U.S. DEPARTMENT OF ENERGY Public Hearing
REGULATIONS RELATED TO ENERGY CONSERVATION STANDARDS FOR THREE PRODUCTS Docket Number CE-RM-87-102 January 13, 1989 Washington, D.C. Good morning and welcome. I am Michael McCabe, and, on behalf of the Department of Energy (DOE), I thank you for taking time to participate in this public hearing. This is the second day of public hearing on DOE's proposed rulemaking regarding energy conservation standards for refrigerators, refrigerator
-freezers and freezers; small gas furnaces; and television sets. The purpose of this public hearing is to receive oral testimony from the public on the notice of proposed rulemaking. The comments received here today and those submitted during the written comment period will assist us in developing a final rule. The comment period ends January 31, 1989.
DOE is proposing to amend Part 430 of Title 10 CFR as follows: o to consider a specific standard level for refrigerators, refrigerator-freezers, freezers;

L o to determine that standards for small gas furnaces would

result in a significant conservation of energy and would be economically justified; and 1 

## u.s. DEPARTMENT OF ENERGY Public Hearing REGULATIONS RELATED TO ENERGY CONSERVATION STANDARDS FOR THREE PRODUCTS Docket Number CE-RM-87-102 January 13, 1989 Washington, D.C. Goodmorning and welcome. I amMichael McCabe, and, on behalf of the Department of Energy (DOE), I thankyou for taking time to participate in this public hearing. This is the second day of publichearing onDOE's proposed rulemaking regarding energy conservation standards for refrigerators, refrigerator-freezers and freezers; small gas furnaces; and television sets. The purpose of this publichearing is to receive oral testimony from the public on the notice ofproposedrulemaking. The comments receivedhere today and those submitted during the written comment periodwill assist us in developing a final rule. The comment period ends January 31, 1989. DOE is proposing to amend Part 430 of Title 10 CFR as follows:

o to consider a specific standard level for refrigerators, refrigerator-freezers, freezers;

o to determine that standards for small gas furnaces would result in a significant conservation of energy and would be economicallyjustified; and 1o to determine that an energy conservation standard for television sets would result in a significant conservation of energy but would not be economically justified. The Department is particularly interested in comments concerning:
o baseline units and the base case forecasts;
o market share elasticities; o rebound effect for refrigerators, television sets, small gas furnaces, and all other space heating and cooling products; o usage elasticities; o appropriate discount rates, including those for consumer analyses and the use of a social discount rate; o energy price forecasts; o the characterization of prototypical firms for the manufacturer impact analysis; o impacts of the EPA restriction on CFC manufacture; and 2 o to determine that an energy conservation standard for television sets would result in a significant conservationof energybut would not be economically justified. The Department is particularly interested in comments concerning:

o**b~seline** units and the base case forecasts;

o market share elasticities;

o rebound effect for refrigerators, television sets, small gas furnaces, and all other spaceheating and cooling products;

o usage elasticities;

o appropriate discount rates, including those for consumer analyses and the use of a social discount rate;

o energyprice forecasts;

o the characterizationofprototypical firms for the manufacturer impact analysis;

o impacts of the EPA restriction on CFC manufacture; and 

### 2o efficiency forecasts.

All comments submitted on this proposed rule will be considered before DOE establishes the final rule. Comments received after the comment period will be considered to the fullest extent possible.

Before we turn to the first speaker, I, as the DOE presiding official for this hearing, will set forth the guidelines for conducting the hearing and provide other pertinent information. A complete transcript of this hearing will be available for inspection and copying at the Department of Energy 's Freedom of Information Reading Room, Room 1E-190, Forrestal Building, Washington, D.C., between the hours of 9: 00 a.m. and 4:00 p.m. Anyone wishing to purchase a copy of the transcript may make arrangements with the court reporter.
This will not be an evidentiary or judicial type of hearing. It will be conducted in accordance with Section 553 Title 5, United States Code and section 336 of the Act. To provide the Department of Energy with as much pertinent information and as many views as can reasonably be obtained, and to enable interested persons to express their views, the hearing will be conducted in accordance with the following procedures:

o speakers will be called to testify based on a 3 o efficiency forecasts. All comments submitted on this proposedrule will be considered before DOE establishes the final rule. Comments received after the comment periodwill be considered to the fullest extent possible. Before we turn to the first speaker, I, as the DOE presiding official for this hearing, will set forth the guidelines for conducting the hearing andprovide otherpertinent information. A complete transcript of this hearing will be available for inspection and copying at the Department of Energy's Freedom of Information Reading Room, Room lE-190, Forrestal Building, Washington, D.C., between the hours of 9:00 a.m. and 4:00 p.m. Anyone wishing to purchase a copy of the transcript maymake arrangements with the court reporter. This will not be an evidentiary orjudicial type of hearing. It will be conducted in accordance with Section 553 Title 5, United States Code and section 336 of the Act. To provide the Department of Energywith as muchpertinent information and as many views as canreasonably be obtained, and to enable interestedpersons to express theirviews, the hearing will be conducted in accordance with the following procedures:

o speakers will be called to testifybased on a 3schedule of those people who responded to the notice of this hearing; o the speakers have been allotted 20 minutes for their oral statements as stated in the December 2, 1988, Federal Register notice;
o if time allows, anyone may make an unscheduled oral statement after all scheduled speakers have delivered their statements; and o at the conclusion of all presentations, each speaker will be given the opportunity to make a rebuttal statement, subject to time limitations, and will be called in the order in which the initial statements were made.

Furthermore, the presiding official will afford any interested person an opportunity to question, persons who have made oral presentations, as well as employees of the United States Government, with respect to disputed issues of material fact, who have made written or oral presentations , relating to the proposed rule. This opportunity will be afforded after any rebuttal statements, to the extent that the presiding official determines that such question is relevant and is likely to result in a more timely and effective resolution of the proposed rule. Persons interested in making use of this opportunity must submit their request no later than shortly after 4 schedule of those people who responded to the notice of this hearing;

o the speakers have been allotted 20 minutes for their oral statements as stated in the December 2, 1988, Federal Register notice;

o if time allows, anyone maymake anunscheduled oral statement after all scheduled speakers have delivered their statements; and

o at the conclusion of all presentations, each speaker will be given the opportunity tomake a rebuttal statement, subject to time limitations, and will be called in the order inwhich the initial statements were made. Furthermore, the presiding official will afford any interested person an opportunity to question, persons who havemade oral presentations, as well as employees of theUnited States Government, with respect to disputed issues of material fact, who havemade written or oral presentations, relating to the proposed rule. This opportunity will be afforded after any rebuttal statements, to the extent that thepresiding official determines that suchquestion is relevant and is likely to result ina more timely and effective resolution of the proposedrule. Persons interested inmakinguse of this opportunitymust submit their request no later than shortly after 4the completion of any rebuttal statements and be prepared to state specific justification, including why the issue is one of disputed fact and how the proposed questions would expedite their resolution. Questions may be asked only by the members conducting the hearing. Any person wishing to direct a question to a speaker in regard to his or her testimony at this hearing may submit the question in writing at the registration desk. If the question is allowed, it will be asked by the presiding official . All follow up questions will be submitted in writing at the registration desk, and, if allowed, will be asked by the presiding official. In addition, in order to provide the fullest opportunity to resolve disputed issues of material fact, we will reconvene this hearing on Friday, January 27, at 9:30 a.m.
In addition, any speaker or any other interested person may submit written data or comments. Seven copies should be addressed to: Office of Conservation and Renewable Energy, Hearings and Dockets, Department of Energy, Room 6B-025, 1000 Independence Avenue, S.W., Washington, D.C. 20585. The envelope should be labeled: CAS-RM-87-102, Three Products Rulemaking. Any person submitting information which he or she believes to be confidential and exempt by law from public disclosure should submit to that same address, one complete copy and six copies from which information claimed to be confidential has been deleted. In accordance with the procedures established at 10 CFR 1004 .11, the Department of Energy shall make its own determination as to whether or not the information shall be exempt from public disclosure. 5 the completion of any rebuttal statements and be prepared to state specificjustification, includingwhy the issue is one of disputed fact andhow the proposedquestions would expedite their resolution. Questions may be asked onlyby themembers conducting thehearing. Any person wishing to direct a question to a speaker inregard to his or her testimony at this hearingmay submit the question inwriting at the registration desk. If the question is allowed, it will be asked by the presiding official. All follow up questions will be submitted inwriting at**~he** registration desk, and, if allowed, will be askedby the presiding official. In addition, in order to provide the fullest opportunity to resolve disputed issues of material fact, we will reconvene this hearing on Friday, January 27, at 9:30 a.m. In addition, any speaker or any other interestedpersonmay submit written data or comments. Seven copies shouldbe addressed to: Office of Conservation and Renewable Energy, Hearings and Dockets, Department of Energy, Room 6B-025, 1000 Independence Avenue, S.W., Washington, D.C. 20585. The envelope shouldbe labeled: CAS-RM-87-102, Three Products Rulemaking. Any person submitting informationwhichhe or she believes to be confidential and exempt by law from public disclosure should submit to that same address, one complete copy and six copies from which information claimed to be confidential has been deleted. In accordance with the procedures established at 10 CFR 1004.11, the Department of Energy shall make its own determination as to whether or not the information shall be exempt frompublic disclosure. 5As mentioned earlier, the close of comment period is January 31, 1989. All comments received will be available for public inspection at the DOE Freedom of Information Reading Room in Washington, D.C. As you can see from the speakers' list, which is available at the registration desk, 34 speakers are scheduled to present statements at this public hearing. In order to receive testimony from as many persons as possible, we request that each speaker present as concise a statement as possible. If your statement supports a position that was presented by a previous speaker, we request that you state your concurrence without presenting material from your statement that is duplicative. The record of this proceeding will, of course, contain the complete written statement you submitted. Today's hearing will be adjourned sharply at 6:30 p.m. If time does not permit each scheduled speaker to make their oral statement, we will reconvene the hearing on Tuesday, January 17, at 9:30a.m. and they will be provided the opportunity to make their statement or to have their complete statement submitted for the record of this proceeding. If time does not permit questioning of speakers and follow up questions by the close of each day's hearing, we will send the question to the speaker for their response . In order to receive
6 As mentioned earlier, the close of comment period is January 31, 1989. All comments received will be available for public inspection at the DOE Freedom of Information Reading Room inWashington, D.C. As you can see from the speakers' list, which is available at the registration desk, 34 speakers are scheduled to present statements at this publichearing. In order to receive testimony from as many persons as pos$ible, we request that each speakerpresent as concise a statement as possible. If your statement supports a position that was presentedby a previous speaker, we request that you stateyour concurrence without presentingmaterial from your statement that is duplicative. The record of this proceedingwill, of course, contain the complete written statement you submitted. Today's hearing will be adjourned sharply at 6:30 p.m. If time does not permit each scheduled speaker tomake their oral statement, we will reconvene the hearing on Tuesday, January 17, at 9:30a.m. and they will be provided the opportunity tomake their statement or to have their complete statement submitted for the record of this proceeding. If time does not permit questioning of speakers and follow up questions by the close of each day's hearing, we will send the question to the speaker for their response. In order to receive
6responses to the questions and to provide an opportunity to make follow up questions, this hearing will reconvene on Friday, January 27. We appreciate the time and effort you have taken in preparing your statements and are pleased to receive your comments and opinions. I would now like to introduce the members of the panel. Joining me this morning are Dr. Barry Berlin, Economist for the Department of Energy, Mr. Douglass Abramson and Mr. Esher Kweller, Staff Engineers for the Department, and Eugene Margolis, Esq., Counsel for the program. At this time, I will call the first speaker. For the record, please state your name and whom you represent.

7 responses to the questions and toprovide an opportunity tomake follow up questions, this hearing will reconvene on Friday, January 27. We appreciate the time and effort youhave taken inpreparing your statements and arepleased to receive your comments and opinions. I would now like to introduce themembers of thepanel. Joiningme this morning are Dr. Barry Berlin, Economist for the Department of Energy, Mr.**Do~glass** Abramson and Mr. Esher Kweller, Staff Engineers for the Department, and Eugene Margolis, Esq., Counsel for the program. At this time, I will call the first speaker. For the record, please stateyour name andwhom yourepresent.



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