[Federal Register Volume 59, Number 188 (Thursday, September 29, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-24127] [[Page Unknown]] [Federal Register: September 29, 1994] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Office of Energy Efficiency and Renewable Energy [Case No. CD-001] Energy Conservation Program for Consumer Products; Denial of Miele Appliance Inc.'s Application for Interim Waiver and Publishing of the Company's Petition for Waiver From the Existing Department of Energy Clothes Dryer Test Procedure AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. SUMMARY: Today's notice publishes a letter denying an Interim Waiver to Miele Appliance Inc. (Miele) from the existing Department of Energy (DOE or Department) clothes dryer test procedure for its clothes dryer models T1515A, T1520, T1565CA, and T1570C with a reverse tumble feature which Miele contends allows it to use a smaller capacity drum for a larger clothes dryer load. The existing clothes dryer test procedure does not have any recognition of the reverse tumble design feature. Today's notice also publishes a ``Petition for Waiver'' from Miele. Miele's Petition for Waiver requests DOE to grant relief from the DOE clothes dryer test procedure relating to its clothes dryer models T1515A, T1520, T1565CA, and T1570C. The appendices to Miele's letter were not suitable for publication in the Federal Register and are available upon request from the contact person listed below. Miele seeks to revise the definitions of compact and standard size clothes dryers in the test procedure. DOE is soliciting comments and information regarding the Petition for Waiver. Specifically, the Department is seeking technical information/data on how the reverse tumble feature affects test load capacity. DATES: DOE will accept comments, data, and information not later than October 31, 1994. ADDRESSES: Written comments and statements shall be sent to: Department of Energy, Office of Energy Efficiency and Renewable Energy, Case No. CD-001, Mail Stop EE-431, Room 5E-066, Forrestal Building, 1000 Independence Avenue, SW, Washington, DC, 20585 (202) 586-7140. FOR FURTHER INFORMATION CONTACT: P. Marc LaFrance U.S. Department of Energy, Appliance Standards Division, Office of Codes and Standards, Office of Building Technologies, Office of Energy Efficiency and Renewable Energy, Mail Stop EE-431, Forrestal Building, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-8423 Eugene Margolis, Esq, U.S. Department of Energy, Office of General Counsel, Mail Stop GC-72, Forrestal Building, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-9507 SUPPLEMENTARY INFORMATION: The Energy Conservation Program for Consumer Program Products (other than automobiles) was established pursuant to the Energy Policy and Conservation Act (EPCA), Public Law 94-163, 89 Stat. 917, as amended by the National Energy Conservation Act (NECPA), Public Law 95-619, 92 Stat. 3266, the National Appliance Energy Conservation Act of 1987 (NAECA), Public Law 100-12, the National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), Public Law 100-357, and the Energy Policy Act of 1992, Public Law 102-486, 106 Stat. 2776, which requires DOE to prescribe standardized test procedures to measure the energy efficiency, energy use, or estimated annual operating cost of covered consumer products, including clothes dryers. The clothes dryer test procedure, among other things, provides a means of calculating an energy factor, a measure of energy efficiency, which is used to determine if a product is compliant with the minimum energy conservation standards. The Department imposed amended energy conservation standards requiring minimum energy factors for four of the five classes of clothes dryers in a final rule (56 FR 22279) issued May 14, 1991, and which is effective for products manufactured on or after May 14, 1994. These test procedures appear at 10 CFR Part 430, Subpart D. DOE amended the prescribed test procedure by adding 10 CFR 430.27 on September 26, 1980, creating the waiver process (45 FR 64108). Thereafter, DOE further amended the appliance test procedure waiver process to allow the Assistant Secretary for Energy Efficiency and Renewable Energy (Assistant Secretary) to grant an Interim Waiver from test procedure requirements to manufacturers that have petitioned DOE for a waiver of such prescribed test procedures (51 FR 42823, November 26, 1986). The waiver process allows the Assistant Secretary to temporarily waive the test procedures for a particular basic model when a petitioner shows that the basic model contains one or more design characteristics which prevent testing according to the prescribed test procedures or when the prescribed test procedures may evaluate the basic model in a manner so unrepresentative of its true energy consumption as to provide materially inaccurate comparative data. Waivers generally remain in effect until final test procedure amendments become effective, resolving the problem that is the subject of the waiver. The Interim Waiver provisions, added by the 1986 amendment, allow the Assistant Secretary to grant an Interim Waiver when it is determined that the applicant will experience economic hardship if the Application for Interim Waiver is denied, if it appears likely that the Petition for Waiver will be granted, and/or the Assistant Secretary determines that it would be desirable for public policy reasons to grant immediate relief pending a determination on the Petition for Waiver. An Interim Waiver remains in effect for a period of 180 days or until DOE issues its determination on the Petition for Waiver, whichever is sooner, and may be extended for an additional 180 days, if necessary. Miele filed a Petition for Waiver and an Application for Interim Waiver on April 5, 1994 which was amended on April 20, 1994 and April 22, 1994, regarding its clothes dryers models T1515A, T1520, T1565CA, and T1570C with a reverse tumble feature. Miele states in its April 5, 1994 submission that ``The specific design characteristics [reverse tumble feature] of the Miele clothes dryer make the classification of the product as 'compact' totally unrepresentative of the products' true energy consumption characteristics and provides materially inaccurate comparative data.'' The existing clothes dryer test procedure does not have any recognition of the reverse tumble design feature in determining dryer size or class. Miele has informed the Department (telephone conversation with Miele's representative, Mr. John A. Hodges, early April, 1994) that if its clothes dryers were tested as a compact (3 pound test load), they would not meet the minimum energy conservation standard for the class of 120 volt, electric, compact capacity clothes dryers. However, the Miele clothes dryers have been tested as standard (7 pound test load) and exceeded the minimum energy conservation standard for the class of electric, standard capacity clothes dryers. On April 27, 1994, the Department received a letter, dated April 22, 1994, from the Whirlpool Corporation (Whirlpool) opposed to Miele's Petition for Waiver and Application for Interim Waiver. On April 29, 1994, the Department received a letter from the General Electric Company (GE) also opposed to Miele's Petition for Waiver and Application for Interim Waiver. On May 13, 1994, the Department received a letter dated May 5, 1994, from the Speed Queen Company (Speed Queen) opposed to Miele's Petition for Waiver. On May 13, 1994, Miele provided rebuttal comments. On May 20, 1994, Miele provided additional information on the impact of reverse tumble action on drying large loads. The Department has reviewed all the comments and believes that the majority of these comments relate to engineering issues which should be fully debated during the Petition for Waiver comment period. The Department is interested in the maximum load capability of compact clothes dryers and any data regarding energy consumption with larger loads. Additionally, the Department is interested in seeking technical information/data on how the reverse tumble feature affects load capacity. Miele states in its initial submission to the Department that ``Miele Appliance, Inc. is a small company with under 50 employees and will suffer great and irreparable economic hardship if it cannot sell its line of clothes dryers as standard.'' Miele further states that since its clothes dryer is intended to be sold with its standard size front loading clothes washer, ``an inability to sell the clothes dryer as standard will cripple sales of washing machines as well.'' Miele also states that ``since the revenue from the sale of laundry products is essential to the financial well being of the company, the regulatory prohibition of sales of the clothes dryers as standard will jeopardize the company and result in loss of employment.'' To grant an Interim Waiver, one of three criteria, supra, must be met. First, in regards to ``economic hardship,'' Miele has indicated that failure to sell its clothes dryers as ``standard size'' will impact the sale of its laundry products and result in loss in employment. However, Miele did not specify any historical nor future anticipated revenue loss from these particular models in question. Furthermore, Miele did not provide any financial data relative to its company nor the financial affiliation of its parent company. The Department agrees that the loss of sales of any product will financially affect a company, however, the Department does not believe that Miele has demonstrated that it would cause economic hardship. Second, in regards to ``it appears likely that the Petition for Waiver will be granted,'' the Department questions whether the Petition for Waiver will be granted. A waiver can be granted for either one of two reasons. The first is if a product has design features which the test procedure is not capable of testing, and the second is if the test procedure provides results which are unrepresentative of its true energy consumption as to provide materially inaccurate comparative data. Miele certainly can test its products with the Department's test procedure. However, in regards to the test procedure providing materially inaccurate comparative data, the Department has concern. This concern is primarily raised by the appearance that Miele is actually submitting the Petition for Waiver to allow its products to meet the minimum energy conservation standard versus the test procedure providing results which are materially unrepresentative. The Department believes that Miele has not demonstrated that the results will provide ``materially inaccurate comparative data,'' even though Miele contends its dryers are more efficient with larger loads. The Department hopes to receive additional data in response to today's publication of the Miele Petition for Waiver. Third, in regards to ``it would be desirable for public policy reasons,'' Miele has indicated that denial of the Waiver would be destructive to the company and anticompetitive. The Department does not believe that either conclusion was demonstrated by Miele. Further, Miele indicated that denial of the Waiver blocks innovative, improved designs. The company is seeking through the waiver process to meet the minimum standard level by having its machine reclassified as a ``standard'' clothes dryer rather than a ``compact'' clothes dryer. With the reverse tumble feature, the Miele clothes dryer does not meet the 120v, compact, electric, clothes dryer minimum energy efficiency standard. Innovative improved designs are not being blocked. The technical merits of the reverse tumble feature must be fully developed in the Petition for Waiver procedure. Therefore, for the reasons stated above, the Department denies Miele's Application for Interim Waiver for its clothes dryers models T1515A, T1520, T1565CA, and T1570C. Pursuant to paragraph (e) of Sec. 430.27 of Title 10 Code of Federal Regulations Part 430, the following letter denying the Application for Interim Waiver to Miele was issued. Pursuant to paragraph (b) of 10 CFR part 430.27, DOE is hereby publishing the ``Petition for Waiver'' in its entirety. The Petition contains no confidential information. DOE would appreciate comments, data and other information regarding the Petition, discussed above. Issued in Washington, DC, September 21, 1994. Christine A. Ervin, Assistant Secretary, Energy Efficiency and Renewable Energy. Department of Energy, Washington, DC 20585, September 21, 1994 Mr. Nick Ord, Vice-President and General Manager, Miele Appliances Inc., 22D Worlds Fair Drive, Somerset, NJ 08873 Dear Mr. Ord: This is in response to your Petition for Waiver and Application for Interim Waiver of April 5, 1994, amended on April 20, 1994, and April 22, 1994, from the Department of Energy (DOE or Department) test procedure regarding Miele Appliances Inc. (Miele) clothes dryer models T1515A, T1520, T1565CA, and T1570C. You have indicated that your clothes dryers have a reverse tumble feature which allows them to use a smaller capacity drum for a larger clothes dryer load. You further stated, ``The specific design characteristics of the Miele clothes dryer make the classification of the product as `compact' totally unrepresentative of the product's true energy consumption characteristics and provides materially inaccurate comparative data.'' For the reasons stated infra, the Department denies Miele's Application for Interim Waiver for its clothes dryers models T1515A, T1520, T1565CA, and T1570C. In order for the Department to be able to grant Miele an Interim Waiver, it must be determined that the applicant will experience economic hardship if the Application for Interim Waiver is denied, if it appears likely that the Petition for Waiver will be granted, and/or the Assistant Secretary determines that it would be desirable for public policy reasons to grant immediate relief pending a determination on the Petition for Waiver. In regards to ``economic hardship,'' Miele has indicated that failure to sell its clothes dryers as ``standard size'' will impact the sale of its laundry products and result in loss in employment. However, Miele did not specify any historical nor future anticipated revenue loss from these particular models in question. Furthermore, Miele did not provide any financial data relative to its company nor the financial affiliation of its parent company. The Department agrees that the loss of sales of any product will financially affect a company, however the Department does not believe that Miele has demonstrated that it would cause economic hardship. Second, in regards to ``it appears likely that the Petition for Waiver will be granted,'' the Department questions whether the Petition for Waiver will be granted. A waiver can be granted for either one of two reasons. The first is if a product has design features which the test procedure is not capable of testing, and the second is if the test procedure provides results which are unrepresentative of its true energy consumption as to provide materially inaccurate comparative data. Miele certainly can test its products with the Department's test procedure. However, in regards to the test procedure providing materially inaccurate comparative data, the Department has concern. This concern is primarily raised by the appearance that Miele is actually submitting the Petition for Waiver to allow its products to meet the minimum energy conservation standard versus the test procedure providing results which are materially unrepresentative. The Department believes that Miele has not demonstrated that the results will provide ``materially inaccurate comparative data,'' even though Miele contends its dryers are more efficient with larger loads. The Department hopes to receive additional data in response to the publication of the Miele Petition for Waiver. Third, in regards to ``it would be desirable for public policy reasons,'' Miele has indicated that denial of the Waiver would be destructive to the company and anticompetitive. The Department does not believe that either conclusion was demonstrated by Miele. Further, Miele indicated that denial of the Waiver blocks innovative, improved designs. The company is seeking through the waiver process to meet the minimum standard level by having its machine reclassified as a ``standard'' clothes dryer rather than a ``compact'' clothes dryer. With the reverse tumble feature, the Miele clothes dryer does not meet the 120v, compact, electric, clothes dryer minimum energy efficiency standard. Innovative improved designs are not being blocked. The technical merits of the reverse tumble feature must be fully developed in the Petition for Waiver procedure. The Department will publish the Petition for Waiver in the Federal Register and conduct a formal rulemaking so that the technical merits of the submission can be fully developed. If there are any questions, please contact Mr. Michael McCabe of my staff at (202)-586-9155. Sincerely, Christine A. Ervin, Assistant Secretary, Energy Efficiency and Renewable Energy April 5, 1994 Assistant Secretary, Energy Efficiency and Renewable Energy, United States Department of Energy, Forrestal Building, 1000 Independence Avenue, S.W., Washington, DC 20585 Re: Application for Interim Waiver and Petition for Waiver, 10 C.F.R., Subpart B, Appendix D--Uniform Test Method for Measuring the Energy Consumption of Clothes Dryers Dear Assistant Secretary: Miele Appliances, Inc. hereby submits this Application for Interim Waiver and Petition for Waiver pursuant to Title 10 C.F.R. Sec. 430.27. This section provides for waiver of test methods on the grounds that a basic model contains design characteristics that either prevent testing according to the prescribed test procedure or produce data so unrepresentative of a covered product's true energy consumption characteristics as to provide materially inaccurate comparative data. Miele Appliances, Inc., a Delaware corporation, is a small business with under 50 employees. It currently markets highly efficient, advanced-design vented and condenser (non-vented) clothes dryers to complement its front-loading, horizontal axis washing machines. These products perform as standard size products and handle standard capacity loads. They are marketed as standard capacity products. Integral to the design of Miele's clothes dryers is an advanced drum design that handles a standard load capacity with a drum size of 3.54 cu.ft. Despite the fact that the Miele clothes dryer has a standard load capacity, the DOE test procedure classifies it as ``compact.'' According to the DOE test method for measuring the energy consumption of clothes dryers, 10 C.F.R. Subpart, B, Appendix D, the Miele clothes dryers are classified as ``compact'' (id. Sec. 1.3) since their drum size of 3.54 cu.ft. is less than the DOE definition of ``standard.'' The definition of ``standard'' is equal to or greater than 4.4 cubic feet (id. Sec. 1.9). The definitions of ``standard'' and ``compact'' were adopted by DOE many years ago\1\ and to not take into account the advanced Miele design. --------------------------------------------------------------------------- \1\The DOE test procedure was adopted in 1981, 46 Fed. Reg. 27326 (May 19, 1981). The definitions of ``standard'' and ``compact'' in the test procedure were carried over from definitions adopted in 1977 by the predecessor agency to DOE, the Federal Energy Administration. --------------------------------------------------------------------------- The specific design characteristics of the Miele clothes dryers make the classification of the products as ``compact'' totally unrepresentative of the products' true energy consumption characteristics and provide materially inaccurate comparative data. This treatment essentially locks Miele out of the market for standard clothes dryers in the United States, which would be manifestly unfair and discriminatory. To remedy this unfairness and discrimination, Miele Appliances, Inc. urgently requests an Interim Waiver and a Waiver to permit its clothes dryers to be treated as ``standard size'' for purposes of the test procedure and to determine compliance with the related federal efficiency standard. Miele clothes dryers are clearly designed to operate as ``standard size'' dryers. They are designed to pair with Miele's standard clothes washer. They handle a standard load. When tested as ``standard size,'' the clothes dryer easily exceeds the minimum DOE energy requirements for ``standard size'' clothes dryers (10 C.F.R. Sec. 430.32(h)). More specifically:The Miele clothes dryers are designed to complement Miele's front-loading washing machines, Models W1918 and W1930. (See product literature, attached hereto as Appendix 1.) These washing machines are classified by DOE as being of ``standard'' capacity, since their drum capacity exceeds the 1.6 cubic feet minimum capacity required for classification as ``standard''. (See independent ETL testing verification, Appendix 2.) When the Miele clothes dryers are tested as ``standard'' appliances according to the prescribed DOE requirements, all models easily comply with the energy consumption requirements. (See independent ETL testing verification, Appendix 3.) Miele clothes dryers are able to achieve these ``standard'' energy efficient rating despite their drum size, because of specific design characteristics, namely: --Miele clothes dryers have reverse tumble action. Unlike conventional drum dryers, Miele dryers rotate clockwise (60 seconds), stop and then rotate counterclockwise (60 seconds). This procedure is continued through all aspects of the drying cycle. The purpose of this reverse tumble action is to be able to dry a standard load of fabrics evenly, since by rotating in both directions the fabrics cannot roll up a ball. This avoids having the fabrics being dry on the outside and wet/damp on the inside, as would otherwise happen in a product with this drum size. --Miele clothes dryers have a lower amperage than do larger drum dryers. Miele clothes dryers are rated at 15 amps in contrast to 30 amps to larger drum dryers. Miele clothes dryers also have lower heat output, i.e., the clothes are dried at lower temperatures than conventional 30 amp dryers. Miele's line of condenser dryers have additional special design characteristics. Miele condenser dryers do not vent the exhaust air to the outside, but rather convert the hot, humid air to water inside the appliance. This technology benefits those dwellers of high-rise apartments, who in many cases have no way to vent to the outside, or at least not without considerable remodelling/ construction expense. This advantageous design characteristic produces a more complex drying process than the regular vented dryer, yet when tested as a ``standard'' appliance, complies with the DOE energy efficiency standard. The Miele clothes washer and clothes dryer are marketed and intended to be used as a standard laundry pair. If the clothes dryer were forced to be classified as ``compact,'' it would jeopardize the market for both the clothes washer and clothes dryer. Compact clothes dryers are perceived in the marketplace as being very different from a standard clothes dryer. Compact clothes dryers are perceived as having fewer features and therefore less desirable than standard clothes dryers. In light of the foregoing, Miele requests an Interim Waiver and Waiver that will make the following amendments to 10 C.F.R., Subpart B. Appendix D, with respect to Miele clothes dryers Models T1515A, T1520, T1565CA, and T1570C [additions underlined]: 1.3 ``Compact'' or ``compact size'' means a clothes dryer with a drum capacity of less than 4.4 cubic feet, except that a clothes dryer with a drum capacity meeting the requirements of Section 1.9 shall be deemed to be a ``standard size'' clothes dryer and shall be tested pursuant to the testing conditions and test procedures for ``standard size'' clothes dryers. * * * * * 1.9 ``Standard size'' means a clothes dryer with a drum capacity of 4.4 cubic feet or greater, except that a clothes dryer with a drum capacity of 3.50 cubic feet or greater with reverse tumble action that alternately rotates the drum clockwise and counterclockwise during the drying cycle to dry a standard size drying load shall be deemed to be ``standard size'' clothes dryer and shall be tested pursuant to the testing conditions and test procedures for ``standard size'' clothes dryers. Miele Appliances, Inc. requests immediate relief by grant of the proposed Interim Waiver. Grant of an Interim Waiver is fully justified: Economic Hardship--Miele Appliances, Inc. is a small company with under 50 employees and will suffer great and irreparable economic hardship if it cannot sell its line of clothes dryers as standard. If Miele clothes dryers are not treated as standard, they will in effect be denied effective access to the United States market. Beyond that, since the Miele clothes dryer is intended to be sold as a pair with one of the Miele energy and water efficient standard size front-loading washing machines discussed above (and depicted in Appendix 1), an inability to sell the clothes dryer as standard will cripple sales of the washing machine as well. Since the revenue from the sale of laundry products is essential to the financial well-being of the company, the regulatory prohibition of sales of the clothes dryer as standard will jeopardize the company and result in loss of employment. Significant investment has already been made in developing Miele clothes dryers that comply with recognized United States safety testing standards. An inability to sell the products as standard size due to regulatory action would not allow Miele to recoup these significant investments, the financial consequences of which would further jeopardize the company. To comply with the DOE definition of a ``standard'' clothes dryer, i.e., a drum size equal to or greater than 4.4 cubic feet, Miele would have to initiate great manufacturing and tooling changes in order to produce such a product. The huge investments needed to accomplish this would result in a significant increase in the manufacturing cost of the clothes dryers, which would not benefit consumers and would simply result in substantially higher cost to the consumer. This would render Miele products totally uncompetitive. Consequently, the financial well-being of the company would rapidly deteriorate. Likely Approval of Waiver--The Petition for Waiver is likely to be granted, because the design characteristics of the clothes dryers are intended to allow the products to function as energy-efficient ``standard'' clothes dryers. In addition, it is manifestly unfair to classify the Miele clothes dryer as being ``compact'' even though it performs as a ``standard'' clothes dryer and is designed to complement the matching Miele clothes washer, which is classified by DOE as being of ``standard'' capacity. An independent testing company has verified that when tested according to DOE testing procedures as a ``standard'' clothes dryer, Miele dryers easily comply with the consumption requirements. Only a relatively small number of clothes dryers will be sold by Miele Appliances, Inc. in the time period between Interim Waiver and Waiver. During this time, whether the clothes dryers are classified as ``compact'' or ``standard,'' this would have a negligible impact on energy consumed or consumer decisions. Any such impact would be beneficial. Public Policy Merits--Miele clothes dryers, when classified as ``standard'' capacity appliances, comply with DOE energy consumption requirements. Therefore, consumers should not be denied access to these energy-efficient appliances, and this is an additional reason why the requested Interim Waiver should receive prompt approval. The basic purpose of the Energy Policy and Conservation Act, as amended by the National Appliance Energy Conservation Act, is to foster purchase of energy-efficient appliances, not hinder such purchases. The granting of the Waiver and Interim Waiver will promote this policy and will result in increased energy savings. Miele clothes dryers have been shown to be highly energy efficient. These space-saving products provide an energy efficient solution to families living in city dwellings where space for laundry products is limited. The dryer can energy-efficiently dry a ``standard'' load size, yet take up a small amount of floor space. The condenser dryer also makes a dryer available to households where for physical, structural reasons a vented dryer could otherwise not be installed. Miele clothes dryers thus offer benefits in the public interest. To encourage and foster the availability of these energy- efficient products is in the public interest. Standards should not be used as a means to block innovative, improved designs.\2\ Miele's design is an innovative and improved way to dry a standard load of laundry and provides substantial benefits to the public. DOE's rules should accommodate and encourage--not act to block--such a product. --------------------------------------------------------------------------- \2\See FTC Advisory Opinion No. 457, TRR 1718.20 (1971 Transfer Binder); 49 Fed. Reg. 32213 (Aug. 13, 1984); 52 Fed. Reg. 49141, 49147-48 (Dec. 30, 1987). --------------------------------------------------------------------------- Granting the Interim Waiver and Waiver will also eliminate a non-tariff trade barrier. Furthermore, the success of small business has wide-reaching public policy benefits. In the case of Miele Appliances, Inc., continued employment creation and ongoing investments in its marketing, sales and servicing activities will be fostered by approval of the requested Interim Waiver. Conversely, denial of the requested Waiver and Interim Waiver would be destructive to the company and would be anticompetitive. Thank you for your timely attention to this request for Interim Waiver and Waiver. We hereby certify that all clothes dryer manufacturers of domestically marked units known to Miele Appliances. Inc. have been notified by letter of this application, copies of which are attached (Appendix 4). Sincerely, Nick Ord, Vice-President and General Manager Miele Appliances, Inc. Enclosures (Appendices 1-4) [FR Doc. 94-24127 Filed 9-28-94; 8:45 am] BILLING CODE 6450-01-P