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

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CE-RM-87-102 COMMENT 06C

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; 

o to determine that standards for small gas furnaces would 

result in a significant conservation of energy and would 

be economically justified; and 

1 
o 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

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CE-RM-87-102 COMMENT 06C

o 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 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 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 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

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CE-RM-87-102 COMMENT 06C

o 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 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 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 
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 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

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CE-RM-87-102 COMMENT 06C

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 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 
the 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.

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CE-RM-87-102 COMMENT 06C

the 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 ~he 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 
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 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

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CE-RM-87-102 COMMENT 06C

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 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 pos$ible, 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 
responses 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.

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CE-RM-87-102 COMMENT 06C

responses 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. 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 state your name and whom you represent. 

7