DRAFT



## U.S. DEPARTMENT OF ENERGY

LIQUID-IMMERSED AND MEDIUM VOLTATE DRY-TYPE

DISTRIBUTION TRANSFORMERS

NEGOTIATED RULEMAKIN G WORKING GROUP



## GROUNDRULES

1. Goal of the Liquid-Immersed and Medium Voltage Dry-Type Negotiated Rulemaking Working Group (“Committee”)

The goal of the Committee is to reach consensus on a recommended set of energy efficiency standards for liquid-immersed and medium-vo ltage dry-type distribution transformers.

2. Participants

a. Interests Represented. Any interest that would be significantly affected by the rule may be represented in the negotiations.

b. Parties to the Negotiations . The Committee consists of those individuals whom the Secretary appoints, as nominated by the affected interests. Each organization or interest caucus that is directly represented on the Committee shall be deemed a party to the negotiations.

c. Committee Members. Each committee member appointed by the Secretary agrees to serve until the dissolution of the Committee unless that member becomes unable to serve, resigns, or ceases to maintain the representational requirements.

d. Alternates for Committee Members. Each party to the negotiati ons may designate an alternate Committee Member. Alternates may substitute fo r Committee Members in the event the Member

cannot attend a session of the Committee.

e. Additional Interests. Additional organizational interests may join the Committee after negotiations have begun only with the concurrence of the Committee.

f. Attendance and Participation at Meetings.

(1) Attendance. Each Committee Member agre es to make a good faith effort to attend every session of the Negotiating Committee. In addition, the Committee Member's alternate agrees to make a good faith effort to attend all Committee m eetings and to represent the interest at any meeting that the Member is unable to attend.2

(2) Participation. Only Committee Members or their alternates have the privilege of sitting at the negotiating table and of speaking from the floor during the negotiations without Committee approval, except:

(a) any Committee Member may call upon another individual to elaborate on a relevant point,

(b) Committee Counsel may raise and address appropriate points, and

(c) any person attending the Committee meetings may address the Committee if time permits

or file statements with the Committee.

g. Constituents' Interests . Committee Members are expected to represent the concerns of their interest group to ensure that any agreement developed by the Committee is acceptable to the organization or caucus which the Committee Member represents.

3. Decisionmaking

a. Consensus . The Committee will operate by consensu s which, for these purposes, means the unanimous concurrence of all parties to the nego tiations. Concurrence will be assumed absent overt dissent. All agreements reached during the negotiations are tentative and may be made by the Members present at the meeting or their Altern ates who attend a meeting in their stead until the Committee reaches an agreement that is binding on the parties.

b. Workgroups.

(1) Workgroups may be formed to address specific issues and to develop information for,

advise, and make recommendations to the Co mmittee. Although each party may designate a member of each workgroup, the membership of each workgroup should consist of no more than fifteen people. Other individuals who the Committee believes would enhance the functioning of a workgroup or representatives of interests that would be significantly affected by the topics addressed by the workgroup but which are not otherwise represented on the Negotiating Committee may also serve on that workgroup. Not all organizations or interest caucuses represented on the Negotiating Committee need to participate in each workgroup.

(2) The Department of Energy (DOE) w ill provide appropriate support for the Committee and the Workgroups, including a senior economist, senior technical staff, clerical support, and so

forth.

(3) Workgroups are not authorized to make decisions for the Committee as a whole. Decisions to forward a report of a workgroup to the Negotiating Committee shall be made with the concurrence of all workgroup members who ar e present at the meeting where the decision is

made.

(4) Workgroup meetings will be held betw een the full sessions and will be scheduled in the same location and time whenever possible. A ll Committee Members will be notified of all workgroup meetings.3

c. Discontinue if Unproductive . The Committee may discontinue negotiations at any time if they do not appear productive.

d. Deadline for Negotiations. Negotiations will terminate by December 22, 2011 unless the

Committee decides to extend the d eadline. Every reasonable effort shall be made to conclude negotiations and report a consensus Term Sheet to the DOE by December 16, 2011.

4. Agreement

a. Term Sheet and supporting analysis . Any agreement reached by the Committee on

recommended standards will take the form of a written statement that will be signed by all parties to the negotiations. It is anticipated that the agreem ent will include a written statement that includes (a) a Term Sheet outlining the significant terms of the Proposed Rule and (b) supporting analysis as needed to explain and justify the agreed terms from a legal, engineering and economic perspective. DOE staff will be responsible for translating this Term Sheet and analysis, into the language of a proposed rule, its supporting preamble, a Regulator y Impact Analysis, and all other appropriate materials necessary for the publication of a Notice of Proposed Rulemaking.

b. Statement as Basis for NOPR . DOE agrees to use the written statement as the basis for a Notice of Proposed Rulemaking to the maximum extent possible consistent with the Agency's legal obligations.

c. No Negative Comments. Each party agrees not to file negative comments on the proposed standard or its preamble to the extent they have the same substance and effect as theTerm Sheet.

d. Response to Public Comments . DOE will consider all relevant comments submitted concerning the Notice of Proposed Rulemaking and w ill make such modifications in the proposed standard and its preamble as are necessary when issuing a final standard.

e. No Adverse Action and Support . Each party agrees not to take any action to inhibit the adoption of the recommended proposed standard as a final standard to the extent the final standard and its preamble have the same substance and effect as theTerm Sheet. If any person does anything to inhibit the adoption of a final standard that has the same substance and effect as the written statement, each party other than DOE agrees to submit comments to DOE and any other relevant Federal official stating that:

(1) the party concurred in the written statement, and

(2) it supports the adoption of a final st andard with the same su bstance and effect as the

written statement.

f. No Challenge. Each party agrees not to challenge the sta ndard in court to the extent that the final standard and its preamble have the same substance and effect as the Term Sheet.

g. Memo of Concurrence in Docket. Each party other than DOE agrees to submit a memorandum to the docket that it participated in the negotiations and that it concurred in the recommended proposed standard when considered as a whole if:4

(1) adverse comments are filed with the ag ency or the standard is challenged in court and

(2) the preamble and standard have the same substance and effect as the Term Sheet.

5. Facilitator

A neutral facilitator will work with all the parties to ensure that the process runs smoothly. The

facilitator serves at the will of the Committee.

6. Meetings

a. FACA, NRA, and DOL Policy. The negotia tions will be conducted under the Federal Advisory Committee Act (FACA), the Negotiated Rulemaking Act of 1990 (NRA), and the Department of Labor's Negotiated Rulemaking Policy.

b. Open Meetings. Negotiating sessions will be announced in the Federal Register prior to the meeting and will be open to the public.

c. Meeting Summaries. The proceedings will not be electronically recorded, but summaries of Committee meetings will be prepared by the facilitato r for the convenience of the Committee. Such meeting summaries shall not be approved by the Committee and shall not be construed or taken to represent the official position of the Committee or any Member as to what transpired at Committee meetings. No photographs may be taken during meetings without the approval of the Committee.