1 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govEnergy Conservation Program forConsumer Products and Commercialand Industrial EquipmentRegional StandardsEnforcement and Disclosurefor Furnaces, and Central AirConditioners and HeatPumps2 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.gov• Introductions• Role of the Facilitator• Ground Rules (norms)– Listen as an ally– Use short, succinct statements/keep to the point– Hold sidebar conversations outside the room– Focus on issues, not personalities– One person speak at a time (raise hand to be recognized; stateyour name for the record)– Set cell phones to silent/vibrate• Housekeeping ItemsWelcome and Introductions3 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govAgenda9:00 – 10:00 am10:00 – 10:45 am10:45 – 11:00 am11:00 – 11:45 am11:45 – 12:15 pmWelcome, Introductions, Agenda Review, andOpening StatementsRegional Standards Enforcement OverviewBreakInformation Disclosure OverviewClosing Remarks4 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govPurpose of the Public Meeting• Present the procedural and preliminary ideas regarding a variety ofapproaches to enforcing and disclosing information regardingregional standards for residential furnaces, central air conditioners,and central heat pumps.• Provide a forum for public discussion of rulemaking issues.• Encourage interested parties to data, information, and writtencomments.• Inform interested parties and facilitate the rulemaking process.5 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govRequest for CommentIssueBox: DOEandFTCwelcomecommentsregardingtheNoticeofDataAvailabilityannouncingtheFrameworkDocumentforRegionalStandardsEnforcementandAdvancedNoticeofProposedRulemakingConcerningInformationDisclosures.Throughoutthispresentation,specificissueswillberaisedfordiscussioninyellowissueboxes.However,commentsconcerninganypartofthedocumentsorpresentationarewelcome.6 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govWaivers1Information Disclosures45Regional Standards OverviewClosing Remarks/Comments62Responsible Party Definitions3Potential Enforcement Schemes7 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govStatutory Requirements• On June 27, 2011, DOE promulgated a direct final rule establishing regionalstandards for residential furnaces and residential air conditioners and heatpumps. 76 FR 37408.• EPCA requires DOE to initiate rulemaking for enforcement of regionalstandards no later than 90 days after issuance of the final rule establishingregional standards. DOE is required to complete this enforcementrulemaking no later than 15 months from issuance of the final rule. (42U.S.C. § 6295(o)(6)(G)(ii)(I), (III))• EPCA directs the FTC to initiate rulemaking within 90 days after thepublication of a final rule establishing regional standards in order todetermine the “appropriate 1 or more methods for disclosing information sothat consumers, distributors, contractors, and installers can easily determinewhether a specific piece of equipment thatis installed in a specific buildingis in conformance with the regional standard that applies to the building.”The FTC is required to complete this rulemaking no later than 15 months ofpublication of the final rule establishing regional standards. (42 U.S.C. §6295(o)(6)(H)(i), (iii))8 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govCompliance with Standards• National Base Standard:– Compliance with the base national standards based on the date of manufacture(or importation).– Manufacturers (including importers) mustcomply with the national base standardbeginning on the compliance date specified for the amended base standards.• Regional Standard:– Compliance with the applicable regional standards based on the installationlocation of a covered product.– Distributors and Installers are responsible for installing equipment in theapplicable regions that meets the regional standards beginning on thecompliance date of the regional standard.• Responsible Parties:– Manufacturers, Distributors/Dealers, and Contractors/Installers9 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govCompliance with StandardsIssueNumberThree:TheDepartmentseekscommentonthetypesofinformationthatwouldbenecessary(eithermaintainedorsubmitted)tohelptheDepartmentdetermineabasicmodeliscompliantwiththeDepartment’sstandardsandwhetheragivenunithasbeeninstalledinapropergeographiclocation.10 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govPotential Enforcement Schemes• DOE presented three potential enforcement schemes to facilitate discussionregarding the elements of an effective enforcement program.• The three potential approaches are intended to present a variety ofenforcement mechanisms with different possible distributions of burdens.IssueNumberOne:TheDepartmentseeksstakeholdercommentonthevariousaspectsofeachapproach,aswellaswhether,inthecommenter’sview,aspectsofthedifferentapproachescanbecombinedtoformamoreefficientandeffectiveenforcementprogram.DOEwelcomesotherideasandsuggestionsforelementsofanenforcementprogram,andcommentersshouldnotlimittheircommentstodiscussionofthesethreeapproaches.11 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govPotential Approach 1ManufacturerRequired to certify product efficiencies to DOE (including applicableregion)Required to inform distributors about appropriate regionsRequired to track shipments to distributors by serial number and beable to lookup distributor by serial number of installed unitsDistributorRequired to inform installers about appropriate regionsRequired to maintain record of purchasers’ signedacknowledgements of regional standard requirementsContractorRequired to install units in the appropriate region12 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govPotential Approach 2ManufacturerRequired to certify product efficiencies to DOE (including applicableregion)Required to inform distributors about appropriate regionsRequired to track shipments to distributors by serial number and beable to lookup distributor by serial number of installed unitsDistributorRequired to inform installers about appropriate regionsRequired to track unit sales to contractorContractorRequired to install units in the appropriate regionRequired to maintain records and paperwork about installation location,including serial numbers and address of installation13 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govPotential Approach 3ManufacturerRequired to certify product efficiencies to DOE (including applicableregion)Required to inform distributors about appropriate regionsRequired to track shipments to distributors by serial number and beable to lookup distributor by serial number of installed unitsDistributorRequired to inform installers about appropriate regionsRequired to track unit sales to contractorRequired to collect from installers and then submit compiled list ofbasic model number, efficiency, serial number of unit, and zip code ofinstallation to DOEContractorRequired to install units in the appropriate regionRequired to maintain records and paperwork about installationlocationRequired to provide distributor with serial numbers and installationaddress for installed units14 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govCertification CommentsIssueNumberTwo:DOEseekscommentontheperiodicity/timingofdatasubmissionsforregionalstandardenforcement,includinghowtheexistingcertificationrequirementsonmanufacturersmayneedtobealteredtoaccommodatetheregionalstandardsapproach.IssueNumberNine:DOEseekscommentonhowthecertificationrequirementsmayneedtobemodifiedtoaccommodatethenewregionalstandardsscheme,particularlywithaviewtowardswhichpartiesshouldcertify,andwhat,ifany,additionalinformationshouldbeprovided.15 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govData Collection/Tracking CommentsIssueNumberFour:DOEseekscommentontheappropriatelevelofdetailwhentrackinginstallationlocationbothforinternalrecordsandfortheDepartmenttoensureDOEcansystematicallyenforceitsregionalstandards.IssueNumberSix:DOEseekscommentontheexistingrecordkeepingschemescurrentlyutilizedbymanufacturers,distributors,andinstallersthattheDepartmentcouldleveragetoreduceburden.16 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govWaiver Process• Concerns expressed by severalinterested parties regarding thepotential for select customers to be “stranded” with higherinstallation costs resulting fromdifficult venting situations.• DOE open to considering alternatives to mitigate the unintendedconsequences for a select subset of installations that may beseverely impacted.• One possible approach to prevent any unintended result wouldbe to allow a waiver process, in which a party would request awaiver of the regional standard.IssueNumberSeven:DOErequestsviewsregardingthepracticabilityofawaiverprocess,includinginformationonthesituationsinwhichawaivermightbeappropriateandtheinformationthatwouldbenecessarytosupportawaiver.17 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresPurpose of the New Requirements• The FTC shall:“determine the appropriate 1 or more methods fordisclosing information so that consumers, distributors,contractors, and installers can easily determine whethera specific piece of equipment that is installed in aspecific building is in conformance with the regionalstandard that applies to the building.”(42 U.S.C. 6295(o)(6)(H)(i))18 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresMethods for New Requirements• Disclosure Methods may include:– modifications to the Energy Guide label; or– other methods that make it easy for consumers and installers touse and understand at the point of installation.(42 U.S.C. 6295(o)(6)(H)(ii))19 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresFederal Trade Commission Notice• FTC Advance Notice of Proposed Rulemaking (ANPR)seeks comment on disclosures for regional standards(76 FR 72872, Nov. 28, 2011)• Comments due January 10, 201220 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresCurrent Requirements (16 CFR Part 305.12)• Manufacturers must place EnergyGuide labels on their products21 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresCurrent Requirements(16 CFR Part 305.14)• Manufacturers must provide distributors and installerswith product energy information in paper or electronicform (such as internet-based access)• Retailers, including installers, must show this informationto their customers and let them read it before purchase22 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresDisclosure Content• What language should appear in the disclosures?• Example in FTC Notice:• What other approaches should FTC consider?[For split air conditioner systems rated lower than 14 SEER]:Federal law prohibits installation of this unit in Alabama, Arizona,Arkansas, California, Delaware, Florida, Georgia, Hawaii,Kentucky, Louisiana, Maryland, Mississippi, New Mexico,Nevada, North Carolina, Oklahoma, South Carolina, Tennessee,Texas, Virginia, or the District of Columbia.23 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govInformation DisclosuresDisclosure Format• What is the best format and location for the requireddisclosures to ensure the information reachesdistributors, installers, and consumers?- EnergyGuide Labels, Contracts, Invoices, Delivery Tickets,Brochures, Product Packaging, and/or Websites?- What other mechanisms should FTC should consider?24 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govContact Information for Feedback(DOE)In all correspondence, please include the following:– Enforcement of Regional Standards for Residential Furnaces and Central AirConditioners and Heat Pumps,– Docket Number EERE-2011-BT-CE-0077, and– Regulatory Identification Number (RIN) 1904-AC68Email: EnforcementFunCAC-2011-CE-0077@ee.doe.govPostal:Courier:Ms. Brenda EdwardsU.S. Department of EnergyBuilding Technologies ProgramMailstop: EE-2J, Room 1J-0181000 Independence Avenue, SWWashington, DC 20585-0121Ms. Brenda EdwardsU.S. Department of EnergyBuilding Technologies Program, 6th Floor950 L’Enfant Plaza, SWWashington, DC 20024Tel: 202-586-2945DOE Comment period ends February 6, 201225 | Building Technologies Program & General Counsel’s Office of Enforcementeere.energy.govContact Information for Feedback(FTC)In all correspondence, please include the following:– Regional Labeling for Heating and Cooling Equipment (16 CFR Part 305)(Project No. P114202)File Online Comments At: https://public.commentworks.com/ftc/regionaldisclosuresanprPostal:Federal Trade CommissionOffice of the SecretaryRoom H–113 (Annex H)600 Pennsylvania Avenue NW.Washington, DC 20580.DOE Comment period ends January 10, 2012