[Federal Register Volume 77, Number 105 (Thursday, May 31, 2012)]
[Proposed Rules]
[Pages 32381-32389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12319]
Federal Register / Vol. 77, No. 105 / Thursday May 31, 2012 /
Proposed Rules
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DEPARTMENT OF ENERGY
10 CFR Parts 429 and 430
[Docket Number EERE-2008-BT-STD-0019]
RIN 1904-AB90
Energy Conservation Program: Energy Conservation Standards for
Residential Clothes Washers
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Proposed rule.
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SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as
amended, prescribes energy conservation standards for various consumer
products and certain commercial and industrial equipment, including
residential clothes washers. EPCA also requires the U.S. Department of
Energy (DOE) to determine whether amended standards would be
technologically feasible and economically justified, and would save a
significant amount of energy. In this proposed rule, DOE proposes
amended energy conservation standards for residential clothes washers
identical to those set forth in a direct final rule published elsewhere
in today's Federal Register. If DOE receives adverse comment and
determines that such comment may provide a reasonable basis for
withdrawing the direct final rule, DOE will publish a notice
withdrawing the final rule and will proceed with this proposed rule.
DATES: DOE will accept comments, data, and information regarding the
proposed standards no later than September 18, 2012.
ADDRESSES: See section III, ``Public Participation,'' for details.
Any comments submitted must identify the proposed rule for Energy
Conservation Standards for Residential Clothes Washers, and provide
docket number EERE-2008-BT-STD-0019 and/or regulatory information
number (RIN) number 1904-AB90. Comments may be submitted using any of
the following methods:
1. Federal eRulemaking Portal: www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: [email protected]. Include the docket number
and/or RIN in the subject line of the message.
3. Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building
Technologies Program, Mailstop EE-2J, 1000 Independence Avenue SW.,
Washington, DC 20585-0121. If possible, please submit all items on a
CD. It is not necessary to include printed copies.
4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, 950 L'Enfant Plaza SW., Suite
600, Washington, DC 20024. Telephone: (202) 586-2945. If possible,
please submit all items on a CD. It is not necessary to include printed
copies.
Docket: The docket is available for review at regulations.gov,
including Federal Register notices, framework documents, public meeting
attendee lists and transcripts, comments, and other supporting
documents/materials.
A link to the docket web page can be found at: www.regulations.gov/#!docketDetail;D=EERE-2008-BT-STD-0019.
For further information on how to submit or review public comments
or view hard copies of the docket in the Resource Room, contact Ms.
Brenda Edwards at (202) 586-2945 or email: [email protected].
FOR FURTHER INFORMATION CONTACT: Stephen L. Witkowski, U.S. Department
of Energy, Office of Energy Efficiency and Renewable Energy, Building
Technologies Program, EE-2J, 1000 Independence Avenue SW., Washington,
DC 20585-0121, (202) 586-7463, email: [email protected].
Ms. Elizabeth Kohl, U.S. Department of Energy, Office of General
Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-
0121, (202) 586-7796, email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction and Legal Authority
II. Proposed Standards
A. Benefits and Burdens of TSLs Considered for Clothes Washers
B. Summary of Benefits and Costs (Annualized) of the Standards
III. Public Participation
A. Submission of Comments
B. Public Meeting
IV. Procedural Issues and Regulatory Review
V. Approval of the Office of the Secretary
I. Introduction and Legal Authority
Title III, Part B of the Energy Policy and Conservation Act of 1975
(EPCA or the Act), Public Law 94-163 (42 U.S.C. 6291-6309, as codified)
established the Energy Conservation Program for Consumer Products Other
Than Automobiles,\1\ a program covering most major household appliances
(collectively referred to as ``covered products''), which includes the
residential clothes washers that are the subject of this rulemaking.
(42 U.S.C. 6292(a)(7)) EPCA, as amended by the Energy Information and
Security Act of 2007 (EISA 2007; Pub. L. 110-140), prescribed the
current energy conservation standards for residential clothes washers
(42 U.S.C. 6295(g)(9), and directed DOE to publish a final rule no
later than December 31, 2011, to determine whether to amend the
standards in effect for clothes washers manufactured on or after
January 1, 2015. (42 U.S.C. 6295(g)(9)(B)(i))
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\1\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
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EISA 2007 also amended EPCA, in relevant part, to grant DOE
authority DOE to issue a final rule (hereinafter referred to as a
``direct final rule'') establishing an energy conservation standard for
a covered 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, that
contains recommendations with respect to an energy conservation
standard that are in accordance with the provisions of 42 U.S.C.
6295(o). EPCA also requires that a notice of proposed rulemaking (NOPR)
that proposes an identical energy conservation standard be published
simultaneously with the direct final rule, and DOE must provide a
public comment period of at least 110 days on this proposal. (42 U.S.C.
6295(p)(4)) Not later than 120 days after issuance of the direct final
rule, if one or more adverse comments or an alternative joint
recommendation are received 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 notice of proposed rulemaking. DOE must
also publish in the Federal Register the reason why the direct final
rule was withdrawn. Id.
On July 30, 2010, DOE received the ``Agreement on Minimum Federal
Efficiency Standards, Smart Appliances, Federal Incentives and Related
Matters for Specified Appliances'' (hereinafter, the ``Joint
Petition''),\2\ a comment submitted by groups representing
manufacturers (the Association of Home
[[Page 32382]]
Appliance Manufacturers (AHAM), Whirlpool Corporation (Whirlpool),
General Electric Company (GE), Electrolux, LG Electronics, Inc. (LG),
BSH Home Appliances (BSH), Alliance Laundry Systems (ALS), Viking
Range, Sub-Zero Wolf, Friedrich A/C, U-Line, Samsung, Sharp
Electronics, Miele, Heat Controller, AGA Marvel, Brown Stove, Haier,
Fagor America, Airwell Group, Arcelik, Fisher & Paykel, Scotsman Ice,
Indesit, Kuppersbusch, Kelon, and DeLonghi); energy and environmental
advocates (American Council for an Energy Efficient Economy (ACEEE),
Appliance Standards Awareness Project (ASAP), Natural Resources Defense
Council (NRDC), Alliance to Save Energy (ASE), Alliance for Water
Efficiency (AWE), Northwest Power and Conservation Council (NPCC), and
Northeast Energy Efficiency Partnerships (NEEP)); and consumer groups
(Consumer Federation of America (CFA) and the National Consumer Law
Center (NCLC)) (collectively, the ``Joint Petitioners''). The Joint
Petitioners recommended specific energy conservation standards for
residential clothes washers that they believed would satisfy the EPCA
requirements in 42 U.S.C. 6295(o). Earthjustice submitted a comment
affirming its support for the joint petition.\3\
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\2\ DOE Docket No. EERE-2008-BT-STD-0019, Comment 32.
\3\ DOE Docket No. EERE-2008-BT-STD-0019, Comment 38.
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DOE has considered the recommended energy conservation standards
and believes that they meet the EPCA requirements for issuance of a
direct final rule. As a result, DOE has published a direct final rule
establishing energy conservation standards for clothes washers
elsewhere in today's Federal Register. If DOE receives adverse comments
that may provide a reasonable basis for withdrawal and withdraws the
direct final rule, DOE will consider those comments and any other
comments received in determining how to proceed with today's proposed
rule.
For further background information on these proposed standards and
the supporting analyses, please see the direct final rule published
elsewhere in today's Federal Register. That document includes
additional discussion on the EPCA requirements for promulgation of
energy conservation standards, the current standards for residential
clothes washers, and the history of the standards rulemakings
establishing such standards, as well as information on the test
procedures used to measure the energy efficiency of clothes washers.
The document also contains an in-depth discussion of the analyses
conducted in support of this rulemaking, the methodologies DOE used in
conducting those analyses, and the analytical results.
II. Proposed Standards
When considering proposed standards, the new or amended energy
conservation standard that DOE adopts for any type (or class) of
covered product shall be designed to achieve the maximum improvement in
energy efficiency that DOE determines is technologically feasible and
economically justified. (42 U.S.C. 6295(o)(2)(A)) In determining
whether a standard is economically justified, DOE must determine
whether the benefits of the standard exceed its burdens to the greatest
extent practicable, in light of the seven statutory factors set forth
in EPCA. (42 U.S.C. 6295(o)(2)(B)(i)) The new or amended standard must
also result in a significant conservation of energy. (42 U.S.C.
6295(o)(3)(B))
The Department considered the impacts of standards at each trial
standard level (TSL) considered by DOE, beginning with maximum
technologically feasible level, to determine whether that level was
economically justified. Where the max-tech level was not economically
justified, DOE then considered the next most efficient level and
undertook the same evaluation until it reached the highest efficiency
level that is both technologically feasible and economically justified
and saves a significant amount of energy.
To aid the reader as DOE discusses the benefits and burdens of each
TSL, DOE has included tables that present a summary of the results of
DOE's quantitative analysis for each TSL. In addition to the
quantitative results presented in the tables, DOE also considers other
burdens and benefits that affect economic justification. These include
the impacts on identifiable subgroups of consumers, such as low-income
households and seniors, who may be disproportionately affected by a
national standard. Section V.B.1 of the direct final rule published
elsewhere in today's Federal Register presents the estimated impacts of
each TSL for these subgroups.
A. Benefits and Burdens of TSLs Considered for Clothes Washers
Table II.1 and Table II.2 present a summary of the quantitative
impacts estimated for each TSL for clothes washers. The efficiency
levels contained in each TSL are described in section V.A of the direct
final rule.
Table II.1--Summary of Results for Clothes Washer Trial Standard Levels: National Impacts
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Category TSL 1 TSL 2 TSL 3 TSL 4 TSL 5
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National Energy Savings (quads) 1.56................... 1.46.................. 2.04.................. 2.87.................. 3.32.
National Water Savings 1.11................... 1.05.................. 3.03.................. 5.33.................. 6.89.
(trillion gal.).
NPV of Consumer Benefits (2010$
billion)
3% discount rate........... 20.2................... 18.5.................. 31.29................. 41.60................. 50.48.
7% discount rate........... 8.7.................... 7.77.................. 13.01................. 16.42................. 19.92.
Cumulative Emissions Reduction
CO[ihel2] (million metric 87.65.................. 81.96................. 112.90................ 155.51................ 178.82.
tons).
NOX (thousand tons)........ 73.46.................. 68.07................. 94.16................. 130.10................ 149.70.
Hg (tons).................. 0.198.................. 0.226................. 0.269................. 0.364................. 0.413.
Value of Cumulative Emissions
Reduction
CO[ihel2] (2010$ million)*. 410 to 6527............ 384 to 6112........... 530 to 8457........... 729 to 11613.......... 838 to 13357.
NOX--3% discount rate 22 to 224.............. 20 to 207............. 28 to 286............. 39 to 396............. 44 to 456.
(2010$ million).
NOX--7% discount rate 9 to 97................ 9 to 90............... 12 to 122............. 17 to 171............. 19 to 197.
(2010$ million).
Generation Capacity 0.882.................. 1.01.................. 1.30.................. 1.64.................. 1.86.
Reduction (GW) \**\.
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Parentheses indicate negative (-) values.
* Range of the economic value of CO[ihel2] reductions is based on estimates of the global benefit of reduced CO[ihel2] emissions.
** Changes in 2044.
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Table II.2--Summary of Results for Clothes Washer Trial Standard Levels: Consumer and Manufacturer Impacts
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Category TSL 1 TSL 2 TSL 3* TSL 4 TSL 5
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Manufacturer Impacts
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Industry NPV (2010$ million).................................. (56.3)-(64.0) (14.3)-(490.3) 96.4-(858.8) 205.0-(1,256.4) 255.5-(1,335.3)
Industry NPV (% change)....................................... (2.2)-(2.5) (0.6)-(19.0) 3.7-(33.2) 7.9-(48.6) 9.9-(51.6)
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Consumer Mean LCC Savings (2010$)
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Top-Loading Standard Clothes Washer........................... 268 243 268/366 491 524
Front-Loading Standard Clothes Washer......................... **NA 2.2 37 35 102
Top-Loading Compact Clothes Washer............................ 159 159 159/312 312 312
Front-Loading Compact Clothes Washer.......................... 54 54 54 54 54
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Consumer Median PBP (years)
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Top-Loading Standard Clothes Washer........................... 0.4 0.7 0.4/0.9 1.8 1.9
Front-Loading Standard Clothes Washer......................... **NA 0.9 1.3 9.2 5.2
Top-Loading Compact Clothes Washer............................ 0.5 0.5 0.5/2.1 2.1 2.1
Front-Loading Compact Clothes Washer.......................... 0.8 0.8 0.8 0.8 0.8
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Distribution of Consumer LCC Impacts
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Top-Loading Standard Clothes Washer
Net Cost (%).............................................. 0.7 5.6 0.7/3.4 8.1 9.5
No Impact (%)............................................. 19.5 15.1 19.5/14.1 4.6 0.0
Net Benefit (%)........................................... 79.8 79.3 79.8/82.5 87.4 90.5
Front-Loading Standard Clothes Washer
Net Cost (%).............................................. 0.0 0.1 1.5 45.1 29.6
No Impact (%)............................................. 100.0 96.0 72.4 11.6 0.0
Net Benefit (%)........................................... 0.0 3.9 26.1 43.3 70.4
Top-Loading Compact Clothes Washer
Net Cost (%).............................................. 1.5 1.5 1.5/12.6 12.6 12.6
No Impact (%)............................................. 0.0 0.0 0.0 0.0 0.0
Net Benefit (%)........................................... 98.5 98.5 98.5/87.4 87.4 87.4
Front-Loading Compact Clothes Washer
Net Cost (%).............................................. 0.0 0.0 0.0 0.0 0.0
No Impact (%)............................................. 0.0 0.0 0.0 0.0 0.0
Net Benefit (%)........................................... 100.0 100.0 100.0 100.0 100.0
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Parentheses indicate negative (-) values.
* For top-loading clothes washers under TSL 3, the first number for consumer impacts refers to the standard in 2015, and the second number refers to the
standard in 2018.
** The standard level is the same as the baseline efficiency level, so no consumers are impacted and therefore calculation of a payback period is not
applicable.
DOE first considered TSL 5, which represents the max-tech
efficiency levels. TSL 5 would save 3.32 quads of energy and 6.89
trillion gallons of water, amounts DOE considers significant. Under TSL
5, the NPV of consumer benefit would be $19.92 billion, using a
discount rate of 7 percent, and $50.48 billion, using a discount rate
of 3 percent.
The cumulative emissions reductions at TSL 5 are 179 Mt of
CO[ihel2], 150 thousand tons of NOX, and 0.413 ton of Hg. The estimated
monetary value of the CO[ihel2] emissions reductions at TSL 5 ranges
from $838 million to $13,357 million. Total generating capacity in 2043
is estimated to decrease by 1.86 GW under TSL 5.
At TSL 5, the average LCC impact is a savings (LCC decrease) of
$524 for top-loading standard clothes washers, a savings of $102 for
front-loading standard clothes washers, a savings of $312 for top-
loading compact clothes washers, and a savings of $54 for front-loading
compact clothes washers. The median payback period is 1.9 years for
top-loading standard clothes washers, 5.2 years for front-loading
standard clothes washers, 2.1 years for top-loading compact clothes
washers, and 0.8 years for front-loading compact clothes washers. A
significant fraction of consumers, however, experience an LCC increase
or net cost under TSL 5 for all product classes except front-loading
compact: 9.5 percent for top-loading standard clothes washers, 30
percent for front-loading standard clothes washers, and 13 percent for
top-loading compact clothes washers. In addition, because TSL 5
significantly raises the first cost of both top-loading and front-
loading clothes washers, DOE is concerned some low-income consumers may
be compelled to delay or forgo new purchases, using commercial coin
laundries or repairing their existing clothes washers instead.
At TSL 5, the projected change in INPV ranges from an increase of
$255.5 million to a decrease of $1,335.3 million. At this TSL,
manufacturers would have to overhaul both their front-loading and top-
loading platforms by the 2015 compliance date to meet demand.
Redesigning all units to meet the current max-tech efficiency levels
would require considerable capital and product conversion expenditures.
DOE believes that the scope of the redesigns necessary to meet TSL 5 by
2015 also heightens concerns over supply chain and operational risk.
DOE estimates that complete platform redesigns would cost the industry
over $700 million in product and capital conversion costs. These costs
alone represent a substantial portion of the total value of the
industry. In addition, manufacturers could face a substantial impact on
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profitability at TSL 5. Because manufacturers earn a premium for ENERGY
STAR products and additional profit for products that exceed the ENERGY
STAR level, collapsing the market to one commodity product makes it
unlikely that manufacturers could maintain their base-case
profitability on these products after compliance with the standards is
required. As a result, DOE expects that TSL 5 would yield impacts
closer to the high end of the range of INPV impacts. If the high end of
the range of impacts is reached, as DOE expects, TSL 5 could result in
a net loss of 51.6 percent in INPV to clothes washer manufacturers.
The Secretary concludes that at TSL 5 for residential clothes
washers, the benefits of energy savings, water savings, positive NPV of
consumer benefits, generating capacity reductions, emission reductions,
and the estimated monetary value of the CO2 emissions
reductions would be outweighed by the significant fraction of consumers
that experience an increase in life-cycle cost and the impacts on
manufacturers, including the conversion costs and profit margin impacts
that could result in a very large reduction in INPV for the
manufacturers and the risk of manufacturer capacity constraints
resulting from the necessary changes by 2015. Consequently, the
Secretary has concluded that TSL 5 is not economically justified.
DOE next considered TSL 4. TSL 4 would save 2.87 quads of energy
and 5.33 trillion gallons of water, amounts DOE considers significant.
Under TSL 4, the NPV of consumer benefit would be 16.42 billion, using
a discount rate of 7 percent, and $41.60 billion, using a discount rate
of 3 percent.
The cumulative emissions reductions at TSL 4 are 156 Mt of
CO2, 130 thousand tons of NOX, and 0.364 tons of
Hg. The estimated monetary value of the CO2 emissions
reductions at TSL 4 ranges from $729 million to $11,613 million. Total
generating capacity in 2044 is estimated to decrease by 1.64 GW under
TSL 4.
At TSL 4, the average LCC impact is a savings of $491 for top-
loading standard clothes washers, a savings of $35 for front-loading
standard clothes washers, a savings of $312 for top-loading compact
clothes washers, and a savings of $54 for front-loading compact clothes
washers. The median payback period is 1.8 years for top-loading
standard clothes washers, 9.2 years for front-loading standard clothes
washers, 2.1 years for top-loading compact clothes washers, and 0.8
years for front-loading compact clothes washers. A significant fraction
of consumers, however, experience an LCC net cost for all product
classes except for front-loading compact: 8 percent for top-loading
standard clothes washers, 45 percent for front-loading standard clothes
washers, and 13 percent for top-loading compact clothes washers. In
addition, TSL 4 significantly raises the first cost of both top-loading
and front-loading clothes washers, and DOE is concerned some low-income
consumers may be compelled to delay or forgo new purchases.
At TSL 4, the projected change in INPV ranges from an increase of
$205.0 million to a decrease of $1,256.4 million. At this TSL,
manufacturers would be required to overhaul both front-loading and top-
loading platforms by the 2015 compliance date to meet demand. DOE
estimates that it would cost the industry approximately $692 million in
product and capital conversion costs at TSL 4. These costs reflect
substantial platform changes to both top-loading and front-loading
clothes washers by 2015, represent a significant portion of the total
value of the industry, and trigger capacity concerns in light of the
magnitude and timing of the necessary changes. In addition,
manufacturers could face a substantial impact on profitability at TSL
4. Because manufacturers earn a premium for ENERGY STAR products and
additional profit for products that exceed the ENERGY STAR level,
collapsing the market to a few commodity products without efficiency
differentiators makes it unlikely that manufactures could maintain
their base-case profitability on these products after standards.
Because of the effect, DOE expects that TSL 4 would yield impacts
closer to the high end of the range of INPV impacts. If the high end of
the range of impacts is reached, as DOE expects, TSL 4 could result in
a net loss of 48.6 percent in INPV to clothes washer manufacturers.
The Secretary concludes that at TSL 4 for residential clothes
washers, the benefits of energy savings, water savings, positive NPV of
consumer benefits, generating capacity reductions, emission reductions,
and the estimated monetary value of the CO2 emissions
reductions would be outweighed by the economic burden on a significant
fraction of consumers due to the large increase in product cost and the
impacts on manufacturers, including the conversion costs and profit
margin impacts that could result in a very large reduction in INPV for
manufacturers and the risk of manufacturer capacity constraints
resulting from the necessary changes by 2015. Consequently, the
Secretary has concluded that TSL 4 is not economically justified.
DOE then considered TSL 3. TSL 3 would save 2.04 quads of energy
and 3.03 trillion gallons of water, amounts DOE considers significant.
Under TSL 3, the NPV of consumer benefit would be $13.01 billion, using
a discount rate of 7 percent, and $31.29 billion, using a discount rate
of 3 percent.
The cumulative emissions reductions at TSL 3 are 113 Mt of
CO2, 94.2 thousand tons of NOX, and 0.269 ton of
Hg. The estimated monetary value of the CO2 emissions
reductions at TSL 3 ranges from $530 million to $8,457 million. Total
generating capacity in 2045 is estimated to decrease by 1.30 GW under
TSL 3.
At TSL 3, the average LCC impact is a savings of $268 in 2015 and
$366 in 2018 for top-loading standard clothes washers, a savings of $37
for front-loading standard clothes washers, a savings of $159 in 2015
and $312 in 2018 for top-loading compact clothes washers, and a savings
of $54 for front-loading compact clothes washers. The median payback
period is 0.4 years in 2015 and 0.9 years in 2018 for top-loading
standard clothes washers, 1.3 years for front-loading standard clothes
washers, 0.5 years in 2015 and 2.1 years in 2018 for top-loading
compact clothes washers, and 0.8 years for front-loading compact
clothes washers. The fraction of consumers experiencing an LCC cost is
small--less than 1 percent in 2015 and 3 percent in 2018 for top-
loading standard clothes washers, 1.5 percent for front-loading
standard clothes washers, and 1.5 percent in 2015 and 13 percent in
2018 for top-loading compact clothes washers. No consumers experience
an LCC cost for front-loading compact clothes washers. The much lower
first cost of washers meeting TSL 3, combined with the fact that the
vast majority of consumers experience either net LCC benefits or no
impacts at TSL 3, mitigates DOE's concern that some low-income
consumers would be compelled to delay or forgo new purchases.
At TSL 3, the projected change in INPV ranges from an increase of
$96.4 million to a decrease of $858.8 million. For most manufacturers,
the efficiency levels for top-loading clothes washers at TSL 3
correspond to incremental product conversion by 2015 and a platform
redesign by 2018. These compliance dates mitigate capacity risk to
manufacturers and their supply chains and afford manufacturers the
flexibility to spread capital requirements, engineering resources, and
other conversion activities over a longer period of time depending on
the
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individual needs of each manufacturer. These factors at TSL 3 mitigate
DOE's concerns about manufacturers' ability to match production
capacity to market demand. At TSL 3, DOE recognizes the risk of
negative impacts if manufacturers' expectations concerning reduced
profit margins are realized. However, the additional flexibility of the
compliance dates and range of efficiency levels above TSL 3 afford
manufacturers room to maintain higher value products. Therefore, DOE
expects impacts to be closer to the low end of the range of impacts.
The Secretary concludes that at TSL 3 for residential clothes
washers, the benefits of energy savings, water savings, positive NPV of
consumer benefits, generating capacity reductions, emission reductions,
the estimated monetary value of the CO2 emissions
reductions, and favorable consumer LCC savings and payback period for
more than 97 percent of consumers outweigh the LCC costs for less than
3 percent of consumers and the conversion costs and profit margin
impacts that could result in a reduction in INPV for manufacturers.
In addition, the efficiency levels in TSL 3 correspond to the
recommended levels in the Joint Petition, which DOE believes sets forth
a statement by interested persons that are fairly representative of
relevant points of view (including representatives of manufacturers of
covered products, States, and efficiency advocates) and contains
recommendations with respect to an energy conservation standard that
are in accordance with 42 U.S.C. 6295(o). Moreover, DOE has encouraged
the submission of consensus agreements as a way for diverse interested
parties to develop an independent and probative analysis useful in DOE
standard setting and to expedite the rulemaking process. DOE also
believes that the standard levels recommended in the consensus
agreement may increase the likelihood for regulatory compliance, while
decreasing the risk of litigation.
After considering the analysis, comments on the framework document,
and the benefits and burdens of TSL 3, the Secretary concludes that
this TSL will offer the maximum improvement in efficiency that is
technologically feasible and economically justified, and will result in
the significant conservation of energy. Therefore, DOE proposes to
adopt TSL 3 for residential clothes washers. The proposed amended
energy conservation standards for residential clothes washers, which
are a minimum allowable integrated modified energy factor (IMEF) and
maximum allowable integrated water factor (IWF), are shown in Table
II.3.
Table II.3--Proposed Amended Energy Conservation Standards for Clothes Washers
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Effective March 7, 2015 Effective January 1, 2018
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Product class Maximum IWF Maximum IWF
Minimum IMEF * [dagger] Minimum IMEF * [dagger]
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1. Top-loading, Compact (less than 1.6 ft \3\ 0.86 14.4 1.15 12.0
capacity)......................................
2. Top-loading, Standard........................ 1.29 8.4 1.57 6.5
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3. Front-loading, Compact (less than 1.6 ft \3\ 1.13 8.3 N/A
capacity)......................................
4. Front-loading, Standard...................... 1.84 4.7 N/A
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* IMEF (integrated modified energy factor) is calculated as the clothes container capacity in cubic feet divided
by the sum, expressed in kilowatt-hours (kWh), of: (1) the total weighted per-cycle hot water energy
consumption; (2) the total weighted per-cycle machine electrical energy consumption; (3) the per-cycle energy
consumption for removing moisture from a test load; and (4) the per-cycle standby and off mode energy
consumption.
[dagger] IWF (integrated water consumption factor is calculated as the sum, expressed in gallons per cycle, of
the total weighted per-cycle water consumption for all wash cycles divided by the clothes container capacity
in cubic feet.
B. Summary of Benefits and Costs (Annualized) of the Standards
The benefits and costs of today's standards can also be expressed
in terms of annualized values. The annualized monetary values are the
sum of (1) the annualized national economic value, expressed in 2010$,
of the benefits from operating products that meet the proposed
standards (consisting primarily of operating cost savings from using
less energy and water, minus increases in product purchase costs, which
is another way of representing consumer NPV), and (2) the monetary
value of the benefits of emission reductions, including CO2
emission reductions.\4\ The value of the CO2 reductions,
otherwise known as the Social Cost of Carbon (SCC), is calculated using
a range of values per metric ton of CO2 developed by a
recent interagency process.
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\4\ DOE used a two-step calculation process to convert the time-
series of costs and benefits into annualized values. First, DOE
calculated a present value in 2011, the year used for discounting
the NPV of total consumer costs and savings, for the time-series of
costs and benefits using discount rates of 3 and 7 percent for all
costs and benefits except for the value of CO2
reductions. For the latter, DOE used a range of discount rates, as
shown in Table II.4. From the present value, DOE then calculated the
fixed annual payment over a 30-year period that yields the same
present value. The fixed annual payment is the annualized value.
Although DOE calculated annualized values, this does not imply that
the time-series of cost and benefits from which the annualized
values were determined would be a steady stream of payments.
---------------------------------------------------------------------------
Although combining the values of operating savings and
CO2 reductions provides a useful perspective, two issues
should be considered. First, the national operating savings are
domestic U.S. consumer monetary savings that occur as a result of
market transactions while the value of CO2 reductions is
based on a global value. Second, the assessments of operating cost
savings and SCC are performed with different methods that use quite
different time frames for analysis. The national operating cost savings
is measured for the lifetime of products shipped in 2015-2044. The SCC
values, on the other hand, reflect the present value of all future
climate-related impacts resulting from the emission of one ton of
carbon dioxide in each year. These impacts continue well beyond 2100.
Table II.4 shows the annualized values for clothes washers. Using a
7-percent discount rate for benefits and costs other than
CO2 reductions, for which DOE used a 3-percent discount rate
along with the SCC series corresponding to a value of $22.3/ton in
2010, the cost of the standards for clothes washers in today's rule is
$185 million per year in increased equipment costs, while the
annualized benefits are $1,234 million per year in reduced equipment
operating costs, $141.7 million in CO2 reductions, and $5.4
million in reduced NOX emissions. In this case, the net
benefit amounts to $1.20 billion per year. Using a 3-percent discount
rate and for all benefits and
[[Page 32386]]
costs and the SCC series corresponding to a value of $22.3/ton in 2010,
the cost of the standards for clothes washers in today's rule is $212
million per year in increased equipment costs, while the benefits are
$1,808 million per year in reduced operating costs, $141.7 million in
CO2 reductions, and $8.0 million in reduced NOX
emissions. In this case, the net benefit amounts to $1.75 billion per
year.
Table II.4--Annualized Benefits and Costs of Proposed Amended Standards (TSL 3) for Residential Clothes Washers
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Monetized (million 2010$/year)
Discount rate --------------------------------------------------------------------------------------------------------------------
Primary estimate* Low net benefits estimate* High net benefits estimate*
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Benefits
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Cost Savings.............. 7%................................... 1234................................. 1101................................. 1379.
3%................................... 1808................................. 1587................................. 2042.
CO2 Reduction at $4.9/t**........... 5%................................... 34.5................................. 31.7................................. 37.4.
CO2 Reduction at $22.3/t**.......... 3%................................... 142.................................. 130.................................. 154.
CO2 Reduction at $36.5/t**.......... 2.5%................................. 226.................................. 207.................................. 246.
CO2 Reduction at $67.6/t**.......... 3%................................... 431.................................. 396.................................. 469.
NOX Reduction at $2,537/t**......... 7%................................... 5.40................................. 5.03................................. 5.82.
3%................................... 8.01................................. 7.39................................. 8.68.
Total[dagger]....................... 7% plus CO2 range.................... 1274 to 1671......................... 1137 to 1502......................... 1423 to 1854.
7%................................... 1381................................. 1236................................. 1539.
3% plus CO2 range.................... 1851 to 2248......................... 1626 to 1991......................... 2089 to 2520.
3%................................... 1958................................. 1725................................. 2205.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Costs
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Incremental Product Costs........... 7%................................... 185.................................. 258.................................. 200.
3%................................... 212.................................. 309.................................. 230.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total Net Benefits
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total[dagger]....................... 7% plus CO2 range.................... 1088 to 1485......................... 880 to 1244.......................... 1223 to 1654.
7%................................... 1196................................. 978.................................. 1339.
3% plus CO2 range.................... 1639 to 2036......................... 1317 to 1682......................... 1859 to 2291.
3%................................... 1746................................. 1416................................. 1976.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* The Primary, Low Benefit, and High Benefit Estimates utilize forecasts of energy prices and housing starts (which affect product shipments) from the AEO2010 Reference case, Low Economic
Growth case, and High Economic Growth case, respectively. In addition, incremental product costs reflect a declining trend using the default product price trend in the Primary Estimate and
High Benefits Estimate, and constant product prices in the Low Benefits Estimate. Because product prices are constant in the Low Benefits Estimate, the incremental product costs are higher
than in the other two estimates. Although the price trends in the Primary Estimate and the High Benefits Estimate are the same, the incremental product costs are higher in the High Benefits
Estimate because this case assumes High Economic Growth and thus has more product shipments. The approach used for forecasting product prices is explained in section IV.F.1.
** The CO2 values represent global values (in 2010$) of the social cost of CO2 emissions in 2010 under several scenarios. The values of $4.9, $22.3, and $36.5 per ton are the averages of SCC
distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $67.6 per ton represents the 95th percentile of the SCC distribution calculated using a 3% discount
rate. The value for NOX (in 2010$) is the average of the low and high values used in DOE's analysis.
[dagger] Total Benefits for both the 3% and 7% cases are derived using the SCC value calculated at a 3% discount rate, which is $22.3/ton in 2010 (in 2010$). In the rows labeled as ``7% plus
CO2 range'' and ``3% plus CO2 range,'' the operating cost and NOX benefits are calculated using the labeled discount rate, and those values are added to the full range of CO2 values.
III. Public Participation
A. Submission of Comments
DOE will accept comments, data, and information regarding this
proposed rule until the date provided in the DATES section at the
beginning of this proposed rule. Interested parties may submit
comments, data, and other information using any of the methods
described in the ADDRESSES section at the beginning of this proposed
rule.
Submitting comments via regulations.gov. The regulations.gov Web
page will require you to provide your name and contact information.
Your contact information will be viewable to DOE Building Technologies
staff only. Your contact information will not be publicly viewable
except for your first and last names, organization name (if any), and
submitter representative name (if any). If your comment is not
processed properly because of technical difficulties, DOE will use this
information to contact you. If DOE cannot read your comment due to
technical difficulties and cannot contact you for clarification, DOE
may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment itself or in any documents attached to your
comment. Any information that you do not want to be publicly viewable
should not be included in your comment, nor in any document attached to
your comment. Otherwise, persons viewing comments will see only first
and last names, organization names, correspondence containing comments,
and any documents submitted with the comments.
Do not submit to 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 regulations.gov cannot
be claimed as CBI. Comments received through the Web site will waive
any CBI claims for the information submitted. For
[[Page 32387]]
information on submitting CBI, see the Confidential Business
Information section below.
DOE processes submissions made through 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 regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email, hand delivery/courier, or mail.
Comments and documents submitted via email, hand delivery, or mail also
will be posted to regulations.gov. If you do not want your personal
contact information to be publicly viewable, do not include it in your
comment or any accompanying documents. Instead, provide your contact
information in a cover letter. Include your first and last names, email
address, telephone number, and optional mailing address. The cover
letter will not be publicly viewable as long as it does not include any
comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. Email submissions are
preferred. If you submit via mail or hand delivery/courier, 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 to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form 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/courier two well-marked copies:
One copy of the document marked confidential including all the
information believed to be confidential, and one copy of the document
marked non-confidential with the information believed to be
confidential deleted. Submit these documents via email or on a CD, if
feasible. DOE will make its own determination about the confidential
status of the information and treat it according to its determination.
Factors of interest to DOE when evaluating requests to treat
submitted information as confidential include: (1) A description of the
items; (2) whether and why such items are customarily treated as
confidential within the industry; (3) whether the information is
generally known by or available from other sources; (4) whether the
information has previously been made available to others without
obligation concerning its confidentiality; (5) an explanation of the
competitive injury to the submitting person which would result from
public disclosure; (6) when such information might lose its
confidential character due to the passage of time; and (7) why
disclosure of the information would be contrary to the public interest.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
B. Public Meeting
If DOE withdraws the direct final rule published elsewhere in
today's Federal Register pursuant to 42 U.S.C. 6295(p)(4)(C), DOE will
hold a public meeting to allow for additional comment on this proposed
rule. DOE will publish notice of any meeting in the Federal Register.
C. Issues on which DOE seeks Comment
As stated previously, pursuant to 42 U.S.C. 6295(p)(4), DOE
promulgated a direct final rule establishing standards for residential
clothes washers elsewhere in today's Federal Register. The standards
established in the direct final rule are the same standards proposed in
today's NOPR. In promulgating the direct final rule, DOE carefully
considered the Joint Petition submitted to DOE, which contained a
consensus recommendation for amended energy conservation standards for
residential clothes washers. For the reasons stated in the direct final
rule, the Secretary determined that the ``Consensus Agreement'' was
submitted by interested persons who are fairly representative of
relevant points of view on this matter. The Secretary also determined,
for the reasons set forth in the direct final rule, that the standards
contained in the Consensus Agreement comport with the standard-setting
criteria set forth under 42 U.S.C. 6295(o). Therefore, the Secretary
promulgated the direct final rule establishing the amended energy
conservation standards for residential clothes washers.
(1) As required by the same statutory provision, DOE is also
simultaneously publishing this NOPR and providing for a 110-day public
comment period. Should DOE determine to proceed with this NOPR, or to
gather additional data for future energy conservation standards
activities for residential clothes washers, DOE will consider any
comments and data received on these proposed standards. Although
comments are welcome on all aspects of this rulemaking, DOE is
particularly interested in comments on the following:
(1) Impacts of the standards that may lessen or improve the utility
or performance of the covered products. These impacts may include
increased cycle times to wash clothes, ability to achieve good wash
performance (e.g., cleaning and rinsing), increased longevity of
clothing, improved ergonomics of washer use, increase in noise, and
other potential impacts.
(2) The 2015 and 2018 compliance dates for the proposed standards
and whether these compliance dates adequately consider the typical
clothes washer model design cycle for manufacturers.
(3) Whether repair costs for residential clothes washers would
increase at the efficiency levels indicated in today's rule due to any
changes in the design and materials and components used in order to
comply with the new efficiency standards.
(4) Where there would be any anticipated changes in the consumption
of complementary goods (e.g., laundry detergent, stain removers, fabric
softeners) that may result from the proposed standards.
(5) Whether DOE should incorporate the cost of risers or storage
drawers (also referred to as pedestals) into the baseline installation
costs for front-loading machines.
Changes in the Utility of the Products
DOE has prepared a technical support document (TSD) that analyzed
the effect of this rule on, among other things, life cycle costs,
payback periods and other consumer-related impacts. However, there are
other facets of consumer welfare that are not explicitly captured in
this analysis, including washing performance, increased longevity of
clothing, and noise. While information
[[Page 32388]]
gathered in the course of this rulemaking did not demonstrate a linkage
between these topics and efficiency standards, DOE is seeking comment
and information on how consumers value changes in these attributes and
if those values should be incorporated into DOE analysis.
Also, although it is outside the scope of this rule, DOE may
consider seeking information on whether to account for wash performance
and fabric care in test procedures for clothes washers.
2015 and 2018 Compliance Dates
DOE is seeking comment on redesign timelines anticipated by the
manufacturers and how the 2015 and 2018 compliance dates may affect
those timelines. DOE's manufacturer impact analysis is based on
information provided by the manufacturer and supports the positions
that manufacturers will need to make only minor redesign to comply with
the 2015 standards, though the 2018 standards could require more
substantial redesigns. Accepting that manufacturers fully considered
their cost implications prior to entering voluntarily the consensus
agreement, DOE assumes that manufacturers would not have agreed to
compliance dates they could not meet or that imposed prohibitive costs.
However, depending on how the redesign timeline and the compliance
dates coincide, the cost estimates may be affected, for example, due to
sunk cost, as well as the anticipated market shares of front-loading
versus top-loading clothes washers.
IV. Procedural Issues and Regulatory Review
The regulatory reviews conducted for this proposed rule are
identical to those conducted for the direct final rule published
elsewhere in today's Federal Register. Please see the direct final rule
for further details.
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of today's
proposed rule.
List of Subjects
10 CFR Part 429
Administrative practice and procedure, Confidential business
information, Energy conservation, Household appliances, and Reporting
and recordkeeping requirements.
10 CFR Part 430
Administrative practice and procedure, Confidential business
information, Energy conservation, Household appliances, Imports,
Intergovernmental relations, and Small businesses.
Issued in Washington, DC, on May 11, 2012.
David Danielson,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the preamble, DOE proposes to amend
parts 429 and 430 of title 10 of the Code of Federal Regulations, as
set forth below:
PART 429--CERTIFICATION, COMPLIANCE, AND ENFORCEMENT FOR CONSUMER
PRODUCTS AND COMMERCIAL AND INDUSTRIAL EQUIPMENT
1. The authority citation for part 429 continues to read as
follows:
Authority: 42 U.S.C. 6291-6317.
2. In Sec. 429.20 revise paragraph (b)(2) to read as follows:
Sec. 429.20 Residential clothes washers.
* * * * *
(b) * * *
(2) Pursuant to Sec. 429.12(b)(13), a certification report shall
include the following public product-specific information:
(i) For residential clothes washers manufactured before March 7,
2015: The modified energy factor (MEF) in cubic feet per kilowatt hour
per cycle (cu ft/kWh/cycle) and the capacity in cubic feet (cu ft). For
standard-size residential clothes washers, a water factor (WF) in
gallons per cycle per cubic feet (gal/cycle/cu ft).
(ii) For residential clothes washers manufactured on or after March
7, 2015: The integrated modified energy factor (IMEF) in cu ft/kWh/
cycle, the integrated water factor (IWF) in gal/cycle/cu ft, the
capacity in cu ft and the type of loading (top-loading or front-
loading).
* * * * *
PART 430--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS
3. The authority citation for part 430 continues to read as
follows:
Authority: 42 U.S.C. 6291-6309; 28 U.S.C. 2461 note.
4. In Sec. 430.32 revise paragraph (g) to read as follows:
Sec. 430.32 Energy and water conservation standards and their
effective dates.
* * * * *
(g) Clothes washers. (1) Clothes washers manufactured on or after
January 1, 2007 shall have a Modified Energy Factor no less than:
------------------------------------------------------------------------
Modified energy
Product class factor (cu.ft./
kWh/cycle)
------------------------------------------------------------------------
i. Top-loading, Compact (less than 1.6 ft\3\ 0.65.
capacity)...........................................
ii. Top-loading, Standard (1.6 ft\3\ or greater 1.26.
capacity)...........................................
iii. Top-Loading, Semi-Automatic..................... \1\ Not
Applicable.
iv. Front-loading.................................... 1.26.
v. Suds-saving....................................... \1\ Not
Applicable.
------------------------------------------------------------------------
\1\ Must have an unheated rinse water option.
(2) All top-loading or front-loading standard-size residential
clothes washers manufactured on or after January 1, 2011, and before
March 7, 2015, shall meet the following standard--
(i) A Modified Energy Factor of at least 1.26; and
(ii) A Water Factor of not more than 9.5.
(3) Clothes washers manufactured on or after March 7, 2015, and
before January 1, 2018, shall have an Integrated Modified Energy Factor
no less than, and an Integrated Water Factor no greater than:
[[Page 32389]]
------------------------------------------------------------------------
Integrated
modified energy Integrated water
Product class factor (cu.ft./ factor (gal/cycle/
kWh/cycle) cu.ft.)
------------------------------------------------------------------------
i. Top-loading, Compact (less than 0.86 14.4
1.6 ft\3\ capacity)..............
ii. Top-loading, Standard (1.6 1.29 8.4
ft\3\ or greater capacity).......
iii. Front-loading, Compact (less 1.13 8.3
than 1.6 ft\3\ capacity).........
iv. Front-loading, Standard (1.6 1.84 4.7
ft\3\ or greater capacity).......
------------------------------------------------------------------------
(4) Clothes washers manufactured on or after January 1, 2018 shall
have an Integrated Modified Energy Factor no less than, and an
Integrated Water Factor no greater than:
------------------------------------------------------------------------
Integrated
modified energy Integrated water
Product class factor (cu.ft./ factor (gal/cycle/
kWh/cycle) cu.ft.)
------------------------------------------------------------------------
i. Top-loading, Compact (less than 1.15 12.0
1.6 ft\3\ capacity)..............
ii. Top-loading, Standard (1.6 1.57 6.5
ft\3\ or greater capacity).......
iii. Front-loading, Compact (less 1.13 8.3
than 1.6 ft\3\ capacity).........
iv. Front-loading, Standard (1.6 1.84 4.7
ft\3\ or greater capacity).......
------------------------------------------------------------------------
* * * * *
[FR Doc. 2012-12319 Filed 5-30-12; 8:45 am]
BILLING CODE 6450-01-P