Energy Conservation Program: Notice of Decision and Order Denying an Exemption to Aero-Tech Light Bulb Co. From the Department of Energy Rough Service Lamps Energy Conservation Standards, 469-473 [2019-00303]

Download as PDF 469 Notices Federal Register Vol. 84, No. 20 Wednesday, January 30, 2019 This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. AFRICAN DEVELOPMENT FOUNDATION Public Quarterly Meeting of the Board of Directors United States African Development Foundation. ACTION: Notice of meeting. AGENCY: The U.S. African Development Foundation (USADF) will hold its quarterly meeting of the Board of Directors to discuss the agency’s programs and administration. This meeting will occur via telephone as a conference call. DATES: The meeting date is Tuesday, February 5, 2019, 10:00 a.m. to 12:00 noon. ADDRESSES: The meeting location is USADF, 1400 I St. NW, Suite 1000, Washington, DC 20005. FOR FURTHER INFORMATION CONTACT: June Brown, (202) 577–5713. SUMMARY: Authority: Public Law 96–533 (22 U.S.C. 290h). Dated: January 25, 2019. June B. Brown, General Counsel. [FR Doc. 2019–00301 Filed 1–29–19; 8:45 am] BILLING CODE 6117–01–P and Order (Case Number 2018–001) that denies Aero-Tech Light Bulb Co.’s (Aero-Tech) application for a two-year small business exemption from compliance with the DOE rough service lamp energy conservation standards. DATES: The Decision and Order is effective on January 17, 2019. ADDRESSES: The docket, which includes Federal Register notices, comments, and other supporting documents/ materials, is available for review 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 at http://www.regulations.gov/docket ?D=EERE-2018-BT-PET-0016. The docket web page contains simple instruction on how to access all documents, including public comments, in the docket. FOR FURTHER INFORMATION CONTACT: Dr. Stephanie Johnson, U.S. Department of Energy, Building Technologies Program, Mailstop EE–2J, 1000 Independence Avenue SW, Washington, DC 20585–0121. Telephone: (202) 287–1943. E-mail: AeroTech2018PET0016@ee.doe.gov. Ms. Celia Sher, U.S. Department of Energy, Office of the General Counsel, Mail Stop GC–33, Forrestal Building, 1000 Independence Avenue SW, Washington, DC 20585–0103. Telephone: (202) 287–6122. E-mail: Celia.Sher@hq.doe.gov. SUPPLEMENTARY INFORMATION: I. Background DEPARTMENT OF ENERGY amozie on DSK3GDR082PROD with NOTICES1 [Case Number 2018–001] Energy Conservation Program: Notice of Decision and Order Denying an Exemption to Aero-Tech Light Bulb Co. From the Department of Energy Rough Service Lamps Energy Conservation Standards Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Notice of decision and order. AGENCY: The U.S. Department of Energy (DOE) gives notice of a Decision SUMMARY: VerDate Sep<11>2014 17:01 Jan 29, 2019 Jkt 247001 On December 26, 2017, DOE issued a final rule codifying at 10 CFR 430.32(bb) statutory backstop requirements applicable to rough service lamps and vibration service lamps. Prior to the rule, these backstop requirements were triggered as a result of rough and vibration service lamps exceeding a previously announced sales threshold and in the absence of any other energy conservation regulation issued by DOE for these lamps. In particular, the final rule applies a statutorily established 40watt maximum energy use and packaging limitation to rough and vibration service lamps manufactured PO 00000 Frm 00001 Fmt 4703 Sfmt 4703 on or after January 25, 2018. 82 FR 60845. On May 23, 2018, Aero-Tech submitted an application, pursuant to Subpart E of 10 CFR part 430, requesting a two-year small business exemption from the DOE rough service lamps energy conservation standards found in 10 CFR 430.32(bb). Aero-Tech requested an exemption from the standards on the basis of its status as a small business. According to Aero-Tech, failure to receive a small business exemption would likely result in a lessening of competition in the market for lighting companies. Under 42 U.S.C. 6295(t), DOE may grant to a manufacturer a temporary exemption from an applicable energy conservation standard if DOE finds that the annual gross revenues of such manufacturer from all its operations (including the manufacture and sale of covered products) does not exceed $8,000,000 for the 12-month period preceding the date of the application. In making this finding, DOE must account for the annual gross revenues of any other person who controls, is controlled by, or is under common control with, such manufacturer. (42 U.S.C. 6295(t)(1)) The Secretary of Energy (Secretary) may not grant an exemption with respect to any type (or class) of covered product subject to an energy conservation standard unless the Secretary finds, after obtaining the written views of the Attorney General, that a failure to allow an exemption would likely result in a lessening of competition. (42 U.S.C. 6295(t)(2)) See also, subpart E of 10 CFR part 430. A notice of the decision of the Secretary must be published in the Federal Register along with the reason for denying or granting the application. 10 CFR 430.56(c) On October 15, 2018, DOE issued a notice announcing the receipt of and publishing Aero-Tech’s application for exemption. 83 FR 51931. In accordance with its regulations, DOE also transmitted Aero-Tech’s application for exemption to the Attorney General by the Secretary along with: (a) A statement of the facts and of the reasons for the exemption, and (b) copies of all documents submitted. 10 CFR 430.54. DOE received one comment submitted by the National Electrical Manufacturers Association (NEMA) which provided data and supporting factual information E:\FR\FM\30JAN1.SGM 30JAN1 470 Federal Register / Vol. 84, No. 20 / Wednesday, January 30, 2019 / Notices relating to rough service lamp sales. NEMA did not take a position on the merits of Aero-Tech’s application.1 II. Final Denial In accordance with Title 10 of the Code of Federal Regulations (10 CFR 430.56(c)), DOE gives notice of the issuance of its decision and order denying Aero-Tech’s application for a small business exemption. The final decision document setting forth the relevant facts and the legal basis for denying Aero-Tech’s application is available in the docket referenced above (http://www.regulations.gov/ docket?D=EERE-2018-BT-PET-0016). In evaluating this matter, DOE’s primary consideration was whether a failure to amozie on DSK3GDR082PROD with NOTICES1 1 NEMA’s comment can be accessed at: https:// www.regulations.gov/document?D=EERE-2018-BTPET-0016-0002. VerDate Sep<11>2014 16:22 Jan 29, 2019 Jkt 247001 allow the exemption would result in a lessening of competition. After consultation with the Attorney General, DOE does not believe Aero-Tech has demonstrated that this would be the case. In its assessment letter responding to DOE, the Department of Justice (DOJ) concluded that failure to grant AeroTech’s application for a small business exemption for rough service lamps would likely not result in a lessening of competition. DOJ made this determination after reviewing AeroTech’s application, as well as speaking with industry representatives and reviewing the supplementary information submitted to DOE by industry representatives. As part of its analysis, DOJ noted that it applies the standard set forth in 42 U.S.C. 6295(t)(2), and examines whether failure PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 to grant a small business exemption would likely result in a lessening of competition, for example, by substantially limiting consumer choice or increasing industry concentration. DOE is publishing the Attorney General’s determination letter at the end of this notice. In light of the Attorney General’s written finding, DOE has no independent basis to come to a different conclusion than the DOJ with regard to Aero-Tech’s request for a small business exemption, and, therefore, DOE cannot make a finding that a failure to allow an exemption to Aero-Tech would result in a lessening of competition. Signed in Washington, DC, on January 17, 2019. Daniel R Simmons, Assistant Secretary, Energy Efficiency and Renewable Energy. E:\FR\FM\30JAN1.SGM 30JAN1 Federal Register / Vol. 84, No. 20 / Wednesday, January 30, 2019 / Notices 471 U.S. DEPARTMENT OF JUSTICE Antitrust Division MAKAN DELRAHIM Assistant Attorney General RFK Main Justice Building 950 Pennsylvania Avenue. N.W. Washington. D.C. 20530-0001 (202)514-2401/ (202)616-2645 (Fax) December 15, 2018 Daniel Cohen Assistant General Counsel for Legislation, Regulation and Energy Efficiency U.S. Department of Energy 1000 Independence Ave., SW Washington, DC 20585 Dear Assistant General Counsel Cohen: I am responding to your October 16, 2018 letter seeking the views ofthe Attorney General about the potential impact on competition of Aero-Tech Light Bulb Co.'s application for a small-business exemption from energy conservation standards for rough service lamps. Your request was submitted in accordance with Section 6295(t) of the Energy Policy and Conservation Act of 1975 (ECPA), as amended. This Section provides that the Department of Energy may not grant a small-business exemption from an energy conservation standard until it has obtained the written views of the Attorney General concerning whether competition would be lessened if the Department ofEnergy does not grant an applicant's requested exemption. 42 U.S.C. § 6295(t)(2). The Attorney General's responsibility for responding to requests from other departments about the effect of any action, program or practice upon the maintenance and preservation of competition has been delegated to the Assistant Attorney General for the Antitrust Division in 28 C.F.R. § 0.40(g). We have reviewed Aero-Tech's notice of application for a small-business exemption contained in 83 Fed. Reg. 51931, October 15, 2018. We have also spoken with industry representatives and reviewed supplementary information submitted to the Department of Energy by industry representatives. Based on this VerDate Sep<11>2014 16:22 Jan 29, 2019 Jkt 247001 PO 00000 Frm 00003 Fmt 4703 Sfmt 4725 E:\FR\FM\30JAN1.SGM 30JAN1 EN30JA19.000</GPH> amozie on DSK3GDR082PROD with NOTICES1 In conducting its analysis, the Antitrust Division applies the standard set forth in 42 U.S.C. § 6295(t)(2), and examines whether failure to grant a smallbusiness exemption would likely result in a lessening of competition, for example, by substantially limiting consumer choice or increasing industry concentration. A lessening of competition could result in higher prices to consumers. 472 Federal Register / Vol. 84, No. 20 / Wednesday, January 30, 2019 / Notices amozie on DSK3GDR082PROD with NOTICES1 Decision and Order I. Background and Authority The Energy Policy and Conservation Act of 1975 (EPCA),1 Public Law 94–163 (42 U.S.C. 6291–6317, as codified), among other things, authorizes the U.S. Department of Energy (DOE) to establish energy conservation standards for certain consumer products and industrial equipment. Title III, Part B 2 of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles, which sets forth a variety of provisions designed to improve energy efficiency for certain types of consumer products. These products include rough service lamps, the focus of this document. (42 U.S.C. 6295(l)(4)(A)) On December 26, 2017, DOE issued a final rule codifying at 10 CFR 430.32(bb) statutory backstop requirements applicable to rough service lamps and vibration service lamps. Prior to the rule, these backstop requirements were triggered as a result of rough and vibration service lamps exceeding a previously announced sales threshold and in the absence of any other energy conservation regulation issued by DOE for these lamps. In particular, the final rule placed in the Code of Federal Regulations a statutorily established 40watt maximum energy use and packaging limitation for rough and vibration service lamps manufactured on or after January 25, 2018. DOE 1 All references to EPCA in this document refer to the statute as amended through the EPS Improvement Act of 2017, Public Law 115–115 (January 12, 2018). 2 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated as Part A. VerDate Sep<11>2014 16:22 Jan 29, 2019 Jkt 247001 subsequently published an Enforcement Policy Statement announcing a May 1, 2018 compliance date for the rule.3 For rough service lamps, the statute requires the lamps to: (1) Have a shatter-proof coating or equivalent technology that complies with NSF/ANSI 51 and is designed to contain the glass if the glass envelope of the lamp is broken and to provide effective containment over the life of the lamp; (2) have a maximum 40watt limitation; and (3) be sold at retail only in a package containing one lamp. (42 U.S.C. 6295(l)(4)(D)(ii)) Under 42 U.S.C. 6295(t), DOE may grant to a manufacturer a temporary exemption from an applicable energy conservation standard if DOE finds that the annual gross revenues of such manufacturer from all its operations (including the manufacture and sale of covered products) does not exceed $8,000,000 for the 12-month period preceding the date of the application. In making this finding, DOE must account for the annual gross revenues of any other person who controls, is controlled by, or is under common control with, such manufacturer (referred to herein as a ‘‘small business exemption’’). (42 U.S.C. 6295(t)(1)) The Secretary of Energy (Secretary) may not grant a small business exemption with respect to any type (or class) of covered product subject to an energy conservation standard unless the Secretary finds, after obtaining the written views of the Attorney General, that a failure to allow an exemption would likely result in a lessening of competition. (42 U.S.C. 6295(t)(2)) See also, subpart E of 10 CFR 3 DOE’s Enforcement Policy Statement can be accessed here: https://www.energy.gov/sites/prod/ files/2018/02/f48/Enforcement%20Policy%20%202018%20VSL%20RSL.pdf. PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 part 430. A notice of the decision of the Secretary must be published in the Federal Register along with the reason for denying or granting the application. 10 CFR 430.56(c) II. Application for Exemption On May 23, 2018, Aero-Tech Light Bulb Co. (Aero-Tech) submitted an application for a small business exemption pursuant to 42 U.S.C. 6295(t) and Subpart E of 10 CFR part 430, requesting an exemption from the DOE rough service lamps energy conservation standards found in 10 CFR 430.32(bb). Specifically, Aero-Tech requested an exemption from compliance with the standards until January 25, 2020. The application indicated that Aero-Tech is an importer and distributor of rough service light bulbs. In its application, Aero-Tech asked for an exemption from the standards on the basis of its status as a small business. According to Aero-Tech, failure to receive a small business exemption would likely result in a lessening of competition in the market for lighting companies. In its application, Aero-Tech stated that, failure to grant an exemption would mean that Aero-Tech would lose 70% of its business and have to close its doors. On October 15, 2018, DOE published a notice announcing its receipt of the application for exemption and solicited comments from interested parties. 83 FR 51931. In accordance with its regulations, DOE also transmitted AeroTech’s application for exemption to the Attorney General along with: (a) A statement of the facts and of the reasons for the exemption, and (b) copies of all documents submitted. 10 CFR 430.54. DOE received one comment submitted E:\FR\FM\30JAN1.SGM 30JAN1 EN30JA19.001</GPH> Case #2018–001 Federal Register / Vol. 84, No. 20 / Wednesday, January 30, 2019 / Notices by the National Electrical Manufacturers Association (NEMA) which provided data and supporting factual information relating to rough service lamp sales.4 In its comments, NEMA provided the names of nine NEMA manufacturers and two non-member companies that sell rough service lamps. While NEMA did not take a position on the merits of Aero-Tech’s application, NEMA’s comments indicated that the demand for rough service lamps is decreasing as customers are migrating to lightemitting diode (LED) light bulbs for rough service applications at higher light output levels. amozie on DSK3GDR082PROD with NOTICES1 III. Consultation with Other Agencies Per 42 U.S.C. 6295(t)(2), DOE obtained the written views of the Attorney General concerning AeroTech’s application for exemption. Under this statutory provision, DOE may only grant a small business exemption if it has consulted with the Attorney General and finds that a lessening of competition would likely result. In its assessment letter responding to DOE, the Department of Justice (DOJ) concluded that failure to grant AeroTech’s application for a small business exemption for rough service lamps would likely not result in a lessening of competition. DOJ made this determination after reviewing AeroTech’s application, as well as speaking with industry representatives and reviewing the supplementary information submitted to DOE by industry representatives. As part of its analysis, DOJ noted that it applies the standard set forth in 42 U.S.C. 6295(t)(2), and examines whether failure to grant a small business exemption would likely result in a lessening of competition, for example, by substantially limiting consumer choice or increasing industry concentration. Daniel R. Simmons, Assistant Secretary, Energy Efficiency and Renewable Energy. [FR Doc. 2019–00303 Filed 1–29–19; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Agency for Healthcare Research and Quality Notice of Five AHRQ Subcommittee Meetings Agency for Healthcare Research and Quality (AHRQ), HHS. ACTION: Notice of meetings. AGENCY: SUMMARY: The subcommittees listed in the DATES section of this notice are part of AHRQ’s Health Services Research Initial Review Group Committee. Grant applications are to be reviewed and discussed at these meetings. Each subcommittee meeting will commence in open session before closing to the public for the duration of the meeting. DATES: The dates for the five subcommittee meetings are as follows: 1. Healthcare Safety and Quality Improvement Research (HSQR) Date: February 6–7, 2019 (Open from 7:30 a.m. to 8 a.m. on February 6th and closed for remainder of the meeting) 2. Healthcare Effectiveness and Outcomes Research (HEOR) Date: February 13–14, 2019 (Open from 8:30 a.m. to 9 a.m. on February 13th and closed for remainder of the meeting) 3. Health System and Value Research (HSVR) Date: February 20–21, 2019 (Open from 8 a.m. to 8:30 a.m. on February 20th and closed for remainder of the meeting) IV. Order 4. Health Care Research and Training DOE has no independent basis to (HCRT) come to a different conclusion than the Date: February 21–22, 2019 (Open DOJ with regard to Aero-Tech’s request from 8 a.m. to 8:30 a.m. on February for a small business exemption. Thus, 21st and closed for remainder of the DOE does not find that Aero-Tech has meeting) demonstrated that a failure to allow the 5. Healthcare Information Technology exemption would result in a lessening Research (HITR) of competition, as required under 42 Date: February 28–March 1, 2019 U.S.C. 6295(t)(2). It is Ordered that the (Open from 8 a.m. to 8:30 a.m. on application for a small business February 28th and closed for exemption submitted on May 23, 2018 remainder of the meeting) by Aero-Tech Light Bulb Co. is denied. ADDRESSES: Each meeting will be held at Signed in Washington, DC, on January 17, the Hilton Rockville & Executive 2019. Meeting Center, 1750 Rockville Pike, lllllllllllllllllllll Rockville, Maryland 20852. FOR FURTHER INFORMATION CONTACT: To 4 NEMA’s comment can be accessed at: https:// obtain a roster of members, agenda, or www.regulations.gov/document?D=EERE-2018-BTPET-0016-0002. minutes of the non-confidential portions VerDate Sep<11>2014 16:22 Jan 29, 2019 Jkt 247001 PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 473 of the meetings, contact: Mrs. Heather Phelps, Acting Committee Management Officer, Office of Extramural Research Education and Priority Populations, Agency for Healthcare Research and Quality (AHRQ), 5600 Fishers Lane, Rockville, Maryland 20857, Telephone (301) 427–1128. In accordance with section 10(a)(2) of the Federal Advisory Committee Act (5 U.S.C. App. 2), AHRQ announces meetings of the above-listed scientific peer review groups, which are subcommittees of AHRQ’s Health Services Research Initial Review Group Committees. Each subcommittee meeting will commence in open session before closing to the public for the duration of the meeting. The subcommittee meetings will be closed to the public in accordance with the provisions set forth in 5 U.S.C. App. 2 section 10(d), 5 U.S.C. 552b(c)(4), and 5 U.S.C. 552b(c)(6). The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy. Agenda items for these meetings are subject to change as priorities dictate. This meeting notice is being published less than 15 days in advance of the meeting due to the partial Government shutdown of December 2018. SUPPLEMENTARY INFORMATION: Francis D. Chesley, Jr., Acting Deputy Director. [FR Doc. 2019–00259 Filed 1–29–19; 8:45 am] BILLING CODE 4160–90–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention Board of Scientific Counselors, National Center for Injury Prevention and Control, (BSC, NCIPC) Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS). AGENCY: ACTION: Notice of closed meeting. In accordance with the Federal Advisory Committee Act, the CDC announces the following meeting for the Board of Scientific Counselors, National Center for Injury Prevention and Control, (BSC, NCIPC). SUMMARY: E:\FR\FM\30JAN1.SGM 30JAN1

Agencies

[Federal Register Volume 84, Number 20 (Wednesday, January 30, 2019)]
[Notices]
[Pages 469-473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00303]


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DEPARTMENT OF ENERGY

[Case Number 2018-001]


Energy Conservation Program: Notice of Decision and Order Denying 
an Exemption to Aero-Tech Light Bulb Co. From the Department of Energy 
Rough Service Lamps Energy Conservation Standards

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

ACTION: Notice of decision and order.

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

SUMMARY: The U.S. Department of Energy (DOE) gives notice of a Decision 
and Order (Case Number 2018-001) that denies Aero-Tech Light Bulb Co.'s 
(Aero-Tech) application for a two-year small business exemption from 
compliance with the DOE rough service lamp energy conservation 
standards.

DATES: The Decision and Order is effective on January 17, 2019.

ADDRESSES: The docket, which includes Federal Register notices, 
comments, and other supporting documents/materials, is available for 
review 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 at http://www.regulations.gov/docket?D=EERE-2018-BT-PET-0016. The docket web page contains simple 
instruction on how to access all documents, including public comments, 
in the docket.

FOR FURTHER INFORMATION CONTACT: 
    Dr. Stephanie Johnson, U.S. Department of Energy, Building 
Technologies Program, Mailstop EE-2J, 1000 Independence Avenue SW, 
Washington, DC 20585-0121. Telephone: (202) 287-1943. E-mail: 
AeroTech2018PET0016@ee.doe.gov.
    Ms. Celia Sher, U.S. Department of Energy, Office of the General 
Counsel, Mail Stop GC-33, Forrestal Building, 1000 Independence Avenue 
SW, Washington, DC 20585-0103. Telephone: (202) 287-6122. E-mail: 
Celia.Sher@hq.doe.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    On December 26, 2017, DOE issued a final rule codifying at 10 CFR 
430.32(bb) statutory backstop requirements applicable to rough service 
lamps and vibration service lamps. Prior to the rule, these backstop 
requirements were triggered as a result of rough and vibration service 
lamps exceeding a previously announced sales threshold and in the 
absence of any other energy conservation regulation issued by DOE for 
these lamps. In particular, the final rule applies a statutorily 
established 40-watt maximum energy use and packaging limitation to 
rough and vibration service lamps manufactured on or after January 25, 
2018. 82 FR 60845.
    On May 23, 2018, Aero-Tech submitted an application, pursuant to 
Subpart E of 10 CFR part 430, requesting a two-year small business 
exemption from the DOE rough service lamps energy conservation 
standards found in 10 CFR 430.32(bb). Aero-Tech requested an exemption 
from the standards on the basis of its status as a small business. 
According to Aero-Tech, failure to receive a small business exemption 
would likely result in a lessening of competition in the market for 
lighting companies.
    Under 42 U.S.C. 6295(t), DOE may grant to a manufacturer a 
temporary exemption from an applicable energy conservation standard if 
DOE finds that the annual gross revenues of such manufacturer from all 
its operations (including the manufacture and sale of covered products) 
does not exceed $8,000,000 for the 12-month period preceding the date 
of the application. In making this finding, DOE must account for the 
annual gross revenues of any other person who controls, is controlled 
by, or is under common control with, such manufacturer. (42 U.S.C. 
6295(t)(1)) The Secretary of Energy (Secretary) may not grant an 
exemption with respect to any type (or class) of covered product 
subject to an energy conservation standard unless the Secretary finds, 
after obtaining the written views of the Attorney General, that a 
failure to allow an exemption would likely result in a lessening of 
competition. (42 U.S.C. 6295(t)(2)) See also, subpart E of 10 CFR part 
430. A notice of the decision of the Secretary must be published in the 
Federal Register along with the reason for denying or granting the 
application. 10 CFR 430.56(c)
    On October 15, 2018, DOE issued a notice announcing the receipt of 
and publishing Aero-Tech's application for exemption. 83 FR 51931. In 
accordance with its regulations, DOE also transmitted Aero-Tech's 
application for exemption to the Attorney General by the Secretary 
along with: (a) A statement of the facts and of the reasons for the 
exemption, and (b) copies of all documents submitted. 10 CFR 430.54. 
DOE received one comment submitted by the National Electrical 
Manufacturers Association (NEMA) which provided data and supporting 
factual information

[[Page 470]]

relating to rough service lamp sales. NEMA did not take a position on 
the merits of Aero-Tech's application.\1\
---------------------------------------------------------------------------

    \1\ NEMA's comment can be accessed at: https://www.regulations.gov/document?D=EERE-2018-BT-PET-0016-0002.
---------------------------------------------------------------------------

II. Final Denial

    In accordance with Title 10 of the Code of Federal Regulations (10 
CFR 430.56(c)), DOE gives notice of the issuance of its decision and 
order denying Aero-Tech's application for a small business exemption. 
The final decision document setting forth the relevant facts and the 
legal basis for denying Aero-Tech's application is available in the 
docket referenced above (http://www.regulations.gov/docket?D=EERE-2018-BT-PET-0016). In evaluating this matter, DOE's primary consideration 
was whether a failure to allow the exemption would result in a 
lessening of competition. After consultation with the Attorney General, 
DOE does not believe Aero-Tech has demonstrated that this would be the 
case. In its assessment letter responding to
    DOE, the Department of Justice (DOJ) concluded that failure to 
grant Aero-Tech's application for a small business exemption for rough 
service lamps would likely not result in a lessening of competition. 
DOJ made this determination after reviewing Aero-Tech's application, as 
well as speaking with industry representatives and reviewing the 
supplementary information submitted to DOE by industry representatives. 
As part of its analysis, DOJ noted that it applies the standard set 
forth in 42 U.S.C. 6295(t)(2), and examines whether failure to grant a 
small business exemption would likely result in a lessening of 
competition, for example, by substantially limiting consumer choice or 
increasing industry concentration. DOE is publishing the Attorney 
General's determination letter at the end of this notice. In light of 
the Attorney General's written finding, DOE has no independent basis to 
come to a different conclusion than the DOJ with regard to Aero-Tech's 
request for a small business exemption, and, therefore, DOE cannot make 
a finding that a failure to allow an exemption to Aero-Tech would 
result in a lessening of competition.

    Signed in Washington, DC, on January 17, 2019.
Daniel R Simmons,
Assistant Secretary, Energy Efficiency and Renewable Energy.

[[Page 471]]

[GRAPHIC] [TIFF OMITTED] TN30JA19.000


[[Page 472]]


[GRAPHIC] [TIFF OMITTED] TN30JA19.001

Case #2018-001

Decision and Order

I. Background and Authority

    The Energy Policy and Conservation Act of 1975 (EPCA),\1\ Public 
Law 94-163 (42 U.S.C. 6291-6317, as codified), among other things, 
authorizes the U.S. Department of Energy (DOE) to establish energy 
conservation standards for certain consumer products and industrial 
equipment. Title III, Part B \2\ of EPCA established the Energy 
Conservation Program for Consumer Products Other Than Automobiles, 
which sets forth a variety of provisions designed to improve energy 
efficiency for certain types of consumer products. These products 
include rough service lamps, the focus of this document. (42 U.S.C. 
6295(l)(4)(A))
---------------------------------------------------------------------------

    \1\ All references to EPCA in this document refer to the statute 
as amended through the EPS Improvement Act of 2017, Public Law 115-
115 (January 12, 2018).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated as Part A.
---------------------------------------------------------------------------

    On December 26, 2017, DOE issued a final rule codifying at 10 CFR 
430.32(bb) statutory backstop requirements applicable to rough service 
lamps and vibration service lamps. Prior to the rule, these backstop 
requirements were triggered as a result of rough and vibration service 
lamps exceeding a previously announced sales threshold and in the 
absence of any other energy conservation regulation issued by DOE for 
these lamps. In particular, the final rule placed in the Code of 
Federal Regulations a statutorily established 40-watt maximum energy 
use and packaging limitation for rough and vibration service lamps 
manufactured on or after January 25, 2018. DOE subsequently published 
an Enforcement Policy Statement announcing a May 1, 2018 compliance 
date for the rule.\3\ For rough service lamps, the statute requires the 
lamps to: (1) Have a shatter-proof coating or equivalent technology 
that complies with NSF/ANSI 51 and is designed to contain the glass if 
the glass envelope of the lamp is broken and to provide effective 
containment over the life of the lamp; (2) have a maximum 40-watt 
limitation; and (3) be sold at retail only in a package containing one 
lamp. (42 U.S.C. 6295(l)(4)(D)(ii))
---------------------------------------------------------------------------

    \3\ DOE's Enforcement Policy Statement can be accessed here: 
https://www.energy.gov/sites/prod/files/2018/02/f48/Enforcement%20Policy%20-%202018%20VSL%20RSL.pdf.
---------------------------------------------------------------------------

    Under 42 U.S.C. 6295(t), DOE may grant to a manufacturer a 
temporary exemption from an applicable energy conservation standard if 
DOE finds that the annual gross revenues of such manufacturer from all 
its operations (including the manufacture and sale of covered products) 
does not exceed $8,000,000 for the 12-month period preceding the date 
of the application. In making this finding, DOE must account for the 
annual gross revenues of any other person who controls, is controlled 
by, or is under common control with, such manufacturer (referred to 
herein as a ``small business exemption''). (42 U.S.C. 6295(t)(1)) The 
Secretary of Energy (Secretary) may not grant a small business 
exemption with respect to any type (or class) of covered product 
subject to an energy conservation standard unless the Secretary finds, 
after obtaining the written views of the Attorney General, that a 
failure to allow an exemption would likely result in a lessening of 
competition. (42 U.S.C. 6295(t)(2)) See also, subpart E of 10 CFR part 
430. A notice of the decision of the Secretary must be published in the 
Federal Register along with the reason for denying or granting the 
application. 10 CFR 430.56(c)

II. Application for Exemption

    On May 23, 2018, Aero-Tech Light Bulb Co. (Aero-Tech) submitted an 
application for a small business exemption pursuant to 42 U.S.C. 
6295(t) and Subpart E of 10 CFR part 430, requesting an exemption from 
the DOE rough service lamps energy conservation standards found in 10 
CFR 430.32(bb). Specifically, Aero-Tech requested an exemption from 
compliance with the standards until January 25, 2020. The application 
indicated that Aero-Tech is an importer and distributor of rough 
service light bulbs. In its application, Aero-Tech asked for an 
exemption from the standards on the basis of its status as a small 
business. According to Aero-Tech, failure to receive a small business 
exemption would likely result in a lessening of competition in the 
market for lighting companies. In its application, Aero-Tech stated 
that, failure to grant an exemption would mean that Aero-Tech would 
lose 70% of its business and have to close its doors.
    On October 15, 2018, DOE published a notice announcing its receipt 
of the application for exemption and solicited comments from interested 
parties. 83 FR 51931. In accordance with its regulations, DOE also 
transmitted Aero-Tech's application for exemption to the Attorney 
General along with: (a) A statement of the facts and of the reasons for 
the exemption, and (b) copies of all documents submitted. 10 CFR 
430.54. DOE received one comment submitted

[[Page 473]]

by the National Electrical Manufacturers Association (NEMA) which 
provided data and supporting factual information relating to rough 
service lamp sales.\4\ In its comments, NEMA provided the names of nine 
NEMA manufacturers and two non-member companies that sell rough service 
lamps. While NEMA did not take a position on the merits of Aero-Tech's 
application, NEMA's comments indicated that the demand for rough 
service lamps is decreasing as customers are migrating to light-
emitting diode (LED) light bulbs for rough service applications at 
higher light output levels.
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    \4\ NEMA's comment can be accessed at: https://www.regulations.gov/document?D=EERE-2018-BT-PET-0016-0002.
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III. Consultation with Other Agencies

    Per 42 U.S.C. 6295(t)(2), DOE obtained the written views of the 
Attorney General concerning Aero-Tech's application for exemption. 
Under this statutory provision, DOE may only grant a small business 
exemption if it has consulted with the Attorney General and finds that 
a lessening of competition would likely result. In its assessment 
letter responding to DOE, the Department of Justice (DOJ) concluded 
that failure to grant Aero-Tech's application for a small business 
exemption for rough service lamps would likely not result in a 
lessening of competition. DOJ made this determination after reviewing 
Aero-Tech's application, as well as speaking with industry 
representatives and reviewing the supplementary information submitted 
to DOE by industry representatives. As part of its analysis, DOJ noted 
that it applies the standard set forth in 42 U.S.C. 6295(t)(2), and 
examines whether failure to grant a small business exemption would 
likely result in a lessening of competition, for example, by 
substantially limiting consumer choice or increasing industry 
concentration.

IV. Order

    DOE has no independent basis to come to a different conclusion than 
the DOJ with regard to Aero-Tech's request for a small business 
exemption. Thus, DOE does not find that Aero-Tech has demonstrated that 
a failure to allow the exemption would result in a lessening of 
competition, as required under 42 U.S.C. 6295(t)(2). It is Ordered that 
the application for a small business exemption submitted on May 23, 
2018 by Aero-Tech Light Bulb Co. is denied.

    Signed in Washington, DC, on January 17, 2019.
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Daniel R. Simmons,

Assistant Secretary, Energy Efficiency and Renewable Energy.


[FR Doc. 2019-00303 Filed 1-29-19; 8:45 am]
 BILLING CODE 6450-01-P