[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Proposed Rules]
[Pages 65603-65609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26247]
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DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE-2014-BT-STD-0048]
RIN 1904-AD37
Energy Conservation Program: Energy Conservation Standards for
Residential Central Air Conditioners and Heat Pumps; Request for
Information
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Request for information (RFI).
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SUMMARY: The U.S. Department of Energy (DOE) is initiating an effort to
determine whether to amend the current energy conservation standards
for residential central air conditioner and heat pump products.
According to the Energy Policy and Conservation Act's 6-year review
requirement (42 U.S.C. 6295(m)(1)), DOE must publish a notice of
proposed rulemaking to propose new standards for residential central
air conditioner and heat pump products or a notice of determination
that the existing standards do not need to be amended by June 6, 2017.
This RFI seeks to solicit information from the public to help DOE
determine whether amended standards for residential central air
conditioner and heat pump products would result in a significant amount
of additional energy savings and whether those standards would be
technologically feasible and economically justified.
DATES: Written comments and information are requested on or before
December 5, 2014.
ADDRESSES: Interested parties are encouraged to submit comments
electronically. However, comments may be submitted by any of the
following methods:
Federal eRulemaking Portal: www.regulations.gov. Follow
the instructions for submitting comments.
Email to the following address:
[email protected]. Include docket number EERE-2014-BT-
STD-0048 and/or RIN 1904-AD37 in the subject line of the message. All
comments should clearly identify the name, address, and, if
appropriate, organization of the commenter.
[[Page 65604]]
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Request for
Information for Energy Conservation Standards for Residential Central
Air Conditioners and Heat Pumps, Docket No. EERE-2014-BT-STD-0048 and/
or RIN 1904-AD37, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, Sixth Floor, 950 L'Enfant
Plaza SW., Washington, DC 20024. Please submit one signed paper
original.
Instructions: All submissions received must include the agency name
and docket number and/or RIN for this rulemaking. No telefacsimiles
(faxes) will be accepted.
Docket: The docket is available for review at www.regulations.gov,
including Federal Register notices, 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://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0048. This Web
page contains a link to the docket for this notice on the
www.regulations.gov Web site. The www.regulations.gov Web page contains
simple instructions on how to access all documents, including public
comments, in the docket.
For 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:
[email protected].
FOR FURTHER INFORMATION CONTACT: Direct requests for additional
information may be sent to:
Ms. Ashley Armstrong, 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:
202-586-6590. Email: [email protected].
Ms. Johanna Hariharan, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 287-6307. Email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority and Background
B. Rulemaking Process
II. Request for Information and Comments
A. Market Assessment and Screening Analysis
B. Engineering Analysis
C. Markups Analysis
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period Analysis
F. Shipments Analysis
G. National Impact Analysis
H. Manufacturer Impact Analysis
I. Submission of Comments
I. Introduction
A. Authority and Background
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) sets forth a variety of provisions designed to improve energy
efficiency and established the Energy Conservation Program for Consumer
Products Other Than Automobiles, a program covering major household
appliances (collectively referred to as ``covered products''),
including residential central air conditioners and heat pumps that are
the subject of this rulemaking. (42 U.S.C. 6292(a)(3))
EPCA prescribed energy conservation standards for central air
conditioners and heat pumps and directed DOE to conduct two cycles of
rulemakings to determine whether to amend these standards. (42 U.S.C.
6295(d)(1)-(3)) DOE completed the second of the two rulemaking cycles
by publishing a direct final rule on June 27, 2011 (2011 Direct Final
Rule). 76 FR 37414. The DFR amended standards for central air
conditioners and heat pumps manufactured on or after January 1, 2015.
These amended standards differ by region. (10 CFR 430.32(c)(2)-(5)) DOE
seeks comment from interested parties as to whether DOE should consider
and analyze amended standards on a national basis or amended standards
that differ by region for central air conditioners and heat pumps.
EPCA requires that, not later than 6 years after the issuance of a
final rule establishing or amending a standard, DOE publish a NOPR
proposing new standards or a notice of determination that the existing
standards do not need to be amended. (42 U.S.C. 6295(m)(1)) Based on
this provision, DOE must publish by June 6, 2017 either a NOPR
proposing new standards for residential central air conditioners and
heat pumps or a notice of determination that the existing standards do
not need to be amended. Today's notice seeks input from the public to
assist DOE with its determination on whether amended standards
pertaining to residential central air conditioners and heat pumps are
warranted. In making this determination, DOE must evaluate whether more
amended standards would (1) yield a significant savings in energy use
and (2) be both technologically feasible and economically justified.
(42 U.S.C. 6295(o)(3)(B))
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products. EPCA requires that any new or
amended energy conservation standard be designed to achieve the maximum
improvement in energy or water efficiency that is technologically
feasible and economically justified. To determine whether a standard is
economically justified, EPCA requires that DOE determine whether the
benefits of the standard exceed its burdens by considering, to the
greatest extent practicable, the following:
1. The economic impact of the standard on the manufacturers and
consumers of the affected products;
2. The savings in operating costs throughout the estimated average
life of the product compared to any increases in the initial cost, or
maintenance expense, 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 products
likely to result from the imposition of the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy and water conservation; and
7. Other factors the Secretary of Energy (Secretary) considers
relevant. (42 U.S.C. 6295 (o)(2)(B)(i))
DOE fulfills these and other applicable requirements by conducting
a series of analyses throughout the rulemaking process. Table B.1 shows
the individual analyses that are performed to satisfy each of the
requirements within EPCA.
[[Page 65605]]
Table B.1--EPCA Requirements and Corresponding DOE Analysis
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EPCA requirement Corresponding DOE analysis
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Technological Feasibility........ Market and Technology
Assessment.
Screening Analysis.
Engineering Analysis.
Economic Justification:
1. Economic impact on Manufacturer Impact
manufacturers and consumers. Analysis.
Life-Cycle Cost and Payback
Period Analysis.
Life-Cycle Cost Subgroup
Analysis.
Shipments Analysis.
2. Lifetime operating cost Markups for Product Price
savings compared to Determination.
increased cost for the Energy and Water Use
product. Determination.
Life-Cycle Cost and Payback
Period Analysis.
3. Total projected energy Shipments Analysis.
savings.
National Impact Analysis.
4. Impact on utility or Screening Analysis.
performance.
Engineering Analysis.
5. Impact of any lessening of Manufacturer Impact
competition. Analysis.
6. Need for national energy Shipments Analysis.
and water conservation.
National Impact Analysis.
7. Other factors the Emissions Analysis.
Secretary considers relevant.
Utility Impact Analysis.
Employment Impact Analysis.
Monetization of Emission
Reductions Benefits.
Regulatory Impact Analysis.
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As detailed throughout this RFI, DOE is specifically publishing
this notice as the first step in the analysis process and is
specifically requesting input and data from interested parties to aid
in the development of the technical analyses.
II. Request for Information and Comments
In the next section, DOE has identified a variety of questions that
DOE would like to receive input on to aid in the development of the
technical and economic analyses regarding whether new standards for
residential central air conditioners and heat pumps may be warranted.
In addition, DOE welcomes comments on other issues relevant to the
conduct of this rulemaking that may not specifically be identified in
this notice.
A. Market Assessment and Screening Analysis
The market and technology assessment provides information about the
residential central air conditioner and heat pump industry that would
be used throughout the rulemaking process. For example, this
information may address technological improvements used in the design
and manufacturing of such products. DOE uses qualitative and
quantitative information to characterize the structure of the
residential central air conditioner and heat pump industry and market.
In this analysis, DOE will identify and characterize the manufacturers
of residential central air conditioners and heat pumps, estimate market
shares and trends, address regulatory and non-regulatory initiatives
intended to improve energy efficiency or reduce energy consumption, and
explore the potential for technological improvements in the design and
manufacturing of residential central air conditioners and heat pumps.
DOE will also review product literature, industry publications, and
company Web sites. Additionally, DOE will also consider conducting
interviews with manufacturers to assess the overall market for
residential central air conditioners and heat pumps.
Product Classes
When evaluating and establishing energy conservation standards, DOE
may divide covered products into product classes by the type of energy
used or by capacity or other performance-related features that would
justify a different standard. In making a determination whether a
performance-related feature justifies a different standard, DOE must
consider factors such as the utility to the consumer of the feature and
other factors DOE determines are appropriate. (42 U.S.C. 6295(q)) The
energy conservation standards for residential central air conditioners
and heat pumps established by the 2011 Direct Final Rule will become
effective on January 1, 2015. 10 CFR Part 430.32(c)(2) lists the seven
product classes for residential central air conditioners and heat pumps
and their corresponding energy conservation standards. The product
classes are:
(1) Split system air conditioners
(2) Split system heat pumps
(3) Single-package air conditioners
(4) Single-package heat pumps
(5) Small duct, high velocity (SDHV) systems
(6) Space-constrained air conditioners
(7) Space-constrained heat pumps
For this rulemaking, DOE plans to maintain the existing product
classes for residential central air conditioners and heat pumps, as
presented above.
Issue A.1 DOE requests feedback on whether it should consider any
changes to the existing product classes for residential central air
conditioners and heat pumps.
Technology Assessment and Screening Analysis
The purpose of the technology assessment is to develop a
preliminary list of technologies that could potentially be used to
improve the efficiency of residential central air conditioners and heat
pumps. The purpose of the screening analysis is to screen out
technologies that are not appropriate for consideration in the
engineering analysis due to the following four factors: (1)
Technological feasibility, (2) practicability to manufacture, install,
and service, (3) impacts on product utility to consumers, and (4)
health and safety. (10 CFR 430, subpart C, appendix A, section
(4)(a)(4)) The technologies that pass the screening are called design
options and are considered in the engineering analysis. DOE uses
information about existing and past technology options and prototype
designs to help identify technologies
[[Page 65606]]
that manufacturers could use to meet and/or exceed energy conservation
standards.
The 2011 Direct Final Rule identified several design options that
are employed in central air conditioners and heat pumps. The design
options used in the 2011 Direct Final Rule analyses may still be
representative of the range of design options currently employed by
product manufacturers, as listed below:
A. Higher-efficiency compressors
B. Higher-efficiency fan motors
C. Higher-efficiency fan blades
D. Improvements to baseline coils
E. Micro-channel heat exchangers
F. Flat-tube heat exchangers
G. Heat pump defrost controls
H. Inverter technology
I. High-efficiency expansion valves
However, DOE understands that manufacturers typically introduce new
design options into the market as technology evolves over time.
Issue A.2 DOE requests comment on whether DOE should consider
design options other than those considered in the analyses supporting
the 2011 Direct Final Rule, as listed above.
B. Engineering Analysis
The engineering analysis estimates the cost-efficiency relationship
of products at different levels of increased energy efficiency. This
relationship serves as the basis for the cost-benefit calculations for
consumers, manufacturers, and the nation. In determining the cost-
efficiency relationship, DOE estimates the increase in manufacturer
cost associated with increasing the efficiency of products above the
baseline to the maximum technologically feasible (``max-tech'')
efficiency level for each product class. The baseline model is used as
a reference point for each product class in the engineering analysis
and the life-cycle cost and payback-period analyses.
Efficiency Levels
For each established product class, DOE selects a baseline model as
a reference point against which any changes resulting from energy
conservation standards can be measured. The baseline model in each
product class represents the characteristics of common or typical
products in that class. Typically, a baseline model is one that meets
the current minimum energy conservation standards by a small or zero
margin.
In the 2011 Direct Final Rule, DOE established minimum energy
conservation standards that will become effective on January 1,
2015.\1\ DOE would consider these minimum energy conservation standards
as the baseline efficiency levels for any analyses conducted to
consider amending the standards.
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\1\ In addition, the American Manufacturing Technical
Corrections Act of 2012 established minimum energy conservation
standards for small duct, high velocity systems that will become
effective on January 1, 2015. These were added to the code of
regulations in a December 3, 2013 Technical Amendment. 78 FR 72533.
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During the 2011 DFR rulemaking, DOE also established maximum-
technology (max-tech) efficiency levels for residential central air
conditioner and heat pump product classes. DOE determined each max-tech
level by researching the Air-Conditioning, Heating, and Refrigeration
Institute (AHRI) directory \2\ and the major manufacturers' product
literature.
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\2\ AHRI is the trade association representing manufacturers of
HVACR and water heating equipment within the global industry.
Products of different manufacturers are certified to AHRI and listed
in the AHRI directory: https://www.ahridirectory.org/ahridirectory/pages/home.aspx.
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DOE also set regional cooling performance standards for split
system air conditioners as a function of a Seasonal Energy Efficiency
Ratio (SEER) in the states of Virginia, Maryland, Kentucky, North and
South Carolina, Tennessee, Georgia, Florida, Alabama, Mississippi,
Arkansas, Louisiana, Texas, and Oklahoma (South), and regional
performance standards for split system and single-package air
conditioners as a function of SEER and Energy Efficiency Ratio (EER) in
the states of Arizona, California, Nevada, or New Mexico (Southwest).
In both cases, DOE has identified baseline and max-tech efficiency
levels for the respective SEER and EER values. Table B.1 summarizes
these efficiency levels.
Table B.1--Baseline and Max-Tech Efficiency Levels of Covered Products
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Product class Baseline Max-Tech
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SEER or EER (Btu/hr-W)
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Split system air conditioner SEER 13.0 26.0
<45,000 Btu/hr.......... EER 12.2 16.5
>=45,000 Btu/hr......... EER 11.7 13.0
Single-package air SEER 14.0 20.0
conditioner.
EER 11.0 13.0
Split system heat pump...... SEER 14.0 24.0
Single-packaged heat pump... SEER 14.0 16.4
Small-duct, high-velocity SEER 12.0 12.5
systems.
Space constrained air SEER 12.0 14.0
conditioner.
Space constrained heat pump. SEER 12.0 12.0
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Issue B.1 DOE requests comment on the baseline and max-tech
efficiency levels for each product class.
C. Markups Analysis
To carry out the life-cycle cost (LCC) and payback period (PBP)
calculations, DOE needs to determine the cost to the residential
consumer of baseline products that satisfies the currently applicable
standards, and the cost of the more-efficient unit the consumer would
purchase under potential amended standards. By applying a multiplier
called a ``markup'' to the manufacturer's selling price, DOE is able to
estimate the residential consumer's price.
For the 2011 Direct Final Rule, DOE used two distribution channels
to characterize how products pass from the manufacturer to the
customer: Replacement applications and new construction. 76 FR 37464-65
(June 27, 2011). For residential central air conditioning and heat pump
products installed in replacement applications, the manufacturer sells
the equipment to a wholesaler, who in turn sells it to a mechanical
contractor, who in turns sells it to the consumer. For products
installed in new construction applications, an additional link in the
distribution chain for the general
[[Page 65607]]
contractor is added. In this new construction distribution channel, the
manufacturer sells the equipment to a wholesaler, who in turn sells it
to a mechanical contractor, who in turn sells it to a general
contractor, who in turns sells it to the consumer.
To be consistent with the approach followed in the 2011 rulemaking
and for other energy consuming product rulemakings, DOE plans to
estimate the manufacturer markup based on publicly available data
(e.g., SEC 10-K reports, corporate annual reports) and feedback
obtained from manufacturers during interviews. DOE also plans to
estimate average wholesaler, mechanical contractor, and general
contractor markups based on available income statement data (e.g.,
Heating, Air-conditioning & Refrigeration Wholesalers International
(HARDI) Profit Planning Reports, Air Conditioning Contractors of
America (ACCA), U.S. Census Bureau).
Issue C.1 DOE seeks input on distribution channels relevant for
residential central air conditioners and heat pumps as well as the
percent of equipment being distributed through the channels.
Issue C.2 DOE seeks recent data to establish the markups for the
parties involved with the distribution of the equipment addressed by
today's notice.
D. Energy Use Analysis
The purpose of the energy analysis is to assess the energy-savings
potential of different product efficiencies. DOE uses the annual energy
consumption and energy-savings potential in the LCC and PBP analyses to
establish the savings in consumer operating costs at various product
efficiency levels. As part of the energy use analysis, certain
assumptions may be required regarding product application, including
how and under what conditions the product is operated.
DOE's energy use analysis estimates the range of energy use of
residential central air conditioner and heat pump products in the
field, i.e., as they are actually used by consumers. Because energy use
by such products varies greatly based on efficiency level, consumer
usage patterns, and environmental attributes, DOE will establish a
range of energy use.
Because DOE has set regional cooling-performance standards for
split system and single-package air conditioners as function of SEER
and EER, DOE will analyze the impact of increasing SEER and EER on
cooling energy savings.
Issue D.1 DOE requests stakeholder input regarding the impact of
changes in SEER and EER on cooling energy savings.
In the 2011 Direct Final Rule, DOE estimated that, based on
stakeholder input, seven-percent of central air conditioner and heat
pump shipments were utilized in commercial building applications. DOE
utilized simulations of a reference office building modeled with
EnergyPlus to estimate the representative space-cooling and space-
heating energy consumption of central air conditioners and heat pumps
in commercial buildings. For this rulemaking, DOE is considering using
the same methodology to estimate energy use in commercial building
applications.
Issue D.2 DOE requests stakeholder comment on whether a significant
enough percentage of residential central air conditioners and heat
pumps are utilized in commercial buildings to warrant considering their
use in commercial applications.
E. Life-Cycle Cost and Payback Period Analysis
The purpose of the LCC and PBP analysis is to analyze the effects
of potential amended energy conservation standards on consumers of
residential central air conditioner and heat pump products by
determining how a potential amended standard affects the consumers'
operating expenses (usually decreased) and total installed costs
(usually increased).
DOE intends to analyze the potential for variability and
uncertainty by performing the LCC and PBP calculations on a
representative sample of households from RECS for the considered
product classes using Monte Carlo simulation and probability
distributions. The analysis results are a distribution of results
showing the range of LCC savings and PBPs for a given efficiency level
relative to the baseline level. DOE plans to analyze all seven product
classes of residential central air conditioner and heat pump products.
Inputs to the LCC and PBP analysis are categorized as: (1) Inputs
for establishing the purchase expense, otherwise known as the total
installed cost, and (2) inputs for calculating the operating expense.
The primary inputs for establishing the total installed cost are the
baseline consumer price, standard-level consumer price increases, and
installation costs. Baseline consumer prices and standard-level
consumer price increases will be determined by applying markups to
manufacturer price estimates. The installation cost is added to the
consumer price to arrive at a total installed cost.
In the 2011 Direct Final Rule, DOE derived the total installed cost
from central air conditioner data in RS Means. 76 FR 37472 (June 27,
2011). DOE plans to use similar data sources for this rulemaking, with
adjustments to reflect current-day labor and material prices as well as
to scale installation cost for higher-efficiency products based on
equipment weight.
Issue E.1 DOE seeks input on the appropriateness to estimate that
changes in installation costs will scale with equipment weight.
The primary inputs for calculating the operating costs are product
energy consumption, product efficiency, electricity and gas prices and
forecasts, maintenance and repair costs, product lifetime, and discount
rates. Both product lifetime and discount rates are used to calculate
the present value of future operating expenses.
Maintenance costs are costs associated with maintaining the
operation of the product. In the 2011 Direct Final Rule, DOE utilized
sources of preventative maintenance pricing to determine maintenance
costs. 76 FR 37476 (June 27, 2011). DOE also assumed that such
maintenance costs do not change with efficiency. 76 FR 37471, 37476.
Issue E.2 DOE seeks stakeholder input on the appropriateness to
assume that changes in maintenance costs will be negligible for more-
efficient products.
Repair costs are costs associated with a major repair to the
product. In the 2011 Direct Final Rule, DOE determined the costs of
major repairs (e.g., compressor replacement) from RS Means and industry
literature. 76 FR 37476 (June 27, 2011). DOE also assumed that repair
costs vary in direct proportion with the product price at higher
efficiency levels as replacement costs for more-efficient components
are likely to be greater than components in baseline products. 76 FR
37471, 37476.
Issue E.3 DOE seeks stakeholder comment on the assumption that
repair costs vary in direct proportion to product price.
DOE measures LCC and PBP impacts of potential standard levels
relative to a base case that reflects the market in the absence of
amended standards. DOE plans to develop market-share efficiency data
(i.e., the distribution of product shipments by efficiency) for the
product classes DOE is considering, for the year in which compliance
with any amended or new standards would be required. By accounting for
consumers who already purchase more efficient products, DOE avoids
overstating the potential benefits from potential standards.
Issue E.4 DOE seeks stakeholder input and data on the fraction of
central
[[Page 65608]]
air conditioners and heat pumps that are sold above the minimum energy
efficiency standards. DOE requests such data to be provided by product
class and, for split system air conditioners, by region. DOE also
requests information on expected trends in product efficiency over the
next five years.
F. Shipments Analysis
DOE uses shipment projections by product class and efficiency level
in its analysis of the national impacts of potential standards, as well
as in the manufacturer impact analysis.
In the 2011 Direct Final Rule, DOE developed a shipments model for
residential central air conditioner and heat pump products driven by
historical shipments data, which were used to build up a product stock
and calibrate the shipments model. 76 FR 37482 (June 27, 2011).
Shipments of each product class were projected for two market sectors
that use these products: Residential and commercial sectors; for three
product placement channels in each market sector: New construction,
existing owners, and new owners; and for three climatic regions: hot-
dry, hot-humid, and rest of the U.S., which correspond to the regions
for which DOE ultimately adopted regional standards.
Issue F.1 DOE seeks stakeholder input and data showing the
distribution of shipments by product class, market sector, product
placement channel, and climactic region.
In the 2011 Direct Final Rule, DOE modeled the decision to repair
or replace equipment for existing owners and the impact that decision
would have on the shipments model. 76 FR 37482-84. DOE investigated how
increases in product purchase price and decreases in product operating
costs due to standards impact product shipments due to standards.
Issue F.2 DOE seeks input and data on factors that influence a
consumer's decisions to repair or replace failed products. In
particular, DOE is seeking historical repair cost data as a function of
efficiency.
G. National Impact Analysis
The purpose of the national impact analysis (NIA) is to estimate
aggregate impacts of potential efficiency standards at the national
level. Impacts that DOE reports include the national energy savings
(NES) from potential standards and the national NPV of the total
consumer benefits. The NIA considers lifetime impacts of potential
standards on residential central air conditioner and heat pump products
shipped in a 30-year period that begins with the expected compliance
date for new or amended standards. To develop the NES, DOE calculates
annual energy consumption of products in the building stock for the
base case and each standards case. To develop the national NPV of
consumer benefits from potential standards, DOE calculates national
annual energy expenditures and annual product expenditures for the base
case and the standards cases. DOE calculates total annual energy
expenditures using data on annual energy consumption in each case,
forecasted average annual energy prices, and shipment projections. The
difference each year between operating cost savings and increased
product expenditures is the net savings or net costs.
A key component of DOE's estimates of NES and NPV is the product
energy efficiency forecasted over time for the base case and for each
of the standards cases. In the 2011 Direct Final Rule, DOE based
projections of base-case shipment-weighted efficiency (SWEF) for the
single-packaged and split system air conditioner and heat pump product
classes off SWEF growth rates determined from historical data provided
by AHRI. 76 FR 37484-86 (June 27, 2011). Since DOE only received
efficiency data at the national level, it assumed that the efficiency
distributions and trends developed for the entire Nation are also
representative at the regional level (i.e., efficiency distributions
and trends do not vary by region). For this rulemaking, DOE plans on
considering recent trends in efficiency and input from stakeholders to
update product energy efficiency forecasts, and maintain the assumption
that efficiency trends developed for the entire Nation are also
representative at the regional level.
Issue G.1 DOE seeks stakeholder input and historical SWEF data for
residential central air conditioner and heat pumps by product class and
by region.
H. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (MIA) is to
estimate the financial impact of potential energy conservation
standards on manufacturers of residential central air conditioners and
heat pumps and to evaluate the potential impact of such standards on
employment and manufacturing capacity. The MIA includes both
quantitative and qualitative aspects. The quantitative part of the MIA
primarily relies on the Government Regulatory Impact Model (GRIM), an
industry cash-flow model used to estimate a range of potential impacts
on manufacturer profitability. The qualitative part of the MIA
addresses a proposed standard's potential impacts on manufacturing
capacity and industry competition, as well as factors such as product
characteristics, impacts on particular subgroups of firms, and
important market and product trends.
As part of the MIA, DOE intends to analyze impacts of potential
energy conservation standards on small business manufacturers of
covered products. DOE intends to use the Small Business
Administration's small business size standards to determine whether
manufacturers qualify as small businesses. The size standards are
listed by North American Industry Classification System (NAICS) code
and industry description.\3\ Manufacturing of residential central air
conditioners and heat pumps is classified under NAICS 333415, ``Air-
Conditioning and Warm Air Heating Equipment and Commercial and
Industrial Refrigeration Equipment Manufacturing.'' The SBA sets a
threshold of 750 employees or less for an entity to be considered as a
small business for this category. This 750-employee threshold would
include all employees in a business's parent company and any other
subsidiaries.
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\3\ Available at: http://www.sba.gov/content/small-business-size-standards.
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DOE conducted a market survey using publicly available information
to identify potential small manufacturers. DOE's used DOE's Compliance
Certification Management System (CCMS), industry trade association
membership directories (including AHRI), individual company Web sites,
and market research tools (e.g., Hoovers reports) to create a list of
companies that manufacture or sell products covered by this rulemaking.
DOE has initially identified seven domestic small businesses that
manufacture residential central air conditioners and heat pumps. The
small businesses identified are:
Aerosys, Inc.
Bard Manufacturing Company
First Co.
Heat Controller, Inc.
National Refrigeration and Air Conditioning Products, Inc.
Style Crest Enterprises, Inc.
Unico, Inc.
Issue H.1 DOE requests comment on what small business manufacturers
of residential central air conditioners and heat pumps have not been
identified in the above list that it should consider in its analysis.
I. Submission of Comments
DOE invites all interested parties to submit in writing by December
5, 2014,
[[Page 65609]]
comments and information on matters addressed in this notice and on
other matters relevant to DOE's consideration of new or amended energy
conservations standards for residential central air conditioners and
heat pumps. After the close of the comment period, DOE will begin
collecting data, conducting the analyses, and reviewing the public
comments, as needed. These actions will be taken to aid in the
development of a NOPR for residential central air conditioner and heat
pump products if DOE decides to amend the standards for such products.
DOE considers public participation to be a very important part of
the process for developing test procedures and energy conservation
standards. DOE actively encourages the participation and interaction of
the public during the comment period in each stage of the rulemaking
process. Interactions with and between members of the public provide a
balanced discussion of the issues and assist DOE in the rulemaking
process. Anyone who wishes to be added to the DOE mailing list to
receive future notices and information about this rulemaking should
contact Ms. Brenda Edwards at (202) 586-2945, or via email at
[email protected].
Issued in Washington, DC, on October 30, 2014.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and
Renewable Energy.
[FR Doc. 2014-26247 Filed 11-4-14; 8:45 am]
BILLING CODE 6450-01-P