[6450-01-P] 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE-2010-BT-STD-0011] 

RIN: 1904-AC22 

Energy Conservation Standards for Residential Furnace Fans: Public Meeting and 

Availability of the Preliminary Technical Support Document 

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

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

document. 

SUMMARY: The U.S. Department of Energy (DOE) will hold a public meeting to 

discuss and receive comments on the product classes that DOE plans to analyze for 

purposes of establishing energy conservation standards for residential furnace fans; the 

analytical framework, models, and tools that DOE is using to evaluate potential standards 

for these products; the results of preliminary analyses performed by DOE for these 

products; the potential energy conservation standard levels derived from these analyses 

that DOE could consider for these products; and any other issues relevant to the 

development of energy conservation standards for residential furnace fans. In addition, 

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DOE encourages written comments on these subjects. To inform interested parties and to 

facilitate this process, DOE has prepared an agenda, a preliminary technical support 

document (preliminary TSD), and briefing materials, which are available on the DOE 

website. 

DATES: DOE will hold a public meeting on July 27, 2012, from 9:00 a.m. to 4:00 p.m. 

in Washington, DC. Additionally, DOE plans to allow for participation in the public 

meeting via webinar. DOE will accept comments, data, and other information regarding 

this rulemaking before or after the public meeting, but no later than [INSERT DATE 60 

DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER]. See section IV, 

“Public Participation,” of this notice of public meeting (NOPM) for details. 

ADDRESSES: The public meeting will be held at the U.S. Department of Energy, 

Forrestal Building, Room 8E-089, 1000 Independence Avenue, SW., Washington, DC 

20585-0121. Please note that foreign nationals participating in the public meeting are 

subject to advance security screening procedures which require advance notice prior to 

attendance at the public meeting. If a foreign national wishes to participate in the public 

meeting, please inform DOE of this fact as soon as possible by contacting Ms. Brenda 

Edwards at (202) 586-2945 so that the necessary procedures can be completed. DOE 

requires visitors to have laptops and other devices, such as tablets, checked upon entry 

into the building. Please report to the visitor’s desk to have devices checked before 

proceeding through security. 

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As noted above, DOE has prepared an agenda, a preliminary TSD, and briefing 

materials, which are available at: 

http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.htm 

l. 

Interested persons may submit comments, identified by docket number EERE2010-BT-STD-0011 and/or Regulation Identification Number (RIN) 1904-AC22, by any 

of the following methods: 

Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for 

submitting comments. 

Email: FurnFans-2010-STD-0011@ee.doe.gov Include the docket number EERE2010-BT-STD-0011 and/or RIN 1904-AC22 in the subject line of the message. 

Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies 

Program, Mailstop EE-2J, Public Meeting for Residential Furnace Fans, EERE2010-BT-STD-0011, 1000 Independence Avenue, SW., Washington, DC 20585-

0121. Telephone (202) 586-2945. 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, 950 L’Enfant Plaza, SW., 6th Floor, Washington, DC 

20024. Telephone (202) 586-2945. If possible, please submit all items on CD, in 

which case it is not necessary to include printed copies. 

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Docket: The docket is available for review at www.regulations.gov, including 

Federal Register notices, Framework Documents, public meeting attendee lists and 

transcripts, comments, and other supporting documents/materials. All documents in the 

docket are listed in the www.regulations.gov index. However, not all documents listed in 

the index may be publicly available, such as information that is exempt from public 

disclosure. The www.regulations.gov web page contains instructions on how to access 

all documents in the docket, including public comments. 

The rulemaking web page can be found at: 

http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.htm 

l. This web page contains a link to the docket for this notice at www.regulations.gov. 

For detailed instructions on submitting comments and additional information on 

the rulemaking process, see section IV, “Public Participation,” of this document. For 

further information on how to submit a comment, review other public comments and the 

docket, or participate in the public meeting, contact Ms. Brenda Edwards at (202) 586-

2945 or by email: Brenda.Edwards@ee.doe.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. Mohammed Khan, U.S. 

Department of Energy, Office of Energy Efficiency and Renewable Energy, Building 

Technologies, EE-2J, 1000 Independence Avenue, SW., Washington, DC 20585-0121. 

Telephone: (202) 586-2192. E-mail: Mohammed.Khan@ee.doe.gov . 

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Mr. Eric Stas, U.S. Department of Energy, Office of the General Counsel, GC-71, 

1000 Independence Avenue, SW., Washington, DC 20585-0121. Telephone: (202) 586-

9507. E-mail: Eric.Stas@hq.doe.gov. 

For information on how to submit or review public comments and on how to 

participate in the public meeting, contact Ms. Brenda Edwards, U.S. Department of 

Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies 

Program, EE-2J, 1000 Independence Avenue, SW., Washington, DC 20585-0121. 

Telephone: (202) 586-2945. E-mail: Brenda.Edwards@ee.doe.gov. 

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SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Authority 

II. History of Energy Conservation Standards Rulemaking for Residential Furnace Fans 

A. Background 

B. Current Rulemaking Process 

III. Summary of the Analyses Performed by DOE 

A. Engineering Analysis 

B. Markups To Determine Installed Price 

C. Energy Use Analysis 

D. Life-Cycle Cost and Payback Period Analyses 

E. National Impact Analysis 

IV. Public Participation 

A. Attendance at Public Meeting 

B. Procedure for Submitting Requests to Speak 

C. Conduct of Public Meeting 

D. Submission of Comments 

V. Approval of the Office of the Secretary 

I. Authority 

Title III, Part B1 of the Energy Policy and Conservation Act of 1975, as amended, 

(EPCA or the Act), Pub. L. 94-163 (42 U.S.C. 6291-6309, as codified) sets forth a variety 

of provisions designed to improve energy efficiency and established the Energy 

Conservation Program for Consumer Products Other Than Automobiles, a program 

covering most major household appliances.2 These include products that use electricity 

for the purposes of circulating air through duct work, hereinafter referred to as 

1 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A. 2 All references to EPCA in this rulemaking refer to the statute as amended through the Energy 

Independence and Security Act of 2007, Pub. L. 110-140. 

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“residential furnace fans” or simply “furnace fans,” the subject of today’s notice. (42 

U.S.C. 6295(f)(4)(D)) 

Pursuant to EPCA, DOE’s energy conservation program for covered products 

consists essentially of four parts: (1) testing; (2) labeling; (3) establishment of Federal 

energy conservation standards; and (4) certification and enforcement procedures. Subject 

to certain criteria and conditions, DOE has authority to establish mandatory energy 

conservation standards for residential furnace fans. EPCA requires DOE to consider and 

establish energy conservation standards for residential furnace fans by December 31, 

2013. (42 U.S.C. 6295(f)(4)(D)) 

EPCA provides criteria for prescribing new energy conservation standards for 

residential furnace fans. More specifically, DOE is required to consider standards for 

these products that: (1) achieve the maximum improvement in energy efficiency that is 

technologically feasible and economically justified; and (2) result in significant 

conservation of energy. (42 U.S.C. 6295(o)(2)(A) and (o)(3)(B)) To determine whether 

a candidate standard is economically justified, DOE will, after receiving comments on the 

candidate standard, determine whether the benefits of the standard exceed its burdens to 

the greatest extent practicable, using the following seven factors: 

1.	 The economic impact of the standard on manufacturers and consumers of 

products subject to the standard; 

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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 which are 

likely to result from the standard; 

3.	 The total projected amount of energy savings likely to result directly from the 

standard; 

4.	 Any lessening of the utility or the performance of the covered products likely 

to result from 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 standard; 

6.	 The need for national energy conservation; and 

7. Other factors the Secretary of Energy considers relevant. 

(42 U.S.C. 6295(o)(2)(B)(i)) 

EPCA also directs that DOE may not prescribe an amended or new standard if the 

standard is likely to result in the unavailability in the United States in any covered 

product type (or class) of 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 that the standard is prescribed. (42 U.S.C. 6295(o)(4)) 

Before proposing a standard, DOE typically seeks public input on the analytical 

framework, models, and tools that DOE will use to evaluate standards for the product at 

issue and the results of preliminary analyses DOE performed for the product. DOE is 

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publishing this document to announce the availability of the preliminary TSD, which 

details the preliminary analyses, discusses the comments DOE received from interested 

parties on the Framework Document, and summarizes the preliminary results of DOE’s 

analyses. In addition, DOE is announcing a public meeting to solicit feedback from 

interested parties on its analytical framework, models, and preliminary results. 

II. History of Energy Conservation Standards Rulemaking for Residential Furnace 

Fans 

A. Background 

There are no current energy conservation standards for residential furnace fans. 

EPCA, as amended by the Energy Policy Act of 2005 (EPACT 2005), provided DOE 

authority to consider and prescribe new energy conservation standards for electricity used 

for purposes of circulating air through duct work by December 31, 2013. (42 U.S.C. 

6295(f)(4)(D)) DOE interprets this statutory language as allowing DOE to cover the 

electricity used by any electrically-powered device used in residential central heating, 

ventilation, and air-conditioning (HVAC) systems for the purpose of circulating air 

through duct work. 

B. Current Rulemaking Process 

In initiating this rulemaking, DOE prepared a Framework Document, 

“Rulemaking Framework for Furnace Fans,” which describes the procedural and 

analytical approaches DOE anticipates using to evaluate energy conservation standards 

for residential furnace fans. DOE published a notice that announced both the availability 

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of the Framework Document and a public meeting to discuss the proposed analytical 

framework for the rulemaking. That notice also invited written comments from the 

public. 75 FR 31323 (June 3, 2010). The Framework Document is available at: 

http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/furnace_fan 

_framework_only_06-4-10v3.pdf. 

DOE held a public meeting on June 18, 2010, at which it presented the various 

analyses DOE would conduct as part of the rulemaking, such as the engineering analysis, 

the life-cycle cost (LCC) and payback period (PBP) analyses, and the national impact 

analysis (NIA). Manufacturers, trade associations, environmental and energy efficiency 

advocates, and other interested parties attended the meeting. The participants discussed 

the following major topics: (1) issues pertaining to the scope of coverage of the current 

rulemaking; (2) product classes; (3) analytical approaches and methods used in the 

rulemaking; (4) impacts of standards and burden on manufacturers; (5) technology 

options; (6) distribution channels, shipments, and end users; (7) impacts of outside 

regulations; and (8) environmental issues. 

Comments received since publication of the Framework Document have helped 

DOE identify and resolve issues related to the preliminary analyses. Chapter 2 of the 

preliminary TSD, available at the web address given in section III below and in the 

ADDRESSES section of this notice, summarizes and addresses the comments received in 

response to the Framework Document. 

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III. Summary of the Analyses Performed by DOE 

For the residential furnace fans covered in this rulemaking, DOE conducted indepth technical analyses in the following areas: (1) engineering; (2) markups to determine 

product price; (3) life-cycle cost and payback period; and (4) national impacts. The 

preliminary TSD that presents the methodology and results of each of these analyses is 

available at: 

http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.htm 

DOE also conducted, and has included in the preliminary TSD, several other 

analyses that support the major analyses. These analyses include: (1) the market and 

technology assessment; (2) the screening analysis, which contributes to the engineering 

analysis; and (3) the shipments analysis, which contributes to the LCC and PBP analysis 

and NIA. In addition to these analyses, DOE has begun preliminary work on the 

manufacturer impact analysis and has identified the methods to be used for the LCC 

subgroup analysis, the emissions analysis, the employment impact analysis, the 

regulatory impact analysis, and the utility impact analysis. DOE will expand on these 

analyses in the notice of proposed rulemaking (NOPR). 

A. Engineering Analysis 

The engineering analysis establishes the relationship between the manufacturer 

selling price and product efficiency levels that DOE is evaluating as potential energy 

conservation standards. This relationship serves as the basis for cost-benefit calculations 

for individual consumers, manufacturers, and the Nation. The engineering analysis 

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identifies representative baseline products, which is the starting point for analyzing 

technologies that provide energy efficiency improvements. “Baseline product” refers to a 

model or models having features and technologies typically found in minimally-efficient 

products currently available on the market. After identifying the baseline models, DOE 

estimated manufacturer selling prices by using a consistent methodology and pricing 

scheme that includes material costs and manufacturer markups. DOE used these inputs to 

develop manufacturer selling prices for the baseline and more-efficient designs. Later, in 

the markups analysis to determine the installed price, DOE converts these manufacturer 

selling prices into installed prices. In the preliminary TSD, section 2.5 of chapter 2 and 

chapter 5 each provide details on the engineering analysis and the derivation of the 

manufacturer selling prices. 

B. Markups To Determine Installed Price 

DOE derives the installed prices for products based on manufacturer markups, 

distributor markups, contractor markups, and sales taxes. In deriving these markups, 

DOE determined the major distribution channels for product sales, the markup associated 

with each party in each distribution channel, and the existence and magnitude of 

differences between markups for baseline products (baseline markups) and higherefficiency products (incremental markups). DOE calculates both overall baseline and 

overall incremental markups based on the product markups at each step in each 

distribution channel. In the preliminary TSD, section 2.6 of chapter 2 and chapter 6 

provide detail on the estimation of markups. 

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C. Energy Use Analysis 

DOE carries out the energy use analysis to estimate the energy consumption of 

the residential furnace fans installed in the field. Details of the energy use analysis are 

provided in section 2.7 of chapter 2 and chapter 7 of the TSD. 

D. Life-Cycle Cost and Payback Period Analyses 

The LCC and PBP analyses determine the economic impact of potential standards 

on individual consumers. The LCC is the total cost of the furnace fan to the customer 

over the life of the product. The LCC analysis compares the LCCs of products designed 

to meet possible energy conservation standards with the LCCs of the product likely to be 

installed in the absence of standards. DOE determines LCCs by considering: (1) total 

installed cost to the purchaser (which consists of manufacturer selling price, sales taxes, 

distribution chain markups, and installation cost); (2) the operating cost of the product 

(energy cost, water and wastewater cost, and maintenance and repair cost); (3) product 

lifetime; and (4) a discount rate that reflects the real consumer cost of capital and puts the 

LCC in present-value terms. The PBP represents the number of years needed to recover 

the increase in purchase price (including installation cost) of higher-efficiency products 

through savings in the operating cost of the product. PBP is calculated by dividing the 

incremental increase in installed cost of the higher efficiency product, compared to 

baseline product, by the annual savings in operating costs. Section 2.8 of chapter 2 and 

chapter 8 of the preliminary TSD provide details on the LCC and PBP analyses. 

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E. National Impact Analysis 

The NIA estimates the national energy savings (NES) and the net present value 

(NPV) of total consumer costs and savings expected to result from new standards at 

specific efficiency levels (referred to as candidate standard levels). DOE calculated NES 

and NPV for each candidate standard level for residential furnace fans as the difference 

between a base-case forecast (without new standards) and the standards-case forecast 

(with standards). DOE determined national annual energy consumption by multiplying 

the number of units in use (by vintage) by the average unit energy consumption (also by 

vintage). Cumulative energy savings are the sum of the annual NES determined from 

2018 2047. The analysis period is 30 years long, which is consistent with other 

rulemakings and sufficiently long to cover the expected life of the product. The analysis 

period begins in 2018, the expected year of compliance with the new standard. The 

national NPV is the sum over time of the discounted net savings each year, which 

consists of the difference between total operating cost savings and increases in total 

installed costs. Critical inputs to this analysis include shipments projections, product 

retirement rates (based on estimated product lifetimes), product installed costs and 

operating costs, product annual energy consumption, and discount rates. Section 2.10 of 

chapter 2 and chapter 10 of the preliminary TSD provide details on the NIA. 

IV. Public Participation 

DOE invites input from the public on all the topics described above. The 

preliminary analytical results are subject to revision following further review and input 

from the public. A complete and revised TSD will be made available upon issuance of a 

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NOPR. The final rule establishing any new energy conservation standards will contain 

the final analytical results and be accompanied by a final rule TSD. 

DOE encourages those who wish to participate in the public meeting to obtain the 

preliminary TSD from DOE’s website and to be prepared to discuss its contents. Once 

again, a copy of the preliminary TSD is available at: 

http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.htm 

l. However, public meeting participants need not limit their comments to the topics 

identified in the preliminary TSD. DOE is also interested in receiving views concerning 

other relevant issues that participants believe would affect energy conservation standards 

for these products or that DOE should address in the NOPR. 

Furthermore, DOE welcomes all interested parties, regardless of whether they 

participate in the public meeting, to submit in writing by [INSERT DATE 60 DAYS 

AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER] comments and 

information on matters addressed in the preliminary TSD and on other matters relevant to 

consideration of energy conservation standards for residential furnace fans. 

The public meeting will be conducted in an informal, conference style. A court 

reporter will be present to record the minutes of the meeting. There shall be no 

discussion of proprietary information, costs or prices, market shares, or other commercial 

matters regulated by United States antitrust laws. 

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After the public meeting and the closing of the comment period, DOE will 

consider all timely-submitted comments and additional information obtained from 

interested parties, as well as information obtained through further analyses, and prepare a 

NOPR. The NOPR will include proposed energy conservation standards for the products 

covered by the rulemaking, and members of the public will be given an opportunity to 

submit written and oral comments on the proposed standards. 

A. Attendance at Public Meeting 

The time and date of the public meeting are listed in the DATES and 

ADDRESSES sections at the beginning of this NOPM. The public meeting will be held 

at the U.S. Department of Energy, Forrestal Building, Room 8E-089, 1000 Independence 

Avenue, SW., Washington, DC 20585-0121. To attend the public meeting, please notify 

Ms. Brenda Edwards at (202) 586-2945. Any foreign national wishing to participate in 

the meeting should advise DOE of this fact as soon as possible by contacting Ms. Brenda 

Edwards to initiate the necessary procedures. 

You can attend the public meeting via webinar, and registration information, 

participant instructions, and information about the capabilities available to webinar 

participants will be published on the following website: 

https://www1.gotomeeting.com/register/914344761. Participants are responsible for 

ensuring their computer systems are compatible with the webinar software. 

The purpose of the meeting is to receive comments and to help DOE understand 

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potential issues associated with this rulemaking. DOE must receive requests to speak at 

the meeting before 4:00 p.m., July 23, 2012. DOE must receive a signed original and an 

electronic copy of statements to be given at the public meeting before 4:00 p.m., July 23, 

2012. 

B. Procedure for Submitting Requests to Speak 

Any person who has an interest in today’s notice or who is a representative of a 

group or class of persons that has an interest in these issues may request an opportunity to 

make an oral presentation. Such persons may hand-deliver requests to speak, along with 

a computer diskette or CD in WordPerfect, Microsoft Word, PDF, or text (ASCII) file 

format to Ms. Brenda Edwards at the address shown in the ADDRESSES section at the 

beginning of this NOPM between 9:00 a.m. and 4:00 p.m. Monday through Friday, 

except Federal holidays. Requests may also be sent by mail to the address shown in the 

ADDRESSES section or email to Brenda.Edwards@ee.doe.gov. 

Persons requesting to speak should briefly describe the nature of their interest in 

this rulemaking and provide a telephone number for contact. DOE requests persons 

selected to be heard to submit an advance copy of their statements at least two weeks 

before the public meeting. At its discretion, DOE may permit any person who cannot 

supply an advance copy of their statement to participate, if that person has made advance 

alternative arrangements with the Building Technologies Program. The request to give 

an oral presentation should ask for such alternative arrangements. 

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C. Conduct of Public Meeting 

DOE will designate a DOE official to preside at the public meeting and may also 

employ a professional facilitator to aid discussion. The meeting will not be a judicial or 

evidentiary-type public hearing, but DOE will conduct it in accordance with section 336 

of EPCA. (42 U.S.C. 6306) A court reporter will record the proceedings and prepare a 

transcript. DOE reserves the right to schedule the order of presentations and to establish 

the procedures governing the conduct of the public meeting. After the public meeting, 

interested parties may submit further comments on the proceedings as well as on any 

aspect of the rulemaking until the end of the comment period. 

The public meeting will be conducted in an informal conference style. DOE will 

present summaries of comments received before the public meeting, allow time for 

presentations by participants, and encourage all interested parties to share their views on 

issues affecting this rulemaking. Each participant will be allowed to make a prepared 

general statement (within DOE-determined time limits) prior to the discussion of specific 

topics. DOE will permit other participants to comment briefly on any general statements. 

At the end of all prepared statements on a topic, DOE will permit participants to 

clarify their statements briefly and comment on statements made by others. Participants 

should be prepared to answer questions from DOE and other participants concerning 

these issues. DOE representatives may also ask questions of participants concerning 

other matters relevant to this rulemaking. The official conducting the public meeting will 

accept additional comments or questions from those attending, as time permits. The 

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presiding official will announce any further procedural rules or modification of the above 

procedures that may be needed for the proper conduct of the public meeting. 

A transcript of the public meeting will be posted on the DOE website and will 

also be included in the docket, which can be viewed as described in the Docket section at 

the beginning of this notice. In addition, any person may buy a copy of the transcript 

from the transcribing reporter. 

D. Submission of Comments 

DOE will accept comments, data, and other information regarding this rulemaking 

before or after the public meeting, but no later than the date provided at the beginning of 

this NOPM. Please submit comments, data, and other information as provided in the 

ADDRESSES section. Submit electronic comments in WordPerfect, Microsoft Word, 

PDF, or text (ASCII) file format and avoid the use of special characters or any form of 

encryption. Comments in electronic format should be identified by the Docket Number 

EERE-2010-BT-STD-0011 and/or RIN 1904-AC22 and, wherever possible, carry the 

electronic signature of the author. No telefacsimiles (faxes) will be accepted. 

Pursuant to 10 CFR 1004.11, any person submitting information that he or she 

believes to be confidential and exempt by law from public disclosure should submit two 

copies: one copy of the document including all the information believed to be 

confidential and one copy of the document with the information believed to be 

confidential deleted. DOE will make its own determination as to the confidential status 

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of the information and treat it according to its determination. 

Factors of interest to DOE when evaluating requests to treat submitted 

information as confidential include: (1) a description of the items; (2) whether and why 

such items are customarily treated as confidential within the industry; (3) whether the 

information is generally known by or available from other sources; (4) whether the 

information has previously been made available to others without obligation concerning 

its confidentiality; (5) an explanation of the competitive injury to the submitting person 

which would result from public disclosure; (6) a date upon which such information might 

lose its confidential nature due to the passage of time; and (7) why disclosure of the 

information would be contrary to the public interest. 

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v. Approval of the Office of the Secretary 

The Secretary of Energy has approved publication of this NOPM. 

Issued in Washington, DC, on June 28, 2012. 

Kathleen B. Hogan 

Deputy Assistant Secretary for Energy Efliciency 

Energy Etlicicncy and Renewable Energy 

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