Energy Conservation Program: Energy Conservation Standards for Dedicated-Purpose Pool Pump Motors, Notice of Request for Direct Final Rule, 45851-45860 [2018-19577]

Download as PDF 45851 Proposed Rules Federal Register Vol. 83, No. 176 Tuesday, September 11, 2018 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 431 [EERE–2017–BT–STD–0048] Energy Conservation Program: Energy Conservation Standards for DedicatedPurpose Pool Pump Motors, Notice of Request for Direct Final Rule Office of Energy Efficiency and Renewable Energy, Department of Energy (DOE). ACTION: Notice of joint stakeholder proposal for direct final rule, and request for comments. AGENCY: On August 14, 2018, the Department of Energy (DOE) received a petition submitted by a variety of entities (collectively, the Joint Stakeholders or the Petitioners) asking DOE to issue a direct final rule for energy conservation standards for dedicated-purpose pool pump (DPPP) motors. Through this notification, DOE seeks comment on whether to proceed with the proposal, as well as any data or information that could be used in DOE’s determination whether to issue a direct final rule. DATES: Written comments and information are requested on or before October 26, 2018. ADDRESSES: Interested persons are encouraged to submit comments, identified by ‘‘Dedicated-Purpose Pool Pump Proposal’’ and Docket number ‘‘EERE–2017–BT–STD–0048’’, by any of the following methods: Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. Email: DPPMotors2017STD0048@ ee.doe.gov. Include the docket number ‘‘EERE–2017–BT–STD–0048’’ in the subject line of the message. Mail: Appliance and Equipment Standards Program, 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 daltland on DSKBBV9HB2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 it is not necessary to include printed copies. Hand Delivery/Courier: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, 950 L’Enfant Plaza SW, Suite 600, Washington, DC 20024. Telephone: (202) 287–1445. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies. Docket: For access to the docket to read background documents, or comments received, go to the Federal eRulemaking Portal at https:// www.regulations.gov. All documents in the docket are listed in the https:// www.regulations.gov index. However, some documents listed in the index, such as those containing information that is exempt from public disclosure, may not be publicly available. The docket web page can be found https:// www.regulations.gov/docket?D=EERE2017-BT-STD-0048. The docket web page will contain simple instruction on how to access all documents, including public comments, in the docket. FOR FURTHER INFORMATION CONTACT: Jeremy Dommu, U.S. Department of Energy, Building Technologies Office, EE–5B, 1000 Independence Avenue SW, Washington, DC, 20585, (202) 586–9870. Email: ApplianceStandardsQuestions@ ee.doe.gov. Mary Greene, U.S. Department of Energy, Office of the General Counsel, 1000 Independence Avenue SW, Washington, DC 20585, Email: mary.greene@hq.doe.gov; (202) 586– 1817 SUPPLEMENTARY INFORMATION: As amended by the Energy Efficiency Improvement Act of 2015, Public Law 114–11 (April 30, 2015), the Energy Policy and Conservation Act (EPCA or, in context, the Act), Public Law 94–163 (42 U.S.C. 6291–6309, as codified), authorizes DOE to issue a direct final rule establishing an energy conservation standard for a product on receipt of a statement submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates) as determined by the Secretary of Energy (Secretary). That statement must contain recommendations with respect to an energy or water conservation standard that are in accordance with the PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 provisions of 42 U.S.C. 6295(o) or 42 U.S.C. 6316, as applicable. In publishing the petition in its entirety for public comment, DOE is seeking views on whether to proceed with the petition as suggested by the Joint Stakeholders.1 DOE is also interested in the views of parties that were not part of the Joint Stakeholder group to aid in determining if the Joint Stakeholders constitute a group of interested persons that are fairly representative of relevant points of view. If DOE determines to issue the direct final rule for DPPPs, the agency must simultaneously publish a notice of proposed rulemaking (NOPR) that proposes an identical energy conservation standard and provides for a public comment period of at least 110 days. 42 U.S.C. 6295(p)(4). Not later than 120 days after issuance of the direct final rule, if DOE receives one or more adverse comments or an alternative joint recommendation relating to the direct final rule, the Secretary must determine whether the comments or alternative recommendation may provide a reasonable basis for withdrawal under 42 U.S.C. 6295(o) or other applicable law. If the Secretary makes such a determination, DOE must withdraw the direct final rule and proceed with the simultaneously published NOPR. DOE must publish in the Federal Register the reasons why the direct final rule was withdrawn. By seeking comment on whether to issue a direct final rule in accordance with the Joint Stakeholders’ petition, DOE takes no position at this time regarding whether the submitted petition satisfies EPCA’s requirement that such a statement must be submitted by interested persons that are fairly representative of relevant points of view and that the proposal must be in compliance with the provisions of 42 1 The Joint Stakeholders include: Association of Pool & Spa Professionals, Alliance to Save Energy, American Council for an Energy Efficient Economy, Appliance Standards Awareness Project, Arizona Public Service, California Energy Commission, California Investor Owned Utilities, Consumer Federation of America, Florida Consumer Action Network, Hayward Industries, National Electrical Manufacturers Association, Natural Resources Defense Council, Nidec Motor Corporation, Northwest Power and Conservation Council, Pentair Water Pool and Spa, Regal Beloit Corporation, Speck Pumps, Texas ROSE (Ratepayers’ Organization to Save Energy), Waterway Plastics, WEG, Zodiac Pool Systems. E:\FR\FM\11SEP1.SGM 11SEP1 45852 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules daltland on DSKBBV9HB2PROD with PROPOSALS U.S.C. 6295(o) or 42 U.S.C. 6316, as applicable. Further, DOE takes no position at this time regarding the merits of the petition itself. DOE notes that the Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., provides among other things, that ‘[e]ach agency shall give an interested person the right to petition for the issuance, amendment or repeal of a rule.’’ (5 U.S.C. 553(e)). DOE requests comment on whether it should consider the petition from the Joint Stakeholders under this authority should it determine it cannot proceed with consideration of the proposal under the direct final rule authority. Again, while seeking comment on this issue, DOE takes no position at this time regarding the merits of the petition itself. Submission of Comments DOE invites all interested parties to submit in writing by October 26, 2018 comments and information regarding this proposal. Submitting comments via https:// www.regulations.gov. The https:// www.regulations.gov web page will require you to provide your name and contact information prior to submitting comments. 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 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. Persons viewing comments will see only first and last names, organization names, correspondence containing comments, and any documents submitted with the comments. Do not submit to https:// www.regulations.gov information for which disclosure is restricted by statute, such as trade secrets and commercial or financial information (hereinafter referred to as Confidential Business Information (CBI)). Comments submitted through https:// www.regulations.gov cannot be claimed as CBI. Comments received through the VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 website will waive any CBI claims for the information submitted. For information on submitting CBI, see the Confidential Business Information section. DOE processes submissions made through https://www.regulations.gov before posting. Normally, comments will be posted within a few days of being submitted. However, if large volumes of comments are being processed simultaneously, your comment may not be viewable for up to several weeks. Please keep the comment tracking number that https:// www.regulations.gov provides after you have successfully uploaded your comment. Submitting comments via hand delivery, or mail. Comments and documents via hand delivery or mail will also be posted to https:// www.regulations.gov. If you do not want your personal contact information to be publicly viewable, do not include it in your comment or any accompanying documents. Instead, provide your contact information on 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 in your cover letter each time you submit comments, data, documents, and other information to DOE. If you submit via mail or hand delivery, please provide all items on a CD, if feasible. It is not necessary to submit printed copies. No facsimiles (faxes) will be accepted. Comments, data, and other information submitted electronically should be provided in PDF (preferred), Microsoft Word or Excel, WordPerfect, or text (ASCII) file format. Provide documents that are not secured, written in English and free of any defects or viruses. Documents should not include any special characters or any form of encryption and, if possible, they should carry the electronic signature of the author. Campaign form letters. Please submit campaign form letters by the originating organization in batches of between 50 to 500 form letters per PDF or as one form letter with a list of supporters’ names compiled into one or more PDFs. This reduces comment processing and posting time. Confidential Business Information. According 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 two well-marked copies: PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 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 which would result from public disclosure, (6) when such information might lost 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). DOE considers public participation to be a very important part of its process for considering rulemaking petitions. DOE actively encourages the participation and interaction of the public during the comment period. Interactions with and between members of the public provide a balanced discussion of the issues and assist DOE in determining how to proceed with a petition. Anyone who wishes to be added to DOE mailing list to receive future notifications and information about this petition should contact Appliance and Equipment Standards Program staff at (202) 287–1445 or via email at ApplianceStandardsQuestions@ ee.doe.gov. Approval of the Office of the Secretary The Secretary of Energy has approved publication of this notification of petition for rulemaking. E:\FR\FM\11SEP1.SGM 11SEP1 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules Signed in Washington, DC on August 31, 2018. Kathleen B. Hogan, Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and Renewable Energy. Joint Statement of Joint Stakeholder Proposal for Energy Conservation Standards for Dedicated-Purpose Pool Pump Motors Docket No. EERE–2017–BT–STD–0048 August 14, 2018 Association of Pool & Spa Professionals Alliance to Save Energy American Council for an Energy-Efficient Economy Appliance Standards Awareness Project Arizona Public Service California Energy Commission California Investor Owned Utilities Consumer Federation of America Florida Consumer Action Network Hayward Industries National Electrical Manufacturers Association Natural Resources Defense Council Nidec Motor Corporation Northwest Power and Conservation Council Pentair Water Pool and Spa Regal Beloit Corporation Speck Pumps Texas ROSE (Ratepayers’ Organization to Save Energy) Waterway Plastics WEG daltland on DSKBBV9HB2PROD with PROPOSALS Zodiac Pool Systems I. Introduction and Overview In January 2017, the U.S. Department of Energy (‘‘DOE’’) established the first national energy-efficiency standards for dedicatedpurpose pool pumps (‘‘DPPPs’’) through the adoption of a direct final rule (‘‘DFR’’). DOE confirmed the adoption of the standards and the effective date and compliance date in a notice published in May 2017. The compliance date of the new standards is July 19, 2021. The DPPP standards were negotiated by an Appliance Standards and Rulemaking Federal Advisory Committee (ASRAC) working group consisting of representatives of pool pump and motor manufacturers, state government, utilities, and efficiency advocates. For most in-ground pools, the standard levels reflect variablespeed technology. Pumps for small in-ground pools, pumps for above-ground pools, and pressure cleaner booster pumps can continue to be single-speed. For a small number of hours a day, pool pumps need to operate at a high speed to provide a high flow rate for mixing/cleaning, but most of the time they just need to circulate the pool water through the filtration VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 system at a low flow rate. Variable-speed pumps can reduce energy use by about 70% relative to single-speed pumps by being able to operate at a lower speed for the hours during which the pump is circulating water for filtration. In addition to saving energy, operating the pump at a lower speed reduces noise levels, improves filtration effectiveness, and can extend the life of other pool equipment. The DPPP standards will provide very large savings for consumers. There are more than 8 million pools in the U.S.1 DOE estimated average life-cycle cost savings for owners of in-ground pools of $2,140 with a simple payback of less than 1 year.2 The average annual operating cost savings are about $550.3 However, the DPPP standards do not address replacement motors, which presents a significant loophole that seriously threatens both the consumer savings from the standards and the investments that manufacturers are making to comply with the standards. If the replacement motor loophole is not addressed, there will be a disruption in the market between regulated pump/motor combinations (DPPPs) and unregulated replacement motors. This would result in significant negative impacts for both consumers and domestic manufacturers. The motor on a pool pump will often fail before the pump itself needs to be replaced, and motor-only replacements are common. Without a complementary standard for DPPP motors, when replacing a pool pump motor, consumers will continue to be sold inefficient, wasteful products. Today, even though variable-speed motors provide substantial savings to consumers as well as other benefits, significant market barriers prevent most consumers from realizing these benefits. When a motor on a pool pump fails, the consumer’s priority must be to get the motor (or pump and motor) replaced as soon as possible in order to maintain sanitary and safe pool conditions. This means that when faced with a purchase decision, consumers have very little time to research their options. In many cases, service installers may install a replacement motor without providing any options to the consumer. Despite significant educational efforts on the part of pool pump manufacturers, service installers are often uninformed about variable-speed technology. In addition, the priority of service installers is generally to make a sale, not to provide the best option for the consumer. This is the case today even though service installers could make additional profit by selling variablespeed pumps and motors. The consequences of a lack of understanding of variable-speed technology will become particularly significant once the DPPP standards take effect in 2021. Most consumers do not understand that the substantial savings from a variable-speed pump come from the motor. Consumers will likely assume that replacing the motor on a variable-speed pump will have no effect on 1 https://www.apsp.org/Portals/0/ 2016%20Website%20Changes/2015%20Industry %20Stats/2015%20Industry%20Stats.pdf. 2 82 Fed. Reg. 5652 (January 18, 2017). Results for standard-size self-priming pool filter pumps. 3 82 Fed. Reg. 5715. PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 45853 the performance of their pump. But in fact, if an existing variable-speed motor is replaced with a single-speed motor, the consumer will lose all the energy savings and other benefits (including the quieter operation) of their variable-speed pump. When looking to replace a pool pump motor, a consumer with a variable-speed pool pump that meets the DPPP standards may therefore unknowingly end up with a single-speed replacement motor that would immediately increase their electricity bills by hundreds of dollars each year and not provide the additional benefits of variable-speed technology. For manufacturers, a disruption in the market would lead to lower sales of regulated DPPPs and increased sales of unregulated, inefficient replacement motors. While most pool pumps are manufactured domestically, most of the motors for pool pumps are manufactured in China. Two of the major pool pump manufacturers have more than 1,400 pool equipment manufacturing jobs in North Carolina alone. Increased sales of inefficient, imported replacement motors would seriously undercut domestic manufacturers’ investments in meeting the DPPP standards, putting American manufacturing jobs at risk. Furthermore, if DOE does not address the replacement motor loophole, individual states may step in with their own standards. Currently, there are multiple state standards for pool pumps and motors. State standards are significantly more burdensome for manufacturers than a single national standard because they may and do result in different requirements in different states and require manufacturers to set up specific distribution channels to ensure that they do not sell noncompliant products in those states. As of July 19, 2021, the current state standards for pool pumps will be replaced with a single national standard. But if DOE does not establish complementary standards for DPPP motors, manufacturers will continue to be faced with a patchwork of state standards. A single national standard for DPPP motors is strongly preferred to reduce burdens on manufacturers, ensure a level playing field across state lines, and ensure that all consumers are protected from inefficient, wasteful products, regardless of where they live. In comments on the 2017 DFR, multiple stakeholders urged DOE to consider complementary standards for pool pump motors. In the confirmation of effective date and compliance date for the DFR, DOE stated: ‘‘DOE plans to hold a public meeting in the near future with the interested parties to gather data and information that could lead to the consideration of energy conservation standards for replacement pool pump motors.’’ 4 DOE subsequently held a public meeting on August 10, 2017, where DOE presented potential scope, definitions, and metrics for DPPP motors. DOE also noted in the presentation materials from the meeting that if DOE were to ‘‘receive a consensus agreement there could be 4 82 E:\FR\FM\11SEP1.SGM Fed. Reg. 24220 (May 26, 2017). 11SEP1 45854 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules daltland on DSKBBV9HB2PROD with PROPOSALS deviations from the typical process to expedite’’ the rulemaking.5 After the August 2017 public meeting, representatives from pool pump and motor manufacturers, state government, utilities, and efficiency advocates (the ‘‘Joint Stakeholders’’) formed a technical working group to negotiate recommended standards for DPPP motors. Appendix A to this Joint Statement includes the Joint Stakeholders’ recommendations. The Joint Stakeholders request that DOE adopt our recommendations with a DFR rule using the Department’s authority over ‘‘electric motors’’ and to align the compliance date for DPPP motors with the DPPP compliance date of July 19, 2021. In order to protect consumers, ensure that the significant investments that domestic manufacturers are making to comply with the DPPP standards are not undercut, and avoid a continuation of state standards, there must be no delay in the July 19, 2021 DPPP compliance date. II. Identity of the Joint Stakeholders The Association of Pool & Spa Professionals (APSP) represents over 3100 company members. APSP is the world’s oldest and largest association representing swimming pool, hot tub, and spa manufacturers, distributors, manufacturers’ agents, designers, builders, installers, suppliers, retailers, and service professionals. Dedicated to the growth and development of its members’ businesses and to promoting the enjoyment and safety of pools and spas, APSP offers a range of services, from professional development to advancing key legislation and regulation at the federal and local levels, to consumer outreach and public safety. APSP is the only industry organization recognized by the American National Standards Institute to develop and promote national standards for pools, hot tubs, and spas. The Alliance to Save Energy is a non-profit, bipartisan coalition of business, government, environmental, and consumer-interest leaders that advocates for enhanced U.S. energy productivity to achieve economic growth; a cleaner environment; and greater energy security, affordability, and reliability. The American Council for an EnergyEfficient Economy (ACEEE) acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors. We believe that the United States can harness the full potential of energy efficiency to achieve greater economic prosperity, energy security, and environmental protection for all its people. The Appliance Standards Awareness Project (ASAP) is a coalition that includes representatives of efficiency, consumer and environmental groups, utility companies, state government agencies, and others. Working together, the ASAP coalition seeks to advance cost-effective efficiency standards at the national and state levels through technical and policy advocacy and through outreach and education. Arizona Public Service is Arizona’s largest and longest-serving electric company, serving 5 https://www.regulations.gov/document?D= EERE-2017-BT-STD-0048-0003. Slide 10. VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 more than 1.2 million customers across the state. The California Energy Commission (CEC) is the primary energy policy and planning agency of the State of California. The CEC regularly participates in coalition efforts and federal efficiency rulemakings to seek more stringent energy conservation regulations from DOE that will apply to California’s regulated appliances, where DOE’s authority to adopt new efficiency standards preempts states from issuing their own without prior DOE approval or waiver. The CEC currently has efficiency standards for pool pump and motor combinations, and has proposed to establish efficiency standards for replacement pool pump motors should national standards not be forthcoming. The California Investor Owned Utilities (CA IOUs), consisting of Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric (SDG&E), and Southern California Edison (SCE), represent some of the largest utility companies in the Western United States, serving over 32 million customers. The CA IOUs have been involved with pool energy efficiency for over 15 years. During that time, the CA IOUs have developed and implemented various pool efficiency rebate programs, and in 2004, proposed and supported the adoption of the first in the nation appliance standards for pool pump motors in California. These standards included a test and list requirement for pool pumps to enable the reporting of Energy Factor, a metric developed by the CA IOUs that is now used by the ENERGY STAR program. The Consumer Federation of America (CFA) is an association of more than 250 nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. For decades, CFA has advocated for cost-effective energy efficiency standards that benefit consumers through lower energy bills. The Florida Consumer Action Network (FCAN) is a non-profit that advocates on issues including energy efficiency, utilities, environment, health care, and insurance. FCAN is affiliated with the Consumer Federation of America and Fair Share. FCAN stands for an America where everyone gets their fair share, does their fair share, and pays their fair share; and where everyone plays by the same rules. Hayward Industries, Inc. is a leading global manufacturer of residential and commercial pool equipment and industrial flow control products. Headquartered in Elizabeth, New Jersey with over 1,500 US-based employees, Hayward designs, manufactures, distributes, and markets a complete line of residential pool equipment including pumps, filters, heaters, automatic cleaners, sanitizers, automation, and lights. Hayward is a strong advocate of energy saving products as witnessed by its growing portfolio of energy efficient equipment, including a broad range of ENERGY STAR® approved variable speed pumps. The National Electrical Manufacturers Association (NEMA) represents nearly 350 electrical equipment and medical imaging manufacturers that make safe, reliable, and PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 efficient products and systems. Our combined industries account for 360,000 American jobs in more than 7,000 facilities covering every state. Our industry produces $106 billion shipments of electrical equipment and medical imaging technologies per year with $36 billion exports. The Natural Resources Defense Council (NRDC) is a national environmental advocacy organization with over 1.3 million members and online activists. NRDC has spent decades working to build and improve DOE’s federal appliance standards programs because of the important energy, environmental, consumer, and reliability benefits of appliance efficiency standards. NRDC participated in the enactment of the first federal legislation establishing efficiency standards, and has been active in all significant rulemakings since then. Nidec Motor Corporation is a leading manufacturer of commercial, industrial, and appliance motors and controls. The NMC product line features a full line of high efficiency motors, large and small, which serve industrial, residential, and commercial markets in applications ranging from agriculture, water treatment, mining, oil and gas, and power generation to pool and spa motors, air conditioning condensers, rooftop cooling towers, and commercial refrigeration. It also makes motors, controls, and switches for automotive and commercial markets. The Northwest Power and Conservation Council is an interstate compact authorized by Congress in the Northwest Power Act of 1980 (P.L.96–501) to ensure that the region has an adequate, efficient, economical, and reliable power supply system. The members of the Council are appointed by the Governors of the four Northwest states of Idaho, Montana, Oregon and Washington. Pentair is a leading manufacturer of smart, sustainable water solutions for homes, business and industry around the world. Our industry leading and proven portfolio of solutions enables people, business and industry to access clean, safe water, reduce water consumption, and recover and reuse it. Whether it’s improving, moving or helping people enjoy water, we help manage the world’s most precious resource. A strategic business of Pentair, Pentair Aquatics Systems is based in Cary, N.C., and is one of the world’s leading providers of premium pumps, filters, heaters, controls, cleaners, lighting systems, water features, and maintenance products for swimming pools and spas. Regal is a manufacturing company with over 5,770 employees in the USA. Regal is a leading manufacturer of electric motors, electrical motion controls, power generation and transmission products with sales of over $3.4B in 2017. Regal is a technology leader in high-efficiency products. Speck Pumps is a leading international manufacturer of high-quality pumps for commercial and industrial applications. Texas ROSE (Texas Ratepayers’ Organization to Save Energy) is a non-profit organization dedicated to helping Texans’ get affordable electricity and a healthy environment. We provide straightforward information to consumers and advocate for customer protections for consumers, energy E:\FR\FM\11SEP1.SGM 11SEP1 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules daltland on DSKBBV9HB2PROD with PROPOSALS efficiency programs, and customer education by providing information to the Public Utility Commission (PUC), Austin City Council and the Texas Legislature. Texas ROSE has been involved in helping to create utility programs to provide lower rates for low-income consumers and weatherization programs to permanently lower energy use and utility bills. Waterway Plastics is proud to design, engineer and manufacture pool and spa pumps, filters, white goods and accessories and other pool and spa products in Oxnard, CA, USA. WEG is a manufacturer of industrial and commercial components and systems solutions for customers across multiple markets around the world. WEG is 30,000 employees strong across 12 manufacturing locations and 28 commercial sites, holding the distinction of having largest manufacturing site in the world at its headquarters in Jarugua Du Sol, Brazil. This campus is 3.57M square feet and occupied by nearly 13,000 employees. WEG has over 3,000 employees in the US between the US Headquarters in Atlanta, an industrial motor manufacturing location in Minneapolis, a transformer manufacturer in Missouri, and the Global Center of Commercial Motors Excellence in Bluffton, IN. The US is served out of these locations, with manufactured product support out of Mexico and Brazil. Over half of the product produced in the US is applied into pumping applications, whether it be clean water or dirty, or even hydroelectric power generation. WEG has traditionally focused it sales from its genesis in 1942 up to around 1985 in the local Brazilian market, though through a combination of acquisition and organic development, export sales has increased by an amazing 36 times, with infrastructure and skills to continue a strong growth pattern well into the future. Zodiac Pool Systems, LLC is a global leader in swimming pool and spa products and services. Zodiac is recognized as a leading, global provider of premium, innovative pool and spa products, equipment and solutions for in-ground residential swimming pools and spas. Zodiac is committed to designing and producing energy efficient, earth-friendly pool products and systems. III. Development of the Recommendations The Joint Stakeholders’ recommendations were developed during a series of meetings between December 2017 and June 2018 of a technical working group consisting of pool pump and motor manufacturers, state government, utilities, and efficiency advocates. The goal of the working group was to develop a set of consensus recommendations for standards for DPPP motors to align with the standards for DPPPs and to take effect concurrently with the DPPP standards on July 19, 2021. IV. The Joint Stakeholders’ Proposal The Joint Stakeholders’ proposal (included as Appendix A) includes recommendations for definitions, scope of coverage, prescriptive requirements, labeling, reporting, compliance date, and verification. Importantly, our proposal would not result in VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 any change to the current DPPP standards and instead is complementary. There are also no new costs associated with our proposal because the analysis for the DPPP rulemaking already accounted for the costs of motor replacements. A. Definitions Our proposed definitions include a definition for ‘‘dedicated-purpose pool pump motor,’’ which covers any motor that is certified to UL 1004–10 6 and/or designed and/or marketed for use in DPPP applications. Our proposed definitions also define motors that meet the definition for ‘‘dedicated- purpose pool pump motor’’ but that would be exempt from the standards that we are proposing. These definitions for exempted motors were crafted such as to minimize the risk of any potential loopholes. B. Scope of Coverage DPPP motors are electric motors. Our proposed scope of coverage includes DPPP motors with total horsepower (THP) less than or equal to 5 THP. The 5 THP upper bound aligns with the upper bound for hydraulic horsepower (HHP) in the standards for DPPPs for self-priming and non-self-priming pool filter pumps. (5 THP is roughly equivalent to 2.5 HHP.) Our proposed scope of coverage would exempt six types of pool pump motors from our proposed standards: polyphase motors capable of operating without a drive (and distributed in commerce without a drive), waterfall pump motors, rigid electric spa pump motors, storable electric spa pump motors, integral cartridge-filter pool pump motors, and integral sand-filter pool pump motors. These exemptions align with the DPPP standards.7 The exemption for polyphase motors is designed to exclude three-phase motors that are intended for use in commercial applications (where there is three-phase power available), but to include three-phase motors that operate with a drive that converts single-phase power to threephase power and are intended for use in residential applications. Our proposed standards (described below) would apply to DPPP motors that are sold as replacements as well as motors that are part of DPPPs. All pool pump motors would thus be treated equally and subject to the same requirements. Importantly, our proposed scope of coverage includes DPPP motors in DPPPs regardless of whether the DPPP is manufactured domestically or imported. If motors in imported DPPPs were not covered, manufacturers that manufacture DPPPs domestically would be put at a disadvantage. Our proposed scope of coverage will thus provide a level playing field and protect U.S. manufacturing. C. Prescriptive Requirements Our proposal for standards for DPPP motors is a prescriptive approach. We believe that a prescriptive approach is the quickest 6 Note: UL 1004–10 is in the process of being developed. We will provide an update to DOE once the UL standard has been published. 7 Note: Integral cartridge filter and integral sand filter pool pumps are subject to the DPPP standards, but they do not have to meet an energy performance requirement. PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 45855 and simplest way to address the replacement motor loophole. We originally considered a performance-based approach. However, a performance approach for DPPP motors would require an entirely new metric and test procedure, which would significantly delay implementation of our proposal, thereby increasing manufacturer burden. Our proposed prescriptive requirements align with the DPPP standards while avoiding the need for a test procedure rulemaking. Importantly, our prescriptive approach still gives manufacturers significant flexibility to provide a wide range of efficient motor options to consumers including different speed options and user interfaces. Our proposed standards include three prescriptive requirements that align with the DPPP standards. First, DPPP motors would be prohibited from operating with a capacitor start induction run (CSIR) or split phase (SP) configuration at maximum operating speed. This requirement aligns the motor types for DPPP motors with the DPPP standards. This requirement is also consistent with existing state standards in Arizona, California, Connecticut, and Washington. Prohibiting these inefficient motor configurations will help prevent low-quality foreign imports from undercutting U.S. manufacturers and ensure that consumers are not stuck with very inefficient motors that would increase their electricity bills. Second, DPPP motors with THP greater than or equal to 1.15 THP would be required to meet the definition of ‘‘variable-speed control dedicated-purpose pool pump motor,’’ which we have defined. The 1.15 THP threshold aligns with the 0.711 HHP threshold in the DPPP standards for selfpriming pool filter pumps. (1.15 THP is roughly equivalent to 0.711 HHP.) Almost all motors used in non-self-priming pool filter pumps and pressure cleaner booster pumps have THPs less than 1.15 THP. Therefore, DPPP motors that must meet the definition of ‘‘variable-speed control dedicated-purpose pool pump motor’’ will almost exclusively be motors for self-priming pool filter pumps, aligning with the DPPP standards. Our proposed definition for ‘‘variablespeed control dedicated-purpose pool pump motor’’ would include motors that provide at least four speed options. Providing the choice of a variety of speeds would align with the DPPP standards, which, for most in-ground pumps, are based on the performance of pumps with variable-speed motors. At the same time, our proposed definition would provide manufacturers flexibility in developing new products. In particular, our proposed definition would allow manufacturers to introduce lower-cost motors that are not ‘‘true’’ variable-speed products, but that still provide very substantial energy savings and performance consistent with the DPPP standards. Our proposed definition for ‘‘variable-speed control dedicated-purpose pool pump motor’’ also includes specifications for how these motors must be distributed in commerce to ensure that they have the ability to operate at a variety of speeds in the field (e.g., be distributed with a variable speed drive), which align with the DPPP standards. Since variable-speed replacement motors may be sold without a E:\FR\FM\11SEP1.SGM 11SEP1 45856 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules drive (e.g., if the existing installed drive is still functioning), we have also provided the option for a variable-speed motor to be sold without a drive as long as it cannot operate without a drive. Our proposed definition for ‘‘variable-speed control dedicated-purpose pool pump motor’’ also includes specifications regarding high speed override capability and default settings to help ensure that motors meeting this definition deliver the expected savings for consumers. Finally, DPPP motors with freeze protection controls would be subject to the same requirements as DPPPs with freeze protection controls. These requirements are designed to ensure that motors with freeze protection controls do not end up running for more hours than are required to provide adequate freeze protection, resulting in significant wasted energy and unnecessary additional electricity costs for consumers. D. Labeling Our preference is for labeling requirements to be included as part of the rule for DPPP motors. Our proposed labeling requirements include the dedicated-purpose pool pump motor total horsepower and whether the motor is single-speed, two-speed, multispeed, or variable-speed control. These labeling requirements would provide additional information to both consumers and installers and help standardize the use of total horsepower throughout the industry. daltland on DSKBBV9HB2PROD with PROPOSALS E. Reporting We are proposing that reporting requirements for DPPP motors include, but not be limited to, information about the settings of the controls for motors with freeze protection controls. These reporting requirements align with the reporting requirements for DPPPs. F. Compliance Date The compliance date for DPPP motors must be July 19, 2021 to align with the compliance date for DPPPs. Aligning the compliance dates is essential in order to prevent a loophole for replacement motors and to avoid the need for manufacturers to convert their product lines twice, which would significantly increase their costs and, in turn, costs for consumers. Further, the compliance date for DPPPs must remain July 19, 2021. U.S. manufacturers of both pool pumps and motors are already making significant investments to comply with the DPPP standards. If enforcement of the DPPP standards were to be delayed beyond the current compliance date, the beneficiaries of such a delay would be foreign manufacturers who have not yet made investments in upgrading their technology and who would see an opportunity to sell inefficient pumps to the U.S. market. This outcome would inflict serious harm on domestic manufacturers by undercutting their investments, which would threaten American manufacturing jobs. Manufacturers would also face market confusion in the VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 event that the standards continued to be enforced through state building codes, despite a federal delay on enforcement. Finally, a delay would seriously harm consumers who would continue to be sold inefficient, wasteful products, costing them hundreds of dollars in electricity bill savings each year. G. Verification of Total Horsepower We are proposing that for purposes of verifying THP, DOE should use the test procedure for DPPPs, which includes methods for determining dedicated-purpose pool pump motor total horsepower. V. Benefits of the Joint Stakeholder Proposal Our proposal for DPPP motors will provide significant benefits to consumers, manufacturers, and the electric grid. By closing the replacement motor loophole, consumers will be assured that when replacing the motor on a variable-speed pump, the new motor will continue to provide the $550 in average annual operating cost savings and the additional benefits of variable-speed technology. Pool pump manufacturers will be protected against a market shift to unregulated, foreign-made replacement motors, which would threaten American manufacturing jobs. Finally, because pool pumps often operate the most in the summer and during times of peak demand, protecting the significant electricity savings from the DPPP standards will also protect the corresponding reductions in peak demand, which bolster electric grid resilience. Reductions in peak demand also help lower electricity rates, which benefits all consumers. However, in order for these significant benefits to consumers, manufacturers, and the electric grid to be realized, the compliance date for DPPP motor standards must be July 19, 2021, and there must be no delay in the DPPP compliance date. VI. Electric Motors Authority DOE should adopt our proposal for standards for DPPP motors using the Department’s authority over ‘‘electric motors.’’ ‘‘Electric motor’’ is defined as ‘‘a machine that converts electrical power into rotational mechanical power’’ (10 CFR 431.12). DPPP motors are electric motors, and electric motors are already covered equipment. VII. Use of a DFR DOE should adopt our proposal for standards for DPPP motors using a DFR. Importantly, a DFR will ensure that the compliance date for DPPP motors can be aligned with that for DPPPs. As described above, alignment of the compliance dates is essential in order to close the replacement motor loophole and to avoid manufacturers having to convert their product lines twice. Further, it is essential that the compliance dates for both DPPPs and DPPP motors be July 19, 2021 as any delay in the compliance date for DPPPs would have serious negative PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 consequences for both consumers and domestic manufacturers. DOE has the authority to issue a DFR ‘‘on receipt of a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates)’’ (42 U.S.C. 6295(p)(4)). The signatories to this Joint Statement include all relevant stakeholders including manufacturers of both pool pumps and motors; a trade association that represents pool pump and pool pump motor manufacturers and installers; a trade association that represents motor manufacturers; states; consumer advocate organizations; efficiency and environmental organizations; and electric utilities. While we believe that all relevant stakeholders are represented by the signatories to this Joint Statement, to the extent that there is any concern regarding the ability for any other party to provide input on our recommended standards before they are issued as part of a DFR, DOE could publish our Joint Statement and provide a limited (e.g., 30-day) comment period. VIII. Executive Order Compliance Importantly, there are no new costs associated with our proposal. The analysis for the DPPP rulemaking already accounted for the costs of motor replacements for the portion of consumers that will replace the motor during the life of their pump. Specifically, the DPPP rulemaking assumed like-for-like motor replacements (e.g., that a variable-speed motor would be replaced with a new variable-speed motor). The assumption of like-for-like motor replacements does not reflect the real-world situation and the high likelihood of many variable-speed motors on compliant pumps being replaced not with variable-speed motors, but with inefficient single-speed motors. Nevertheless, because the costs of variable-speed replacement motors were already accounted for in the DPPP rulemaking, DOE would be double counting the costs if the Department were to include costs associated with motor replacements in a DPPP motors rulemaking. Since there are no costs associated with our proposal relative to the costs assumed in the DPPP rule, we believe that our proposal would not be subject to Executive Orders 12866 and 13771. IX. Conclusion The Joint Stakeholders strongly urge DOE to adopt our proposal for standards for DPPP motors contained in Appendix A in order to protect consumers and the investments being made by domestic manufacturers. We encourage DOE to act expeditiously in order to ensure alignment of the compliance date for DPPP motors with the compliance date for DPPPs (July 19, 2021). Sincerely, BILLING CODE 6450–01–P E:\FR\FM\11SEP1.SGM 11SEP1 Jennifer Hatfield Director, Government Affairs Research The Association of Pool & Spa Professionals Daniel Bresette Vice President, Policy and Alliance to Save Energy Steven Nadel Executive Director American Council for an Energy-Efficient Economy Joanna Mauer Technical Advocacy Manager Appliance Standards Awareness Project DavidS. Werth Manager, Marketing and Customer Programs Arizona Public Service Drew Bohan Executive Director California Energy Commission Patrick Eilert Manager, Codes & Standards Pacific Gas and Electric Company Michelle Thomas Manager, Energy Codes & Standards and ZNE Engineering Services Southern California Edison Kate Zeng ETP /C&S/ZNE Manager Customer Programs San Diego Gas & Electric Company Mel Hall-Crawford Energy Projects Director Consumer Federation of America VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 PO 00000 Frm 00007 Fmt 4702 Sfmt 4725 E:\FR\FM\11SEP1.SGM 11SEP1 45857 EP11SE18.001</GPH> daltland on DSKBBV9HB2PROD with PROPOSALS Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules Bill Newton Deputy Director Florida Consumer Action Network Clark Hale President & CEO Hayward Industries Joseph Eaves Head (Acting) NEMA Government Relations National Electrical Manufacturers Association Council Lauren Urbanek Senior Energy Policy Advocate Natural Resources Defense Chris Wiseman President, Commercial & Industrial Motors & Drives Nidec Motor Corporation James Yost Chair Northwest Power and Conservation Council Jerome Pedretti Vice President Pentair Water Pool and Spa, Inc. Chandra Gollapudi Director, Government Affairs Regal Beloit Corporation Jan Baljon President Speck Pumps Pamela Ferris Executive Director Texas ROSE (Ratepayers' Organization to Save Energy) VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 PO 00000 Frm 00008 Fmt 4702 Sfmt 4725 E:\FR\FM\11SEP1.SGM 11SEP1 EP11SE18.002</GPH> daltland on DSKBBV9HB2PROD with PROPOSALS 45858 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules APPENDIX A Dedicated-Purpose Pool Pump (DPPP) Motors Joint Stakeholder Proposal daltland on DSKBBV9HB2PROD with PROPOSALS Definitions Capacitor-start, induction-run means a single-phase induction motor configuration with a main winding arranged for direct connection to a source of power and an auxiliary winding connected in series with a capacitor. The motor configuration has a capacitor phase, which is in the circuit only during the starting period. Dedicated-purpose pool pump motor means an electric motor that is single-phase or polyphase which complies with and is certified to UL 1004–10 and/or is designed and/or marketed for use in dedicatedpurpose pool pump applications. Designed and marketed means that the equipment is designed to fulfill the intended application and, when distributed in commerce, is designated and marketed solely for that application, with the designation on all the packaging and all publicly available documents (e.g., product literature, catalogs, and packaging labels). Designed and/or marketed means that the equipment is designed to fulfill the intended application and/or, when distributed in commerce, is designated and marketed for that application, with the designation on the packaging and/or any publicly available documents (e.g., product literature, catalogs, and packaging labels). Drive means a power converter (such as a variable speed drive or phase-converter). Integral cartridge-filter pool pump motor means a dedicated-purpose pool pump motor that is distributed in commerce as a component of an integral cartridge-filter pool pump as defined at 10 CFR 431.462. Integral sand-filter pool pump motor means a dedicated-purpose pool pump motor that is distributed in commerce as a VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 component of an integral sand-filter pool pump as defined at 10 CFR 431.462. Maximum operating speed means the rated full-load speed of a motor powered by a 60 Hz alternating current (AC) source. Rigid electric spa pump motor means a dedicated-purpose pool pump motor that does not have a C-flange or square flange mounting and that is: (1) labeled, (2) designed, and (3) marketed for use only in rigid electric spas as defined at 10 CFR 431.462. Split phase means a single-phase induction motor configuration with an auxiliary winding displaced in magnetic position from, and connected in parallel with the main winding. The auxiliary circuit is open when the motor has attained a predetermined speed. Storable electric spa pump motor means a dedicated-purpose pool pump motor that is distributed in commerce as a component of a storable electric spa pump as defined at 10 CFR 431.462. Waterfall pump motor means a dedicatedpurpose pool pump motor with a maximum speed less than or equal to 1,800 rpm that is designed and marketed for waterfall pump applications and labeled for use only with waterfall pumps. Scope of coverage DPPP motors meet the definition of electric motor at 10 CFR 431.12. The standards will apply to dedicated-purpose pool pump (DPPP) motors, including DPPP motors incorporated in DPPPs produced domestically and imported, with dedicatedpurpose pool pump motor total horsepower (THP) as defined at 10 CFR 431.462 less than or equal to 5 THP, with the following exemptions: Exempted DPPP motors: • Polyphase motors capable of operating without a drive and distributed in commerce PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 without a drive that converts single-phase power to polyphase power • Waterfall pump motors • Rigid electric spa pump motors • Storable electric spa pump motors • Integral cartridge-filter pool pump motors • Integral sand-filter pool pump motors Prescriptive requirements There will be prescriptive requirements for all DPPP motors, for DPPP motors with a THP greater than or equal to 1.15 THP, and for DPPP motors with freeze protection controls. DPPP motors include motors manufactured domestically, motors imported alone, and motors imported as a component of a DPPP assembly. DPPP motors DPPP motors must not operate with a capacitor start induction run (CSIR) or split phase (SP) configuration at maximum operating speed. DPPP motors with THP greater than or equal to 1.15 THP DPPP motors with THP greater than or equal to 1.15 THP will have a prescriptive speed control requirement. Prescriptive Requirement: Variable Speed Control Each dedicated-purpose pool pump motor with a dedicated-purpose pool pump motor total horsepower greater than or equal to 1.15 THP shall meet the definition of a variablespeed control dedicated- purpose pool pump motor. A variable-speed control dedicatedpurpose pool pump motor means: A dedicated-purpose pool pump motor that is capable of operating at four or more discrete, user- or pre-determined operating speeds, where one of the operating speeds is the maximum operating speed and at least: • One of the operating speeds is 75% to 85% of the maximum operating speed; E:\FR\FM\11SEP1.SGM 11SEP1 EP11SE18.003</GPH> BILLING CODE 6450–01–C 45859 45860 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Proposed Rules • One of the operating speeds is 45% to 55% of the maximum operating speed; • One of the operating speeds is less than or equal to 40% of the maximum operating speed and greater than zero. And that must be distributed in commerce either: (1) With a variable speed drive and with a user interface that changes the speed in response to pre- programmed user preferences and allows the user to select the duration of each speed and/or the on/off times; (2) With a variable speed drive and without a user interface that changes the speed in response to pre-programmed user preferences and allows the user to select the duration of each speed and/or the on/off times, but is unable to operate without the presence of a user interface; or (3) Without a variable speed drive and with or without a user interface, but is unable to operate without the presence of a variable speed drive. And: (1) Any high speed override capability shall be for a temporary period not to exceed one 24-hour cycle without resetting to default settings or resuming normal operation according to pre- programmed user preferences; and (2) Any factory default setting for daily run time schedule may not include more hours at an operating speed above 55% of maximum operating speed than the hours at or below 55% of maximum operating speed; or if a motor is distributed in commerce without a default setting for daily run time schedule, the default operating speed after any priming cycle (if applicable) must be no greater than 55% of the maximum operating speed. DPPP motors with freeze protection controls For all dedicated-purpose pool pump motors distributed in commerce with freeze protection controls, the motor must be shipped with freeze protection disabled or with the following default, user- adjustable settings: (1) The default dry-bulb air temperature setting is no greater than 40 °F; (2) The default run time setting shall be no greater than 1 hour (before the temperature is rechecked); and (3) The default motor speed shall not be more than 1⁄2 of the maximum speed. daltland on DSKBBV9HB2PROD with PROPOSALS Labeling If DOE is able to implement labeling requirements, the permanent nameplate must be marked clearly with the following information: (A) The dedicated-purpose pool pump motor total horsepower; and (B) Either: single-speed, two-speed, multispeed, or variable-speed control. Reporting Certification reporting requirements should include, but not be limited to,: (A) For dedicated-purpose pool pump motors distributed in commerce with freeze protection controls, a statement regarding whether freeze protection is shipped enabled or disabled, and for dedicated-purpose pool pump motors distributed in commerce with VerDate Sep<11>2014 16:36 Sep 10, 2018 Jkt 244001 freeze protection controls enabled, the default dry-bulb air temperature setting (in °F), default run time setting (in minutes), and default motor speed (in rpm). Compliance date The compliance date should be July 19, 2021 to align with the compliance date of the DPPP standards. Verification of THP For purposes of verifying THP, DOE should use the DPPP test procedure at 10 CFR 431 Appendix C to Subpart Y. [FR Doc. 2018–19577 Filed 9–10–18; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF TREASURY Office of the Comptroller of the Currency 12 CFR Part 44 [Docket No. OCC–2018–0010] RIN 1557–AE27 FEDERAL RESERVE SYSTEM 12 CFR Part 248 [Docket No. R–1608] RIN 7100–AF 06 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 351 RIN 3064–AE67 COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 75 RIN 3038–AE72 SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 255 [Release no. BHCA–3; File no. S7–14–18] RIN 3235–AM10 Extension of Comment Period for Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); Securities and Exchange Commission (SEC); and Commodity Futures Trading Commission (CFTC) (collectively, the ‘‘Agencies’’). AGENCY: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 Notice of proposed rulemaking; extension of comment period. ACTION: On July 17, 2018, the Agencies published in the Federal Register a notice of proposed rulemaking (proposal) that would amend the regulations implementing section 13 of the Bank Holding Company Act. Section 13 contains certain restrictions on the ability of a banking entity and nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund. The proposed amendments are intended to provide banking entities with clarity about what activities are prohibited and to improve supervision and implementation of section 13. In response to requests from commenters regarding issues addressed in the proposal, the public comment period has been extended for 30 days until October 17, 2018. This action will allow interested persons additional time to analyze the proposal and prepare their comments. DATES: The comment period for the notice of proposed rulemaking published on July 17, 2018 (83 FR 33432), regarding proposed revisions to prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds, is extended from September 17, 2018, to October 17, 2018. ADDRESSES: You may submit comments by any of the methods identified in the proposal.1 Please submit your comments using only one method. FOR FURTHER INFORMATION CONTACT: OCC: Tabitha Edgens, Senior Attorney; Mark O’Horo, Attorney, Chief Counsel’s Office, (202) 649–5510; for persons who are deaf or hearing impaired, TTY, (202) 649–5597, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. Board: Kevin Tran, Supervisory Financial Analyst, (202) 452–2309, Amy Lorenc, Financial Analyst, (202) 452– 5293, David Lynch, Deputy Associate Director, (202) 452–2081, David McArthur, Senior Economist, (202) 452– 2985, Division of Supervision and Regulation; Flora Ahn, Senior Counsel, (202) 452–2317, Gregory Frischmann, Counsel, (202) 452–2803, or Kirin Walsh, Attorney, (202) 452–3058, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For the hearing impaired only, SUMMARY: 1 See E:\FR\FM\11SEP1.SGM 83 FR 33432, 33432–33 (July 17, 2018). 11SEP1

Agencies

[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Proposed Rules]
[Pages 45851-45860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19577]


========================================================================
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. 83, No. 176 / Tuesday, September 11, 2018 / 
Proposed Rules

[[Page 45851]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2017-BT-STD-0048]


Energy Conservation Program: Energy Conservation Standards for 
Dedicated-Purpose Pool Pump Motors, Notice of Request for Direct Final 
Rule

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy (DOE).

ACTION: Notice of joint stakeholder proposal for direct final rule, and 
request for comments.

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

SUMMARY: On August 14, 2018, the Department of Energy (DOE) received a 
petition submitted by a variety of entities (collectively, the Joint 
Stakeholders or the Petitioners) asking DOE to issue a direct final 
rule for energy conservation standards for dedicated-purpose pool pump 
(DPPP) motors. Through this notification, DOE seeks comment on whether 
to proceed with the proposal, as well as any data or information that 
could be used in DOE's determination whether to issue a direct final 
rule.

DATES: Written comments and information are requested on or before 
October 26, 2018.

ADDRESSES: Interested persons are encouraged to submit comments, 
identified by ``Dedicated-Purpose Pool Pump Proposal'' and Docket 
number ``EERE-2017-BT-STD-0048'', by any of the following methods:
    Federal eRulemaking Portal: https://www.regulations.gov. Follow the 
instructions for submitting comments.
    Email: [email protected]. Include the docket number 
``EERE-2017-BT-STD-0048'' in the subject line of the message.
    Mail: Appliance and Equipment Standards Program, 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.
    Hand Delivery/Courier: Appliance and Equipment Standards Program, 
U.S. Department of Energy, Building Technologies Office, 950 L'Enfant 
Plaza SW, Suite 600, Washington, DC 20024. Telephone: (202) 287-1445. 
If possible, please submit all items on a CD, in which case it is not 
necessary to include printed copies.
    Docket: For access to the docket to read background documents, or 
comments received, go to the Federal eRulemaking Portal at https://www.regulations.gov. All documents in the docket are listed in the 
https://www.regulations.gov index. However, some documents listed in the 
index, such as those containing information that is exempt from public 
disclosure, may not be publicly available. The docket web page can be 
found https://www.regulations.gov/docket?D=EERE-2017-BT-STD-0048. The 
docket web page will contain simple instruction on how to access all 
documents, including public comments, in the docket.

FOR FURTHER INFORMATION CONTACT: Jeremy Dommu, U.S. Department of 
Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue 
SW, Washington, DC, 20585, (202) 586-9870. Email: 
[email protected].
    Mary Greene, U.S. Department of Energy, Office of the General 
Counsel, 1000 Independence Avenue SW, Washington, DC 20585, Email: 
[email protected]; (202) 586-1817

SUPPLEMENTARY INFORMATION: As amended by the Energy Efficiency 
Improvement Act of 2015, Public Law 114-11 (April 30, 2015), the Energy 
Policy and Conservation Act (EPCA or, in context, the Act), Public Law 
94-163 (42 U.S.C. 6291-6309, as codified), authorizes DOE to issue a 
direct final rule establishing an energy conservation standard for a 
product on receipt of a statement submitted jointly by interested 
persons that are fairly representative of relevant points of view 
(including representatives of manufacturers of covered products, 
States, and efficiency advocates) as determined by the Secretary of 
Energy (Secretary). That statement must contain recommendations with 
respect to an energy or water conservation standard that are in 
accordance with the provisions of 42 U.S.C. 6295(o) or 42 U.S.C. 6316, 
as applicable. In publishing the petition in its entirety for public 
comment, DOE is seeking views on whether to proceed with the petition 
as suggested by the Joint Stakeholders.\1\ DOE is also interested in 
the views of parties that were not part of the Joint Stakeholder group 
to aid in determining if the Joint Stakeholders constitute a group of 
interested persons that are fairly representative of relevant points of 
view.
---------------------------------------------------------------------------

    \1\ The Joint Stakeholders include: Association of Pool & Spa 
Professionals, Alliance to Save Energy, American Council for an 
Energy Efficient Economy, Appliance Standards Awareness Project, 
Arizona Public Service, California Energy Commission, California 
Investor Owned Utilities, Consumer Federation of America, Florida 
Consumer Action Network, Hayward Industries, National Electrical 
Manufacturers Association, Natural Resources Defense Council, Nidec 
Motor Corporation, Northwest Power and Conservation Council, Pentair 
Water Pool and Spa, Regal Beloit Corporation, Speck Pumps, Texas 
ROSE (Ratepayers' Organization to Save Energy), Waterway Plastics, 
WEG, Zodiac Pool Systems.
---------------------------------------------------------------------------

    If DOE determines to issue the direct final rule for DPPPs, the 
agency must simultaneously publish a notice of proposed rulemaking 
(NOPR) that proposes an identical energy conservation standard and 
provides for a public comment period of at least 110 days. 42 U.S.C. 
6295(p)(4). Not later than 120 days after issuance of the direct final 
rule, if DOE receives one or more adverse comments or an alternative 
joint recommendation relating to the direct final rule, the Secretary 
must determine whether the comments or alternative recommendation may 
provide a reasonable basis for withdrawal under 42 U.S.C. 6295(o) or 
other applicable law. If the Secretary makes such a determination, DOE 
must withdraw the direct final rule and proceed with the simultaneously 
published NOPR. DOE must publish in the Federal Register the reasons 
why the direct final rule was withdrawn.
    By seeking comment on whether to issue a direct final rule in 
accordance with the Joint Stakeholders' petition, DOE takes no position 
at this time regarding whether the submitted petition satisfies EPCA's 
requirement that such a statement must be submitted by interested 
persons that are fairly representative of relevant points of view and 
that the proposal must be in compliance with the provisions of 42

[[Page 45852]]

U.S.C. 6295(o) or 42 U.S.C. 6316, as applicable. Further, DOE takes no 
position at this time regarding the merits of the petition itself.
    DOE notes that the Administrative Procedure Act (APA), 5 U.S.C. 551 
et seq., provides among other things, that `[e]ach agency shall give an 
interested person the right to petition for the issuance, amendment or 
repeal of a rule.'' (5 U.S.C. 553(e)). DOE requests comment on whether 
it should consider the petition from the Joint Stakeholders under this 
authority should it determine it cannot proceed with consideration of 
the proposal under the direct final rule authority. Again, while 
seeking comment on this issue, DOE takes no position at this time 
regarding the merits of the petition itself.

Submission of Comments

    DOE invites all interested parties to submit in writing by October 
26, 2018 comments and information regarding this proposal.
    Submitting comments via https://www.regulations.gov. The https://www.regulations.gov web page will require you to provide your name and 
contact information prior to submitting comments. 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 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. Persons viewing comments will see only first and last names, 
organization names, correspondence containing comments, and any 
documents submitted with the comments.
    Do not submit to https://www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (CBI)). Comments submitted through 
https://www.regulations.gov cannot be claimed as CBI. Comments received 
through the website will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section.
    DOE processes submissions made through https://www.regulations.gov 
before posting. Normally, comments will be posted within a few days of 
being submitted. However, if large volumes of comments are being 
processed simultaneously, your comment may not be viewable for up to 
several weeks. Please keep the comment tracking number that https://www.regulations.gov provides after you have successfully uploaded your 
comment.
    Submitting comments via hand delivery, or mail. Comments and 
documents via hand delivery or mail will also be posted to https://www.regulations.gov. If you do not want your personal contact 
information to be publicly viewable, do not include it in your comment 
or any accompanying documents. Instead, provide your contact 
information on 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 in your cover letter each time you 
submit comments, data, documents, and other information to DOE. If you 
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    Comments, data, and other information submitted electronically 
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    It is DOE's policy that all comments may be included in the public 
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    DOE considers public participation to be a very important part of 
its process for considering rulemaking petitions. DOE actively 
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provide a balanced discussion of the issues and assist DOE in 
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added to DOE mailing list to receive future notifications and 
information about this petition should contact Appliance and Equipment 
Standards Program staff at (202) 287-1445 or via email at 
[email protected].

Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this 
notification of petition for rulemaking.


[[Page 45853]]


    Signed in Washington, DC on August 31, 2018.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.

Joint Statement of Joint Stakeholder Proposal for Energy Conservation 
Standards for Dedicated-Purpose Pool Pump Motors

Docket No. EERE-2017-BT-STD-0048

August 14, 2018

Association of Pool & Spa Professionals

Alliance to Save Energy American Council for an Energy-Efficient 
Economy

Appliance Standards Awareness Project

Arizona Public Service

California Energy Commission

California Investor Owned Utilities

Consumer Federation of America

Florida Consumer Action Network

Hayward Industries

National Electrical Manufacturers Association

Natural Resources Defense Council

Nidec Motor Corporation

Northwest Power and Conservation Council

Pentair Water Pool and Spa

Regal Beloit Corporation

Speck Pumps

Texas ROSE (Ratepayers' Organization to Save Energy)

Waterway Plastics

WEG

Zodiac Pool Systems

I. Introduction and Overview

    In January 2017, the U.S. Department of Energy (``DOE'') 
established the first national energy-efficiency standards for 
dedicated-purpose pool pumps (``DPPPs'') through the adoption of a 
direct final rule (``DFR''). DOE confirmed the adoption of the 
standards and the effective date and compliance date in a notice 
published in May 2017. The compliance date of the new standards is 
July 19, 2021. The DPPP standards were negotiated by an Appliance 
Standards and Rulemaking Federal Advisory Committee (ASRAC) working 
group consisting of representatives of pool pump and motor 
manufacturers, state government, utilities, and efficiency 
advocates. For most in-ground pools, the standard levels reflect 
variable-speed technology. Pumps for small in-ground pools, pumps 
for above-ground pools, and pressure cleaner booster pumps can 
continue to be single-speed.
    For a small number of hours a day, pool pumps need to operate at 
a high speed to provide a high flow rate for mixing/cleaning, but 
most of the time they just need to circulate the pool water through 
the filtration system at a low flow rate. Variable-speed pumps can 
reduce energy use by about 70% relative to single-speed pumps by 
being able to operate at a lower speed for the hours during which 
the pump is circulating water for filtration. In addition to saving 
energy, operating the pump at a lower speed reduces noise levels, 
improves filtration effectiveness, and can extend the life of other 
pool equipment.
    The DPPP standards will provide very large savings for 
consumers. There are more than 8 million pools in the U.S.\1\ DOE 
estimated average life-cycle cost savings for owners of in-ground 
pools of $2,140 with a simple payback of less than 1 year.\2\ The 
average annual operating cost savings are about $550.\3\ However, 
the DPPP standards do not address replacement motors, which presents 
a significant loophole that seriously threatens both the consumer 
savings from the standards and the investments that manufacturers 
are making to comply with the standards. If the replacement motor 
loophole is not addressed, there will be a disruption in the market 
between regulated pump/motor combinations (DPPPs) and unregulated 
replacement motors. This would result in significant negative 
impacts for both consumers and domestic manufacturers.
---------------------------------------------------------------------------

    \1\ https://www.apsp.org/Portals/0/2016%20Website%20Changes/2015%20Industry%20Stats/2015%20Industry%20Stats.pdf.
    \2\ 82 Fed. Reg. 5652 (January 18, 2017). Results for standard-
size self-priming pool filter pumps.
    \3\ 82 Fed. Reg. 5715.
---------------------------------------------------------------------------

    The motor on a pool pump will often fail before the pump itself 
needs to be replaced, and motor-only replacements are common. 
Without a complementary standard for DPPP motors, when replacing a 
pool pump motor, consumers will continue to be sold inefficient, 
wasteful products. Today, even though variable-speed motors provide 
substantial savings to consumers as well as other benefits, 
significant market barriers prevent most consumers from realizing 
these benefits. When a motor on a pool pump fails, the consumer's 
priority must be to get the motor (or pump and motor) replaced as 
soon as possible in order to maintain sanitary and safe pool 
conditions. This means that when faced with a purchase decision, 
consumers have very little time to research their options. In many 
cases, service installers may install a replacement motor without 
providing any options to the consumer. Despite significant 
educational efforts on the part of pool pump manufacturers, service 
installers are often uninformed about variable-speed technology. In 
addition, the priority of service installers is generally to make a 
sale, not to provide the best option for the consumer. This is the 
case today even though service installers could make additional 
profit by selling variable-speed pumps and motors.
    The consequences of a lack of understanding of variable-speed 
technology will become particularly significant once the DPPP 
standards take effect in 2021. Most consumers do not understand that 
the substantial savings from a variable-speed pump come from the 
motor. Consumers will likely assume that replacing the motor on a 
variable-speed pump will have no effect on the performance of their 
pump. But in fact, if an existing variable-speed motor is replaced 
with a single-speed motor, the consumer will lose all the energy 
savings and other benefits (including the quieter operation) of 
their variable-speed pump. When looking to replace a pool pump 
motor, a consumer with a variable-speed pool pump that meets the 
DPPP standards may therefore unknowingly end up with a single-speed 
replacement motor that would immediately increase their electricity 
bills by hundreds of dollars each year and not provide the 
additional benefits of variable-speed technology.
    For manufacturers, a disruption in the market would lead to 
lower sales of regulated DPPPs and increased sales of unregulated, 
inefficient replacement motors. While most pool pumps are 
manufactured domestically, most of the motors for pool pumps are 
manufactured in China. Two of the major pool pump manufacturers have 
more than 1,400 pool equipment manufacturing jobs in North Carolina 
alone. Increased sales of inefficient, imported replacement motors 
would seriously undercut domestic manufacturers' investments in 
meeting the DPPP standards, putting American manufacturing jobs at 
risk.
    Furthermore, if DOE does not address the replacement motor 
loophole, individual states may step in with their own standards. 
Currently, there are multiple state standards for pool pumps and 
motors. State standards are significantly more burdensome for 
manufacturers than a single national standard because they may and 
do result in different requirements in different states and require 
manufacturers to set up specific distribution channels to ensure 
that they do not sell noncompliant products in those states. As of 
July 19, 2021, the current state standards for pool pumps will be 
replaced with a single national standard. But if DOE does not 
establish complementary standards for DPPP motors, manufacturers 
will continue to be faced with a patchwork of state standards. A 
single national standard for DPPP motors is strongly preferred to 
reduce burdens on manufacturers, ensure a level playing field across 
state lines, and ensure that all consumers are protected from 
inefficient, wasteful products, regardless of where they live.
    In comments on the 2017 DFR, multiple stakeholders urged DOE to 
consider complementary standards for pool pump motors. In the 
confirmation of effective date and compliance date for the DFR, DOE 
stated: ``DOE plans to hold a public meeting in the near future with 
the interested parties to gather data and information that could 
lead to the consideration of energy conservation standards for 
replacement pool pump motors.'' \4\ DOE subsequently held a public 
meeting on August 10, 2017, where DOE presented potential scope, 
definitions, and metrics for DPPP motors. DOE also noted in the 
presentation materials from the meeting that if DOE were to 
``receive a consensus agreement there could be

[[Page 45854]]

deviations from the typical process to expedite'' the rulemaking.\5\
---------------------------------------------------------------------------

    \4\ 82 Fed. Reg. 24220 (May 26, 2017).
    \5\ https://www.regulations.gov/document?D=EERE-2017-BT-STD-0048-0003. Slide 10.
---------------------------------------------------------------------------

    After the August 2017 public meeting, representatives from pool 
pump and motor manufacturers, state government, utilities, and 
efficiency advocates (the ``Joint Stakeholders'') formed a technical 
working group to negotiate recommended standards for DPPP motors. 
Appendix A to this Joint Statement includes the Joint Stakeholders' 
recommendations.
    The Joint Stakeholders request that DOE adopt our 
recommendations with a DFR rule using the Department's authority 
over ``electric motors'' and to align the compliance date for DPPP 
motors with the DPPP compliance date of July 19, 2021. In order to 
protect consumers, ensure that the significant investments that 
domestic manufacturers are making to comply with the DPPP standards 
are not undercut, and avoid a continuation of state standards, there 
must be no delay in the July 19, 2021 DPPP compliance date.

II. Identity of the Joint Stakeholders

    The Association of Pool & Spa Professionals (APSP) represents 
over 3100 company members. APSP is the world's oldest and largest 
association representing swimming pool, hot tub, and spa 
manufacturers, distributors, manufacturers' agents, designers, 
builders, installers, suppliers, retailers, and service 
professionals. Dedicated to the growth and development of its 
members' businesses and to promoting the enjoyment and safety of 
pools and spas, APSP offers a range of services, from professional 
development to advancing key legislation and regulation at the 
federal and local levels, to consumer outreach and public safety. 
APSP is the only industry organization recognized by the American 
National Standards Institute to develop and promote national 
standards for pools, hot tubs, and spas.
    The Alliance to Save Energy is a non-profit, bipartisan 
coalition of business, government, environmental, and consumer-
interest leaders that advocates for enhanced U.S. energy 
productivity to achieve economic growth; a cleaner environment; and 
greater energy security, affordability, and reliability.
    The American Council for an Energy-Efficient Economy (ACEEE) 
acts as a catalyst to advance energy efficiency policies, programs, 
technologies, investments, and behaviors. We believe that the United 
States can harness the full potential of energy efficiency to 
achieve greater economic prosperity, energy security, and 
environmental protection for all its people.
    The Appliance Standards Awareness Project (ASAP) is a coalition 
that includes representatives of efficiency, consumer and 
environmental groups, utility companies, state government agencies, 
and others. Working together, the ASAP coalition seeks to advance 
cost-effective efficiency standards at the national and state levels 
through technical and policy advocacy and through outreach and 
education.
    Arizona Public Service is Arizona's largest and longest-serving 
electric company, serving more than 1.2 million customers across the 
state.
    The California Energy Commission (CEC) is the primary energy 
policy and planning agency of the State of California. The CEC 
regularly participates in coalition efforts and federal efficiency 
rulemakings to seek more stringent energy conservation regulations 
from DOE that will apply to California's regulated appliances, where 
DOE's authority to adopt new efficiency standards preempts states 
from issuing their own without prior DOE approval or waiver. The CEC 
currently has efficiency standards for pool pump and motor 
combinations, and has proposed to establish efficiency standards for 
replacement pool pump motors should national standards not be 
forthcoming.
    The California Investor Owned Utilities (CA IOUs), consisting of 
Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric 
(SDG&E), and Southern California Edison (SCE), represent some of the 
largest utility companies in the Western United States, serving over 
32 million customers. The CA IOUs have been involved with pool 
energy efficiency for over 15 years. During that time, the CA IOUs 
have developed and implemented various pool efficiency rebate 
programs, and in 2004, proposed and supported the adoption of the 
first in the nation appliance standards for pool pump motors in 
California. These standards included a test and list requirement for 
pool pumps to enable the reporting of Energy Factor, a metric 
developed by the CA IOUs that is now used by the ENERGY STAR 
program.
    The Consumer Federation of America (CFA) is an association of 
more than 250 nonprofit consumer organizations that was established 
in 1968 to advance the consumer interest through research, advocacy, 
and education. For decades, CFA has advocated for cost-effective 
energy efficiency standards that benefit consumers through lower 
energy bills.
    The Florida Consumer Action Network (FCAN) is a non-profit that 
advocates on issues including energy efficiency, utilities, 
environment, health care, and insurance. FCAN is affiliated with the 
Consumer Federation of America and Fair Share. FCAN stands for an 
America where everyone gets their fair share, does their fair share, 
and pays their fair share; and where everyone plays by the same 
rules.
    Hayward Industries, Inc. is a leading global manufacturer of 
residential and commercial pool equipment and industrial flow 
control products. Headquartered in Elizabeth, New Jersey with over 
1,500 US-based employees, Hayward designs, manufactures, 
distributes, and markets a complete line of residential pool 
equipment including pumps, filters, heaters, automatic cleaners, 
sanitizers, automation, and lights. Hayward is a strong advocate of 
energy saving products as witnessed by its growing portfolio of 
energy efficient equipment, including a broad range of ENERGY 
STAR[supreg] approved variable speed pumps.
    The National Electrical Manufacturers Association (NEMA) 
represents nearly 350 electrical equipment and medical imaging 
manufacturers that make safe, reliable, and efficient products and 
systems. Our combined industries account for 360,000 American jobs 
in more than 7,000 facilities covering every state. Our industry 
produces $106 billion shipments of electrical equipment and medical 
imaging technologies per year with $36 billion exports.
    The Natural Resources Defense Council (NRDC) is a national 
environmental advocacy organization with over 1.3 million members 
and online activists. NRDC has spent decades working to build and 
improve DOE's federal appliance standards programs because of the 
important energy, environmental, consumer, and reliability benefits 
of appliance efficiency standards. NRDC participated in the 
enactment of the first federal legislation establishing efficiency 
standards, and has been active in all significant rulemakings since 
then.
    Nidec Motor Corporation is a leading manufacturer of commercial, 
industrial, and appliance motors and controls. The NMC product line 
features a full line of high efficiency motors, large and small, 
which serve industrial, residential, and commercial markets in 
applications ranging from agriculture, water treatment, mining, oil 
and gas, and power generation to pool and spa motors, air 
conditioning condensers, rooftop cooling towers, and commercial 
refrigeration. It also makes motors, controls, and switches for 
automotive and commercial markets.
    The Northwest Power and Conservation Council is an interstate 
compact authorized by Congress in the Northwest Power Act of 1980 
(P.L.96-501) to ensure that the region has an adequate, efficient, 
economical, and reliable power supply system. The members of the 
Council are appointed by the Governors of the four Northwest states 
of Idaho, Montana, Oregon and Washington.
    Pentair is a leading manufacturer of smart, sustainable water 
solutions for homes, business and industry around the world. Our 
industry leading and proven portfolio of solutions enables people, 
business and industry to access clean, safe water, reduce water 
consumption, and recover and reuse it. Whether it's improving, 
moving or helping people enjoy water, we help manage the world's 
most precious resource. A strategic business of Pentair, Pentair 
Aquatics Systems is based in Cary, N.C., and is one of the world's 
leading providers of premium pumps, filters, heaters, controls, 
cleaners, lighting systems, water features, and maintenance products 
for swimming pools and spas.
    Regal is a manufacturing company with over 5,770 employees in 
the USA. Regal is a leading manufacturer of electric motors, 
electrical motion controls, power generation and transmission 
products with sales of over $3.4B in 2017. Regal is a technology 
leader in high-efficiency products.
    Speck Pumps is a leading international manufacturer of high-
quality pumps for commercial and industrial applications.
    Texas ROSE (Texas Ratepayers' Organization to Save Energy) is a 
non-profit organization dedicated to helping Texans' get affordable 
electricity and a healthy environment. We provide straightforward 
information to consumers and advocate for customer protections for 
consumers, energy

[[Page 45855]]

efficiency programs, and customer education by providing information 
to the Public Utility Commission (PUC), Austin City Council and the 
Texas Legislature. Texas ROSE has been involved in helping to create 
utility programs to provide lower rates for low-income consumers and 
weatherization programs to permanently lower energy use and utility 
bills.
    Waterway Plastics is proud to design, engineer and manufacture 
pool and spa pumps, filters, white goods and accessories and other 
pool and spa products in Oxnard, CA, USA.
    WEG is a manufacturer of industrial and commercial components 
and systems solutions for customers across multiple markets around 
the world. WEG is 30,000 employees strong across 12 manufacturing 
locations and 28 commercial sites, holding the distinction of having 
largest manufacturing site in the world at its headquarters in 
Jarugua Du Sol, Brazil. This campus is 3.57M square feet and 
occupied by nearly 13,000 employees. WEG has over 3,000 employees in 
the US between the US Headquarters in Atlanta, an industrial motor 
manufacturing location in Minneapolis, a transformer manufacturer in 
Missouri, and the Global Center of Commercial Motors Excellence in 
Bluffton, IN. The US is served out of these locations, with 
manufactured product support out of Mexico and Brazil. Over half of 
the product produced in the US is applied into pumping applications, 
whether it be clean water or dirty, or even hydroelectric power 
generation. WEG has traditionally focused it sales from its genesis 
in 1942 up to around 1985 in the local Brazilian market, though 
through a combination of acquisition and organic development, export 
sales has increased by an amazing 36 times, with infrastructure and 
skills to continue a strong growth pattern well into the future.
    Zodiac Pool Systems, LLC is a global leader in swimming pool and 
spa products and services. Zodiac is recognized as a leading, global 
provider of premium, innovative pool and spa products, equipment and 
solutions for in-ground residential swimming pools and spas. Zodiac 
is committed to designing and producing energy efficient, earth-
friendly pool products and systems.

III. Development of the Recommendations

    The Joint Stakeholders' recommendations were developed during a 
series of meetings between December 2017 and June 2018 of a 
technical working group consisting of pool pump and motor 
manufacturers, state government, utilities, and efficiency 
advocates. The goal of the working group was to develop a set of 
consensus recommendations for standards for DPPP motors to align 
with the standards for DPPPs and to take effect concurrently with 
the DPPP standards on July 19, 2021.

IV. The Joint Stakeholders' Proposal

    The Joint Stakeholders' proposal (included as Appendix A) 
includes recommendations for definitions, scope of coverage, 
prescriptive requirements, labeling, reporting, compliance date, and 
verification. Importantly, our proposal would not result in any 
change to the current DPPP standards and instead is complementary. 
There are also no new costs associated with our proposal because the 
analysis for the DPPP rulemaking already accounted for the costs of 
motor replacements.

A. Definitions

    Our proposed definitions include a definition for ``dedicated-
purpose pool pump motor,'' which covers any motor that is certified 
to UL 1004-10 \6\ and/or designed and/or marketed for use in DPPP 
applications. Our proposed definitions also define motors that meet 
the definition for ``dedicated- purpose pool pump motor'' but that 
would be exempt from the standards that we are proposing. These 
definitions for exempted motors were crafted such as to minimize the 
risk of any potential loopholes.
---------------------------------------------------------------------------

    \6\ Note: UL 1004-10 is in the process of being developed. We 
will provide an update to DOE once the UL standard has been 
published.
---------------------------------------------------------------------------

B. Scope of Coverage

    DPPP motors are electric motors. Our proposed scope of coverage 
includes DPPP motors with total horsepower (THP) less than or equal 
to 5 THP. The 5 THP upper bound aligns with the upper bound for 
hydraulic horsepower (HHP) in the standards for DPPPs for self-
priming and non-self-priming pool filter pumps. (5 THP is roughly 
equivalent to 2.5 HHP.) Our proposed scope of coverage would exempt 
six types of pool pump motors from our proposed standards: polyphase 
motors capable of operating without a drive (and distributed in 
commerce without a drive), waterfall pump motors, rigid electric spa 
pump motors, storable electric spa pump motors, integral cartridge-
filter pool pump motors, and integral sand-filter pool pump motors. 
These exemptions align with the DPPP standards.\7\ The exemption for 
polyphase motors is designed to exclude three-phase motors that are 
intended for use in commercial applications (where there is three-
phase power available), but to include three-phase motors that 
operate with a drive that converts single-phase power to three-phase 
power and are intended for use in residential applications.
---------------------------------------------------------------------------

    \7\ Note: Integral cartridge filter and integral sand filter 
pool pumps are subject to the DPPP standards, but they do not have 
to meet an energy performance requirement.
---------------------------------------------------------------------------

    Our proposed standards (described below) would apply to DPPP 
motors that are sold as replacements as well as motors that are part 
of DPPPs. All pool pump motors would thus be treated equally and 
subject to the same requirements. Importantly, our proposed scope of 
coverage includes DPPP motors in DPPPs regardless of whether the 
DPPP is manufactured domestically or imported. If motors in imported 
DPPPs were not covered, manufacturers that manufacture DPPPs 
domestically would be put at a disadvantage. Our proposed scope of 
coverage will thus provide a level playing field and protect U.S. 
manufacturing.

C. Prescriptive Requirements

    Our proposal for standards for DPPP motors is a prescriptive 
approach. We believe that a prescriptive approach is the quickest 
and simplest way to address the replacement motor loophole. We 
originally considered a performance-based approach. However, a 
performance approach for DPPP motors would require an entirely new 
metric and test procedure, which would significantly delay 
implementation of our proposal, thereby increasing manufacturer 
burden. Our proposed prescriptive requirements align with the DPPP 
standards while avoiding the need for a test procedure rulemaking. 
Importantly, our prescriptive approach still gives manufacturers 
significant flexibility to provide a wide range of efficient motor 
options to consumers including different speed options and user 
interfaces.
    Our proposed standards include three prescriptive requirements 
that align with the DPPP standards. First, DPPP motors would be 
prohibited from operating with a capacitor start induction run 
(CSIR) or split phase (SP) configuration at maximum operating speed. 
This requirement aligns the motor types for DPPP motors with the 
DPPP standards. This requirement is also consistent with existing 
state standards in Arizona, California, Connecticut, and Washington. 
Prohibiting these inefficient motor configurations will help prevent 
low-quality foreign imports from undercutting U.S. manufacturers and 
ensure that consumers are not stuck with very inefficient motors 
that would increase their electricity bills.
    Second, DPPP motors with THP greater than or equal to 1.15 THP 
would be required to meet the definition of ``variable-speed control 
dedicated-purpose pool pump motor,'' which we have defined. The 1.15 
THP threshold aligns with the 0.711 HHP threshold in the DPPP 
standards for self-priming pool filter pumps. (1.15 THP is roughly 
equivalent to 0.711 HHP.) Almost all motors used in non-self-priming 
pool filter pumps and pressure cleaner booster pumps have THPs less 
than 1.15 THP. Therefore, DPPP motors that must meet the definition 
of ``variable-speed control dedicated-purpose pool pump motor'' will 
almost exclusively be motors for self-priming pool filter pumps, 
aligning with the DPPP standards.
    Our proposed definition for ``variable-speed control dedicated-
purpose pool pump motor'' would include motors that provide at least 
four speed options. Providing the choice of a variety of speeds 
would align with the DPPP standards, which, for most in-ground 
pumps, are based on the performance of pumps with variable-speed 
motors. At the same time, our proposed definition would provide 
manufacturers flexibility in developing new products. In particular, 
our proposed definition would allow manufacturers to introduce 
lower-cost motors that are not ``true'' variable-speed products, but 
that still provide very substantial energy savings and performance 
consistent with the DPPP standards. Our proposed definition for 
``variable-speed control dedicated-purpose pool pump motor'' also 
includes specifications for how these motors must be distributed in 
commerce to ensure that they have the ability to operate at a 
variety of speeds in the field (e.g., be distributed with a variable 
speed drive), which align with the DPPP standards. Since variable-
speed replacement motors may be sold without a

[[Page 45856]]

drive (e.g., if the existing installed drive is still functioning), 
we have also provided the option for a variable-speed motor to be 
sold without a drive as long as it cannot operate without a drive. 
Our proposed definition for ``variable-speed control dedicated-
purpose pool pump motor'' also includes specifications regarding 
high speed override capability and default settings to help ensure 
that motors meeting this definition deliver the expected savings for 
consumers.
    Finally, DPPP motors with freeze protection controls would be 
subject to the same requirements as DPPPs with freeze protection 
controls. These requirements are designed to ensure that motors with 
freeze protection controls do not end up running for more hours than 
are required to provide adequate freeze protection, resulting in 
significant wasted energy and unnecessary additional electricity 
costs for consumers.

D. Labeling

    Our preference is for labeling requirements to be included as 
part of the rule for DPPP motors. Our proposed labeling requirements 
include the dedicated-purpose pool pump motor total horsepower and 
whether the motor is single-speed, two-speed, multi-speed, or 
variable-speed control. These labeling requirements would provide 
additional information to both consumers and installers and help 
standardize the use of total horsepower throughout the industry.

E. Reporting

    We are proposing that reporting requirements for DPPP motors 
include, but not be limited to, information about the settings of 
the controls for motors with freeze protection controls. These 
reporting requirements align with the reporting requirements for 
DPPPs.

F. Compliance Date

    The compliance date for DPPP motors must be July 19, 2021 to 
align with the compliance date for DPPPs. Aligning the compliance 
dates is essential in order to prevent a loophole for replacement 
motors and to avoid the need for manufacturers to convert their 
product lines twice, which would significantly increase their costs 
and, in turn, costs for consumers.
    Further, the compliance date for DPPPs must remain July 19, 
2021. U.S. manufacturers of both pool pumps and motors are already 
making significant investments to comply with the DPPP standards. If 
enforcement of the DPPP standards were to be delayed beyond the 
current compliance date, the beneficiaries of such a delay would be 
foreign manufacturers who have not yet made investments in upgrading 
their technology and who would see an opportunity to sell 
inefficient pumps to the U.S. market. This outcome would inflict 
serious harm on domestic manufacturers by undercutting their 
investments, which would threaten American manufacturing jobs. 
Manufacturers would also face market confusion in the event that the 
standards continued to be enforced through state building codes, 
despite a federal delay on enforcement. Finally, a delay would 
seriously harm consumers who would continue to be sold inefficient, 
wasteful products, costing them hundreds of dollars in electricity 
bill savings each year.

G. Verification of Total Horsepower

    We are proposing that for purposes of verifying THP, DOE should 
use the test procedure for DPPPs, which includes methods for 
determining dedicated-purpose pool pump motor total horsepower.

V. Benefits of the Joint Stakeholder Proposal

    Our proposal for DPPP motors will provide significant benefits 
to consumers, manufacturers, and the electric grid. By closing the 
replacement motor loophole, consumers will be assured that when 
replacing the motor on a variable-speed pump, the new motor will 
continue to provide the $550 in average annual operating cost 
savings and the additional benefits of variable-speed technology. 
Pool pump manufacturers will be protected against a market shift to 
unregulated, foreign-made replacement motors, which would threaten 
American manufacturing jobs. Finally, because pool pumps often 
operate the most in the summer and during times of peak demand, 
protecting the significant electricity savings from the DPPP 
standards will also protect the corresponding reductions in peak 
demand, which bolster electric grid resilience. Reductions in peak 
demand also help lower electricity rates, which benefits all 
consumers. However, in order for these significant benefits to 
consumers, manufacturers, and the electric grid to be realized, the 
compliance date for DPPP motor standards must be July 19, 2021, and 
there must be no delay in the DPPP compliance date.

VI. Electric Motors Authority

    DOE should adopt our proposal for standards for DPPP motors 
using the Department's authority over ``electric motors.'' 
``Electric motor'' is defined as ``a machine that converts 
electrical power into rotational mechanical power'' (10 CFR 431.12). 
DPPP motors are electric motors, and electric motors are already 
covered equipment.

VII. Use of a DFR

    DOE should adopt our proposal for standards for DPPP motors 
using a DFR. Importantly, a DFR will ensure that the compliance date 
for DPPP motors can be aligned with that for DPPPs. As described 
above, alignment of the compliance dates is essential in order to 
close the replacement motor loophole and to avoid manufacturers 
having to convert their product lines twice. Further, it is 
essential that the compliance dates for both DPPPs and DPPP motors 
be July 19, 2021 as any delay in the compliance date for DPPPs would 
have serious negative consequences for both consumers and domestic 
manufacturers.
    DOE has the authority to issue a DFR ``on receipt of a statement 
that is submitted jointly by interested persons that are fairly 
representative of relevant points of view (including representatives 
of manufacturers of covered products, States, and efficiency 
advocates)'' (42 U.S.C. 6295(p)(4)). The signatories to this Joint 
Statement include all relevant stakeholders including manufacturers 
of both pool pumps and motors; a trade association that represents 
pool pump and pool pump motor manufacturers and installers; a trade 
association that represents motor manufacturers; states; consumer 
advocate organizations; efficiency and environmental organizations; 
and electric utilities.
    While we believe that all relevant stakeholders are represented 
by the signatories to this Joint Statement, to the extent that there 
is any concern regarding the ability for any other party to provide 
input on our recommended standards before they are issued as part of 
a DFR, DOE could publish our Joint Statement and provide a limited 
(e.g., 30-day) comment period.

VIII. Executive Order Compliance

    Importantly, there are no new costs associated with our 
proposal. The analysis for the DPPP rulemaking already accounted for 
the costs of motor replacements for the portion of consumers that 
will replace the motor during the life of their pump. Specifically, 
the DPPP rulemaking assumed like-for-like motor replacements (e.g., 
that a variable-speed motor would be replaced with a new variable-
speed motor). The assumption of like-for-like motor replacements 
does not reflect the real-world situation and the high likelihood of 
many variable-speed motors on compliant pumps being replaced not 
with variable-speed motors, but with inefficient single-speed 
motors. Nevertheless, because the costs of variable-speed 
replacement motors were already accounted for in the DPPP 
rulemaking, DOE would be double counting the costs if the Department 
were to include costs associated with motor replacements in a DPPP 
motors rulemaking.
    Since there are no costs associated with our proposal relative 
to the costs assumed in the DPPP rule, we believe that our proposal 
would not be subject to Executive Orders 12866 and 13771.

IX. Conclusion

    The Joint Stakeholders strongly urge DOE to adopt our proposal 
for standards for DPPP motors contained in Appendix A in order to 
protect consumers and the investments being made by domestic 
manufacturers. We encourage DOE to act expeditiously in order to 
ensure alignment of the compliance date for DPPP motors with the 
compliance date for DPPPs (July 19, 2021).

Sincerely,
BILLING CODE 6450-01-P

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BILLING CODE 6450-01-C

APPENDIX A

Dedicated-Purpose Pool Pump (DPPP) Motors Joint Stakeholder Proposal

Definitions

    Capacitor-start, induction-run means a single-phase induction 
motor configuration with a main winding arranged for direct 
connection to a source of power and an auxiliary winding connected 
in series with a capacitor. The motor configuration has a capacitor 
phase, which is in the circuit only during the starting period.
    Dedicated-purpose pool pump motor means an electric motor that 
is single-phase or polyphase which complies with and is certified to 
UL 1004-10 and/or is designed and/or marketed for use in dedicated- 
purpose pool pump applications.
    Designed and marketed means that the equipment is designed to 
fulfill the intended application and, when distributed in commerce, 
is designated and marketed solely for that application, with the 
designation on all the packaging and all publicly available 
documents (e.g., product literature, catalogs, and packaging 
labels).
    Designed and/or marketed means that the equipment is designed to 
fulfill the intended application and/or, when distributed in 
commerce, is designated and marketed for that application, with the 
designation on the packaging and/or any publicly available documents 
(e.g., product literature, catalogs, and packaging labels).
    Drive means a power converter (such as a variable speed drive or 
phase-converter).
    Integral cartridge-filter pool pump motor means a dedicated-
purpose pool pump motor that is distributed in commerce as a 
component of an integral cartridge-filter pool pump as defined at 10 
CFR 431.462.
    Integral sand-filter pool pump motor means a dedicated-purpose 
pool pump motor that is distributed in commerce as a component of an 
integral sand-filter pool pump as defined at 10 CFR 431.462.
    Maximum operating speed means the rated full-load speed of a 
motor powered by a 60 Hz alternating current (AC) source.
    Rigid electric spa pump motor means a dedicated-purpose pool 
pump motor that does not have a C-flange or square flange mounting 
and that is:
    (1) labeled,
    (2) designed, and
    (3) marketed for use only in rigid electric spas as defined at 
10 CFR 431.462.
    Split phase means a single-phase induction motor configuration 
with an auxiliary winding displaced in magnetic position from, and 
connected in parallel with the main winding. The auxiliary circuit 
is open when the motor has attained a predetermined speed.
    Storable electric spa pump motor means a dedicated-purpose pool 
pump motor that is distributed in commerce as a component of a 
storable electric spa pump as defined at 10 CFR 431.462.
    Waterfall pump motor means a dedicated-purpose pool pump motor 
with a maximum speed less than or equal to 1,800 rpm that is 
designed and marketed for waterfall pump applications and labeled 
for use only with waterfall pumps.

Scope of coverage

    DPPP motors meet the definition of electric motor at 10 CFR 
431.12. The standards will apply to dedicated-purpose pool pump 
(DPPP) motors, including DPPP motors incorporated in DPPPs produced 
domestically and imported, with dedicated-purpose pool pump motor 
total horsepower (THP) as defined at 10 CFR 431.462 less than or 
equal to 5 THP, with the following exemptions:

Exempted DPPP motors:

     Polyphase motors capable of operating without a drive 
and distributed in commerce without a drive that converts single-
phase power to polyphase power
     Waterfall pump motors
     Rigid electric spa pump motors
     Storable electric spa pump motors
     Integral cartridge-filter pool pump motors
     Integral sand-filter pool pump motors

Prescriptive requirements

    There will be prescriptive requirements for all DPPP motors, for 
DPPP motors with a THP greater than or equal to 1.15 THP, and for 
DPPP motors with freeze protection controls. DPPP motors include 
motors manufactured domestically, motors imported alone, and motors 
imported as a component of a DPPP assembly.

DPPP motors

    DPPP motors must not operate with a capacitor start induction 
run (CSIR) or split phase (SP) configuration at maximum operating 
speed.

DPPP motors with THP greater than or equal to 1.15 THP

    DPPP motors with THP greater than or equal to 1.15 THP will have 
a prescriptive speed control requirement.

Prescriptive Requirement: Variable Speed Control

    Each dedicated-purpose pool pump motor with a dedicated-purpose 
pool pump motor total horsepower greater than or equal to 1.15 THP 
shall meet the definition of a variable-speed control dedicated- 
purpose pool pump motor.
    A variable-speed control dedicated-purpose pool pump motor 
means:
    A dedicated-purpose pool pump motor that is capable of operating 
at four or more discrete, user- or pre-determined operating speeds, 
where one of the operating speeds is the maximum operating speed and 
at least:
     One of the operating speeds is 75% to 85% of the 
maximum operating speed;

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     One of the operating speeds is 45% to 55% of the 
maximum operating speed;
     One of the operating speeds is less than or equal to 
40% of the maximum operating speed and greater than zero.
    And that must be distributed in commerce either:
    (1) With a variable speed drive and with a user interface that 
changes the speed in response to pre- programmed user preferences 
and allows the user to select the duration of each speed and/or the 
on/off times;
    (2) With a variable speed drive and without a user interface 
that changes the speed in response to pre-programmed user 
preferences and allows the user to select the duration of each speed 
and/or the on/off times, but is unable to operate without the 
presence of a user interface; or
    (3) Without a variable speed drive and with or without a user 
interface, but is unable to operate without the presence of a 
variable speed drive.
    And:
    (1) Any high speed override capability shall be for a temporary 
period not to exceed one 24-hour cycle without resetting to default 
settings or resuming normal operation according to pre- programmed 
user preferences; and
    (2) Any factory default setting for daily run time schedule may 
not include more hours at an operating speed above 55% of maximum 
operating speed than the hours at or below 55% of maximum operating 
speed; or if a motor is distributed in commerce without a default 
setting for daily run time schedule, the default operating speed 
after any priming cycle (if applicable) must be no greater than 55% 
of the maximum operating speed.

DPPP motors with freeze protection controls

    For all dedicated-purpose pool pump motors distributed in 
commerce with freeze protection controls, the motor must be shipped 
with freeze protection disabled or with the following default, user- 
adjustable settings:
    (1) The default dry-bulb air temperature setting is no greater 
than 40 [deg]F;
    (2) The default run time setting shall be no greater than 1 hour 
(before the temperature is rechecked); and
    (3) The default motor speed shall not be more than \1/2\ of the 
maximum speed.

Labeling

    If DOE is able to implement labeling requirements, the permanent 
nameplate must be marked clearly with the following information:
    (A) The dedicated-purpose pool pump motor total horsepower; and
    (B) Either: single-speed, two-speed, multi-speed, or variable-
speed control.

Reporting

    Certification reporting requirements should include, but not be 
limited to,:
    (A) For dedicated-purpose pool pump motors distributed in 
commerce with freeze protection controls, a statement regarding 
whether freeze protection is shipped enabled or disabled, and for 
dedicated-purpose pool pump motors distributed in commerce with 
freeze protection controls enabled, the default dry-bulb air 
temperature setting (in [deg]F), default run time setting (in 
minutes), and default motor speed (in rpm).

Compliance date

    The compliance date should be July 19, 2021 to align with the 
compliance date of the DPPP standards.

Verification of THP

    For purposes of verifying THP, DOE should use the DPPP test 
procedure at 10 CFR 431 Appendix C to Subpart Y.

[FR Doc. 2018-19577 Filed 9-10-18; 8:45 am]
BILLING CODE 6450-01-P
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