposed Rules
Federal Register
Vol. 80, No. 206
Monday, October 26, 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–2015–BT–STD–0003]
RIN 1904–AD49
Energy Conservation Standards for
Pool Heaters
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of data availability
(NODA).
AGENCY:
The U.S. Department of
Energy (DOE) has completed a
preliminary analysis for purposes of
considering energy conservation
standards for electric pool heaters. At
this time, DOE is not proposing energy
conservation standards for electric pool
heaters. However, it is publishing this
analysis so stakeholders can review the
analysis’s output and the underlining
assumptions and calculations that might
ultimately support a proposed standard.
DOE encourages stakeholders to provide
any additional data or information that
may improve the analysis. The analysis
is now publicly available at on the DOE
Web site.
DATES: DOE will accept comments, data,
and other information regarding this
rulemaking no later than December 10,
2015. See section IV, ‘‘Public
Participation,’’ of this document for
details.
SUMMARY:
The direct heating
equipment and pool heater docket
(EERE–2015–BT–STD–0003) is available
for review at www.regulations.gov. It
includes relevant Federal Register
notices, the Request for Information,
public comments, and other relevant
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. The www.regulations.gov
Web page contains instructions on how
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ADDRESSES:
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to access all documents in the docket,
including public comments.
Also, the DOE Web page for pool
heaters (which includes additional
information about existing standards
and test procedures, and the history and
impacts of previous DOE regulatory
actions for these products) may be
viewed at https://www1.eere.energy.gov/
buildings/appliance_standards/
product.aspx/productid/47 and contains
links to the aforementioned docket.
For detailed instructions on
submitting comments and additional
information on the rulemaking process,
see section IV, ‘‘Public Participation,’’ of
this document. For further information
on how to submit a comment or to
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. John Cymbalsky, U.S. Department of
Energy, Office of Energy Efficiency
and Renewable Energy, Building
Technologies, EE–5B, 1000
Independence Avenue SW.,
Washington, DC 20585–0121.
Telephone: (202) 287–1692. Email:
John.Cymbalsky@ee.doe.gov.
Ms. Sarah Butler, U.S. Department of
Energy, Office of the General Counsel,
GC–33, 1000 Independence Avenue
SW., Washington, DC 20585–0121.
Telephone: (202) 586–1777. Email:
Sarah.Butler@hq.doe.gov.
For information on how to submit or
review public comments, contact Ms.
Brenda Edwards, U.S. Department of
Energy, Office of Energy Efficiency and
Renewable Energy, Building
Technologies, EE–5B, 1000
Independence Avenue SW.,
Washington, DC 20585–0121.
Telephone: (202) 586–2945. Email:
Brenda.Edwards@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Authority
II. History of Energy Conservation Standards
Rulemaking for Pool Heaters
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by
DOE
A. Market and Technology Assessment
B. Engineering Analysis
C. Markups To Determine Commercial
Consumer Prices
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period
Analyses
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F. National Impact Analysis
IV. Public Participation
A. 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 (‘‘EPCA’’
or ‘‘the Act’’), Public Law 94–163
(codified at 42 U.S.C. 6291–6309) sets
forth a variety of provisions designed to
improve energy efficiency and
establishes the Energy Conservation
Program for Consumer Products Other
Than Automobiles.2 This program
includes most major household
appliances (collectively referred to as
‘‘covered products’’), including the two
covered products that are the subject of
this rulemaking process: Direct heating
equipment (DHE) and pool heaters.3 (42
U.S.C. 6292(a)(9) and (11)) Under EPCA,
this energy conservation program
generally consists of four parts: (1)
Testing; (2) labeling; (3) establishing
Federal energy conservation standards;
and (4) certification and enforcement
procedures.
EPCA prescribes specific energy
conservation standards for pool heaters
and direct heating equipment. (42
U.S.C. 6295(e)(2), (3)) EPCA directed
DOE to conduct two cycles of
rulemakings to determine whether to
amend its standards for direct heating
equipment and pool heaters. (42 U.S.C.
6295(e)(4)) The statute further requires
DOE to publish a notice of proposed
rulemaking including new proposed
standards or a notice of determination
that the standards for a product need
not be amended no later than 6 years
after issuance of any final rule
establishing or amending standards for
that product. (42 U.S.C. 6295(m)(1))
DOE last promulgated a final rule on
April 16, 2010, amending its energy
conservation standards for direct
heating equipment and pool heaters,
1 For editorial reasons, upon codification in the
U.S. Code, Part B was redesignated as Part A.
2 All references to EPCA in this document refer
to the statute as amended through the Energy
Efficiency Improvement Act, Public Law 114–11
(April 30, 2015).
3 A ‘‘pool heater’’ means ‘‘an appliance designed
for heating nonpotable water contained at
atmospheric pressure, including heating water in
swimming pools, spas, hot tubs and similar
application.’’ (42 U.S.C. 6291(25)) This definition of
coverage does not specify a fuel type, and so
electric pool heaters are considered to be covered
products under EPCA even though energy
conservation standards are not currently
established.
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constituting the first of these two
required rulemakings. 75 FR 20112. The
current rulemaking satisfies the
statutory requirements under EPCA to
conduct a second round of review of the
DHE and pool heater standards. (42
U.S.C. 6295(e)(4)(B)) Additionally, this
rulemaking will satisfy the requirement
for DOE to publish a notice of proposed
rulemaking containing proposed
standards or a notice of determination
that the standards for direct heating
equipment and pool heaters do not need
to be amended by April 16, 2016. (42
U.S.C. 6295(m)(1)). If DOE were to
publish a notice of proposed rulemaking
containing proposed amendments to its
standards for either direct heating
equipment or pool heaters, DOE would
be required to issue a final rule
amending the standards no later than 2
years after issuance of the notice. (42
U.S.C. 6295(m)(3)(A))
EPCA also provides criteria for
prescribing amended standards for
covered products generally, including
direct heating equipment and pool
heaters. As indicated above, any such
amended standard must be designed to
achieve the maximum improvement in
energy efficiency that is technologically
feasible and economically justified. (42
U.S.C. 6295(o)(2)(A)) Additionally,
EPCA provides specific prohibitions on
prescribing such standards. DOE may
not prescribe an amended standard for
any of its covered products for which it
has not established a test procedure. (42
U.S.C. 6295(o)(3)(A)) Further, DOE may
not prescribe a standard if DOE
determines by rule that such standard
would not result in ‘‘significant
conservation of energy,’’ or ‘‘is not
technologically feasible or economically
justified.’’ (42 U.S.C. 6295(o)(3)(B))
EPCA also provides that in deciding
whether a standard is economically
justified for covered products, DOE
must, after receiving comments on the
proposed standard, determine whether
the benefits of the standard exceed its
burdens by considering, to the greatest
extent practicable, the following seven
factors:
1. The economic impact of the
standard on manufacturers and
consumers of the products subject to the
standard;
2. The savings in operating costs
throughout the estimated average life of
the covered products in the type (or
class) compared to any increase in the
price, initial charges, or maintenance
expenses for the covered products that
are likely to result from the imposition
of the standard;
3. The total projected amount of
energy (or, as applicable, water) savings
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likely to result directly from the
imposition of the standard;
4. Any lessening of the utility or the
performance of the covered products
likely to result from the imposition of
the standard;
5. The impact of any lessening of
competition, as determined in writing
by the Attorney General, that is likely to
result from the imposition of the
standard;
6. The need for national energy and
water conservation; and
7. Other factors the Secretary of
Energy (Secretary) considers relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)–(VII))
In addition, EPCA, as amended,
establishes a rebuttable presumption
that any standard for covered products
is economically justified if the Secretary
finds that ‘‘the additional cost to the
consumer of purchasing a product
complying with an energy conservation
standard level will be less than three
times the value of the energy (and as
applicable, water) savings during the
first year that the consumer will receive
as a result of the standard,’’ as
calculated under the test procedure in
place for that standard. (42 U.S.C.
6295(o)(2)(B)(iii))
EPCA also contains what is
commonly known as an ‘‘antibacksliding’’ provision. (42 U.S.C.
6295(o)(1)) This provision mandates
that the Secretary not prescribe any
amended standard that either increases
the maximum allowable energy use or
decreases the minimum required energy
efficiency of a covered product. EPCA
further provides that the Secretary may
not prescribe an amended standard if
interested persons have established by a
preponderance of the evidence that the
standard is likely to result in the
unavailability in the United States of
any product type (or class) with
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 of the
Secretary’s finding. (42 U.S.C.
6295(o)(4)) Under 42 U.S.C. 6295(q)(1),
EPCA specifies requirements applicable
to promulgating standards for any type
or class of covered product that has two
or more subcategories. Under this
provision, DOE must specify a different
standard level than that which applies
generally to such type or class of
product that has the same function or
intended use, if DOE determines that
the products within such group: (A)
Consume a different kind of energy from
that consumed by other covered
products within such type (or class); or
(B) have a capacity or other
performance-related feature which other
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products within such type (or class) do
not have and such feature justifies a
higher or lower standard than applies or
will apply to the other products. (42
U.S.C. 6295(q)(1)) In determining
whether a performance-related feature
justifies such a different standard for a
group of products, DOE must consider
‘‘such factors as the utility to the
consumer of such a feature’’ and other
factors the Secretary deems appropriate.
Id. Any rule prescribing such a standard
must include an explanation of the basis
on which DOE established such higher
or lower level. (42 U.S.C. 6295(q)(2))
Section 310(3) of the Energy
Independence and Security Act of 2007
(EISA 2007; Public Law 110–140)
amended EPCA to prospectively require
that energy conservation standards
address standby mode and off mode
energy use. Specifically, when DOE
adopts new or amended standards for a
covered product after July 1, 2010, the
final rule must, if justified by the
criteria for adoption of standards in
section 325(o) of EPCA, incorporate
standby mode and off mode energy use
into a single standard if feasible, or
otherwise adopt a separate standard for
such energy use for that product. (42
U.S.C. 6295(gg)(3)) On December 17,
2012 DOE promulgated a final rule
amending its test procedures for vented
direct heating equipment and pool
heaters to incorporate standby and offmode energy consumption. 77 FR
74559. The amendments related to
standby and off-mode energy
consumption were not required for
purposes of compliance until the
compliance date of the next standards
final rule for those products. Id. This
rulemaking, if amended standards are
ultimately adopted, would serve as the
next energy conservation standards
rulemaking subsequent to these test
procedure amendments, and therefore
this rulemaking will take into account
standby and off-mode energy
consumption.
Finally, Federal energy conservation
requirements for covered products
generally supersede State laws or
regulations concerning energy
conservation testing, labeling, and
standards. (42 U.S.C. 6297(a)–(c)) DOE
can, however, grant waivers of Federal
preemption for particular State laws or
regulations, in accordance with the
procedures and other provisions of
section 327(d) of the Act. (42
U.S.C.6297(d))
Before proposing a standard, DOE
typically seeks public input about the
analytical framework, models, and tools
that it will use to evaluate standards for
the product or equipment at issue and
the results of preliminary analyses DOE
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performed for that product or
equipment. This NODA announces the
availability of the preliminary Technical
Support Document (TSD), which details
the preliminary analyses and
summarizes the preliminary results of
DOE’s analyses for electric pool heaters.
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II. History of Energy Conservation
Standards Rulemaking for Pool Heaters
A. Background
Currently, energy conservation
standards are established for vented
home heating equipment (a form of
direct heating equipment) and gas-fired
pool heaters. (10 CFR 430.32(i) and (k))
DOE last amended its energy
conservation standards for pool heaters
and direct heating equipment through a
final rule published in the Federal
Register (FR) on April 16, 2010
(hereafter referred to as the ‘‘April 2010
final rule’’). 75 FR 20112. (codified at 10
CFR 430.32(i) and (k)). Compliance with
the amended standards was required
beginning on April 16, 2013. Id. As
described above in section I, EPCA
directed DOE to conduct two cycles of
rulemakings regarding standards for
DHE and pool heaters, and this
rulemaking satisfies the statutory
requirements under EPCA to conduct a
second round of review of the DHE and
pool heater standards. (42 U.S.C.
6295(e)(4)(B)) To initiate this
rulemaking, DOE issued a Request for
Information (RFI) in the Federal
Register on March 26, 2015 (hereafter
‘‘March 2015 RFI’’). 80 FR 15922.
Through this RFI, DOE requested data
and information pertaining to its
technical and economic analyses for
direct heating equipment and pool
heaters.
In addition to determining whether
energy conservation standards for
vented home heating equipment and
gas-fired pool heaters should be
amended, DOE is considering during
this rulemaking whether it is
appropriate to establish energy
conservation standards for electric pool
heaters, including both electric
resistance pool and spa heaters as well
as electric heat pump pool heaters. As
described in section I, although energy
conservation standards for electric pool
heaters have not previously been set, the
definition of coverage for pool heaters
found at 42 U.S.C. 6291(25) does not
specify a fuel type, and therefore all
pool heaters (including electric) are
considered covered products under
EPCA. Among other topics, the March
2015 RFI sought data and information
pertaining specifically to electric pool
heaters, including electric resistance
pool and spa heaters as well as electric
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heat pump pool heaters. Since energy
conservation standards have not
previously been established for electric
pool heaters, DOE is publishing this
preliminary analysis for electric pool
heaters in order to solicit feedback
regarding the methodologies used and
results obtained based on information
collected during the March 2015 RFI
public comment period and preliminary
confidential manufacturer interviews,
among other sources. DOE does not plan
to publish a similar preliminary analysis
for vented home heating equipment and
gas-fired pool heaters. DHE product
offerings have not markedly changed
since the final rule analysis in 2010
(with the exception of condensing
technology for fan-type wall furnaces).
Additionally, DOE has performed
testing on vented home heating
equipment (a subset of DHE) and
through this process has built sufficient
knowledge, in combination with the
previous rulemaking analyses and the
March 2015 RFI, to forgo a preliminary
analysis for these products. DOE
requests comment on its determination
to forgo a preliminary analysis for these
products and notes that interested
parties will have the opportunity to
comment on DOE’s analyses for vented
home heating equipment and gas-fired
pool heaters during the Notice of
Proposed Rulemaking (NOPR) phase of
the rulemaking process.
DOE completed a separate test
procedure rulemaking for direct heating
equipment and pool heaters by
publishing in the Federal Register a
final rule on January 6, 2015. 80 FR 792.
(Codified at 10 CFR part 430, subpart B,
Appendix P) Any energy conservation
standards for pool heaters of any fuel
type adopted as part of this rulemaking
would be based on the updated test
procedure.
B. Current Rulemaking Process
As indicated above, in initiating this
rulemaking DOE published a Request
for Information on March 26, 2015.
Among other topics, DOE solicited data
and information pertaining to electric
resistance and electric heat pump pool
and spa heaters. Comments received
since publication of the March 2015 RFI
have helped DOE identify issues and
collect data related to the preliminary
analyses for electric pool heaters.
Chapter 2 of the preliminary TSD
summarizes and addresses the
comments received in response to the
March 2015 RFI.
III. Summary of the Analyses
Performed by DOE
For the electric pool heaters covered
in this rulemaking, DOE conducted in-
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depth technical analyses in the
following areas: (1) Engineering; (2)
markups to determine product price; (3)
energy use; (4) life-cycle cost and
payback period; and (5) national
impacts. The preliminary TSD that
presents the methodology and results of
each of these analyses is available at
https://www1.eere.energy.gov/buildings/
appliance_standards/
rulemaking.aspx?ruleid=113.
DOE also conducted, and has
included in the preliminary TSD,
several other analyses that support the
major analyses or are preliminary
analyses that will be expanded upon for
a NOPR if DOE determines that
amended energy conservation standards
are technologically feasible,
economically justified, and would save
a significant amount of energy, based on
the information available to DOE. These
analyses include: (1) The market and
technology assessment; (2) the screening
analysis, which contributes to the
engineering analysis; and (3) the
shipments analysis, which contributes
to the life-cycle cost (LCC) and payback
period (PBP) analysis and national
impact analysis (NIA). In addition to
these analyses, DOE has begun
preliminary work on the manufacturer
impact analysis and has identified the
methods to be used for the LCC
consumer subgroup analysis, the
emissions analysis, the employment
impact analysis, the regulatory impact
analysis, and the utility impact analysis.
DOE will expand on these analyses in
the NOPR.
A. Market and Technology Assessment
When initiating an analysis of
potential energy efficiency standards for
a residential product, DOE develops
information for the products and
characterizes the market and industry
structure, evaluating both current and
historical information. This activity is
primarily based on a review of publiclyavailable information.
When evaluating and establishing
energy conservation standards, DOE
generally divides covered products into
product classes by the type of energy
used or by capacity or other
performance-related features that affect
efficiency. DOE has tentatively decided
to differentiate between electric pool
heaters and electric spa heaters on the
basis that each of these two products
have different characteristics which
have the potential of affecting
efficiency. Specifically, electric spa
heaters often have space constraints
which would impede the use of higher
efficiency technologies. DOE therefore
considered two product classes—
electric pool heaters and electric spa
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heaters—for this preliminary analysis.
DOE recognizes that electric spa heaters,
being integral to the construction of a
spa or hot tub, use electric resistance
heating elements due to space
constraints and DOE has tentatively
determined that heat pump technology
is therefore not a viable option for
electric spa heaters. DOE did not
analyze electric spa heaters because it
did not identify technologies that would
measurably increase the integrated
thermal efficiency of these products.
DOE does, however, consider electric
resistance to be a baseline technology
for the electric pool heater product
class, since electric resistance heaters
are available at capacities that could
serve a pool and electric heat pumps
represent an improvement in efficiency
over these products.
Energy conservation standards may be
proposed later in the rulemaking for
either, both, or neither of these potential
product classes in addition to gas-fired
pool heaters. (42 U.S.C. 6295(q))
Alternatively, DOE could propose
different product classes than those
analyzed in its preliminary analysis if
comments, information, or additional
analysis be provided that suggest doing
so would be more appropriate for the
pool and spa heater market. Chapter 3
of the preliminary TSD addresses the
market and technology assessment.
B. Engineering Analysis
The engineering analysis establishes
the relationship between the
manufacturer selling price and
efficiency levels of the products that
DOE is evaluating as potential energy
conservation standards. This
relationship serves as the basis for costbenefit calculations for 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’’ 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. DOE used these
inputs to develop manufacturer selling
prices for the baseline and moreefficient designs. Later, in the markups
analysis to determine the installed
price, DOE converts these manufacturer
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selling prices into installed prices.
Chapter 5 of the preliminary TSD
discusses the engineering analysis.
C. Markups To Determine Commercial
Consumer Prices
DOE derives consumer installed
prices based on manufacturer markups,
retailer markups, distributor markups,
contractor markups (where appropriate),
and sales taxes. In deriving these
markups, DOE determines the major
distribution channels for product sales,
the markup associated with each party
in each distribution channel, and the
existence and magnitude of differences
between markups for baseline products
(baseline markups) and higherefficiency products (incremental
markups). DOE calculates both overall
baseline and overall incremental
markups based on the product markups
at each step in each distribution
channel. Chapter 6 of the preliminary
TSD addresses the markups analysis.
D. Energy Use Analysis
The energy use analysis provides
estimates of the annual energy
consumption of electric pool heaters.
The energy use analysis seeks to
estimate the range of energy
consumption of products that meet each
of the efficiency levels considered in a
given rulemaking as they are used in the
field. DOE uses these values in the LCC
and PBP analyses and in the NIA.
Chapter 7 of the preliminary TSD
addresses the energy use analysis.
E. Life-Cycle Cost and Payback Period
Analyses
The LCC and PBP analyses determine
the economic impact of potential
standards on individual consumers. The
LCC is the total cost to the consumer of
purchasing, installing, and operating the
considered pool heater 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 products
likely to be installed in the absence of
standards. DOE determines LCCs by
considering: (1) Total installed cost to
the purchaser (which consists of
manufacturer selling price, distribution
chain markups, sales taxes, and
installation cost); (2) the operating cost
of the product (energy cost and
maintenance and repair cost); (3)
product lifetime; and (4) a discount rate
that reflects the real consumer cost of
capital and puts the LCC in presentvalue terms. The PBP represents the
number of years needed to recover the
increase in purchase price (including
installation cost) of higher-efficiency
products through savings in the
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operating cost of the products. PBP is
calculated by dividing the incremental
increase in installed cost of the higherefficiency products, compared to the
baseline products, by the annual savings
in operating costs. Chapter 8 of the
preliminary TSD addresses the LCC and
PBP analyses.
F. National Impact Analysis
The NIA estimates the national energy
savings (NES) and the net present value
(NPV) of total consumer costs and
savings expected to result from
amended standards at specific efficiency
levels (referred to as candidate standard
levels). DOE calculated NES and NPV
for each candidate standard level for
electric pool heaters as the difference
between a base-case forecast (without
amended standards) and the standardscase forecast (with standards). DOE
determined national annual energy
consumption by multiplying the
number of units in use (by vintage) by
the average unit energy consumption
(also by vintage). Cumulative energy
savings are the sum of the annual NES
determined for the lifetime of the
products shipped from 2022–2051. This
30-year analysis period begins in 2022,
the expected first full year of
compliance with the amended
standards. The NPV is the sum over
time of the discounted net savings each
year, which consists of the difference
between total operating cost savings and
increases in total installed costs. Critical
inputs to this analysis include
shipments projections, estimated
product lifetimes, product installed
costs and operating costs, product
annual energy consumption, the base
case efficiency projection, and discount
rates. Chapter 10 of the preliminary TSD
addresses the NIA.
IV. Public Participation
DOE invites input from the public on
all the topics described above. The
preliminary analytical results are
subject to revision following further
review and input from the public. A
complete TSD is available for this
analysis, and the Executive Summary of
the TSD identifies specific issues on
which DOE seeks comment. The final
rule establishing any amended energy
conservation standards will contain the
final analytical results and will be
accompanied by a final rule TSD.
The TSD is available at: https://
www1.eere.energy.gov/buildings/
appliance_standards/
rulemaking.aspx?ruleid=113. DOE is
also interested in receiving views
concerning other relevant issues that
participants believe would affect energy
conservation standards for this
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equipment or that DOE should address
in the NOPR.
DOE welcomes all interested parties
to submit in writing by December 10,
2015 comments, data, and other
information on matters addressed in the
TSD and on other matters relevant to
consideration of energy conservation
standards for pool heaters.
After the closing of the comment
period, DOE will consider all timelysubmitted comments and additional
information obtained from interested
parties, as well as information obtained
through further analyses. Afterward,
DOE will publish either a determination
that standards for electric pool heaters
need not be established or a NOPR
proposing to establish those standards.
The NOPR would include proposed
energy conservation standards for the
products covered by the rulemaking,
and members of the public would be
given an opportunity to submit written
and oral comments on the proposed
standards.
A. Submission of Comments
DOE will accept comments, data, and
other information regarding this
rulemaking no later than the date
provided at the beginning of this
document. Please submit comments,
data, and other information as provided
in the ADDRESSES section. Submit
electronic comments in WordPerfect,
Microsoft Word, PDF, or text (ASCII) file
format and avoid the use of special
characters or any form of encryption.
Comments in electronic format should
be identified by the Docket Number
EERE–2015–BT–STD–0003 and/or RIN
1904–AD49 and, wherever possible,
carry the electronic signature of the
author. No telefacsimiles (faxes) will be
accepted.
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 two copies: One copy of
the document including all the
information believed to be confidential
and one copy of the document with the
information believed to be confidential
deleted. DOE will make its own
determination as to 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
VerDate Sep<11>2014
18:00 Oct 23, 2015
Jkt 238001
available to others without obligation
concerning its confidentiality; (5) an
explanation of the competitive injury to
the submitting person which would
result from public disclosure; (6) a date
upon which such information might
lose its confidential nature due to the
passage of time; and (7) why disclosure
of the information would be contrary to
the public interest.
V. Approval of the Office of the
Secretary
The Secretary of Energy has approved
publication of this notice of data
availability of the preliminary technical
support document.
Issued in Washington, DC, on October 15,
2015.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy
Efficiency, Energy Efficiency and Renewable
Energy.
[FR Doc. 2015–27203 Filed 10–23–15; 8:45 am]
BILLING CODE 6450–01–P
CONSUMER PRODUCT SAFETY
COMMISSION
16 CFR Chapter II
[Docket No. CPSC–2015–0030]
Notice of Availability: CPSC Plan for
Retrospective Review of Existing
Rules
U.S. Consumer Product Safety
Commission.
ACTION: Notice of availability.
AGENCY:
The Consumer Product Safety
Commission (‘‘Commission,’’ or
‘‘CPSC’’) has approved a document
titled, ‘‘Plan for Retrospective Review of
Existing Rules.’’ CPSC seeks comments
on this plan.
DATES: Submit comments by December
28, 2015.
ADDRESSES: You may submit comments,
identified by Docket No. CPSC–2015–
0030, by any of the following methods:
Electronic Submissions: Submit
electronic comments to the Federal
eRulemaking Portal at: https://
www.regulations.gov. Follow the
instructions for submitting comments.
The Commission does not accept
comments submitted by electronic mail
(email), except through
www.regulations.gov. The Commission
encourages you to submit electronic
comments by using the Federal
eRulemaking Portal, as described above.
Written Submissions: Submit written
submissions by mail/hand delivery/
courier to: Office of the Secretary,
Consumer Product Safety Commission,
SUMMARY:
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
65173
Room 820, 4330 East West Highway,
Bethesda, MD 20814; telephone (301)
504–7923.
Instructions: All submissions received
must include the agency name and
docket number for this document. All
comments received may be posted
without change, including any personal
identifiers, contact information, or other
personal information provided, to:
https://www.regulations.gov. Do not
submit confidential business
information, trade secret information, or
other sensitive or protected information
that you do not want to be available to
the public. If furnished at all, such
information should be submitted in
writing.
Docket: For access to the docket to
read background documents or
comments received, go to: https://
www.regulations.gov, and insert the
docket number CPSC–2015–0030, into
the ‘‘Search’’ box, and follow the
prompts.
FOR FURTHER INFORMATION CONTACT:
Patricia K. Adair, Directorate for
Engineering Sciences, U.S. Consumer
Product Safety Commission, 5 Research
Place, Rockville, MD 20850–3213;
telephone: (301) 987–2238; email:
padair@cpsc.gov.
The
Commission has approved a Plan for
Retrospective Review of Existing Rules
(‘‘Plan’’) that sets forth a method for
identifying and reconsidering certain
rules that are obsolete, unnecessary,
unjustified, excessively burdensome,
counterproductive, or ineffective, or that
otherwise would benefit from
modification. The Plan’s review
processes are intended to facilitate the
identification of rules that warrant
repeal or modification, including those
that could benefit from strengthening,
complementing, or modernizing. The
Plan is consistent with Executive Orders
13579,1 13563 2 and 13610.3 The Plan is
available on the Commission’s Web site
at: https://www.cpsc.gov/Global/
Regulations-Laws-and-Standards/
Rulemaking/Draftrulereviewplan
September2015Final.pdf. Please submit
comments as directed in the ADDRESSES
section of this document.
SUPPLEMENTARY INFORMATION:
1 76 FR 41587 (July 11, 2011). The President.
Executive Order 13579 of July 11, 2011. Regulation
and Independent Regulatory Agencies.
2 76 FR 3821 (January 18, 2011). The President.
Executive Order 13563 of January 18, 2011.
Improving Regulation and Regulatory Review.
3 77 FR 28469 (May 10, 2012). The President.
Executive Order 13610 of May 10, 2012. Identifying
and Reducing Regulatory Burdens.
E:\FR\FM\26OCP1.SGM
26OCP1
Agencies
[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)]
[Proposed Rules]
[Pages 65169-65173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27203]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 /
Proposed Rules
[[Page 65169]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EERE-2015-BT-STD-0003]
RIN 1904-AD49
Energy Conservation Standards for Pool Heaters
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of data availability (NODA).
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) has completed a
preliminary analysis for purposes of considering energy conservation
standards for electric pool heaters. At this time, DOE is not proposing
energy conservation standards for electric pool heaters. However, it is
publishing this analysis so stakeholders can review the analysis's
output and the underlining assumptions and calculations that might
ultimately support a proposed standard. DOE encourages stakeholders to
provide any additional data or information that may improve the
analysis. The analysis is now publicly available at on the DOE Web
site.
DATES: DOE will accept comments, data, and other information regarding
this rulemaking no later than December 10, 2015. See section IV,
``Public Participation,'' of this document for details.
ADDRESSES: The direct heating equipment and pool heater docket (EERE-
2015-BT-STD-0003) is available for review at www.regulations.gov. It
includes relevant Federal Register notices, the Request for
Information, public comments, and other relevant 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.
The www.regulations.gov Web page contains instructions on how to access
all documents in the docket, including public comments.
Also, the DOE Web page for pool heaters (which includes additional
information about existing standards and test procedures, and the
history and impacts of previous DOE regulatory actions for these
products) may be viewed at https://www1.eere.energy.gov/buildings/appliance_standards/product.aspx/productid/47 and contains links to the
aforementioned docket.
For detailed instructions on submitting comments and additional
information on the rulemaking process, see section IV, ``Public
Participation,'' of this document. For further information on how to
submit a comment or to 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. John Cymbalsky, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000
Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202)
287-1692. Email: John.Cymbalsky@ee.doe.gov.
Ms. Sarah Butler, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-1777. Email: Sarah.Butler@hq.doe.gov.
For information on how to submit or review public comments, contact
Ms. Brenda Edwards, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000
Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202)
586-2945. Email: Brenda.Edwards@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Authority
II. History of Energy Conservation Standards Rulemaking for Pool
Heaters
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by DOE
A. Market and Technology Assessment
B. Engineering Analysis
C. Markups To Determine Commercial Consumer Prices
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period Analyses
F. National Impact Analysis
IV. Public Participation
A. 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 (``EPCA'' or ``the Act''), Public Law 94-163 (codified at 42
U.S.C. 6291-6309) sets forth a variety of provisions designed to
improve energy efficiency and establishes the Energy Conservation
Program for Consumer Products Other Than Automobiles.\2\ This program
includes most major household appliances (collectively referred to as
``covered products''), including the two covered products that are the
subject of this rulemaking process: Direct heating equipment (DHE) and
pool heaters.\3\ (42 U.S.C. 6292(a)(9) and (11)) Under EPCA, this
energy conservation program generally consists of four parts: (1)
Testing; (2) labeling; (3) establishing Federal energy conservation
standards; and (4) certification and enforcement procedures.
---------------------------------------------------------------------------
\1\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated as Part A.
\2\ All references to EPCA in this document refer to the statute
as amended through the Energy Efficiency Improvement Act, Public Law
114-11 (April 30, 2015).
\3\ A ``pool heater'' means ``an appliance designed for heating
nonpotable water contained at atmospheric pressure, including
heating water in swimming pools, spas, hot tubs and similar
application.'' (42 U.S.C. 6291(25)) This definition of coverage does
not specify a fuel type, and so electric pool heaters are considered
to be covered products under EPCA even though energy conservation
standards are not currently established.
---------------------------------------------------------------------------
EPCA prescribes specific energy conservation standards for pool
heaters and direct heating equipment. (42 U.S.C. 6295(e)(2), (3)) EPCA
directed DOE to conduct two cycles of rulemakings to determine whether
to amend its standards for direct heating equipment and pool heaters.
(42 U.S.C. 6295(e)(4)) The statute further requires DOE to publish a
notice of proposed rulemaking including new proposed standards or a
notice of determination that the standards for a product need not be
amended no later than 6 years after issuance of any final rule
establishing or amending standards for that product. (42 U.S.C.
6295(m)(1)) DOE last promulgated a final rule on April 16, 2010,
amending its energy conservation standards for direct heating equipment
and pool heaters,
[[Page 65170]]
constituting the first of these two required rulemakings. 75 FR 20112.
The current rulemaking satisfies the statutory requirements under EPCA
to conduct a second round of review of the DHE and pool heater
standards. (42 U.S.C. 6295(e)(4)(B)) Additionally, this rulemaking will
satisfy the requirement for DOE to publish a notice of proposed
rulemaking containing proposed standards or a notice of determination
that the standards for direct heating equipment and pool heaters do not
need to be amended by April 16, 2016. (42 U.S.C. 6295(m)(1)). If DOE
were to publish a notice of proposed rulemaking containing proposed
amendments to its standards for either direct heating equipment or pool
heaters, DOE would be required to issue a final rule amending the
standards no later than 2 years after issuance of the notice. (42
U.S.C. 6295(m)(3)(A))
EPCA also provides criteria for prescribing amended standards for
covered products generally, including direct heating equipment and pool
heaters. As indicated above, any such amended standard must be designed
to achieve the maximum improvement in energy efficiency that is
technologically feasible and economically justified. (42 U.S.C.
6295(o)(2)(A)) Additionally, EPCA provides specific prohibitions on
prescribing such standards. DOE may not prescribe an amended standard
for any of its covered products for which it has not established a test
procedure. (42 U.S.C. 6295(o)(3)(A)) Further, DOE may not prescribe a
standard if DOE determines by rule that such standard would not result
in ``significant conservation of energy,'' or ``is not technologically
feasible or economically justified.'' (42 U.S.C. 6295(o)(3)(B)) EPCA
also provides that in deciding whether a standard is economically
justified for covered products, DOE must, after receiving comments on
the proposed standard, determine whether the benefits of the standard
exceed its burdens by considering, to the greatest extent practicable,
the following seven factors:
1. The economic impact of the standard on manufacturers and
consumers of the products subject to the standard;
2. The savings in operating costs throughout the estimated average
life of the covered products in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products that are likely to result from the imposition of the
standard;
3. The total projected amount of energy (or, as applicable, water)
savings likely to result directly from the imposition of the standard;
4. Any lessening of the utility or the performance of the covered
products likely to result from the imposition of the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy and water conservation; and
7. Other factors the Secretary of Energy (Secretary) considers
relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
In addition, EPCA, as amended, establishes a rebuttable presumption
that any standard for covered products is economically justified if the
Secretary finds that ``the additional cost to the consumer of
purchasing a product complying with an energy conservation standard
level will be less than three times the value of the energy (and as
applicable, water) savings during the first year that the consumer will
receive as a result of the standard,'' as calculated under the test
procedure in place for that standard. (42 U.S.C. 6295(o)(2)(B)(iii))
EPCA also contains what is commonly known as an ``anti-
backsliding'' provision. (42 U.S.C. 6295(o)(1)) This provision mandates
that the Secretary not prescribe any amended standard that either
increases the maximum allowable energy use or decreases the minimum
required energy efficiency of a covered product. EPCA further provides
that the Secretary may not prescribe an amended standard if interested
persons have established by a preponderance of the evidence that the
standard is likely to result in the unavailability in the United States
of any product type (or class) with 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 of the Secretary's finding. (42 U.S.C. 6295(o)(4))
Under 42 U.S.C. 6295(q)(1), EPCA specifies requirements applicable to
promulgating standards for any type or class of covered product that
has two or more subcategories. Under this provision, DOE must specify a
different standard level than that which applies generally to such type
or class of product that has the same function or intended use, if DOE
determines that the products within such group: (A) Consume a different
kind of energy from that consumed by other covered products within such
type (or class); or (B) have a capacity or other performance-related
feature which other products within such type (or class) do not have
and such feature justifies a higher or lower standard than applies or
will apply to the other products. (42 U.S.C. 6295(q)(1)) In determining
whether a performance-related feature justifies such a different
standard for a group of products, DOE must consider ``such factors as
the utility to the consumer of such a feature'' and other factors the
Secretary deems appropriate. Id. Any rule prescribing such a standard
must include an explanation of the basis on which DOE established such
higher or lower level. (42 U.S.C. 6295(q)(2))
Section 310(3) of the Energy Independence and Security Act of 2007
(EISA 2007; Public Law 110-140) amended EPCA to prospectively require
that energy conservation standards address standby mode and off mode
energy use. Specifically, when DOE adopts new or amended standards for
a covered product after July 1, 2010, the final rule must, if justified
by the criteria for adoption of standards in section 325(o) of EPCA,
incorporate standby mode and off mode energy use into a single standard
if feasible, or otherwise adopt a separate standard for such energy use
for that product. (42 U.S.C. 6295(gg)(3)) On December 17, 2012 DOE
promulgated a final rule amending its test procedures for vented direct
heating equipment and pool heaters to incorporate standby and off-mode
energy consumption. 77 FR 74559. The amendments related to standby and
off-mode energy consumption were not required for purposes of
compliance until the compliance date of the next standards final rule
for those products. Id. This rulemaking, if amended standards are
ultimately adopted, would serve as the next energy conservation
standards rulemaking subsequent to these test procedure amendments, and
therefore this rulemaking will take into account standby and off-mode
energy consumption.
Finally, Federal energy conservation requirements for covered
products generally supersede State laws or regulations concerning
energy conservation testing, labeling, and standards. (42 U.S.C.
6297(a)-(c)) DOE can, however, grant waivers of Federal preemption for
particular State laws or regulations, in accordance with the procedures
and other provisions of section 327(d) of the Act. (42 U.S.C.6297(d))
Before proposing a standard, DOE typically seeks public input about
the analytical framework, models, and tools that it will use to
evaluate standards for the product or equipment at issue and the
results of preliminary analyses DOE
[[Page 65171]]
performed for that product or equipment. This NODA announces the
availability of the preliminary Technical Support Document (TSD), which
details the preliminary analyses and summarizes the preliminary results
of DOE's analyses for electric pool heaters.
II. History of Energy Conservation Standards Rulemaking for Pool
Heaters
A. Background
Currently, energy conservation standards are established for vented
home heating equipment (a form of direct heating equipment) and gas-
fired pool heaters. (10 CFR 430.32(i) and (k)) DOE last amended its
energy conservation standards for pool heaters and direct heating
equipment through a final rule published in the Federal Register (FR)
on April 16, 2010 (hereafter referred to as the ``April 2010 final
rule''). 75 FR 20112. (codified at 10 CFR 430.32(i) and (k)).
Compliance with the amended standards was required beginning on April
16, 2013. Id. As described above in section I, EPCA directed DOE to
conduct two cycles of rulemakings regarding standards for DHE and pool
heaters, and this rulemaking satisfies the statutory requirements under
EPCA to conduct a second round of review of the DHE and pool heater
standards. (42 U.S.C. 6295(e)(4)(B)) To initiate this rulemaking, DOE
issued a Request for Information (RFI) in the Federal Register on March
26, 2015 (hereafter ``March 2015 RFI''). 80 FR 15922. Through this RFI,
DOE requested data and information pertaining to its technical and
economic analyses for direct heating equipment and pool heaters.
In addition to determining whether energy conservation standards
for vented home heating equipment and gas-fired pool heaters should be
amended, DOE is considering during this rulemaking whether it is
appropriate to establish energy conservation standards for electric
pool heaters, including both electric resistance pool and spa heaters
as well as electric heat pump pool heaters. As described in section I,
although energy conservation standards for electric pool heaters have
not previously been set, the definition of coverage for pool heaters
found at 42 U.S.C. 6291(25) does not specify a fuel type, and therefore
all pool heaters (including electric) are considered covered products
under EPCA. Among other topics, the March 2015 RFI sought data and
information pertaining specifically to electric pool heaters, including
electric resistance pool and spa heaters as well as electric heat pump
pool heaters. Since energy conservation standards have not previously
been established for electric pool heaters, DOE is publishing this
preliminary analysis for electric pool heaters in order to solicit
feedback regarding the methodologies used and results obtained based on
information collected during the March 2015 RFI public comment period
and preliminary confidential manufacturer interviews, among other
sources. DOE does not plan to publish a similar preliminary analysis
for vented home heating equipment and gas-fired pool heaters. DHE
product offerings have not markedly changed since the final rule
analysis in 2010 (with the exception of condensing technology for fan-
type wall furnaces). Additionally, DOE has performed testing on vented
home heating equipment (a subset of DHE) and through this process has
built sufficient knowledge, in combination with the previous rulemaking
analyses and the March 2015 RFI, to forgo a preliminary analysis for
these products. DOE requests comment on its determination to forgo a
preliminary analysis for these products and notes that interested
parties will have the opportunity to comment on DOE's analyses for
vented home heating equipment and gas-fired pool heaters during the
Notice of Proposed Rulemaking (NOPR) phase of the rulemaking process.
DOE completed a separate test procedure rulemaking for direct
heating equipment and pool heaters by publishing in the Federal
Register a final rule on January 6, 2015. 80 FR 792. (Codified at 10
CFR part 430, subpart B, Appendix P) Any energy conservation standards
for pool heaters of any fuel type adopted as part of this rulemaking
would be based on the updated test procedure.
B. Current Rulemaking Process
As indicated above, in initiating this rulemaking DOE published a
Request for Information on March 26, 2015. Among other topics, DOE
solicited data and information pertaining to electric resistance and
electric heat pump pool and spa heaters. Comments received since
publication of the March 2015 RFI have helped DOE identify issues and
collect data related to the preliminary analyses for electric pool
heaters. Chapter 2 of the preliminary TSD summarizes and addresses the
comments received in response to the March 2015 RFI.
III. Summary of the Analyses Performed by DOE
For the electric pool heaters covered in this rulemaking, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering; (2) markups to determine product price; (3) energy use;
(4) life-cycle cost and payback period; and (5) national impacts. The
preliminary TSD that presents the methodology and results of each of
these analyses is available at https://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=113.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that support the major analyses or are
preliminary analyses that will be expanded upon for a NOPR if DOE
determines that amended energy conservation standards are
technologically feasible, economically justified, and would save a
significant amount of energy, based on the information available to
DOE. These analyses include: (1) The market and technology assessment;
(2) the screening analysis, which contributes to the engineering
analysis; and (3) the shipments analysis, which contributes to the
life-cycle cost (LCC) and payback period (PBP) analysis and national
impact analysis (NIA). In addition to these analyses, DOE has begun
preliminary work on the manufacturer impact analysis and has identified
the methods to be used for the LCC consumer subgroup analysis, the
emissions analysis, the employment impact analysis, the regulatory
impact analysis, and the utility impact analysis. DOE will expand on
these analyses in the NOPR.
A. Market and Technology Assessment
When initiating an analysis of potential energy efficiency
standards for a residential product, DOE develops information for the
products and characterizes the market and industry structure,
evaluating both current and historical information. This activity is
primarily based on a review of publicly-available information.
When evaluating and establishing energy conservation standards, DOE
generally divides covered products into product classes by the type of
energy used or by capacity or other performance-related features that
affect efficiency. DOE has tentatively decided to differentiate between
electric pool heaters and electric spa heaters on the basis that each
of these two products have different characteristics which have the
potential of affecting efficiency. Specifically, electric spa heaters
often have space constraints which would impede the use of higher
efficiency technologies. DOE therefore considered two product classes--
electric pool heaters and electric spa
[[Page 65172]]
heaters--for this preliminary analysis. DOE recognizes that electric
spa heaters, being integral to the construction of a spa or hot tub,
use electric resistance heating elements due to space constraints and
DOE has tentatively determined that heat pump technology is therefore
not a viable option for electric spa heaters. DOE did not analyze
electric spa heaters because it did not identify technologies that
would measurably increase the integrated thermal efficiency of these
products. DOE does, however, consider electric resistance to be a
baseline technology for the electric pool heater product class, since
electric resistance heaters are available at capacities that could
serve a pool and electric heat pumps represent an improvement in
efficiency over these products.
Energy conservation standards may be proposed later in the
rulemaking for either, both, or neither of these potential product
classes in addition to gas-fired pool heaters. (42 U.S.C. 6295(q))
Alternatively, DOE could propose different product classes than those
analyzed in its preliminary analysis if comments, information, or
additional analysis be provided that suggest doing so would be more
appropriate for the pool and spa heater market. Chapter 3 of the
preliminary TSD addresses the market and technology assessment.
B. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and efficiency levels of the products that
DOE is evaluating as potential energy conservation standards. This
relationship serves as the basis for cost-benefit calculations for
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'' 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.
DOE used these inputs to develop manufacturer selling prices for the
baseline and more-efficient designs. Later, in the markups analysis to
determine the installed price, DOE converts these manufacturer selling
prices into installed prices. Chapter 5 of the preliminary TSD
discusses the engineering analysis.
C. Markups To Determine Commercial Consumer Prices
DOE derives consumer installed prices based on manufacturer
markups, retailer markups, distributor markups, contractor markups
(where appropriate), and sales taxes. In deriving these markups, DOE
determines the major distribution channels for product sales, the
markup associated with each party in each distribution channel, and the
existence and magnitude of differences between markups for baseline
products (baseline markups) and higher-efficiency products (incremental
markups). DOE calculates both overall baseline and overall incremental
markups based on the product markups at each step in each distribution
channel. Chapter 6 of the preliminary TSD addresses the markups
analysis.
D. Energy Use Analysis
The energy use analysis provides estimates of the annual energy
consumption of electric pool heaters. The energy use analysis seeks to
estimate the range of energy consumption of products that meet each of
the efficiency levels considered in a given rulemaking as they are used
in the field. DOE uses these values in the LCC and PBP analyses and in
the NIA. Chapter 7 of the preliminary TSD addresses the energy use
analysis.
E. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses determine the economic impact of potential
standards on individual consumers. The LCC is the total cost to the
consumer of purchasing, installing, and operating the considered pool
heater 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 products likely to be installed in the
absence of standards. DOE determines LCCs by considering: (1) Total
installed cost to the purchaser (which consists of manufacturer selling
price, distribution chain markups, sales taxes, and installation cost);
(2) the operating cost of the product (energy cost and maintenance and
repair cost); (3) product lifetime; and (4) 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 cost) of higher-
efficiency products through savings in the operating cost of the
products. PBP is calculated by dividing the incremental increase in
installed cost of the higher-efficiency products, compared to the
baseline products, by the annual savings in operating costs. Chapter 8
of the preliminary TSD addresses the LCC and PBP analyses.
F. National Impact Analysis
The NIA estimates the national energy savings (NES) and the net
present value (NPV) of total consumer costs and savings expected to
result from amended standards at specific efficiency levels (referred
to as candidate standard levels). DOE calculated NES and NPV for each
candidate standard level for electric pool heaters as the difference
between a base-case forecast (without amended standards) and the
standards-case forecast (with standards). DOE determined national
annual energy consumption by multiplying the number of units in use (by
vintage) by the average unit energy consumption (also by vintage).
Cumulative energy savings are the sum of the annual NES determined for
the lifetime of the products shipped from 2022-2051. This 30-year
analysis period begins in 2022, the expected first full year of
compliance with the amended standards. The NPV is the sum over time of
the discounted net savings each year, which consists of the difference
between total operating cost savings and increases in total installed
costs. Critical inputs to this analysis include shipments projections,
estimated product lifetimes, product installed costs and operating
costs, product annual energy consumption, the base case efficiency
projection, and discount rates. Chapter 10 of the preliminary TSD
addresses the NIA.
IV. Public Participation
DOE invites input from the public on all the topics described
above. The preliminary analytical results are subject to revision
following further review and input from the public. A complete TSD is
available for this analysis, and the Executive Summary of the TSD
identifies specific issues on which DOE seeks comment. The final rule
establishing any amended energy conservation standards will contain the
final analytical results and will be accompanied by a final rule TSD.
The TSD is available at: https://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=113. DOE is also interested
in receiving views concerning other relevant issues that participants
believe would affect energy conservation standards for this
[[Page 65173]]
equipment or that DOE should address in the NOPR.
DOE welcomes all interested parties to submit in writing by
December 10, 2015 comments, data, and other information on matters
addressed in the TSD and on other matters relevant to consideration of
energy conservation standards for pool heaters.
After the closing of the comment period, DOE will consider all
timely-submitted comments and additional information obtained from
interested parties, as well as information obtained through further
analyses. Afterward, DOE will publish either a determination that
standards for electric pool heaters need not be established or a NOPR
proposing to establish those standards. The NOPR would include proposed
energy conservation standards for the products covered by the
rulemaking, and members of the public would be given an opportunity to
submit written and oral comments on the proposed standards.
A. Submission of Comments
DOE will accept comments, data, and other information regarding
this rulemaking no later than the date provided at the beginning of
this document. Please submit comments, data, and other information as
provided in the ADDRESSES section. Submit electronic comments in
WordPerfect, Microsoft Word, PDF, or text (ASCII) file format and avoid
the use of special characters or any form of encryption. Comments in
electronic format should be identified by the Docket Number EERE-2015-
BT-STD-0003 and/or RIN 1904-AD49 and, wherever possible, carry the
electronic signature of the author. No telefacsimiles (faxes) will be
accepted.
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 two copies: One copy of the document including
all the information believed to be confidential and one copy of the
document with the information believed to be confidential deleted. DOE
will make its own determination as to the confidential status of the
information and treat it according to its determination.
Factors of interest to DOE when evaluating requests to treat
submitted information as confidential include: (1) A description of the
items; (2) whether and why such items are customarily treated as
confidential within the industry; (3) whether the information is
generally known by or available from other sources; (4) whether the
information has previously been made available to others without
obligation concerning its confidentiality; (5) an explanation of the
competitive injury to the submitting person which would result from
public disclosure; (6) a date upon which such information might lose
its confidential nature due to the passage of time; and (7) why
disclosure of the information would be contrary to the public interest.
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this notice of
data availability of the preliminary technical support document.
Issued in Washington, DC, on October 15, 2015.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and
Renewable Energy.
[FR Doc. 2015-27203 Filed 10-23-15; 8:45 am]
BILLING CODE 6450-01-P