[Federal Register Volume 77, Number 141 (Monday, July 23, 2012)]
[Proposed Rules]
[Pages 43015-43018]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17878]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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Federal Register / Vol. 77, No. 141 / Monday, July 23, 2012 / 
Proposed Rules

[[Page 43015]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2010-BT-STD-0027]
RIN 1904-AC28


Energy Conservation Standards for Commercial and Industrial 
Electric Motors: Public Meeting and Availability of the Preliminary 
Technical Support Document

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

ACTION: Notice of public meeting and availability of preliminary 
technical support document.

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SUMMARY: The U.S. Department of Energy (DOE or Department) will hold a 
public meeting to discuss and receive comments on the following: the 
equipment classes DOE plans to analyze for the purpose of amending 
energy conservation standards for certain commercial and industrial 
electric motors under section 342(b) of the Energy Policy and 
Conservation Act (EPCA), as amended; the analytical framework, models, 
and tools that DOE plans to use to evaluate standards for this type of 
equipment; the results of preliminary analyses performed by DOE for 
this equipment; and the potential energy conservation standard levels 
derived from these analyses, which DOE may consider for this equipment. 
DOE also encourages interested parties to submit written comments on 
these subjects. To inform interested parties and facilitate the public 
meeting and comment process, DOE has prepared an agenda, a preliminary 
technical support document (TSD), and briefing materials, which are 
available at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/electric_motors.html

DATES: The Department will hold a public meeting on Tuesday, August 21, 
2012, from 9:00 a.m. to 4:00 p.m. in Washington, DC. Any person 
requesting to speak at the public meeting should submit such request, 
along with an electronic copy of the statement to be given at the 
public meeting, before 4:00 p.m., Tuesday, August 7, 2012. Written 
comments are welcome, especially following the public meeting, and 
should be submitted by September 7, 2012.

ADDRESSES: The public meeting will be held at the U.S. Department of 
Energy, Forrestal Building, Room 8E-089, 1000 Independence Avenue SW., 
Washington, DC 20585-0121. Please note that foreign nationals 
participating in the public meeting are subject to advance security 
screening procedures. If a foreign national wishes to participate in 
the public meeting, please contact Ms. Brenda Edwards, at (202) 586-
2945, not later than August 7, 2012, to provide sufficient time to 
complete the required screening process.
    Interested persons may submit comments, identified by the notice 
title (Notice of Public Meeting (NOPM) for Energy Conservation 
Standards for Commercial and Industrial Electric Motors under section 
342(b) of the Energy Policy and Conservation Act (EPCA)), and provide 
the docket number (EERE-2010-BT-STD-0027) and/or the regulatory 
information number ((RIN) 1904-AC28). 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: ElecMotors-2010-STD-0027@ee.doe.gov. Include the docket 
number and/or RIN in the subject line of the message.
    3. Postal 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 compact disk (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, in which case it is not necessary to 
include printed copies.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to Office of Energy Efficiency and 
Renewable Energy through the methods previously listed and by email to 
Chad_S_Whiteman@omb.eop.gov.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section IV of this document 
(Public Participation).
    Docket: The docket is available for review at www.regulations.gov, 
including Federal Register notices, framework documents, public meeting 
attendee lists and transcripts, comments, and other supporting 
documents/materials. All documents in the docket are listed in the 
www.regulations.gov index. However, not all documents listed in the 
index may be publicly available, such as information that is exempt 
from public disclosure.
    A link to the docket web page can be found at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/electric_motors.html. This web page will contain a link to the docket 
for this notice on the regulations.gov site. The regulations.gov web 
page will contain simple instructions on how to access all documents, 
including public comments, in the docket.
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact Ms. Brenda Edwards at (202) 586-2945 or by email: 
Brenda.Edwards@ee.doe.gov.

FOR FURTHER INFORMATION CONTACT: Mr. James Raba, 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. Telephone: (202) 586-8654. Email: Jim.Raba@ee.doe.gov.
    In the Office of the General Counsel, contact Ms. Ami Grace-Tardy, 
U.S. Department of Energy, Office of the General Counsel, GC-71, 1000 
Independence Avenue SW., Washington, DC 20585. Telephone: (202) 586-
5709. Email: Ami.Grace-Tardy@hq.doe.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Statutory Authority

[[Page 43016]]

II. History of Standards Rulemaking for Commercial and Industrial 
Electric Motors
    A. Background
    B. Current Rulemaking Process
III. Summary of the Analyses
    A. Engineering Analysis
    B. Markups To Determine Equipment Prices
    C. Energy Use Analysis
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis
IV. Public Participation

I. Statutory Authority

    The Energy Policy and Conservation Act (EPCA), Public Law 94-163, 
42 U.S.C. 6291-6317, as amended by the Energy Policy Act of 1992 (EPACT 
1992), Public Law 102-486, establishes energy conservation standards 
and test procedures for certain commercial and industrial electric 
motors manufactured (alone or as a component of another piece of 
equipment) after October 24, 1997. In December 2007, the Energy 
Independence and Security Act of 2007 (EISA 2007), Public Law 110-140, 
amended EPCA to update the established energy conservation standards 
for electric motors and set forth additional energy conservation 
standards for a larger scope of motors not previously covered. (42 
U.S.C. 6313(b)(2))
    EPCA directs that the Secretary of Energy shall publish a final 
rule no later than 24 months after the effective date of the previous 
final rule to determine whether to amend the standards in effect for 
such equipment. Any such amendment would apply to electric motors 
manufactured after a date which is five years after: (i) The effective 
date of the previous amendment; or (ii) if the previous final rule did 
not amend the standards, the earliest date by which a previous 
amendment could have been effective. (42 U.S.C. 6313(b)(4)(B))
    Before amending any energy conservation standard for certain 
commercial and industrial electric motors, the U.S. Department of 
Energy (DOE or the Department) must first solicit comments on a 
proposed standard. In doing so, the standard must generally be designed 
to: (1) achieve the maximum improvement in energy efficiency that is 
technologically feasible and economically justified; and (2) result in 
significant conservation of energy. (42 U.S.C. 6295(o)(2)(A) and 
(o)(3)(B), 42 U.S.C. 6316(a)) To determine whether a proposed standard 
is economically justified, DOE must, after receiving comments on the 
proposed standard, determine whether the benefits of the standard 
exceed its burdens to the greatest extent practicable, weighing the 
following seven factors:
    1. The economic impact of the standard on manufacturers and 
customers of equipment subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered equipment in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered equipment which are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy savings likely to result 
directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the covered 
equipment likely to result from the imposition of the standard;
    5. The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
imposition of the standard;
    6. The need for national energy conservation; and
    7. Other factors the Secretary of Energy considers relevant. (42 
U.S.C. 6295(o)(2)(B)(i) and 6316(a))
    Prior to proposing a standard, DOE typically seeks public input on 
the analytical framework, and software models and tools that will be 
used to evaluate standards; the results of preliminary analyses; and 
potential energy conservation standard levels derived from these 
analyses. Today's notice announces the availability of a preliminary 
technical support document (TSD), which details the preliminary 
analyses performed by DOE and summarizes the preliminary results. In 
addition, DOE is announcing a public meeting to solicit feedback from 
interested parties on its analytical framework, models, and preliminary 
results.

II. History of Standards Rulemaking for Commercial and Industrial 
Electric Motors

    The following sections provide a brief summary of the rulemaking 
activities for commercial and industrial electric motors energy 
conservation standards.

A. Background

    The amendments created by EISA 2007 comprise the most recent 
revisions to EPCA and the energy conservation standards for electric 
motors. Because these amendments are already effective and required for 
manufacturers to meet, DOE is, consistent with the statute, planning to 
publish a final rule to determine whether to amend the EISA 2007 energy 
conservation standards for electric motors. Any amended standards that 
DOE establishes would be published as part of that determination and 
would apply to electric motors manufactured on a date starting no 
earlier than five years after the December 19, 2010, effective date of 
the previous electric motors standard. Therefore, any amended standards 
that DOE establishes as a result of this rulemaking would have a 
compliance date no sooner than December 19, 2015. (42 U.S.C. 
6313(b)(4)(B))

B. Current Rulemaking Process

    To initiate the commercial and industrial electric motors 
rulemaking, the Department published on its Web site the ``Energy 
Conservation Standards Rulemaking Framework Document for Commercial and 
Industrial Electric Motors'' (75 FR 59657 (September 28, 2010)) The 
framework document describes the procedural and analytical approaches 
DOE anticipates using to evaluate energy conservation standards for 
electric motors. This document is available at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/electric_motors.html.
    DOE held a public meeting on October 18, 2010, to discuss the 
analyses and issues identified in various sections of the framework 
document. At the meeting, DOE described the different analyses it would 
conduct, the methods proposed for conducting them, and the 
relationships among the various analyses. Representatives for 
manufacturers, trade associations, energy efficiency advocacy 
organizations, testing laboratories, and other interested parties 
attended the meeting. Comments received since publication of the 
framework document have helped DOE identify and resolve issues involved 
in the preliminary analyses. Chapter 2 of the preliminary TSD 
summarizes and addresses the comments DOE received.

III. Summary of the Analyses

    For each type of electric motor under consideration in this 
rulemaking, DOE conducted in-depth technical analyses in the following 
areas: (1) Engineering, (2) markups to determine equipment price, (3) 
energy use, (4) life-cycle cost (LCC) and payback period (PBP), and (5) 
national impact analysis (NIA). The preliminary TSD presents the 
methodology and results of each of these analyses. It is available at 
the web address given in the SUMMARY section of this notice (http://www1.eere.energy.gov/buildings/appliance_standards/commercial/electric_motors.html). The analyses are

[[Page 43017]]

described in more detail following this paragraph.
    DOE also conducted several other analyses that either support the 
five major analyses or are preliminary analyses that will be expanded 
upon for a notice of proposed rulemaking (NOPR) if DOE determines that 
amended energy conservation standards are technologically feasible, 
economically justified, and would save a significant amount of energy, 
based on the information presented to the Department. The analyses 
include a market and technology assessment, screening analysis (that 
contributes to the engineering analysis), and shipments analysis (that 
contributes to the NIA). In addition to these analyses, DOE has 
completed preliminary work on a manufacturer impact analysis (MIA) that 
includes methodologies to be used for the LCC subgroup analysis, the 
emissions analysis, the employment impact analysis, the regulatory 
impact analysis, and the utility impact analysis. DOE will expand on 
these analyses in the NOPR.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
cost and efficiency of the equipment DOE is evaluating. This 
relationship serves as the basis for cost-benefit calculations for 
individual customers, manufacturers, and the nation. The engineering 
analysis identifies representative baseline equipment, which is the 
starting point for analyzing technologies that provide energy 
efficiency improvements. Baseline equipment refers to a model or models 
having features and technologies typically found in equipment currently 
offered for sale. The baseline model in each equipment class represents 
the characteristics of the least efficient equipment in that class and, 
for equipment already subject to energy conservation standards, usually 
is a model that just meets the current standard. Chapter 5 of the 
preliminary TSD discusses the engineering analysis.

B. Markups To Determine Equipment Prices

    DOE derives customer prices for equipment from data on manufacturer 
costs, manufacturer markups, retailer markups, distributor markups, and 
sales taxes. In deriving these markups, DOE has determined: (1) The 
distribution channels for equipment sales; (2) the markup associated 
with each party in the distribution chain; and (3) the existence and 
magnitude of differences between markups for baseline equipment 
(baseline markups) and markups for more efficient equipment 
(incremental markups). DOE calculates both overall baseline and overall 
incremental markups based on the equipment markups at each step in the 
distribution chain. The overall incremental markup relates the change 
in the manufacturer sales price of higher efficiency models (the 
incremental cost increase) to the change in the retailer or distributor 
sales price. Chapter 6 of the preliminary TSD addresses estimating 
markups.

C. Energy Use Analysis

    The energy use analysis provides estimates of the annual energy 
consumption of commercial and industrial electric motors. DOE uses 
these values in the LCC and PBP analyses and in the NIA. DOE developed 
energy consumption estimates for all equipment analyzed in the 
engineering analysis. Chapter 7 of the preliminary TSD addresses the 
energy use analysis.

D. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual customers. The LCC is the total customer 
expense for equipment over the life of the equipment. The LCC analysis 
compares the LCCs of equipment designed to meet possible energy 
conservation standards with the LCCs of the equipment likely to be 
installed in the absence of standards. DOE determines LCCs by 
considering: (1) Total or incremental installed cost to the purchaser 
(which consists of manufacturer selling price, sales taxes, 
distribution chain markups, and installation cost); (2) the operating 
expenses of the equipment (energy use and maintenance); (3) equipment 
lifetime; and (4) a discount rate that reflects the real consumer cost 
of capital and describes the LCC in present-value terms. The PBP is the 
number of years needed to recover the increase in purchase price 
(including installation cost) of more efficient equipment through 
savings in the operating cost of the equipment. It is the quotient of 
the change in total installed cost due to increased efficiency divided 
by the change in annual operating cost from increased efficiency. 
Chapter 8 of the preliminary TSD addresses the LCC and PBP analyses.

E. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total customer costs and savings expected to 
result from new standards at specific efficiency levels. DOE calculated 
NES and NPV for each candidate standard level as the difference between 
a base case forecast (without new standards) and the standards case 
forecast (with standards at that level). Cumulative energy savings are 
the sum of the annual NES determined over a specified time period. The 
national NPV is the sum over time of the discounted net savings each 
year, which consists of the difference between total operating cost 
savings and increases in total installed costs. Critical inputs to this 
analysis include shipments projections, estimated equipment lifetimes, 
and estimates of changes in shipments in response to changes in 
equipment costs due to standards. Chapter 10 of the preliminary TSD 
addresses the NIA.

IV. Public Participation

    DOE consulted with interested parties as part of its process for 
conducting all of the analyses and invites further input from the 
public on these topics. The preliminary analytical results are subject 
to revision following review and input from the public.
    The Department encourages those who wish to participate in the 
public meeting to obtain the preliminary TSD and to be prepared to 
discuss its contents. A copy of the preliminary TSD is available at the 
Web address given in the SUMMARY section of this notice. However, 
public meeting participants need not limit their comments to the topics 
identified in the preliminary TSD; the Department is also interested in 
receiving views concerning other relevant issues that participants 
believe would affect energy conservation standards for this equipment 
or that DOE should address in the NOPR.
    Furthermore, the Department invites all interested parties, 
regardless of whether they participate in the public meeting, to submit 
in writing by September 7, 2012, comments, data, and information on 
matters addressed in the preliminary TSD and on other matters relevant 
to consideration of energy conservation standards for commercial and 
industrial electric motors.
    The public meeting will be conducted in an informal, conference 
style. A court reporter will be present to record the minutes of the 
meeting. There shall be no discussion of proprietary information, costs 
or prices, market shares, or other commercial matters covered under 
United States antitrust laws.
    After the public meeting and the expiration of the period for 
submitting written statements, the Department will consider all 
comments and additional information that it obtains from interested 
parties or through further

[[Page 43018]]

analyses. Afterwards, the Department will publish either a 
determination that the standards for commercial and industrial electric 
motors need not be amended or a NOPR proposing to amend those 
standards. Any NOPR will include proposed energy conservation standards 
for the equipment covered by this rulemaking, and interested parties 
will be given an opportunity to submit written and oral comments on the 
proposed standards.

    Issued in Washington, DC, on July 10, 2012.
Kathleen B. Hogan,
Deputy Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2012-17878 Filed 7-20-12; 8:45 am]
BILLING CODE 6450-01-P