15922 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 

1For editorial reasons, upon codification in the 

U.S. Code, Part B was redesignated as Part A. 

2All references to EPCA in this document refer 

to the statute as amended through the American 

Energy Manufacturing Technical Corrections Act 

(AEMTCA), Public Law. 112–210 (Dec. 18, 2012). 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket Number EERE–2015–BT–STD– 

0003] 

RIN 1904–AD49 

Energy Conservation Program for 

Consumer Products: Energy 

Conservation Standards for Direct 

Heating Equipment and Pool Heaters 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Request for information (RFI). 

SUMMARY: The U.S. Department of 

Energy (DOE) is initiating a rulemaking 

to consider amended energy 

conservation standards for direct 

heating equipment and pool heaters. 

Once completed, this rulemaking will 

fulfill DOE’s statutory obligation to 

either propose amended energy 

conservation standards for these 

products or to determine that the 

existing standards do not need to be 

amended. This RFI seeks to solicit 

information to help DOE determine 

whether national standards more 

stringent than those that are currently in 

place would result in a significant 

amount of additional energy savings and 

whether such amended national 

standards would be technologically 

feasible and economically justified. In 

overview, this document presents a brief 

description of the analysis DOE plans to 

perform for this rulemaking and 

requests comment on various issues 

relating to each of the analyses (e.g., 

market assessment, engineering 

analysis, energy use analysis, life-cycle 

cost and payback period analysis, 

national impact analysis, and 

manufacturer impact analysis). 

Although this document contains 

several specific topics on which the 

Department is particularly interested in 

receiving written comment, DOE 

welcomes suggestions and information 

from the public on any subject within 

the scope of this rulemaking, including 

topics not raised in this RFI. 

DATES: Written comments and 

information are requested on or before 

April 27, 2015. 

ADDRESSES: Interested parties are 

encouraged to submit comments 

electronically. However, interested 

persons may submit comments, 

identified by docket number EERE– 

2015–BT–STD–0003 and/or regulatory 

identification number (RIN) 1904–AD49 

by any of the following methods: 

• Federal eRulemaking Portal: 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: DHE2015STD0003@

ee.doe.gov. Include docket number 

EERE–2015–BT–STD–0003 and/or RIN 

1904–AD49 in the subject line of the 

message. Submit electronic comments 

in WordPerfect, Microsoft Word, PDF, 

or ASCII file format, and avoid the use 

of special characters or any form of 

encryption. 

• 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 disc (CD), in which case it is 

not necessary to include printed copies. 

• Hand Delivery/Courier: Ms. Brenda 

Edwards, U.S. Department of Energy, 

Building Technologies Program, 6th 

Floor, 950 L’Enfant Plaza SW., 

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. 

For detailed instructions on 

submitting comments and additional 

information on the rulemaking process, 

see section III of this document (Public 

Participation). 

FOR FURTHER INFORMATION CONTACT: 

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–5B, 

1000 Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 586–6590. Email: 

direct_heating_equipment@ee.doe.gov. 

Mr. Sarah Butler, U.S. Department of 

Energy, Office of the General Counsel, 

GC–33, 1000 Independence Avenue 

SW., Washington, DC 20585–0121. 

Telephone: (202) 586–1777. Email: 

Sarah.Butler@hq.doe.gov. 

For information on how to submit or 

review public comments, contact Ms. 

Brenda Edwards, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies Program, Mailstop EE–2J, 

1000 Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 586–2945. Email: 

Brenda.Edwards@ee.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

A. Background and Authority 

B. Rulemaking Process 

II. Planned Rulemaking Analyses 

A. Test Procedures 

B. Market and Technology Assessment 

C. Technology Options for Consideration 

D. Engineering Analysis 

E. Markups Analysis 

F. Energy Use Analysis 

G. Life-Cycle Cost and Payback Period 

Analysis 

H. Shipment Analysis 

I. National Impact Analysis 

J. Manufacturer Impact Analysis 

III. Public Participation 

I. Introduction 

A. Background and Authority 

Title III, Part B1 of the Energy Policy 

and Conservation Act of 1975 (‘‘EPCA’’ 

or ‘‘the Act’’), Public Law 94–163 

(codified at 42 U.S.C. 6291–6309) sets 

forth a variety of provisions designed to 

improve energy efficiency and 

establishes the Energy Conservation 

Program for Consumer Products Other 

Than Automobiles.2 This program 

includes most major household 

appliances (collectively referred to as 

‘‘covered products’’), including the two 

covered products that are the subject of 

this rule: direct heating equipment 

(DHE) and pool heaters. (42 U.S.C. 

6292(a)(9) and (11)) Under EPCA, this 

energy conservation program generally 

consists of four parts: (1) Testing; (2) 

labeling; (3) establishing Federal energy 

conservation standards; and (4) 

certification and enforcement 

procedures. 

EPCA prescribes specific energy 

conservation standards for the pool 

heaters and gas-fired direct heating 

equipment. (42 U.S.C. 6295(e)(2), (3)) 

EPCA also directed DOE to conduct two 

cycles of rulemakings to determine 

whether to amend its standards for 

direct heating equipment and pool 

heaters. (42 U.S.C. 6295(e)(4)) The 

statute further requires DOE to publish 

a notice of proposed rulemaking 

including new proposed standards or a 

notice of determination that the 

standards for a product need not be 

amended no later than 6 years after 

issuance of any final rule establishing or 

amending standards for that product. 

(42 U.S.C. 6295(m)(1)) DOE last 

promulgated a final rule on April 16, 

2010, amending its energy conservation 

standards for direct heating equipment 

and pool heaters, constituting the first of 

these two required rulemakings. 75 FR 

20112. The current rulemaking satisfies 

the statutory requirements under EPCA 

to conduct a second round of review of 

the DHE and pool heater standards. (42 

U.S.C. 6295(e)(4)(B)) Additionally, this 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 15923 

rulemaking will satisfy the requirement 

for DOE to publish a notice of proposed 

rulemaking containing proposed 

standards or a notice of determination 

that the standards for direct heating 

equipment and pool heaters do not need 

to be amended by April 16, 2016. (42 

U.S.C. 6295(m)(1)) If DOE were to 

publish a notice of proposed rulemaking 

containing proposed amendments to its 

standards for either direct heating 

equipment or pool heaters, DOE would 

be required to issue a final rule 

amending the standards no later than 2 

years after issuance of the notice. (42 

U.S.C. 6295(m)(3)(A)) 

EPCA also provides criteria for 

prescribing amended standards for 

covered products generally, including 

direct heating equipment and pool 

heaters. As indicated above, any such 

amended standard must be designed to 

achieve the maximum improvement in 

energy efficiency that is technologically 

feasible and economically justified. (42 

U.S.C. 6295(o)(2)(A)) Additionally, 

EPCA provides specific prohibitions on 

prescribing such standards. DOE may 

not prescribe an amended standard for 

any of its covered products for which it 

has not established a test procedure. (42 

U.S.C. 6295(o)(3)(A)) Further, DOE may 

not prescribe a standard if DOE 

determines by rule that such standard 

would not result in ‘‘significant 

conservation of energy,’’ or ‘‘is not 

technologically feasible or economically 

justified.’’ (42 U.S.C. 6295(o)(3)(B)) 

EPCA also provides that in deciding 

whether a standard is economically 

justified for covered products, DOE 

must, after receiving comments on the 

proposed standard, determine whether 

the benefits of the standard exceed its 

burdens by considering, to the greatest 

extent practicable, the following seven 

factors: 

1. The economic impact of the standard on 

manufacturers and consumers of the 

products subject to the standard; 

2. The savings in operating costs 

throughout the estimated average life of the 

covered products in the type (or class) 

compared to any increase in the price, initial 

charges, or maintenance expenses for the 

covered products that are likely to result 

from the imposition of the standard; 

3. The total projected amount of energy (or, 

as applicable, water) savings likely to result 

directly from the imposition of the standard; 

4. Any lessening of the utility or the 

performance of the covered 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)(I) through (VII)) 

In addition, EPCA, as amended, 

establishes a rebuttable presumption 

that any standard for covered products 

is economically justified if the Secretary 

finds that ‘‘the additional cost to the 

consumer of purchasing a product 

complying with an energy conservation 

standard level will be less than three 

times the value of the energy (and as 

applicable, water) savings during the 

first year that the consumer will receive 

as a result of the standard,’’ as 

calculated under the test procedure in 

place for that standard. (42 U.S.C. 

6295(o)(2)(B)(iii)) 

EPCA also contains what is 

commonly known as an ‘‘antibacksliding’’ provision. (42 U.S.C. 

6295(o)(1)) This provision mandates 

that the Secretary not prescribe any 

amended standard that either increases 

the maximum allowable energy use or 

decreases the minimum required energy 

efficiency of a covered product. EPCA 

further provides that the Secretary may 

not prescribe an amended standard if 

interested persons have established by a 

preponderance of the evidence that the 

standard is likely to result in the 

unavailability in the United States of 

any product type (or class) with 

performance characteristics (including 

reliability), features, sizes, capacities, 

and volumes that are substantially the 

same as those generally available in the 

United States at the time of the 

Secretary’s finding. (42 U.S.C. 

6295(o)(4)) Under 42 U.S.C. 6295(q)(1), 

EPCA specifies requirements applicable 

to promulgating standards for any type 

or class of covered product that has two 

or more subcategories. Under this 

provision, DOE must specify a different 

standard level than that which applies 

generally to such type or class of 

product that has the same function or 

intended use, if DOE determines that 

the products within such group: (A) 

Consume a different kind of energy from 

that consumed by other covered 

products within such type (or class); or 

(B) have a capacity or other 

performance-related feature which other 

products within such type (or class) do 

not have and such feature justifies a 

higher or lower standard’’ than applies 

or will apply to the other products. (42 

U.S.C. 6295(q)(1)) In determining 

whether a performance-related feature 

justifies such a different standard for a 

group of products, DOE must consider 

‘‘such factors as the utility to the 

consumer of such a feature’’ and other 

factors the Secretary deems appropriate. 

Id. Any rule prescribing such a standard 

must include an explanation of the basis 

on which DOE established such higher 

or lower level. (42 U.S.C. 6295(q)(2)) 

Section 310(3) of the Energy 

Independence and Security Act of 2007 

(EISA 2007; Pub. L. 110–140) amended 

EPCA to prospectively require that 

energy conservation standards address 

standby mode and off mode energy use. 

Specifically, when DOE adopts new or 

amended standards for a covered 

product after July 1, 2010, the final rule 

must, if justified by the criteria for 

adoption of standards in section 325(o) 

of EPCA, incorporate standby mode and 

off mode energy use into a single 

standard if feasible, or otherwise adopt 

a separate standard for such energy use 

for that product. (42 U.S.C. 6295(gg)(3)) 

On December 17, 2012 DOE 

promulgated a final rule amending its 

test procedures for vented direct heating 

equipment and pool heaters to 

incorporate standby and off-mode 

energy consumption (see section II.A 

below for further detail). 77 FR 74559. 

The amendments related to standby and 

off-mode energy consumption were not 

required for purposes of compliance 

until the compliance date of the next 

standards final rule for those products. 

Id. This rulemaking, if amended 

standards are ultimately adopted, would 

serve as the next energy conservation 

standards rulemaking subsequent to 

these test procedure amendments, and 

therefore this rulemaking will take into 

account standby and off-mode energy 

consumption. 

Finally, Federal energy conservation 

requirements for covered products 

generally supersede State laws or 

regulations concerning energy 

conservation testing, labeling, and 

standards. (42 U.S.C. 6297(a) through 

(c)) DOE can, however, grant waivers of 

Federal preemption for particular State 

laws or regulations, in accordance with 

the procedures and other provisions of 

section 327(d) of the Act. (42 U.S.C. 

6297(d)) 

B. Rulemaking Process 

In addition to the specific statutory 

criteria discussed in section I.A that 

DOE must follow for prescribing 

amended standards for covered 

products, DOE uses a specific process to 

assess the appropriateness of amending 

the standards that are currently in place 

for a given type of product. For direct 

heating equipment and pool heaters, 

DOE plans to conduct in-depth 

technical analyses of the costs and 

benefits of the potential amended 

standards to determine whether more 

stringent standards are technologically 

feasible and would lead to significant 

energy savings, and whether such 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

15924 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 

amended standards would be 

economically justified. The analyses 

would include the following: (1) 

Engineering; (2) energy use; (3) 

markups; (4) life-cycle cost and payback 

period; and (5) national impacts. DOE 

will also conduct downstream analyses 

including an analysis of: (1) 

Manufacturer impacts; (2) emission 

impacts; (3) utility impacts; (4) 

employment impacts; and (5) regulatory 

impacts. DOE will also conduct several 

other analyses that support those 

previously listed, including the market 

and technology assessment, the 

screening analysis (which contributes to 

the engineering analysis), and the 

shipments analysis (which contributes 

to the national impact analysis). As 

detailed throughout this RFI, DOE is 

publishing this notice as the first step in 

the analytical process and is requesting 

input and data from interested parties to 

aid in the development of the technical 

analyses. 

Subsequently, DOE may conduct a 

preliminary analysis for some or all 

products, particularly heat pump pool 

heaters since no prior rulemaking record 

for these products exists. Alternatively, 

DOE may elect to proceed directly to a 

NOPR (or determination that standards 

need not be amended) for some or all 

products. 

II. Planned Rulemaking Analyses 

In this section, DOE summarizes the 

rulemaking analyses and identifies a 

number of issues on which it seeks 

input and data in order to aid in the 

development of the technical and 

economic analyses to determine 

whether amended energy conservation 

standards may be warranted for direct 

heating equipment and/or pool heaters. 

In addition, DOE welcomes comments 

on other issues relevant to the conduct 

of this rulemaking that may not 

specifically be identified in this RFI. 

A. Test Procedures 

The test procedure for vented home 

heating equipment is located at 10 CFR 

430.23(o) and 10 CFR part 430, subpart 

B, appendix O (Appendix O) for vented 

home heating equipment (‘‘vented 

heater’’). The vented heater test 

procedure includes provisions for 

determining energy efficiency (annual 

fuel utilization efficiency (AFUE)), as 

well as annual energy consumption. 

DOE’s test procedure for pool heaters is 

found at 10 CFR 430.23(p) and 10 CFR 

part 430, subpart B, appendix P 

(Appendix P). The test procedure 

includes provisions for determining two 

energy efficiency descriptors (i.e., 

thermal efficiency and integrated 

thermal efficiency), as well as annual 

energy consumption. 

EISA 2007 amended EPCA to require 

DOE to amend its test procedures for all 

covered products to include 

measurement of standby mode and off 

mode energy consumption. (42 U.S.C. 

6295(gg)(2)(A)) DOE published a final 

rule adopting standby mode and off 

mode provisions for direct heating 

equipment and pool heaters in the 

Federal Register on December 17, 2012 

(hereafter referred to as the December 

2012 test procedure final rule). 77 FR 

74559. Additionally, DOE published a 

final rule regarding its DHE and pool 

heater test procedures on January 6, 

2015 adopting, among other things, 

provisions for testing vented home 

heaters that use condensing technology, 

updated industry standards 

incorporated by reference, and 

provisions for testing electric resistance 

and electric heat pump pool heaters, 

and which clarified the applicability of 

the test procedure to oil-fired pool 

heaters (hereafter referred to as the 

January 2015 test procedure final rule). 

80 FR 792. DOE will use the most 

current version of the test procedures as 

the basis for any amended energy 

conservation standards. 

For DHE, the December 2012 test 

procedure final rule included additional 

measurements and calculations in the 

test procedure to determine the annual 

electrical consumption in standby and 

off-mode separate from the AFUE 

metric. 77 FR 74559, 74571–74572. The 

standby and off-mode fossil fuel 

consumption for DHE was previously 

incorporated in the AFUE in the form of 

the pilot light usage and off-cycle flue 

and stack losses. For gas-fired pool 

heaters, the December 2012 test 

procedure final rule included 

measurements and calculations that 

incorporate electrical and fossil fuel 

consumption in standby and off-mode 

into an integrated thermal efficiency 

metric. Id. at 74572–74573. The 

provisions for testing electric resistance 

and electric heat pump pool heaters 

added in the January 2015 test 

procedure final rule also integrate the 

standby and off-mode electrical 

consumption into an integrated thermal 

efficiency metric. 80 FR 792, 813–815. 

For both DHE and pool heaters, the 

December 2012 test procedure 

amendments were not required for 

testing in determining compliance with 

the current energy conservation 

standards until the next energy 

conservation standard final rule. 77 FR 

74559. This rulemaking is the 

subsequent standards rulemaking to the 

December 2012 test procedure 

amendments; therefore, DOE plans to 

consider energy conservation standards 

as part of this rulemaking that 

incorporate standby and off-mode 

energy use as measured by the amended 

test procedures. 

In the case of vented home heating 

equipment, while the pilot light and offcycle flue and stack losses are integrated 

into the AFUE, the measurements and 

calculations for standby and off-mode 

electrical consumption are not. Should 

DOE consider standby and off-mode 

electrical consumption of vented home 

heating equipment separate analyses 

would be conducted in order to propose 

energy conservation standards for 

standby and off-mode electrical 

consumption. In order to make such a 

determination, DOE is seeking data, 

information, and comment on the 

electrical consumption of vented home 

heating equipment in standby and offmode. 

Issue 1: DOE seeks data, information, 

and comment on the electrical 

consumption of all product classes of 

DHE in standby and off-mode. 

In the case of pool heaters, the 

amendments contained in the December 

2012 test procedure final rule integrated 

the standby and off-mode electrical 

consumption for gas-fired pool heaters 

into an integrated thermal efficiency 

metric. Likewise, the January 2015 test 

procedure final rule added provisions 

for determining the integrated thermal 

efficiency of electric resistance and 

electric heat pump pool heaters. Since 

the current pool heater rating metric 

(thermal efficiency) and energy 

conservation standards do not 

incorporate standby and off-mode 

energy consumption, DOE would need 

to develop a method to convert from the 

existing thermal efficiency ratings 

(which does not include standby and off 

mode energy consumption) to ratings 

under the new integrated thermal 

efficiency metric (which includes 

standby and off mode energy 

consumption). DOE plans to develop a 

method of converting ratings from those 

under the current metrics to those under 

the new metrics that include standby 

and off-mode energy consumption. To 

that end, DOE is requesting information 

regarding typical standby and off-mode 

fossil fuel and electricity consumption 

for DHE and pool heaters. 

Issue 2: DOE requests data and 

information regarding typical energy use 

(fossil fuel and electricity) in standby 

and off-modes for all pool heater types 

(i.e. gas-fired, electric resistance, and 

electric heat pump). DOE also requests 

data and information regarding the 

impacts on efficiency ratings of 

including the standby mode and off 

mode energy consumption in the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 15925 

3This includes increasing jacket insulation, 

advanced insulation types, foam insulation, and 

pipe and fitting insulation. For DHE, this applies 

only to floor furnaces, since heat lost through the 

jacket does not enter the occupied space. 

4This includes incorporating timer controls, 

modulating controls, and intelligent and wireless 

controls and communication. 

5This includes incorporating variable firing-rate 

burners, low-stage firing burners, and modulating 

burners. 

6Thermal or electro-mechanical. 

7 Including material and surface area. 

8Should electric pool heaters be considered one 

product class, heat pump technology may be 

considered a technology option for increasing the 

efficiency of electric pool heaters. 

integrated thermal efficiency (pool 

heaters). 

B. Market and Technology Assessment 

The market and technology 

assessment provides information about 

the direct heating equipment and pool 

heater industries that will be used 

throughout the rulemaking process. For 

example, this information will be used 

to determine whether the existing 

product class structure requires 

modification based on the statutory 

criteria for setting such classes and to 

explore the potential for technological 

improvements in the design of such 

products. The Department uses 

qualitative and quantitative information 

to assess the past and present industry 

structure and market characteristics. 

DOE will use existing market materials 

and literature from a variety of sources, 

including industry publications, trade 

journals, government agencies, and 

trade organizations. DOE will also 

consider conducting interviews with 

manufacturers to assess the overall 

market for both direct heating 

equipment and for pool heaters. 

The current product classes as 

established in the Code of Federal 

Regulations for direct heating 

equipment are characterized by product 

type (i.e., wall fan, wall gravity, floor 

furnace, and room heater), and size (i.e., 

input capacity rating). As a starting 

point, DOE plans to use the existing 

product class structure for products 

manufactured after April 16, 2013, 

which divides direct heating equipment 

into the equipment classes as shown in 

the table in 10 CFR 430.32(i) and 

summarized below in Table II.1. 

TABLE II.1—PRODUCT CLASSES FOR

DIRECT HEATING EQUIPMENT

Product type 

Gas wall fan type up to 42,000 Btu/h. 

Gas wall fan type over 42,000 Btu/h. 

Gas wall gravity type up to 27,000 Btu/h. 

Gas wall gravity type over 27,000 Btu/h up to 

46,000 Btu/h. 

Gas wall gravity type over 46,000 Btu/h. 

Gas floor up to 37,000 Btu/h. 

Gas floor over 37,000 Btu/h. 

Gas room up to 20,000 Btu/h. 

Gas room over 20,000 Btu/h up to 27,000 

Btu/h. 

Gas room over 27,000 Btu/h up to 46,000 

Btu/h. 

Gas room over 46,000 Btu/h. 

DOE’s energy conservation standards 

for pool heaters currently regulate only 

one type of pool heater—gas-fired pool 

heaters. In analyzing standards for 

electric (including both resistance and 

heat pump), DOE will consider creating 

separate product classes for pool heaters 

based on fuel type, capacity, or other 

performance related features that may 

affect efficiency and justify the 

establishment of different energy 

conservation standards. 

Issue 3: DOE requests feedback on the 

current product classes for direct 

heating equipment and seeks 

information regarding other product 

classes it should consider for inclusion 

in its analysis. 

Issue 4: DOE seeks comment on 

whether product classes should be 

established for pool heaters and seeks 

information regarding product classes it 

should consider for inclusion in its 

analysis. 

Issue 5: DOE seeks data, information, 

and comment on electric resistance pool 

heaters, specifically on their capacities 

and applications. DOE also requests 

data, information, and comment on 

whether heat pump technology is a 

viable design for those applications in 

which electric resistance pool heaters 

are typically found. 

As discussed in section II.A, DOE 

published a final rule on January 6, 

2015 regarding its test procedures for 

DHE and pool heaters in which it was 

clarified that the test procedure applies 

to oil-fired pool heaters. 80 FR 792 

However, in reviewing the pool heater 

market, DOE found only one model of 

oil-fired pool heater available. DOE 

therefore has tentatively determined 

that the energy savings potential for oilfired pool heaters is de minimis, and 

that accordingly energy conservation 

standards need not be proposed. 

Issue 6: DOE seeks comment on its 

tentative conclusion that energy 

conservation standards for oil-fired pool 

heaters would result in de minimis 

energy savings. 

C. Technology Options for 

Consideration 

DOE uses information about existing 

and past technology options and 

prototype designs to help identify 

technologies that manufacturers could 

use to meet and/or exceed energy 

conservation standards. In consultation 

with interested parties, DOE intends to 

develop a list of technologies to 

consider in its analysis. Initially, this 

list will include all those technologies 

considered to be technologically feasible 

and will serve to establish the maximum 

technologically feasible design. For 

DHE, DOE will initially consider the 

specific technologies and design options 

listed below, along with any other 

technologies identified during the 

rulemaking analysis. 

• Improved insulation 3

• Power and direct venting 

• Condensing heat exchanger 

technology 

• Electronic ignition systems 

• Improved controls 4

• Improved burners 5

• Flue or stack damper 6

• Improved heat exchanger design 7

For gas-fired pool heaters, DOE will 

consider the specific technologies and 

design options listed below. 

• Improved insulation 3

• Improved controls 4

• Improved heat exchanger design 7

• Condensing heat exchanger 

technology 

• Electronic ignition systems 

For electric pool heaters, if included 

in the scope of this rulemaking, DOE 

would initially consider the specific 

technologies and design options listed 

below. 

• Improved insulation 3

• Improved controls 4

• Heat pump (as opposed to electric 

resistance element) 8

• Increased evaporator surface area 

(heat pump pool heaters) 

• Increased condenser surface area (heat 

pump pool heaters) 

• Improved compressor efficiency (heat 

pump pool heaters) 

Issue 7: DOE seeks information 

related to these or other efficiencyimproving technologies for DHE or pool 

heaters. Specifically, DOE is interested 

in comments regarding their costs, 

applicability to the current market, and 

how these technologies improve 

efficiency of DHE and pool heaters. 

D. 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 will estimate the 

increase in manufacturer cost associated 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

15926 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 

9Hamos, R., Consultant Report—Pool Heater 

Distribution Channels, 2007. 

10Heating, Air Conditioning & Refrigeration 

Distributors International 2013 Profit Report, 

<http://www.hardinet.org/Profit-Report> 

11Air Conditioning Contractors of America 

(ACCA), Financial Analysis for the HVACR 

Contracting Industry: 2005, 2005. <https://

www.acca.org/store/product.php?pid=142> 

12U.S. Census Bureau, Data set for Sector 23, 

EC0723A1: 238220 (Plumbing, Heating and AirConditioning Contractors), Construction: 

Geographic Area Series, Detailed Statistics for 

Establishments, 2007. <http://www.census.gov/

econ/> 

13RS Means Company Inc., Mechanical Cost 

Data—31st Annual Edition. 2013. ed. M. Mossman. 

Kingston, MA. 

14U.S. Census Bureau, Construction: Industry 

Series: Preliminary Detailed Statistics for 

Establishments: 2007. New Single-Family General 

Contractors, New Multifamily Housing 

Construction (Except Operative Builders), New 

with increasing the efficiency of 

products above the baseline up 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. DOE considers 

products that just meet the current 

minimum energy conservation standard 

as baseline products. For products that 

do not have an existing minimum 

energy conservation standard, DOE 

considers the least efficient products on 

the market as baseline equipment. DOE 

will establish a baseline for each DHE 

product class using the AFUE, and a 

separate baseline in terms of standby 

and off-mode electrical consumption 

since this is not integrated in the AFUE 

metric. For each gas-fired pool heater 

product class, DOE would use the 

thermal efficiency standards converted 

to integrated thermal efficiency in order 

to set a baseline. Energy conservation 

standards do not currently exist for 

electric resistance and electric heat 

pump pool heaters, and so DOE would 

select the least efficient products on the 

market for baseline models using the 

integrated thermal efficiency metric. 

Issue 8: DOE requests comment on 

approaches that it should consider 

when determining a baseline for 

product classes of DHE and pool 

heaters, including information regarding 

the merits and/or deficiencies of such 

approaches. 

Issue 9: DOE requests information on 

max-tech efficiency levels achievable in 

the current market and associated 

technologies for both DHE and pool 

heaters. 

In order to create the cost-efficiency 

relationship, DOE anticipates that it will 

structure its engineering analysis using 

both a reverse-engineering (or costassessment) approach and a catalog 

teardown approach. A cost-assessment 

approach relies on a teardown analysis 

of representative units at the baseline 

efficiency level and higher efficiency 

levels up to the maximum 

technologically feasible designs. A 

teardown analysis (or physical 

teardown) determines the production 

cost of a product by disassembling the 

product ‘‘piece-by-piece’’ and 

estimating the material and labor cost of 

each component. A catalog teardown 

approach uses published manufacturer 

catalogs and supplementary component 

data to estimate the major physical 

differences between a piece of 

equipment that has been physically 

disassembled and another similar 

product. These two methods would be 

used together to help DOE estimate the 

manufacturer production cost of 

products at various efficiency levels. 

Issue 10: DOE requests feedback on 

the planned approach for the 

engineering analysis and on the 

appropriate representative capacities 

and characteristics for each DHE 

product class and for pool heaters of all 

types. 

E. Markups Analysis 

To carry out the life-cycle cost (LCC) 

and payback period (PBP) calculations, 

DOE needs to determine the cost to the 

consumer of baseline products that 

satisfy the currently applicable 

standards, and the cost of the more 

efficient unit the customer would 

purchase under potential amended 

standards. This is done by applying a 

markup multiplier to the manufacturer’s 

selling price to estimate the consumer’s 

price. 

Markups depend on the distribution 

channels for a product (i.e., how the 

product passes from the manufacturer to 

the consumer). For both direct heating 

equipment and pool heaters, DOE 

characterized two distribution channels 

to describe how the equipment pass 

from the manufacturer to consumer: (1) 

replacement market, and (2) new 

construction market. 

In the replacement market for direct 

heating equipment, most sales go 

through wholesalers to mechanical 

contractors, and then to consumers. In 

new construction market, most sales go 

through wholesaler to mechanical 

contractors hired by the general 

contractors. Thus, DOE defined two 

distribution channels for the purposes 

of estimating markups for direct heating 

equipment, and the distribution channel 

for replacement market is characterized 

as follows: 

Manufacturer → Wholesaler → 

Mechanical Contractor → Consumer 

In the case of new construction, DOE 

plans to characterize the distribution 

channel as follows: 

Manufacturer → Wholesaler → 

Mechanical Contractor → General 

Contractor → Consumer 

To determine distribution channels 

for pool heaters, DOE used information 

from a consultant report.9 For the 

replacement market, most sales go 

through wholesalers to pool service 

companies. In most new construction 

market, the pool builder purchases the 

product from a wholesaler, and there is 

no contractor involved. Thus, DOE 

defined two distribution channels for 

the purposes of estimating markups for 

pool heaters. 

For replacement pool heaters, DOE 

plans to characterize the distribution 

channel as follows: 

Manufacturer → Wholesaler → Service 

Company → Consumer 

For the new construction market, DOE 

plans to characterize the distribution 

channel for pool heaters as follows: 

Manufacturer → Wholesaler → Pool 

Builder → Consumer 

Issue 11: DOE seeks input from 

stakeholders on whether the 

distribution channels described above 

are appropriate for direct heating 

equipment and pool heaters and are 

sufficient to describe the distribution 

markets. 

Issue 12: DOE seeks input on the 

percentage of products being distributed 

through the different distribution 

channels, and whether the share of 

products through each channel varies 

based on product class, capacity, or 

other feature. 

To develop markups for the parties 

involved in the distribution of direct 

heating equipment and pool heaters, 

DOE would utilize several sources 

including: (1) the Heating, AirConditioning & Refrigeration 

Distributors International (HARDI) 2013 

Profit Report 10 to develop wholesaler 

markups, (2) the 2005 Air Conditioning 

Contractors of America’s (ACCA) 

financial analysis for the heating, 

ventilation, air-conditioning, and 

refrigeration (HVACR) contracting 

industry 11 and U.S. Census Bureau’s 

2007 Economic Census data for the 

plumbing and HVAC contractors 

industry 12 to develop mechanical 

contractor markups, (3) RS Means 

Electrical Cost Data 13 to develop pool 

service company markup, and (4) U.S. 

Census Bureau’s 2007 Economic Census 

data for the residential building 

construction industry 14 to develop 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 15927 

Housing Operative Builders Resi, 2007. <http://

www.census.gov/econ/> 

15Sales Tax Clearinghouse Inc., State Sales Tax 

Rates Along with Combined Average City and 

County Rates, 2010. <http://thestc.com/

STrates.stm> 

16Energy Information Administration (EIA). 2009 

Residential Energy Consumption Survey (RECS). 

(Available at: http://www.eia.gov/consumption/

residential/) (Last accessed April 10, 2013). 

17RS Means. 2014 Mechanical Cost Data. 

(Available at: http://

rsmeans.reedconstructiondata.com/60023.aspx) 

(Last accessed April 10, 2014). 

18Energy Information Administration (EIA), 

Survey form EIA–826—Monthly Electric Utility 

Sales and Revenue Report with State 

Distributions—(Available at: http://www.eia.gov/

electricity/data/eia826/index.html) 

general contractor and pool builder 

markups. 

In addition to the markups, DOE 

would derive State and local taxes from 

data provided by the Sales Tax 

Clearinghouse. 15 These data represent 

weighted-average taxes that include 

county and city rates. DOE would derive 

shipment-weighted-average tax values 

for each region considered in the 

analysis. 

Issue 13: DOE seeks updated data, if 

available, and recommendations 

regarding data sources to establish the 

markups for the parties involved with 

the distribution of covered equipment. 

F. Energy Use Analysis 

The purpose of the energy use 

analysis is to assess the energy 

requirements of direct heating 

equipment and pool heaters described 

in the engineering analysis for a 

representative sample of households 

that utilize the product, and to assess 

the energy-savings potential of 

increased product efficiencies. DOE 

uses the annual energy consumption 

and energy-savings potential in the LCC 

and PBP analysis to establish the 

operating costs savings at various 

product efficiency levels. DOE will 

estimate the annual energy consumption 

of direct heating equipment at specified 

energy efficiency levels across a range of 

applications, household types, and 

climate zones. The annual energy 

consumption includes use of natural 

gas, liquefied petroleum gas (LPG), and 

electricity. 

DOE intends to base the energy use 

analysis on household characteristics 

from the Energy Information 

Administration’s (EIA) 2009 Residential 

Energy Consumption Survey (RECS) 16

for the households in RECS that use 

direct heating equipment and pool 

heaters covered by this standard. In 

addition, DOE may supplement the use 

of RECS with less detailed but more 

recent data sources, such as the 

American Housing Survey. 

The RECS survey data include 

information on the physical 

characteristics of homes, space heating 

equipment used, fuels used, energy 

consumption and expenditures, and 

other building characteristics. RECS 

data also reports energy consumption 

for pool heating in households that use 

them. Based on these data, DOE will 

develop a representative population of 

households for each direct heating 

equipment and pool heater class. 

Issue 14: DOE requests comment on 

the overall method to determine energy 

use of direct heating equipment and 

pool heaters and if other factors should 

be considered in developing the energy 

use or energy use methodology. 

Issue 15: DOE seeks input on the 

current distribution of product 

efficiencies in the market for different 

product types and classes. 

G. 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 direct 

heating equipment and pool heaters by 

determining how a potential amended 

standard affects their operating 

expenses (usually decreased) and their 

total installed costs (usually increased). 

DOE intends to analyze the potential 

for variability by performing the LCC 

and PBP calculations on a 

representative sample of individual 

households. DOE plans to utilize the 

sample of households developed for the 

energy use analysis and the 

corresponding simulations results. 

Within a given household, one or more 

direct heating equipment units may 

serve the building’s space heating 

needs, depending on the space heating 

requirements of the building. As a 

result, the Department intends to 

express the LCC and PBP results for 

each of the individual direct heating 

equipment units installed in the 

building. DOE plans to model variability 

in many of the inputs to the LCC and 

PBP analysis using Monte Carlo 

simulation and probability 

distributions. As a result, the LCC and 

PBP results will be displayed as 

distributions of impacts compared to the 

base case (without amended standards) 

conditions. DOE also intends to utilize 

the sample of households developed for 

energy use analysis of pool heaters. DOE 

plans to model variability in many of 

the inputs to the pool heater LCC and 

PBP analysis using Monte Carlo 

simulation and probability 

distributions. 

Issue 16: DOE requests comment on 

the overall method that it intends on 

using to conduct the LCC and PBP 

analysis for direct heating equipment 

and pool heaters. 

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 

selling price estimates. The installation 

cost is added to the consumer price to 

arrive at a total installed cost. DOE 

intends to develop installation costs 

using the most recent RS Means data 

available. 

Issue 17: DOE seeks input on the 

approach and data sources it intends to 

use to develop installation costs, 

specifically, its intention to use the most 

recent RS Means Mechanical Cost 

Data. 17

The primary inputs for calculating the 

operating costs are product energy 

consumption, product efficiency, energy 

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. 

The product energy consumption is 

the site energy use associated with 

providing space heating to the room of 

a building (DHE) or water heating to a 

pool or spa (pool heaters). DOE intends 

to utilize the energy use calculation 

methodology described in Section II.F to 

establish product energy use. 

DOE will identify an approach to 

account for the gas, liquefied petroleum 

gas (LPG) and electricity prices paid by 

consumers for the purposes of 

calculating operating costs, savings, net 

present value, and payback period. DOE 

intends to consider determining gas, 

LPG, and electricity prices based on 

geographically available fuel cost data 

such as state level data, with 

consideration for the variation in energy 

costs paid by different building types. 

This approach calculates energy 

expenses based on actual energy prices 

that customers are paying in different 

geographical areas of the country. As a 

potential additional source, DOE may 

consider data to compare provided in 

EIA’s Form 826 data 18 to calculate 

commercial electricity prices, EIA’s 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

15928 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 

19Energy Information Administration (EIA), 

Natural Gas Navigator. (Available at: http://

tonto.eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_

m.htm). 

20Energy Information Administration (EIA), State 

Energy Data System (SEDS). (Available at: http://

www.eia.gov/state/seds/). 

21Energy Information Administration (EIA). 

Annual Energy Outlook (AEO) Full Version. 

(Available at: http://www.eia.gov/forecasts/aeo/). 

22RS Means. 2013 Facilities Maintenance & 

Repair Cost Data. (Available at: http://

rsmeans.reedconstructiondata.com/60303.aspx). 

23See S. Department of Energy-Office of Codes 

and Standards, Technical Support Document: 

Energy Efficiency Standards for Consumer 

Products: Room Air Conditioners, Water Heaters, 

Direct Heating Equipment, Mobile Home Furnaces, 

Kitchen Ranges and Ovens, Pool Heaters, 

Fluorescent Lamp Ballasts & Television Sets, 1993. 

Washington, DC Vol. 1 of 3. Report No. DOE/EE– 

0009. National Renewable Energy Laboratory 

(NREL). U.S. Department of Energy Commercial 

Reference Building Models of the National Building 

Stock. February 2011. Pg. 38. (Available at: http:// 

www.nrel.gov/docs/fy11osti/46861.pdf); Empire 

Comfort System, Surround Yourself With Comfort, 

2006. (Available at: http://dev.obatadesign.com/

clients/Empire/faq/faq.asp); U.S. Department of 

Energy: Energy Efficiency and Renewable Energy, 

Gas Swimming Pool Heaters, 2005; Illinois Propane 

Gas Association, Swimming, 2006 (Available at: 

http://www.ilpga.org/homebuilder_swimming.cfm); 

Pool Quest, Heating-Frequently Asked Questions, 

2005.) (Available at: http://www.poolquest.com/

heaters.aspx). The Spa Specialist Inc., Spa Buyer’s 

Questions and Answers, 2006. (Available at: http:// 

www.spaspecialist.com/qa.html); and Hamos, R., 

Consultant Report—Pool Heaters, 2009. 

24U.S. Census Bureau. Statistical Abstract of the 

United States: 2011, Table No 933—Construction 

Contracts-Value of Construction and Floor Space of 

Natural Gas Navigator 19 to calculate 

commercial natural gas prices, and 

EIA’s State Energy Data Systems 

(SEDS) 20 to calculate liquefied 

petroleum gas (LPG) prices. Future 

energy prices will likely be projected 

using trends from EIA’s most recently 

published Annual Energy Outlook 

(AEO). 21

Issue 18: DOE seeks comment and 

sources on its approach for developing 

gas, LPG, and electricity prices. 

Maintenance costs are expenses 

associated with ensuring continued 

operation of the covered products over 

time. DOE intends to develop 

maintenance costs for its analysis using 

the most recent RS Means data 

available. 22 DOE plans also to consider 

the cases when the equipment is 

covered by service and/or maintenance 

agreements. 

Issue 19: DOE seeks input on the 

approach and data sources it intends to 

use to develop maintenance costs for 

DHE and pool heaters, specifically, its 

intention to use the most recent RS 

Means Facilities Maintenance & Repair 

Cost Data, as well as to consider the cost 

of service and/or maintenance 

agreements. 

Repair costs are expenses associated 

with repairing or replacing components 

of the covered products that have failed. 

DOE intends to assess whether repair 

costs vary with product efficiency as 

part of its analysis. Likewise, DOE 

intends to assess whether maintenance 

costs vary with product efficiency as 

part of its analysis. 

Issue 20: DOE seeks comment as to 

whether repair costs vary as a function 

of product efficiency for either DHE or 

pool heaters. DOE also requests any data 

or information on developing repair 

costs for these products. 

Product lifetime is the age at which a 

unit of covered equipment is retired 

from service. The average equipment 

lifetimes for DHE and gas-fired pool 

heaters are estimated by various sources 

to be between 3 and 20 years based on 

application and equipment type.23

Based on these data, DOE plans to 

determine the average lifetimes for each 

DHE and pool heater product class as 

the primary inputs for developing a 

Weibull probability distribution to 

characterize DHE and pool heater 

lifetimes. 

Issue 21: DOE seeks comment on its 

approach of using a Weibull probability 

distribution to characterize product 

lifetimes. DOE also requests DHE and 

pool heater product lifetime data and 

information on whether product lifetime 

varies based on product characteristics, 

fuel type, product application, or 

efficiency level considerations. 

Issue 22: DOE seeks data, information, 

and comment on the product lifetimes 

of electric resistance and electric heat 

pump pool heaters. 

The discount rate is the rate at which 

future expenditures are discounted to 

establish their present value. DOE 

intends to derive the discount rates by 

estimating the finance cost to consumers 

direct heating equipment and pool 

heaters. For replacement purchasers, the 

estimated cost of financing of this 

equipment is estimated from a portfolio 

of consumer debts. For new 

construction purchases, financing costs 

are related to mortgage interest rates. 

DOE’s analysis includes measures of 

LCC and PBP impacts of potential 

standard levels relative to a base case, 

which reflects the likely 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 

standards would be required. 

DOE also plans to assess the 

applicability of the ‘‘rebound effect’’ in 

the energy consumption for DHE and for 

pool heaters. A rebound effect occurs 

when a product that is made more 

efficient is used more intensively, so 

that the expected energy savings from 

the efficiency improvement may not 

fully materialize. However, at this time, 

DOE is not aware of any information 

about the rebound effect for these 

product types. 

Issue 23: DOE requests data on 

current efficiency market shares (of 

shipments) by product class for DHE 

and pool heaters, and also input on 

similar historic data. DOE also requests 

comment on market segmentation based 

on capacity, application and fuel type, 

as well as trends in fuel switching. 

Issue 24: DOE also requests 

information on expected future trends 

in efficiency for DHE product classes 

and for all pool heater types, including 

the relative market share of condensing 

versus non-condensing products in the 

market in the absence of new efficiency 

standards. 

Issue 25: DOE seeks comments and 

data on any rebound effect that may be 

associated with more efficient DHE and 

pool heaters. 

H. Shipment Analysis 

DOE uses shipment projections by 

product class to calculate the national 

impacts of standards on energy 

consumption, net present value (NPV) 

of customer benefits, and future 

manufacturer cash flows. 

DOE intends to develop a shipments 

models for DHE and gas-fired pool 

heaters based on historical shipments 

data obtained during the rulemaking 

process. DOE currently does not have 

any historical shipments information for 

electric resistance or electric heat pump 

pool heaters. DOE will also examine 

unit shipments and value of shipments 

for direct heating equipment, and pool 

heaters using publicly available data 

from the U.S. Census Bureau’s Annual 

Survey of Manufacturers (ASM) and 

Current Industrial Reports (CIR), and the 

American Society of Heating, 

Refrigerating, and Air-Conditioning 

Engineers (ASHRAE) and AirConditioning, Heating, and Refrigeration 

Institute (AHRI). 

Issue 26: DOE seeks historical 

shipments data for DHE and pool 

heaters, particularly for electric 

resistance and electric heat pump pool 

heaters. 

Issue 27: DOE seeks data, information, 

and comment on expected future trends 

for shipments of all product classes of 

DHE and all types of pool heaters, 

including the relative share of sales to 

new construction vs. existing 

households. 

DOE intends to utilize the U.S. 

Census Bureau data 24 to establish 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 15929 

Buildings by Class of Construction. (Available at: 

https://www.census.gov/compendia/statab/2011/

cats/construction_housing/construction_indices_

and_value.html) 

25Available at: http://www.sba.gov/idc/groups/

public/documents/sba_homepage/serv_sstd_

tablepdf.pdf 

historical new construction floor space, 

as well as historical stock floor space. 

The Annual Energy Outlook will be 

used to forecast both new construction 

and stock floor space. Using these and 

historical equipment saturation data 

from RECS, DOE will estimate 

shipments to the three market segments 

identified above. 

Issue 28: DOE seeks input on the 

approach and data sources it intends to 

use in developing the shipments model 

and shipments forecasts for this 

analysis, including main drivers and 

trends toward consumer switching 

between fuel types. 

I. National Impact Analysis 

The purpose of the national impact 

analysis (NIA) is to estimate aggregate 

impacts of potential energy conservation 

standards at the national level. Impacts 

that DOE reports include the national 

energy savings (NES) from potential 

standards and the net present value 

(NPV) of the total customer benefits. 

To develop the NES, DOE calculates 

annual energy consumption for the base 

case and the standards cases. DOE 

calculates the annual energy 

consumption using per-unit annual 

energy use data multiplied by projected 

shipments. 

To develop the NPV of customer 

benefits from potential energy 

conservation standards, DOE calculates 

annual energy expenditures and annual 

product expenditures for the base case 

and the standards cases. DOE calculates 

annual energy expenditures from annual 

energy consumption by incorporating 

projected energy prices. DOE calculates 

annual product expenditures by 

multiplying the price per unit times the 

projected shipments. The difference 

each year between energy bill savings, 

increased maintenance and repair costs, 

and increased product expenditures is 

the net savings or net costs. 

A key component of DOE’s estimates 

of NES and NPV are the product energy 

efficiencies forecasted over time for the 

base case and for each of the standards 

cases. For the base case trend, DOE will 

consider whether historical data show 

any trend and whether any trend can be 

reasonably extrapolated beyond current 

efficiency levels. In particular, DOE is 

interested in historical and future 

shipments of products with step 

changes in efficiency, such as 

condensing gas-fired DHE or heat pump 

pool heaters. 

Issue 29: DOE requests comment and 

any available data on historical, current, 

and future market share of equipment 

with step changes in efficiency, such as 

gas-fired vented home heaters that use 

condensing technology and electric heat 

pump pool heaters, as compared to less 

efficient products, such as noncondensing gas-fired DHE and electric 

resistance pool heaters, respectively, for 

each product class. 

For the various standards cases, to 

estimate the impact that amended 

energy conservation standards may have 

in the year compliance becomes 

required, DOE would likely use a ‘‘rollup’’ scenario. Under the ‘‘roll-up’’ 

scenario, DOE assumes: (1) Product 

efficiencies in the base case that do not 

meet the new or amended standard level 

under consideration would ‘‘roll up’’ to 

meet that standard level; and (2) 

product shipments at efficiencies above 

the standard level under consideration 

would not be affected. After DOE 

establishes the efficiency distribution 

for the assumed compliance date of a 

standard, it may consider future 

projected efficiency growth using 

available trend data. 

As described in section II.F, DOE 

intends to determine whether there is a 

rebound effect associated with more 

efficient DHE or pool heaters. If data 

indicate that there is a rebound effect, 

DOE will account for the rebound effect 

in its calculation of NES. 

DOE has historically presented NES 

in terms of primary energy savings. On 

August 18, 2011, DOE announced its 

intention to use full-fuel-cycle (FFC) 

measures of energy use and greenhouse 

gas and other emissions in the national 

impact analyses and emissions analyses 

included in future energy conservation 

standards rulemakings. 76 FR 51282. 

While DOE stated in that notice that it 

intended to use the Greenhouse Gases, 

Regulated Emissions, and Energy Use in 

Transportation (GREET) model to 

conduct the analysis, it also said it 

would review alternative methods, 

including the use of NEMS. After 

evaluating both models and the 

approaches discussed in the August 18, 

2011 notice, DOE determined NEMS is 

a more appropriate tool for this purpose. 

77 FR 49701 (Aug. 17, 2012). Therefore, 

DOE is using NEMS to conduct FFC 

analyses. The method used to derive the 

FFC multipliers will be described in the 

TSD. 

J. Manufacturer Impact Analysis 

The purpose of the manufacturer 

impact analysis (MIA) is to estimate the 

financial impacts of potential energy 

conservation standards on 

manufacturers of direct heating 

equipment and pool heaters, and to 

evaluate the potential impact of such 

standards on direct 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 also analyzes 

impacts of potential energy conservation 

standards on small business 

manufacturers of covered products. DOE 

uses the Small Business 

Administration’s (SBA) 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. 25 Manufacturing 

of direct heating equipment and pool 

heaters is classified under NAICS 

333414, ‘‘Heating Equipment (except 

Warm Air Furnaces) Manufacturing.’’ 

The SBA sets a threshold of 500 

employees or fewer for an entity to be 

considered as a small business in this 

category. The 500-employee threshold 

includes all employees in a business’s 

parent company and any other 

subsidiaries. 

DOE has initially identified four 

manufacturers of direct heating 

equipment and 16 manufacturers of 

pool heaters. The table below lists all 

identified manufacturers. Domestic 

small businesses are designated with an 

asterisk. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

15930 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Proposed Rules 

Direct heating 

equipment 

manufacturers 

Pool heater 

manufacturers 

• Empire Comfort 

Systems* 

• Louisville Tin and 

Stove Co.* 

• Rinnai 

• Williams Furnace 

Co. 

• AquaCal Autopilot, 

Inc.* 

• AquaComfort Technologies.* 

• AquaPro Systems.* 

• Built Right Pool 

Heaters.* 

• Coates Heater 

Company, Inc.* 

• EcoSmart US, 

LLC.* 

• G&F Manufacturing.* 

• Hayward Industries, 

Inc. 

• Hydroquip, Inc.* 

• Lochinvar LLC. 

• Pentair. 

• Rheem. 

• Thermeau Industries, Inc. (Canadian). 

• Titan Systems (Canadian). 

• United States 

ThermoAmp, Inc.* 

• Zodiac Pool Systems Inc. 

* Domestic small businesses 

Issue 30: DOE requests comment on 

the completeness of the manufacturer 

list presented, including names of any 

additional manufacturers that may 

belong on this list. 

III. Public Participation 

DOE will accept comments, data, and 

information regarding this RFI and other 

matters relevant to DOE’s consideration 

of amended energy conservations 

standard for DHE and pool heaters no 

later than the date provided in the DATES

section at the beginning of this RFI. 

Interested parties may submit comments 

using any of the methods described in 

the ADDRESSES section at the beginning 

of this RFI. After the close of the 

comment period, DOE will begin 

collecting data, conducting the analyses, 

and reviewing the public comments. 

These actions will be taken to aid in the 

development of a NOPR for energy 

conservation standards for DHE and 

pool heaters, should DOE decide to 

amend the standards for DHE and pool 

heaters. 

Instructions: All submissions received 

must include the agency name and 

docket number and/or RIN for this 

rulemaking. No telefacsimilies (faxes) 

will be accepted. 

Docket: The docket is available for 

review at www.regulations.gov, 

including Federal Register notices, 

public meeting attendees’ 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://www.regulations.gov/

#!docketDetail;D=EERE-2015-BT-STD0003. 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: Brenda.Edwards@ee.doe.gov. 

DOE considers public participation to 

be a very important part of the process 

for developing test procedures. 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 Brenda.Edwards@

ee.doe.gov. 

Issued in Washington, DC, on March 17, 

2015. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

[FR Doc. 2015–06809 Filed 3–25–15; 8:45 am] 

BILLING CODE 6450–01–P 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 61 

[NRC–2015–0003; NRC–2011–0012] 

RIN–3150–AI92 

Guidance for Conducting Technical 

Analyses for Low-Level Radioactive 

Waste Disposal 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Draft NUREG; request for 

comment. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is issuing for public 

comment a draft NUREG, NUREG–2175, 

‘‘Guidance for Conducting Technical 

Analyses for 10 CFR part 61.’’ The NRC 

is proposing to amend its regulations 

that govern low-level radioactive waste 

(LLRW) disposal facilities to require 

new and revised site-specific technical 

analyses, to permit the development of 

site-specific criteria for LLRW 

acceptance based on the results of these 

analyses, and to facilitate 

implementation and better align the 

requirements with current health and 

safety standards. The NRC has prepared 

draft guidance to address the 

implementation of the proposed 

regulations. This notice is announcing 

the availability of the draft guidance for 

public comment. 

DATES: Submit comments by July 24, 

2015. Comments received after this date 

will be considered if it is practical to do 

so, but the Commission is able to ensure 

consideration only for comments 

received before this date. 

ADDRESSES: You may submit comments 

by any of the following methods (unless 

this document describes a different 

method for submitting comments on a 

specific subject): 

• Federal Rulemaking Web site: Go to 

http://www.regulations.gov and search 

for Docket ID NRC–2015–0003. The 

proposed amendments to the NRC 

LLRW regulations are issued in a 

separate notice, under Docket ID NRC– 

2011–0012. Address questions about 

NRC dockets to Carol Gallagher; 

telephone: 301–287–3422; email: 

Carol.Gallagher@nrc.gov. For technical 

questions, contact the individuals listed 

in the FOR FURTHER INFORMATION

CONTACT section of this document. 

• Mail comments to: Cindy Bladey, 

Office of Administration, Mail Stop: 

3WFN–06–A44M, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001. 

For additional direction on obtaining 

information and submitting comments, 

see ‘‘Obtaining Information and 

Submitting Comments’’ in the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Priya Yadav, Office of Nuclear Material 

Safety and Safeguards, telephone: 301– 

415–6667, email: Priya.Yadav@nrc.gov; 

or Stephen Dembek, Office of Nuclear 

Material Safety and Safeguards, 

telephone: 301–415–2342, email: 

Stephen.Dembek@nrc.gov; U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001. 

SUPPLEMENTARY INFORMATION: 

mstockstill on DSK4VPTVN1PROD with PROPOSALS