[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Proposed Rules]
[Pages 7987-7990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3479]


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DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2007-BT-STD-0010]
RIN 1904-AA89


Energy Conservation Standards for Residential Clothes Dryers and 
Room Air Conditioners: 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.

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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 amending energy conservation standards 
for residential clothes dryers and room air conditioners; the 
analytical framework, models, and tools that DOE is using to evaluate 
standards for these products; the results of preliminary analyses 
performed by DOE for these products; and potential energy conservation 
standard levels derived from these analyses that DOE could consider for 
these products. DOE also encourages written comments on these subjects. 
To inform stakeholders and facilitate this process, DOE has prepared an 
agenda, a preliminary Technical Support Document (TSD), and briefing 
materials, which are available at:
    http://www1.eere.energy.gov/buildings/appliance_standards/residential/clothes_dryers.html and http://www1.eere.energy.gov/buildings/appliance_standards/residential/room_ac.html.

DATES: The Department will hold a public meeting on Tuesday, March 16, 
2010, from 9 a.m. to 5 p.m. in Washington, DC. Any person requesting to 
speak at the public meeting should submit such request, along with an 
electronic copy of the statement to be given at the public meeting, 
before 4 p.m., Tuesday, March 2, 2010. Written comments are welcome, 
especially following the public meeting, and should be submitted by 
April 26, 2010.

ADDRESSES: The public meeting will be held at the U.S. Department of 
Energy, Forrestal Building, Room 8E-098, 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. 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.
    Interested persons may submit comments, identified by docket number 
EERE-2007-BT-STD-0010, by any of the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> E-mail: <a href="/cdn-cgi/l/email-protection#40282f2d251f2130302c29212e2325726e32352c252d212b292e270025256e242f256e272f36"><span class="__cf_email__" data-cfemail="355d5a58506a544545595c545b5650071b4740595058545e5c5b527550501b515a501b525a43">[email protected]</span></a>. Include 
EERE-2007-BT-STD-0010 and/or RIN 1904-AA89 in the subject line of the 
message.
    <bullet> Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Public Meeting for 
Residential Clothes Dryers and Room Air Conditioners, EERE-2007-BT-STD-
0010 and/or RIN 1904-AA89, 1000 Independence Avenue, SW., Washington, 
DC 20585-0121. Phone: (202) 586-2945. Please submit one signed paper 
original.
    <bullet> Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Program, 6th Floor, 950 L'Enfant 
Plaza, SW., Washington, DC 20024. Phone: (202) 586-2945. Please submit 
one signed paper original.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this rulemaking.
    Docket: For access to the docket to read background documents, a 
copy of the transcript of the public meeting, or comments received, go 
to the U.S. Department of Energy, 6th Floor, 950 L'Enfant Plaza, SW., 
Washington, DC 20024, (202) 586-2945, between 9 a.m.

[[Page 7988]]

and 4 p.m., Monday through Friday, except Federal holidays. Please call 
Ms. Brenda Edwards at (202) 586-2945 for additional information 
regarding visiting the Resource Room.

FOR FURTHER INFORMATION CONTACT: Stephen Witkowski, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies, EE-2J, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Phone: (202) 586-7463. e-mail: 
<a href="/cdn-cgi/l/email-protection#592a2d3c29313c37772e302d32362e2a3230193c3c773d363c773e362f"><span class="__cf_email__" data-cfemail="34474051445c515a1a435d405f5b43475f5d7451511a505b511a535b42">[email protected]</span></a>.
    Francine Pinto or Betsy Kohl, U.S. Department of Energy, Office of 
General Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Phone: (202) 586-7432. e-mail: <a href="/cdn-cgi/l/email-protection#a7e1d5c6c9c4cec9c289d7cec9d3c8e7cfd689c3c8c289c0c8d1"><span class="__cf_email__" data-cfemail="307642515e53595e551e40595e445f7058411e545f551e575f46">[email protected]</span></a> or 
<a href="/cdn-cgi/l/email-protection#8cc9e0e5f6edeee9f8e4a2c7e3e4e0cce4fda2e8e3e9a2ebe3fa"><span class="__cf_email__" data-cfemail="53163f3a29323136273b7d183c3b3f133b227d373c367d343c25">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Statutory Authority
II. History of Standards Rulemaking for Residential Clothes Dryers 
and Room Air Conditioners
    A. Background
    B. Current Rulemaking Process
    i. Residential Clothes Dryers
    ii. Room Air Conditioners
    iii. Consent Decree
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Markups To Determine Product Prices
    C. Energy Use Characterization
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis

I. Statutory Authority

    Part A of Title III of the Energy Policy and Conservation Act of 
1975 (EPCA), 42 U.S.C. 6291 et seq., established an energy conservation 
program for major household appliances, which includes residential 
clothes dryers and room air conditioners. This program authorizes the 
Department to establish technologically feasible, economically 
justified energy efficiency standards for certain consumer products 
that would result in substantial national energy savings, and for which 
both natural market forces and voluntary labeling programs have been 
and/or are expected to be ineffective in promoting energy efficiency.
    DOE must design each new or amended standard for these products to 
(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)) To 
determine whether a proposed standard is economically justified, DOE 
must, after receiving comments on the proposed standard, determine 
whether the benefits of the standard exceed its burdens to the greatest 
extent practicable, weighing the following seven factors:
    1. The economic impact of the standard on manufacturers and 
consumers of 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 which are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy savings likely to result 
directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the 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 conservation; and
    7. Other factors the Secretary considers relevant.

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

    Prior to 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; the results of preliminary 
analyses performed by DOE for the product; and potential energy 
conservation standard levels derived from these analyses that DOE could 
consider.

II. History of Standards Rulemaking for Residential Clothes Dryers and 
Room Air Conditioners

A. Background

    The amendments to EPCA in the National Appliance Energy 
Conservation Act of 1987 (NAECA), Public Law 100-12, established 
prescriptive energy conservation standards for residential clothes 
dryers and performance energy conservation standards for room air 
conditioners, as well as requirements for determining whether these 
standards should be amended. (42 U.S.C. 6295(c) and (g).)
i. Residential Clothes Dryers
    EPCA, as amended by NAECA, requires gas clothes dryers not to be 
equipped with constant burning pilots and requires that DOE conduct two 
cycles of rulemakings to determine if more stringent standards are 
justified. (42 U.S.C. 6295 (g)(3) and (4)) DOE defines ``electric 
clothes dryer'' under EPCA as ``a cabinet-like appliance designed to 
dry fabrics in a tumble-type drum with forced air circulation. The heat 
source is electricity and the drum and blower(s) are driven by an 
electric motor(s).'' (Title 10 of the Code of Federal Regulations (CFR) 
430.2) Gas clothes dryers have a similar definition, except the heat 
source is gas. On May 14, 1991, DOE published a final rule in the 
Federal Register (FR) establishing the first set of performance 
standards for residential clothes dryers; the new standards became 
effective on May 14, 1994. 56 FR 22250. DOE initiated a second 
standards rulemaking for residential clothes dryers by publishing an 
advance notice of proposed rulemaking (ANOPR) in the Federal Register 
on November 14, 1994. 59 FR 56423. Pursuant to the priority-setting 
process outlined in the July 15, 1996, Procedures, Interpretations and 
Policies for Consideration of New or Revised Energy Conservation 
Standards for Consumer Products (61 FR 36974 (July 15, 1996) 
(establishing 10 CFR part 430, subpart C, appendix A); the ``Process 
Rule''), however, DOE classified the standards rulemaking for 
residential clothes dryers as a low priority for its fiscal year 1998 
priority-setting process. As a result, DOE suspended the standards 
rulemaking activities for them.
ii. Room Air Conditioners
    NAECA established performance standards for room air conditioners 
that became effective on January 1, 1990, and directed DOE to conduct 
two cycles of rulemakings to determine if more stringent standards are 
justified. (42 U.S.C. 6295 (c)(1) and (2)) DOE defines ``room air 
conditioner'' under EPCA as a ``consumer product, other than a 
`packaged terminal air conditioner,' which is powered by a single phase 
electric current and which is an encased assembly designed as a unit 
for mounting in a window or through the wall for the purpose of 
providing delivery of conditioned air to an enclosed space. It includes 
a prime source of refrigeration and may include a means for ventilating 
and heating.'' (10 CFR 430.2) On March 4, 1994, DOE published in the 
Federal Register a notice of proposed rulemaking (NOPR) for several 
products, including room air conditioners. 59 FR 10464. As a result of 
the Process Rule, DOE suspended activities to finalize standards for 
room air conditioners. DOE subsequently resumed rulemaking activities 
related to room air conditioners, and, on

[[Page 7989]]

September 24, 1997, DOE published a final rule establishing an updated 
set of performance standards, with an effective date of October 1, 
2000. 62 FR 50122.
iii. Consent Decree
    Under the consolidated Consent Decree in New York v. Bodman, No. 05 
Civ. 7807 (S.D.N.Y. filed Sept. 7, 2005) and Natural Resources Defense 
Council v. Bodman, No. 05 Civ. 7808 (S.D.N.Y. filed Sept. 7, 2005) DOE 
is required to publish a final rule amending energy conservation 
standards for residential clothes dryers and room air conditioners no 
later than June 30, 2011.

B. Current Rulemaking Process

    To initiate the current rulemaking to consider energy conservation 
standards, the Department published on its Web site the Energy 
Conservation Standards Rulemaking Framework Document for Residential 
Clothes Dryers and Room Air Conditioners (the framework document) to 
explain the issues, analyses, and process that it anticipated using for 
the development of energy efficiency standards for these products. This 
document is available at http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/dryer_roomac_framework.pdf. DOE 
also published a notice announcing the availability of the framework 
document and a public meeting to discuss the proposed analytical 
framework, and inviting written comments concerning the development of 
standards for residential clothes dryers and room air conditioners. 72 
FR 57254 (October 9, 2007).
    The focus of the public meeting, which was held on October 24, 
2007, was to discuss the analyses and issues identified in various 
sections of the framework document. At the meeting, DOE described the 
different analyses it would conduct, the methods proposed for 
conducting them, and the relationships among the various analyses. 
Manufacturers, trade associations, environmental advocates, regulators, 
and other interested parties attended the meeting. Comments received 
since publication of the framework document have helped identify issues 
DOE needs to address in developing a proposed standard and provided 
information contributing to DOE's proposed resolution of these issues.

III. Summary of the Analyses Performed by DOE

    For each of the residential clothes dryer and room air conditioner 
products currently under consideration, DOE conducted in-depth 
technical analyses in the following areas: (1) Engineering, (2) markups 
to determine product price, (3) energy-use characterization, (4) life-
cycle cost (LCC) and payback period (PBP) analyses, and (5) national 
impact analysis (NIA). These analyses resulted in a preliminary TSD 
that presents the methodology and results of each of these analyses. 
The preliminary TSD is available at the Web address given in the 
SUMMARY section of this notice. The analyses are described in more 
detail below.
    DOE also conducted several other analyses that either support the 
five major analyses or are preliminary analyses that will be expanded 
upon for the NOPR. These analyses include the market and technology 
assessment, the screening analysis, which contributes to the 
engineering analysis, and the shipments analysis, which contributes to 
the NIA. In addition to these analyses, DOE has completed preliminary 
work on the manufacturer impact analysis (MIA) and identified the 
methods to be used for the LCC subgroup analysis, the environmental 
assessment, the employment analysis, the regulatory impact analysis, 
and the utility impact analysis. DOE will expand on these analyses in 
the NOPR.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
cost and efficiency of a product DOE is evaluating for amended energy 
conservation standards. This relationship serves as the basis for cost-
benefit calculations for individual consumers, manufacturers, and the 
nation. The engineering analysis 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 
products currently offered for sale. The baseline model in each product 
class represents the characteristics of products in that class and, for 
products already subject to energy conservation standards, usually is a 
model that just meets the current standard. Chapter 5 of the 
preliminary TSD discusses the engineering analysis.

B. Markups To Determine Product Prices

    DOE derives consumer prices for products based on manufacturer 
costs, manufacturer markups, retailer markups, distributor markups, 
contractor markups, builder markups, and sales taxes. In deriving these 
markups, DOE has determined (1) The distribution channels for product 
sales; (2) the markup associated with each party in the distribution 
channels; and (3) the existence and magnitude of differences between 
markups for baseline products (baseline markups) and for more efficient 
products (incremental markups). DOE calculates both overall baseline 
and overall incremental markups based on the product markups at each 
step in the distribution channel. The overall incremental markup 
relates the change in the manufacturer sales price of higher efficiency 
models (the incremental cost increase) to the change in the retailer or 
distributor sales price. Chapter 6 of the preliminary TSD discusses the 
estimation of markups.

C. Energy Use Characterization

    The energy use characterization provides estimates of annual energy 
consumption for the residential clothes dryers and room air 
conditioners, which DOE uses in the LCC and PBP analyses and the NIA. 
DOE developed energy consumption estimates for all of the product 
classes analyzed in the engineering analysis, as the basis for its 
energy use estimates. Chapter 7 of the preliminary TSD discusses the 
energy use characterization.

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 consumer 
expense for a product 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 products 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 expenses of the products 
(energy use and maintenance); (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 more efficient products through savings in the operating cost of the 
product. It is the change in total installed cost due to increased 
efficiency divided by the change in annual operating cost from 
increased efficiency. Chapter 8 of the preliminary TSD discusses the 
LCC and PBP analyses.

[[Page 7990]]

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. DOE calculated 
NES and NPV for each efficiency level 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 over a specified time period. 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, retirement rates (based on 
estimated product lifetimes), and estimates of changes in shipments and 
retirement rates in response to changes in product costs due to 
standards. Chapter 10 of the preliminary TSD discusses the NIA.
    DOE consulted with interested parties as part of its process for 
conducting all of the analyses and invites further input from the 
public on these topics. The preliminary analytical results are subject 
to revision following review and input from the public. The final rule 
will contain the final analysis results.
    The Department encourages those who wish to participate in the 
public meeting to obtain the preliminary TSD and to be prepared to 
discuss its contents. A copy of the preliminary TSD is available at the 
Web address given in the SUMMARY section of this notice. However, 
public meeting participants need not limit their comments to the topics 
identified in the preliminary TSD. The Department 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, the Department welcomes all interested parties, 
regardless of whether they participate in the public meeting, to submit 
in writing by April 26, 2010, comments and information on matters 
addressed in the preliminary TSD and on other matters relevant to 
consideration of standards for residential clothes dryers and room air 
conditioners.
    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.
    After the public meeting and the expiration of the period for 
submitting written statements, the Department will consider all 
comments and additional information that is obtained from interested 
parties or through further analyses, and it will prepare a NOPR. The 
NOPR will include proposed energy conservation standards for the 
products covered by this rulemaking, and members of the public will be 
given an opportunity to submit written and oral comments on the 
proposed standards.

    Issued in Washington, DC, on February 12, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-3479 Filed 2-22-10; 8:45 am]
BILLING CODE 6450-01-P


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