Process Improvement Plan for

Appliance Efficiency Standards

March 19®0, 1996

U.S. Department ' of Energy

1000 Independence Avenue, SW

Washington, DC 20585

 EE-PI-96-001 COMMENT 15

Process Improvement Plan for 

. Appliance Efficiency Standards 

March 19-20, 1996 

u.s. Department of Energy 

1000 Independence Avenue, SW 

Washington, DC 20585 

DOE/EI-031596-0 1 
Major Objectives

Increase Participation of Stakeholders

Reduce Uncertainty of Process

Improve Impact Analyses

Consider Alternatives to Standards

 EE-PI-96-001 COMMENT 15

Major Objectives 

Increase Participation of Stakeholders 

Reduce Uncertainty of Process 

Improve Impact Analyses 

Consider Alternatives to Standards 

OOE/E 1-031596-04 
Increase Participation of Stakeholders

n Early participation in

-setting priorities

- structuring analysis

design options

analysis model(s)

n Use of technical experts

n Peer review

-sharing the analysis prior to its

publication/adoption by DOE

 EE-PI-96-001 COMMENT 15

Increase Participation of Stakeholders 

• Early participation in 

- setting priorities 

- structuring analysis 

~ design options 

~ analysis model{ s) 

• Use of technical experts 

• Peer review 

- sharing the analysis prior to its 

'publication/adoption by DOE 

OOE/E 1-031596-05 
Reduce Uncertainty of Process

n Set clear priorities and initiate standards

development process for only priority products

Screen out impractical or problematic design

options earlier

n Use Advance Notice of Proposed Rulemaking to

provide results of screening analysis and to

identify candidate standard levels under serious

consideration

 EE-PI-96-001 COMMENT 15

Reduce Uncertainty of Process 

• Set clear priorities and initiate standards 

development process for only priority products 

• Scre,en out impractical or problematic design 

options earlier 

• Use Advance Notice of Proposed Rulemaking to 

provide results of screening analysis and to 

identify candidate standard levels under serious 

consideration 

OOE/E 1-031596-06' 
Improve Impact Analyses

n Initiate cooperative effort to

- improve analysis of impacts on manufacturers

- make other improvements to key analysis methods

n Improve contractor expertise and increase peer

review

n Broaden the scope of analysis

- consider variability of impacts

- recognize limits of quantitative analyses

 EE-PI-96-001 COMMENT 15

Improve Impact Analyses 

• Initiat~ cooperative effort to 

- improve analysis of impacts on manufacturers 

- make other improvements to key analysis methods 

• Improve contractor expertise and increas'e peer 

• review 

• Broaden the scope of analysis 

- consider variability of impacts 

- recognize limits of quantitative analyses 

DOE/EI-031596-07 
Consider Alternatives to Standards

n Voluntary efforts to increase efficiency may

achieve comparable results without regulation

n Market forces may be sufficient for some

products

 EE-PI-96-001 COMMENT 15

Consider Alternatives to Standards 

• Voluntary efforts to increase efficiency may 

achieve comparable results without regulation 

• Market forces may be sufficient for some 

products 

DOE/EI-031596-08 
Std Process

Priority

Setting

Screening

Impact

Standard

Setting

Regulatory

Agenda

ANOPR

Proposed

Standards

Final

Rule

DOE/EI-031596-09

Publication

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact 

Standard 

Setting 

Process Publication 

Regulatory 

Agenda 

ANOPR 

Proposed 

Standards 

Final 

Rule 

OOE/E 1-031596-09 
Process. Evolution

Current

Process

New

Process

 EE-PI-96-001 COMMENT 15

Process. Evolut'ion 

Current 

Process 

I 

I 

New 

Process 

DOE/EI-031596-10 
Stage Process

Priority

Setting

Screening

Impact

Standard.

Setting

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Comments

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Final

Analysis

a

Publication

Regulatory

Agenda

ANOPR

Proposed

Standards

Final

Rule

DOE/EI-031596-11

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact 

Standard -

Setting 

Stakeholder & 

Expert Review 

Public 

Comments 

Public 

Comments 

Process Publication 

Regulatory 

Agenda 

ANOPR 

Proposed 

Standards 

Final 

Rule 

DOE/EI-031596-11 
Staae Process

Priority

Setting

Draft

Agenda

IIIIII!'l;I

1

5

Publication

Regulatory

Agenda

0

Screening

Impact

Standard

Setting

Final

Rule

DOE/El-031596-12

Proposed

Standards

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact. 

Standard 

Setting 

Process Publication 

Regulatory 

Agenda 

ANOPR 

,Proposed 

Standards 

Final 

Rule 

DOE/EI-031596-12 
Priority

Setting

9

Draft

Agenda

Regulatory

Agenda

The Draft Agenda is a priority list of product

standards to be developed

n The Draft Agenda will include input from

-stakeholders

-DOE analyses

 EE-PI-96-001 COMMENT 15

Priority 

Setting _~~ Regulatory 

Agenda 

• The Draft Agenda is a priority list of product 

standards to be developed 

• The Draft Agenda will include input from 

- stakeholders 

- DOE analyses 

DOE/EI-031596-J 3 
Priority

Setting

Draft

Agenda I ff ,1^11111111^111111111 Intl

Regulatory

Agenda

n DOE will meet with stakeholders to obtain

comments on

- the priorities

-the underlying assumptions

-the analysis

 EE-PI-96-001 COMMENT 15

Priority 

Setting 

Draft 

Agenda 

Regulatory 

Agenda 

• DOE will meet with stakeholders to obtain 

comments on 

- the priorities 

- the underlying assumptions 

- the 'analysis 

DOE/EI-031596-14 
Draft

Agenda Stakeholder

Review

Regulatory

Agenda

n DOE will publish rulemaking schedules for

priority products in the Regulatory Agenda

 EE-PI-96-001 COMMENT 15

Priority 

Setting 

Draft 

Agenda 

Regulatory 

Agenda 

• DOE will publish rulemaking schedules for 

priority products in the Regulatory Agenda 

DOE/EI-031596-15 
Stage Process

Priority

Setting

Impact

Standard

Setting

Stakeholder &

Expert Review

IMM

I

r

Publication

01

ANOPR

Proposed

Standards

Final

Rule

DOE/Fl-031596-16

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact 

Standard. 

Setting 

Stakeholder & 

Expert Review 

Process Publication 

Regulatory 

Agenda 

ANOPR 

Proposed 

Standards 

Final 

Rule 

ODElE 1-031596-16 
.Terminate

ANOPR

n DOE will meet with stakeholders to obtain

input regarding

-how the analysis should be structured

-which design options should be considered

- what expertise may be needed

 EE-PI-96-001 COMMENT 15

Screening Screening 

Analysis 

Terminate 

• DOE will meet with stakeholders to obtain 

input regarding 

- how the analysis should be structured 

ANOPR 

- which design options should be considered 

- what expertise may be needed 

OOE/E 1-031596-17 
Screening Screening

Analysis

n The screening analysis will consist of

-engineering analysis

-life-cycle cost and payback analyses

-energy forecast analysis

-national net present value analysis

n The screening analysis will be conducted by

technical experts and will be peer reviewed

 EE-PI-96-001 COMMENT 15

Screening Stakeholder & 

Expert Review 

ANOPR 

• The screening analysis will consist of 

. - engineering analysis 

-life-cycle cost and payback analyses 

- energy forecast analysis 

- national net present value analysis 

• The screening analysis will be conducted by 

technical experts and will be peer reviewed 

DOE/EI-031596-18 
II

Screening Stakeholder &

Expert Review

Screening

Analysis

ANOPR

n DOE will review the results of the screening

analysis and make a decision on whether to

terminate the rulemaking

n The screening analysis will be used to narrow the

range of design options considered

n The ANOPR will include results of the screening

analysis . and will be accompanied by a Technical

Support Document

DOE/El-031596-19

 EE-PI-96-001 COMMENT 15

Screening Stakeholder & 

Expert Review 

---~~ Screening 

Analysis 

• DOE will review the results of the screening 

analysis and make a decision on whether to 

terminate the rulemaking 

ANOPR 

• The screening analysis will be used to narrow the 

_range of design options considered 

• The ANOPR will include results of the screening 

analysis and will be accompanied by a Technical 

Support Document 

DO ErE 1-031596-19 
Stakeholder &

Expert Review

III

ANOPR

Revised Test Procedures

n During the screening process, DOE will

decide whether test procedures need to be

revised

n DOE will issue the revised test procedures ,

if needed , PtIQt to proceeding with the

development of proposed standards

 EE-PI-96-001 COMMENT 15

)creening -----I~~ Screening 

Analysis 

ANOPR 

Revised Test Procedures 

• During the screening process, DOE will' 

decide whether test procedures need to be 

revised 

• DOE will issue the revised test procedures, 

if needed, prior to proceeding with the 

. development of proposed standards 

DOE/EI-031596-20 
Staae Process

Priority

Setting

Screening

Impact

Standard

Setting

a a

Public

Comments

Impact

Analysis

Final

Rule

DOE/EI-031596-21

Publication

Regulatory

Agenda

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact 

Standard -

Setting 

Public 

Comments 

Process Publication 

Regulatory 

Agenda 

ANOPR 

Proposed 

Standards 

Final 

Rule 

DOE/EI-031596-21 
Impact Stakeholder

Negotiations Impact

Analysis

Proposed

Standards

n DOE will obtain public comments on the

ANOPR

DOE will obtain stakeholder and expert

review of the analysis contained in the

Technical Support Document

 EE-PI-96-001 COMMENT 15

Impact Stakeholder 

Negotiations Impact 

Analysis 

Proposed 

Standards 

• DOE will obtain public comments on the 

ANOPR 

• DOE will obtain stakeholder and expert 

review of the analysis contained in the 

Technical Support Document 

OOE/E 1-031596-22 
Impact 1111111

Public

Comments

2S

E

n DOE will encourage stakeholder negotiations

immediately following issuance of an ANOPR

n DOE will provide technical support to

negotiations initiated by stakeholders

 EE-PI-96-001 COMMENT 15

Impact iiiiiii 

Public 

Comments 

Impact 

Analysis· 

Proposed 

Standards 

• DOE will encourage stakeholder negotiations 

immediately following issuance of an ANOPR 

• DOE will provide technical support to 

negotiations initiated by stakeholders 

OOE/E 1-031596-23 
Impact

Comments

n The impact analysis will fine-tune earlier

analyses based on comments

n Economic impact analyses will be performed

- manufacturing impacts

- utility impacts

- regulatory impacts

-environmental impacts

Stakeholder

Public Negotiations

 EE-PI-96-001 COMMENT 15

Impact itttttt 

Public 

Comments 

Stakeholder 

Negotiations 

• The impact analysis will fine-tune earlier 

analyses based on cQmments 

Proposed 

Standards 

• Economic impact analyses will be performed 

- manufacturing impacts 

- utility impacts 

- regulatory impacts 

- environmental impacts 

DOE/EI-031 596-24 
Impact Stakeholder

Public Negotiations Impact

Comments Analysis

n DOE will propose updated standards

based on the results of the impact

analysis or stakeholder negotiations

n The Proposed Rule Will also be

accompanied by a complete Technical

Support Document

Proposed

Standards

 EE-PI-96-001 COMMENT 15

Impact iiiiiii 

Public 

. Comments 

Stakeholder 

Negotiations Impact 

Analysis 

• DOE will propose updated standards 

based on the results of the impact 

analysis or stakeholder negotiations 

• The Proposed Rule ,will also be 

accompanied by a complete Technical 

Support Document 

Proposed 

Standards 

DOElEI-031596-25 
Stage Process

Priority

Setting

Screening

Impact

Standard

Setting

2 11

Final

Analysis

Publication

Regulatory

Agenda

ANOPR

Proposed

Standards

Final

Rule

 EE-PI-96-001 COMMENT 15

Stage 

Priority 

Setting 

Screening 

Impact 

Standard. 

Setting Public 

Comments 

Process Publication 

Regulatory 

Agenda 

ANOPR 

Proposed 

Standards 

Final 

Rule 

DOE/E 1-031596-26 
Standard

Setting

Final

Analysis

n DOE will obtain public comments on the

Proposed Standards

n DOE will obtain stakeholder and expert

review of the analysis contained in the

revised Technical Support Document

 EE-PI-96-001 COMMENT 15

Standard 

Setting 

Final 

Analysis 

-• DOE will obtain public comments on the 

Proposed Standards 

• DOE will obtain stakeholder and expert 

revi-ew of the analysis contained in the 

revised Technical Support Document 

Final 

Rule 

DOE/EI-031596-27 
Standard

Setting Public

Comments

Final

Analysis

n DOE will update the analysis in response to

the comments received

 EE-PI-96-001 COMMENT 15

Standard 

Setting 

iiiiiii 

Public 

Comments 

• DOE will update the analysis in response to 

the comments received 

Final 

Rule 

DOE/EI-031596-28 
'"H,,

Public

Comments

Final

Analysis I

^^^!I^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Illllll^^^^llllllllllllllllllllllllllllllllllllllilllllllll

MR

n DOE will issue the Final Rule with updated

standards based on the results of all the

prior steps

Final

Rule

I Il if

 EE-PI-96-001 COMMENT 15

Standard 

Setting 

iiiiiii 

Public 

Comments 

.. Final 

Analysis 

• DOE will issue the Final Rule with updated 

standards based on the results of all the 

prior steps 

Final 

Rule 

DOE/E 1-031596-29 
,Expert & Stakeholder Consultation.

DOE/El-031596-30

 EE-PI-96-001 COMMENT 15

Priority Setting { 

Screening { 

Impacts 

Standard Setting { 

DOE/EI-031596-30