### 10984 

### Federal Register/Vol. 65, No. 41/Wednesday, March 1, 2000/Proposed Rules

another means which the industry may need to deal with pricevolatility.

For the reasons set forth in the preamble, it is proposed thatTitle 7 of Chapter X ofthe CFR be amended by adding a new Part 1140 as follows:

PART 114Q-DAIRY FORWARD PRICING PILOT PROGRAM Subpart A-Definitions Sec. 1140.1 General definitions. Subpart B-Rules Governing Forward Contracts 1140.2 Rules governingforward contracts.

Authority: 7 U.S.c. 601, etseq. Subpart A-Definitions
§ 1140.1 General definitions.

(a) 

### Pilotprogram means the dairy forward pricing pilot program provided by an amendmentto the Agricultural Marketing Agreement Act of 1937 (7 U.S.c. 601, et

### seq.) signed into law on November 29,1999 (Section 3 ofH.R. 3428 ofthe 106th Congress, as enacted by section 1001(a)(8) ofPublic Law 106- 113 (113 Stat. 1536)).

(b) 

### Eligible milkmeans the quantity of milkBqual to a handler's Class II, III, and IV utilization during the month, combining all pool plants ofa single handlerthat are regulated under a single Federal order.

(c) 

### Forward contract means an agreement covering the terms and conditions for the sale ofmilk from a producer defined in section 12 ofParts 1001 through 1135 to a handler defined in § 1000.9.

(d) 

### Contract milkmeans the producer milk covered by a forward contract.

(e) 

### Disclosure statementmeans the following statement which mustbe signed andreturned to the market administrator by each producer entering into a forward contract with a handler before the market administrator will recognize the terms and conditions provided in such contract.
Disclosure Statement

I am voluntarily entering into a forward contract with (handler'S name). I havebeengiven a copy ofthe contract and I have received the USDA's Pilot Program Fact Sheet to which this disclosure statement
was attached. By signing this form, I understand thatI am forfeiting my right to receive the order's minimum uniform or component prices for that portion ofmy milk that is under forward contract for the duration ofthe contract. I also understand thatmy milk willbe priced in accordance with the terms and conditions ofthe contract. Printed Name: Signature: Date: Address: ProducerNo: (f) 

### Other definitions. Any term used in this partthat is defined inParts 1000- 1135 is incorporated inthis part. Subpart B-Rules Governing Forward Contracts
§ 1140.2 Rules governing forward contracts.

(a) A handlerthat operates one or
more pool plants may enter into forward contracts with producers or cooperative associations for the handler's 

### eligible milkreceived at such plants andbe exempt from the minimum payment provisions that would apply to such milk in section 73 ofParts 1001 through 1135 for the period oftime covered by the contract, exceptthat a contract with

a producer or cooperative association participating for the first time in this pilot program may not exceed 6 months. In no event shall a forward contract executed pursuantto this part extend beyond December 31, 2004.

(b) Forward contracts mustbe signed and dated by the contracting handler and producer (or cooperative association) priorto the first day ofthe first month for which they are to be effective and mustbe inthe possession ofthe market administratorby the 15th day ofthat month. The 

### disclosure statementprovided in § 1140.2(e) must be signed on the same date as the contract by each producer or cooperative association entering into a forward contract under the pilot program and this signed disclosure statement mustbe attached to each contract submitted to the market administrator

.

(c) Each forward contract submitted for approval must contain a clause that allows the dairy farmer signing the contract to revoke the contract by notifying the handler in writing within 3business days. This written notification, which maybefaxed, mailed, or E-mailed, mustbe in the possession ofthe handlerby midnight ofthe 3rdbusiness day following the signing ofthe contract. The producer is responsible for verifying the time and date ofreceipt ofthis notification.

(d) In the event that a handler's contract milk exceeds the handler's 

### eligible milkfor any month in which the specified contract price(s) are belowthe order's minimum prices, the handler must designate which producer milk shall notbe contract milk. Ifthe handler does not designate the owners ofthe over-contracted milk, the market administrator shall prorate the overcontracted milkto each producer and cooperative association having a forward contract with the handler. (e) Payments for milkcovered by a forward contract mustbe made onthe

same dates as payments for milkthat is notunder forward contract under the respective Federal order.

(f) Thebasis for pricing milkunder forward contract mustbethe same basis-but not atthe samerate or level-as is used to price milk that is not under forward contract under the respective order. Under orders providing for skim milk andbutterfat pricing, forward contracts mustprice milk onthebasis ofskim milk and butterfat, and under orders with component pricing ofmilk, forward contracts must price milk accordingto the components priced underthe respective order.

(g) Handlers participating inthe pilot program will continueto be required to file all reports thatare currently required under the respective marketing orders and will continue to be required to account to the pool for all milk they receive attheir respective order's minimum class prices.

(h) Nothing in this part shall impede the contractual arrangements that exist between a cooperative association and its members.

Dated: February 25, 2000. RichardM. McKee, DeputyAdministrator.DairyPrograms. [FR Doc. 00-4920 Filed 2-29-00; 8:45 am]

BILLING CODe 3410-02-P

DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy

10 CFR Part 431

[Docket No. EE-RM-STD-00-100]

RIN No. 1904-AB06 Energy Efficiency Program for Commercial and Industrial Equipment: Efficiency Standards for Commercial Heating, Air Conditioning and Water Heating Equipment

AGENCY: Office ofEnergy Efficiency and Renewable Energy, Department of Energy.
ACTION: Notice ofpreliminary screening analysis.

SUMMARY: The Energy Policy and Conservation Act, as amendedby the Energy Policy Act of 1992 (EPCA), establishes energy efficiency standards for certain commercial heating, air conditioning and water heating

### Federal Register/Vol. 

### 65, No. 41/Wednesday, March 1, 2000/Proposed Rules 

### 10985

equipment. On October 29,1999, the efficiency standards in American Society ofHeating, Refrigerating and Air-Conditioning Engineers, Inc. (ASHRAE) and IlluminatingEngineering Society ofNorth America (IES) ASHRAE/IES Standard 90.1 were amended for some ofthese products. This notice outlines the process the Departmentplans to follow in deciding which ofthese amended efficiency standards to adopt immediately and whichto analyze further. ADDRESSES: You can view copies ofthe ASHRAE/IES Standard 90.1-1999 inthe Freedom ofInformation Reading Room (Room No. 1E-190) at the U.S. Department ofEnergy, Forrestal Building, 1000 Independence Avenue, SW, Washington, DC 20585-0121, betweenthe hours of9:00 a.m. and 4:00 p.m., Monday through Friday, except Federal holidays. You can also obtain copies from the American Society of Heating, Refrigerating, andAirConditioning Engineers, Inc., 1971 Tullie Circle, NE, Atlanta, GA 30329, and you can obtain electronic versions atASHRAE's web site, http:// www.ashrae.org/booklbookshop.htm. The Preliminary Screening Analysis described inthis notice is expected to be available for viewing inthe Department ofEnergy's Freedom of Information Reading Room by the end of March 2000, and copies may be requested from the contacts listed below. The reportwill also be accessible via the Internet at http:// www.eren.doe.gov/buildings/ codes_standards/index.htm, which contains additional information on Department ofEnergy codes and standards programs as well. FOR FURTHER INFORMATION CONTACT: Cyrus H. Nasseri, U.S. Department of Energy, Office ofEnergy Efficiency and Renewable Energy, Mail Station, EE-41, 1000 Independence Avenue, SW, Washington, D.C. 20585, (202) 586- 9138, FAX (202) 586-4617, e-mail: Cyrus.Nasseri@ee.doe.gov, or Edward Levy, Esq., U.S. Department ofEnergy, Office ofGeneral Counsel, Mail Station, GC-72, 1000 Independence Avenue, SW, Washington, D.C. 20585, (202) 586- 9507, e-mail: Edward.Levy@hq.doe.gov. SUPPLEMENTARY INFORMATION: This notice refers to certain industry standards established bythe ASHRAE and IES. These industry standards are referenced by the single comprehensive "ASHRAE/IES Standard 90.1-1999."
I. Introduction

A. Authority B. Background 1. General 2. ASHRAE Action II. Discussion A. Preliminary ScreeningAnalysis B. Products Not Included in the

Preliminary ScreeningAnalysis C. DOE Decision Process
I. Introduction
A.Authority

PartBofTitle III oftheEnergy Policy and Conservation Act (EPCA) of 1975, Pub.L.94-163,asamended,bythe National Energy ConservationPolicy Act of 1978 (NECPA), Pub. L. 95-619, the National Appliance Energy ConservationAct of 1987 (NAECA), Pub. L. 100-12, the National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), Pub. L. 100-357, and theEnergy Policy Act of 1992 (EPACT), Pub. L. 102-486, established theEnergy Conservation Program for Consumer Products other than Automobiles. Part 3 ofTitle IV of NECPA amended EPCA to add "Energy Efficiency ofIndustrial Equipment," which included air conditioners, furnaces, and othertypes ofequipment.

EPACT also amended EPCA with respectto industrial equipment, providing definitions, test procedures, labeling provisions, energy conservation standards, and authority to require information and reports from manufacturers. See 42 U.S.C. 6311- 6316. For example, EPCA now specifies explicit minimum energy efficiency levels for certain commercial packaged air conditioning and heating equipment, packaged terminal air conditioners and heat pumps, warm air furnaces, packaged boilers, water heaters and hot water storage tanks. 42 U.S.c. 6313(a) (1)-(5). The efficiency requirements in the statute correspond withthe levels in effect on October 24,1992, in ASHRAE/ IES Standard 90.1. The statute provides that ifthe ASHRAEIIES Standard 90.1 levels are amended after that date for any ofthe covered equipment, the Secretary ofEnergy must establish an amended uniform national standard at the new minimum level for each effective date specified inASHRAE/IES Standard 90.1, unless (s)he determines, through a rulemaking supportedby clear and convincing evidence, that a
more stringent standard is technologically feasible and economicallyjustified andwouldresult in significant additional energy conservation. 42 U.S.C. 6313(a)(6)(A).

Ifthe Secretary elects to publish such

a rule, it must contain the amended standard, and the determination must consider, to the greatest extent practicable: the economic impact onthe manufacturers and consumers ofthe affected products; savings in operating cost throughoutthe life ofthe product, compared to any increases in initial cost
or maintenance expense; the total projected amount ofenergy savings likely to result directly from the imposition ofthe standard; any lessening ofthe utility or performance ofthe affected products; the impact of any lessening ofcompetition; the need for national energy conservation; and other factors the Secretary considers relevant. The Secretary may not prescribe such an amended standard if (s)he finds (and publishes the finding) that interested persons have established by a preponderance ofevidence thatthe amended standard is likely to result in unavailability in the United States of products withperformance characteristics (including reliability), features, sizes, capacities and volumes that are substantially the same as those generally available inthe United States atthe time ofthe Secretary's finding. 42 U.S.C. 6313(a)(6)(B).

Finally, the Secretary may not prescribe any amended standard which increases maximum allowable energy
use or decreases minimum required energy efficiency. 42 U.S.C. 6313(a)(6)(B)(ii).
B. Background
1. General

TheDepartment ofEnergy (DOE or the Department) has an energy conservation program for consumer products, conductedunder Part B of Title III ofEPCA, 42 U.S.c. 6291-6309. The consumer appliance standards program consists offour principal parts: Test procedures, Federal energy conservation standards, labeling, and certification and enforcement procedures. The Federal Trade Commission (FTC) is responsible for labeling, and the Department implements the remainder ofthe program as codified inTitle 10 ofthe Code ofFederal Regulations (CFR), Part 430-Energy Conservation Program for Consumer Products.

Pursuantto the EPACT amendments to EPCA in 1992, DOE extended its programto cover commercial and industrial equipment and created a new Part431 inTitle 10 ofthe Code of Federal Regulations, entitled Energy Conservation Program for Commercial and Industrial Equipment. This part includes commercial heating, air conditioning and water heating equipment. This new program consists of: test procedures, Federal energy conservation standards, labeling, certification and enforcement procedures. EPCA directs the Department, rather thanthe FTC, to administer the statute's efficiency

### 10986 Federal 

### Register/Vol. 65, No. 41/Wednesday, March 1, 2000/Proposed Rules

labeling provisions for commercial equipment.
2. ASHRAE Action

ASHRAE revised ASHRAE/IES Standard 90.1 on October 29,1999. ASHRAE changed the standards for

some products but not for others. Of those products for which standards have not changed, some levels were considered by ASHRAE in the course of revising ASHRAE/IES Standard 90.1 and left at their preexistingvalues, while consideration ofother products

was deferred. Among those products that were deferred were standards for commercial (3 phase) small air conditioners and heat pumps (under 65 thousand Btu per hour), which are closely relatedto consumer products for which the Department is independently developing standards under NAECA. The standard levels inEPACT and ASHRAE/IES Standard 90.1-1999 appear in Tables 1 and 2.

TABLE 1.-EPCA SECTION 342(a) 1, 2, 3 AIR CONDITIONERS AND HEAT PUMPS

EPCA Efficiency levels Equipment category Equipment subcategory EPCA section date EPCA 92 90.1-1999

Small Commercial Pack- AC/HP <65-Air Cooled 3 Cooling Eff. 342(a)(1 )(A)

........... 1/1/94 SEER 10.0

....... SEER 10.0

aged Air Conditioning Phase, Central Split System. Heating Eff. 342(a)(1)(D)

........... HSPF 6.8

......... HSPF 6.8 and Heating Equipment. AC/HP <65-Air Cooled 3 Cooling Eff. 342(a)(1)(B)

........... 1/1/94 SEER 9.7

......... SEER 9.7 Phase, Central Single Pack- Heating Eff. 342(a)(1)(E)

........... HSPF 6.6

......... HSPF 6.6 age. AC/HP 65-135 Air Cooled Cooling Eff. 342(a)(1)(C)

........... 1/1/94 EER 8.9

........... EER 10.3

Central. Heating Eff. 342(a)(1 )(F)

........... COP 3.0

........... COP 3.2 AC/HP <65-Water Cooled Cooling Eff. 342(a)(1)(G)

........... 1/1/94 EER 9.3

........... EER 12.1

Evap. Cooled Water-Source Heating Eff. Water-Source only COP 3.8

........... COP 4.2 Central. 342(a)(1)(1). AC/HP 65-135 Water Cooled Cooling Eff. 342(a)(1 )(H)

........... 1/1/94 EER 10.5

......... EER 11.5

Evap. Cooled Water-Source Heating Eff. Water-Source only COP 3.8

........... COP 4.2 Central. 342(a)(1 )(1). Large Commercial Pack- AC/HP 135-240-Air Cooled Cooling Eft. 342(a)(2)(A)

........... 1/1/95 EER 8.5

........... EER 9.7

aged Air Conditioning Central. Heating Eff. 342(a)(2)(B)

........... COP 2.9

........... COP 3.1 and Heating Equipment. ACIHP 135-240 Water Cooled Cooling Eff. 342(a)(2)(A)

........... 1/1/95 EER 9.6

........... EER 11.0 Evap. Cooled Central. No Heating Eft. Requirement

.... Packaged Terminal Air PTAC/PTHP (Air Cooled)

.......... Cooling Eft. 342(a)(3)(A)

........... 1/1/94 EER varies by EER and COP

Conditioners and Heat Heating Eff. 342(a)(3)(B)

........... capacity COP vary by caPumps. varies by ca- pacity (difpacity. ferent formulas)

TABLE 2.-EPCA (AS AMENDED) SECTION 342(a) 4, 

### 5 FURNACES, BOILERS, AND STORAGE WATER HEATER

Equipment category Equipment subcategory EPCA section

Warm Air Fumaces

......... <:225,000:

................................... Gas Fired Eft. 342(a)(4)(A)

....... Gas Fired

............................... Oil Fired Eff. 342(a)(4)(A)

.......... Oil Fired

................................. Package Boilers

.............. :2:300,000:

................................... Gas Fired Eff. 342(a)(4)(C)

....... Gas Fired

................................... Oil Fired Eff. 342(a)(4)(D)

......... Oil Fired

..................................... Storage Water Heaters... Electric

....................................... Standby Loss 342(a)(5)(A)

........

Instantaneous Water

Heaters. :<;155,000 and V:<; 40 gal............ Thermal Eff. and Standby Loss 342(a)(5)(B).

>155,000 and V:<;140 gal........... Thermal Eft. and Standby Loss 342(a)(5)(C).

V<10 gal Instantaneous

............ Thermal Eft. 342(a)(5)(D)

..........
10 gal <V <140 gal Instanta- Thermal Eft. and Standby Loss

neous. 342(a)(5)(E).

Storage Tanks

................. V 5::140 gal Unfired Heat Loss 342(a)(5)(F)

.............. Storage Water Heaters and PreSCriptive 342(a)(5)(G)

...........

Storage Tanks >140 gal. EPCA date Efficiency levels

EPCA 92

1/1/94 Thermal Efficiency:. 80% Gas

...... 81% Oil

........ 1/1/94 Combustion Efficiency:. 80% Gas

...... 83% Oil

........ 1/1/94 0.3+27Na

........ 1/1/94 Thermal Eff. 78%, Standby Loss Varies by Volume. 1/1/94 Thermal Eff. 78%, Standby Loss Varies by Volume. 1/1/94 Thermal Eff. 80%. 1/1/94 Thermal Eff. 77% Standby Loss Varies by Volume. 1/1/94 Heat Loss 6.5 Btulhr/ft2. 1/1/94 R-12.5, liD

...... 90.1-1999

Thermal Efficiency: 80% Gas 81% Oil Combustion Efficiency: 80% Gas 83% Oil 20+35 

### -..Iv Thermal Eff.

80%, Standby Loss Varies by Volume Thermal Eff.

80%, Standby Loss Varies by Volume Thermal Eff.

80% Thermal Eff.

80%, Standby Loss Varies by Volume Heat Loss 6.5

Btu/hr/ft2 R-12.5, liD

### Federal 

### Register/Vol. 65, No. 41/Wednesday, March 1, ZOOO/Proposed Rules 10987

In response to ASHRAE's action, the Department initiated a Preliminary ScreeningAnalysis to aid the Departmentin decidingwhat action it shouldtake at this point with respect to the efficiency levels in ASHRAE/IES Standard 90.1-1999.
II. Discussion
A. 

### PreliminaryScreeningAnalysis

In conductingthe Preliminary ScreeningAnalysis, the Department is using existing data from industry and other sources, including, among others, analysis performed for ASHRAE in support ofits deliberations over the new ASHRAE/IES Standard 90.1-1999 efficiency levels. For each product category, the Departmentis estimating the likely cost ofachieving several higher, technologically feasible efficiency levels and then will calculate for each such level the corresponding rate ofenergy consumptionrequired to fulfill the product's function. Applying appropriate climate data, typical building design characteristics, inventories ofbuildings in different regions ofthe country, equipment sales volumes, and economic discountrates and energy prices, DOE will compute cost/benefit measures corresponding to the hypothetical efficiency levels and also estimate the nationwide energy and net cost savings, ifany, thatwould result from more stringent standards than the levels in ASHRAE/IES Standard 90.1-1999.

For the products analyzed, the Department is examiningthe range of efficiency levels specified inEPCA and ASHRAE/IES Standard 90.1-1999, as well as more efficient levels, including those associated with the most efficient product available inthe market and the lowest life-cycle cost. For each level above the EPCA standard, DOE will estimate: (1) The incremental national energy and carbon emission savings that wouldresult from a standard set atthat level, and (2) the net nationwide direct economicbenefit (net present value) that would result from a standard set at that level, as compared to the corresponding ASHRAE/IES Standard 90.1-1999 and EPCA standards. The productsbeing studied inthe Preliminary ScreeningAnalysis are:

• Central Air Source Air Conditioners, ;:0:135 kBtu/h-<240 kBtu/h

• Central Air Source Heat Pump, ;:0:135 kBtu/h-<240 kBtu/h (cooling performance only)

• Central Water CooledAir Conditioners, ;:0:135 kBtu/h-<240 kBtu/h • Central Air Source Air Conditioners, ;:0:65 kBtu/h-<135 kBtu/h

• Central Air Source HeatPump, ;:0:65 kBtu/h-<135 kBtu/h (cooling performance only)

• Central Water Source Heat Pump, ;:0:65 kBtu/h-<135 kBtu/h (cooling performance only)

• Central Water Cooled Air Conditioners, ;:0:65 kBtu/h-<135 kBtu/h

• Packaged Terminal Air Conditioners

• Packaged Terminal Heat Pumps (cooling performance only)

• 3-Phase Single Pkg. Air SourceAir Conditioners, <65 kBtu/h

• 3-Phase Split Air Source Air Conditioners, <65 kBtu/h

• 3-Phase Single Pkg. Air Source Heat Pump, <65 kBtu/h (cooling performance only)

• 3-Phase Split System Air Source Heat Pump, <65 kBtu/h (cooling performance only)

• Central Water Cooled Air Conditioners, <65 kBtu/h

• Central Water Source Heat Pump, ;::17 kBtu/h-<65 kBtu/h (cooling performance only)

• Central Water Source Heat Pump, <17 kBtu/h (cooling performance only)

• Large Gas-Fired Hot Water Boilers, ;:0:2.5 MMBtu/h

• Large Gas-Fired Steam Boilers, ;::2.5 MMBtu/h

• Small Gas-Fired Boilers, <2.5 MMBtu/h

• Gas-Fired Warm Air Furnaces, >225 kBtu/h

• Gas Storage Water Heaters, ;::155 kBtu/h

• Gas Storage Water Heaters, <155 kBtu/h

• Electric Water Heaters
• Tankless Instantaneous Water Heaters

• Instantaneous Water Heaters with Tanks


### B. Products NotIncluded in the PreliminaryScreeningAnalysis

Several products were not included in the formal Preliminary Screening Analysis:

• Central Air Source Heat Pumps, ;::135 kBtu/h-<240 kBtu/h (heating performance)

• Central Air Source Heat Pumps, ;::65 kBtu/h-<135 kBtu/h (heating performance)

• 3-Phase Single Package, Air Source Heat Pumps, <65 kBtu/h (heating performance)

• 3-Phase SplitAir Source Heat Pumps, <65 kBtu/h (heating performance)

• Packaged Terminal Heat Pump (heating performance)

• Central Water Source Heat Pumps <135 kBtu/h (heating performance) • Water Source Heat Pumps ;:0:135 kBtu/h-<240 kBtu/h

• Evaporatively CooledProducts
• Oil-Fired Warm Air Furnaces >225 kBtu/h

• Oil-Fired Storage Water Heaters ;:0:155 kBtu/h

• Oil-Fired Storage Water Heaters <155 kBtu/h

• Tankless Oil-Fired Instantaneous Water Heaters

• Oil-Fired Instantaneous Water Heaters withTanks

• Oil-Fired Small Boilers ;:0:2.5 MMBtu/h

• Oil-Fired Large Boilers <2.5 MMBtu/h (steam andhot water)

Thereasons for excludingthese products involve insufficient data describingbaseline energy consumption and cost-efficiency relationships, small markets for the products inquestion or lack ofproduct shipment data, or, inthe

case ofthe heating performance ofairsource heat pumps, absence ofa suitable methodology to discriminate their heating function from that of supplemental heat sources with which they are often used.
C. 

### DOEDecision Process

The Departmentplans to review the results ofthe Preliminary Screening' Analysis andto announce the availability ofthe document inthe Federal Register. The announcement will also contain DOE's preliminary inclination withrespectto actions it will take onthe EPCA commercial product categories covered by ASHRAEI IES Standard 90.1-1999 efficiency levels and will invite commentsrelated to: (1) The analysis contained inthe Preliminary ScreeningAnalysis, (2) DOE's interpretation oftheresults, (3) DOE's treatment ofthe product categories; and (4) any other information

or evidence thatbears on the adoption ofASHRAE/IES Standard 90.1-1999 efficiency levels as uniform national standards under theterms ofEPCA.

After receiving comments inresponse to the Announcement, the Department expects to pursue, for each product category, one offour courses ofaction:

• Adopt the ASHRAE/IES Standard 90.1-1999 efficiency level as a uniform national standard;

• Reject the ASHRAE/IES Standard 90.1-1999 efficiency level ifit increases maximum allowable energy use or decreases minimumrequired efficiency;

• Propose consideration ofan addendum to ASHRAE/IES Standard 90.1-1999 ifASHRAE did not consider

a more efficient level, and a more efficient level appears warranted; or

• Propose consideration ofan addendum to ASHRAE/IES Standard

### 10988 Federal Register/Vol. 65, No. 41/Wednesday, March 1, ZOOO/Proposed Rules

90.1-1999 and undertake a more thorough evaluationto determine whether a rulemaking isjustified, if ASHRAE considered amending or amended the standard, and a more efficient level appears warranted than is contained in ASHRAE/IES Standard 90.1-1999.

DOE expects to announce the availability ofthe Preliminary Screening Analysis inMarch 2000, along with the Department's preliminary inclinations withrespect to the EPCA commercial product efficiency levels covered by ASHRAE/IES Standard 90.1-1999.

Issued inWashington, DC, on February 23, 2000. DanW. Reicher, AssistantSecretary, EnergyEfficiencyand RenewableEnergy. [FR Doc. 00-4738 Filed 2-29-00; 8:45 am]

BILLING CODE 6450-01-P

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 716 and 741 Privacy of Consumer Financial Information; Requirements for Insurance

AGENCY: National Credit Union Administration (NCUA). ACTION: Notice ofproposedrulemaking.

SUMMARY: The NCUA Board is proposing a new privacy rule applicable to all federally-insured creditunions, as requiredby the recently enacted Gramm-Leach-Bliley Act (the GLB Act

or Act). The proposedrule requires creditunions to have a privacy policy and provide certain disclosures and notices to individuals about whom creditunions collect nonpublic personal information. Italso restricts a credit union's ability to disclose nonpublic personal information, including giving individuals in some cases an opportunityto opt out ofthe disclosure. In drafting the proposedrule, the NCUA participated as part ofan interagency group composed ofrepresentatives from the NCUA, the Federal Trade Commission, the Office ofthe Comptroller ofthe Currency, Board of Governors ofthe Federal Reserve System, Federal Deposit Insurance Corporation, Office ofThrift Supervision, Secretary ofthe Treasury, and Securities and Exchange Commission (collectively, the Agencies). The other Agencies are also required to issue regulations to implementthe GLB Act. NCUA's proposedrule takes into account the unique circumstances offederallyinsured credit unions andtheir members butis comparable and consistentwith the regulations ofthe other Agencies as requiredby the GLB Act. DATES: NCUA mustreceive comments by March 31, 2000. ADDRESSES: Direct comments to: Becky Baker, Secretary ofthe Board. Mail or hand-deliver comments to: National CreditUnion Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428, or you may fax comments to (703) 518-6319. 

### Please send comments byonemethodonly. FOR FURTHER INFORMATION CONTACT: Mary F. Rupp or ReginaM. Metz, Staff Attorneys, Division ofOperations, Office ofGeneral Counsel, at the above address or telephone: (703) 518-6540. SUPPLEMENTARY INFORMATION:
I. Background

On November 12, 1999, President Clinton signed the GLB Act (Pub. L. 106-102, codified at 15 U.S.c. 6801 

### et seq.) into law. Subtitle A ofTitle V of the GLB Act, captioned Disclosure of Nonpublic Personal Information, limits the instances when a financial institution may disclose nonpublic personal information ofa consumer to nonaffiliated third parties. Itrequires a financial institution to disclose to all its customers the institution's privacy policies and practices withrespect to information sharing with affiliates and nonaffiliated third parties.

As required by the GLB Act, the NCUA has consulted withthe other Agencies to ensurethat its proposed rule is consistent and comparable with the proposed rules ofthe other Agencies. However, the NCUA's proposedrule takes into accountthe unique nature ofcreditunion structure and operations, particularly, the relationship between a credit union and its members, creditunion investment in creditunion service organizations (CUSOs), and, generally, the significant differencebetween creditunion and CUSO activities as compared with other financial institutions and their subsidiaries or affiliates.

A creditunion is a not-for-profit, cooperative financial institution, formed to permitthose in the field of membership specified in the credit union's charter to save, borrow, and obtainrelated financial services. Member ownership and control make credit unions unique from other financial institutions. Federal credit union investment in affiliates is limited to CUSOs, which are organizations that primarily serve credit unions or their members and whose business is related to the daily and routine operations of creditunions. 12 U.S.C. 1757(5)(D), 1757(7)(I). This is also generally true for state-chartered creditunions.

A key focus ofthe GLB Act is protecting the privacy ofconsumers and the customers offinancial institutions while permitting financial institutions to make disclosures to their affiliates. In the credit union context, this means that the provisions ofthe Act and the requirements ofNCUA's proposed regulation will apply

### primarilyto a creditunion's members and 

### ordinarily permit sharing ofinformation with CUSOs. Nevertheless, the Act and the proposedregulations impose requirements on credit unions with respectto nonmembers who are deemed to be consumers or customersreceiving

a financial product or service from the credit union. Thus, credit unions must understand when individuals qualify as a consumer or customer and what responsibilities the credit union has to them. While the GLB Act uses the term customer to describe a category of individuals to whom certain obligations

are owed, the term customer should not be equated with the term member. Members in a creditunion, as noted above, are its owners with a relationship to their creditunion that is inherently different than that ofcustomers to a financial institution. In addition, whether a CUSO will qualify as an affiliate to which a credit union may make disclosures will depend onthe extentto which a credit union exercises control over the CUSO.

NCUA's proposedrule mirrors the otherAgencies' proposedrules except for modifications appropriate to address the different circumstances ofcredit unions such as references to credit unions, CUSOs, members, nonmember customers, and othernonmembers. NCUA has also incorporated much of the preamble discussion from the Agencies'jointnotice ofproposed rulemaking in this preamble. The section-by-section analysis ofthe rule that follows points outthose provisions that differ from the otherAgencies' proposed rules. Besides differences in terms or definitions, a significant modification is in the use ofexamples in the rule. All the Agencies' proposed rules contain examples to aid understanding. NCUA has attempted to
use examples pertinentto credit union circumstances and, therefore. has changed or deleted some examples used in the otherAgencies' proposals.

The NCUA requests comment on all aspects ofthe proposedrule as well as comment onthe specific provisions and issues highlighted in the section-bysection summarybelow. The NCUA