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[Federal Register Volume 77, Number 132 (Tuesday, July 10, 2012)]
[Proposed Rules]
[Pages 40530-40534]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16816]

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DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2010-BT-STD-0011]
RIN 1904-AC22

Energy Conservation Standards for Residential Furnace Fans: 
Public Meeting and Availability of the Preliminary Technical Support 
Document

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notice of public meeting and availability of preliminary 
technical support document.

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SUMMARY: The U.S. Department of Energy (DOE) will hold a public meeting 
to discuss and receive comments on the product classes that DOE plans 
to analyze for purposes of establishing energy conservation standards 
for residential furnace fans; the analytical framework, models, and 
tools that DOE is using to evaluate potential standards for these 
products; the results of preliminary analyses performed by DOE for 
these products; the potential energy conservation standard levels 
derived from these analyses that DOE could consider for these products; 
and any other issues relevant to the development of energy conservation 
standards for residential furnace fans. In addition, DOE encourages 
written comments on these subjects. To inform interested parties and to 
facilitate this process, DOE has prepared an agenda, a preliminary 
technical support document

[[Page 40531]]

(preliminary TSD), and briefing materials, which are available on the 
DOE Web site.

DATES: DOE will hold a public meeting on July 27, 2012, from 9 a.m. to 
4 p.m. in Washington, DC. Additionally, DOE plans to allow for 
participation in the public meeting via webinar. DOE will accept 
comments, data, and other information regarding this rulemaking before 
or after the public meeting, but no later than September 10, 2012. See 
section IV, ``Public Participation,'' of this notice of public meeting 
(NOPM) for details.

ADDRESSES: The public meeting will be held at the U.S. Department of 
Energy, Forrestal Building, Room 8E-089, 1000 Independence Avenue SW., 
Washington, DC 20585-0121. Please note that foreign nationals 
participating in the public meeting are subject to advance security 
screening procedures which require advance notice prior to attendance 
at the public meeting. If a foreign national wishes to participate in 
the public meeting, please inform DOE of this fact as soon as possible 
by contacting Ms. Brenda Edwards at (202) 586-2945 so that the 
necessary procedures can be completed. DOE requires visitors to have 
laptops and other devices, such as tablets, checked upon entry into the 
building. Please report to the visitor's desk to have devices checked 
before proceeding through security.
    As noted above, DOE has prepared an agenda, a preliminary TSD, and 
briefing materials, which are available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.html.
    Interested persons may submit comments, identified by docket number 
EERE-2010-BT-STD-0011 and/or Regulation Identification Number (RIN) 
1904-AC22, by any of the following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Email: FurnFans-2010-STD-0011@ee.doe.gov. Include the 
docket number EERE-2010-BT-STD-0011 and/or RIN 1904-AC22 in the subject 
line of the message.
     Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Public Meeting for 
Residential Furnace Fans, EERE-2010-BT-STD-0011, 1000 Independence 
Avenue SW., Washington, DC 20585-0121. Telephone (202) 586-2945. If 
possible, please submit all items on a compact disc (CD), in which case 
it is not necessary to include printed copies.
     Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Program, 950 L'Enfant Plaza SW., 6th 
Floor, Washington, DC 20024. Telephone (202) 586-2945. If possible, 
please submit all items on CD, in which case it is not necessary to 
include printed copies.
    Docket: The docket is available for review at www.regulations.gov, 
including Federal Register notices, Framework Documents, public meeting 
attendee lists and transcripts, comments, and other supporting 
documents/materials. All documents in the docket are listed in the 
www.regulations.gov index. However, not all documents listed in the 
index may be publicly available, such as information that is exempt 
from public disclosure. The www.regulations.gov Web page contains 
instructions on how to access all documents in the docket, including 
public comments.
    The rulemaking Web page can be found at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.html. This Web page contains a link to the docket for 
this notice at www.regulations.gov.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section IV, ``Public 
Participation,'' of this document. For further information on how to 
submit a comment, review other public comments and the docket, or 
participate in the public meeting, contact Ms. Brenda Edwards at (202) 
586-2945 or by email: Brenda.Edwards@ee.doe.gov.

FOR FURTHER INFORMATION CONTACT: 

Mr. Mohammed Khan, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies, EE-2J, 1000 
Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 
586-2192. Email: Mohammed.Khan@ee.doe.gov.
Mr. Eric Stas, U.S. Department of Energy, Office of the General 
Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-9507. Email: Eric.Stas@hq.doe.gov.

    For information on how to submit or review public comments and on 
how to participate in the public meeting, contact Ms. Brenda Edwards, 
U.S. Department of Energy, Office of Energy Efficiency and Renewable 
Energy, Building Technologies Program, EE-2J, 1000 Independence Avenue 
SW., Washington, DC 20585-0121. Telephone: (202) 586-2945. Email: 
Brenda.Edwards@ee.doe.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Authority
II. History of Energy Conservation Standards Rulemaking for 
Residential Furnace Fans
    A. Background
    B. Current Rulemaking Process
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Markups To Determine Installed Price
    C. Energy Use Analysis
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis
IV. Public Participation
    A. Attendance at Public Meeting
    B. Procedure for Submitting Requests to Speak
    C. Conduct of Public Meeting
    D. Submission of Comments
V. Approval of the Office of the Secretary

I. Authority

    Title III, Part B \1\ of the Energy Policy and Conservation Act of 
1975, as amended, (EPCA or the Act), Public Law 94-163 (42 U.S.C. 6291-
6309, as codified) sets forth a variety of provisions designed to 
improve energy efficiency and established the Energy Conservation 
Program for Consumer Products Other Than Automobiles, a program 
covering most major household appliances.\2\ These include products 
that use electricity for the purposes of circulating air through duct 
work, hereinafter referred to as ``residential furnace fans'' or simply 
``furnace fans,'' the subject of today's notice. (42 U.S.C. 
6295(f)(4)(D))
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    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \2\ All references to EPCA in this rulemaking refer to the 
statute as amended through the Energy Independence and Security Act 
of 2007, Public Law 110-140.
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    Pursuant to EPCA, DOE's energy conservation program for covered 
products consists essentially of four parts: (1) Testing; (2) labeling; 
(3) establishment of Federal energy conservation standards; and (4) 
certification and enforcement procedures. Subject to certain criteria 
and conditions, DOE has authority to establish mandatory energy 
conservation standards for residential furnace fans. EPCA requires DOE 
to consider and establish energy conservation standards for residential 
furnace fans by December 31, 2013. (42 U.S.C. 6295(f)(4)(D))
    EPCA provides criteria for prescribing new energy conservation 
standards for residential furnace fans. More specifically, DOE is 
required to consider standards for these products that: (1) Achieve the 
maximum improvement in energy efficiency that is technologically 
feasible and economically justified; and

[[Page 40532]]

(2) result in significant conservation of energy. (42 U.S.C. 
6295(o)(2)(A) and (o)(3)(B)) To determine whether a candidate standard 
is economically justified, DOE will, after receiving comments on the 
candidate standard, determine whether the benefits of the standard 
exceed its burdens to the greatest extent practicable, using the 
following seven factors:

    1. The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
    2. The savings in operating costs throughout the estimated 
average life of the covered products in the type (or class) compared 
to any increase in the price, initial charges, or maintenance 
expenses for the covered products which are likely to result from 
the standard;
    3. The total projected amount of energy savings likely to result 
directly from the standard;
    4. Any lessening of the utility or the performance of the 
covered products likely to result from the standard;
    5. The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    6. The need for national energy conservation; and
    7. Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6295(o)(2)(B)(i))

    EPCA also directs that DOE may not prescribe an amended or new 
standard if the standard is likely to result in the unavailability in 
the United States in any covered product type (or class) of performance 
characteristics (including reliability), features, sizes, capacities, 
and volumes that are substantially the same as those generally 
available in the United States at the time that the standard is 
prescribed. (42 U.S.C. 6295(o)(4))
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that DOE will use to 
evaluate standards for the product at issue and the results of 
preliminary analyses DOE performed for the product. DOE is publishing 
this document to announce the availability of the preliminary TSD, 
which details the preliminary analyses, discusses the comments DOE 
received from interested parties on the Framework Document, and 
summarizes the preliminary results of DOE's analyses. In addition, DOE 
is announcing a public meeting to solicit feedback from interested 
parties on its analytical framework, models, and preliminary results.

II. History of Energy Conservation Standards Rulemaking for Residential 
Furnace Fans

A. Background

    There are no current energy conservation standards for residential 
furnace fans. EPCA, as amended by the Energy Policy Act of 2005 (EPACT 
2005), provided DOE authority to consider and prescribe new energy 
conservation standards for electricity used for purposes of circulating 
air through duct work by December 31, 2013. (42 U.S.C. 6295(f)(4)(D)) 
DOE interprets this statutory language as allowing DOE to cover the 
electricity used by any electrically-powered device used in residential 
central heating, ventilation, and air-conditioning (HVAC) systems for 
the purpose of circulating air through duct work.

B. Current Rulemaking Process

    In initiating this rulemaking, DOE prepared a Framework Document, 
``Rulemaking Framework for Furnace Fans,'' which describes the 
procedural and analytical approaches DOE anticipates using to evaluate 
energy conservation standards for residential furnace fans. DOE 
published a notice that announced both the availability of the 
Framework Document and a public meeting to discuss the proposed 
analytical framework for the rulemaking. That notice also invited 
written comments from the public. 75 FR 31323 (June 3, 2010). The 
Framework Document is available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/furnace_fan_framework_only_06-4-10v3.pdf.
    DOE held a public meeting on June 18, 2010, at which it presented 
the various analyses DOE would conduct as part of the rulemaking, such 
as the engineering analysis, the life-cycle cost (LCC) and payback 
period (PBP) analyses, and the national impact analysis (NIA). 
Manufacturers, trade associations, environmental and energy efficiency 
advocates, and other interested parties attended the meeting. The 
participants discussed the following major topics: (1) Issues 
pertaining to the scope of coverage of the current rulemaking; (2) 
product classes; (3) analytical approaches and methods used in the 
rulemaking; (4) impacts of standards and burden on manufacturers; (5) 
technology options; (6) distribution channels, shipments, and end 
users; (7) impacts of outside regulations; and (8) environmental 
issues.
    Comments received since publication of the Framework Document have 
helped DOE identify and resolve issues related to the preliminary 
analyses. Chapter 2 of the preliminary TSD, available at the web 
address given in section III below and in the ADDRESSES section of this 
notice, summarizes and addresses the comments received in response to 
the Framework Document.

III. Summary of the Analyses Performed by DOE

    For the residential furnace fans covered in this rulemaking, DOE 
conducted in-depth technical analyses in the following areas: (1) 
Engineering; (2) markups to determine product price; (3) life-cycle 
cost and payback period; and (4) national impacts. The preliminary TSD 
that presents the methodology and results of each of these analyses is 
available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.html.
    DOE also conducted, and has included in the preliminary TSD, 
several other analyses that support the major analyses. These analyses 
include: (1) The market and technology assessment; (2) the screening 
analysis, which contributes to the engineering analysis; and (3) the 
shipments analysis, which contributes to the LCC and PBP analysis and 
NIA. In addition to these analyses, DOE has begun preliminary work on 
the manufacturer impact analysis and has identified the methods to be 
used for the LCC subgroup analysis, the emissions analysis, the 
employment impact analysis, the regulatory impact analysis, and the 
utility impact analysis. DOE will expand on these analyses in the 
notice of proposed rulemaking (NOPR).

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer selling price and product efficiency levels that DOE is 
evaluating as potential energy conservation standards. This 
relationship serves as the basis for cost-benefit calculations for 
individual consumers, manufacturers, and the Nation. The engineering 
analysis identifies representative baseline products, which is the 
starting point for analyzing technologies that provide energy 
efficiency improvements. ``Baseline product'' refers to a model or 
models having features and technologies typically found in minimally-
efficient products currently available on the market. After identifying 
the baseline models, DOE estimated manufacturer selling prices by using 
a consistent methodology and pricing scheme that includes material 
costs and manufacturer markups. DOE

[[Page 40533]]

used these inputs to develop manufacturer selling prices for the 
baseline and more-efficient designs. Later, in the markups analysis to 
determine the installed price, DOE converts these manufacturer selling 
prices into installed prices. In the preliminary TSD, section 2.5 of 
chapter 2 and chapter 5 each provide details on the engineering 
analysis and the derivation of the manufacturer selling prices.

B. Markups To Determine Installed Price

    DOE derives the installed prices for products based on manufacturer 
markups, distributor markups, contractor markups, and sales taxes. In 
deriving these markups, DOE determined the major distribution channels 
for product sales, the markup associated with each party in each 
distribution channel, and the existence and magnitude of differences 
between markups for baseline products (baseline markups) and higher-
efficiency products (incremental markups). DOE calculates both overall 
baseline and overall incremental markups based on the product markups 
at each step in each distribution channel. In the preliminary TSD, 
section 2.6 of chapter 2 and chapter 6 provide detail on the estimation 
of markups.

C. Energy Use Analysis

    DOE carries out the energy use analysis to estimate the energy 
consumption of the residential furnace fans installed in the field. 
Details of the energy use analysis are provided in section 2.7 of 
chapter 2 and chapter 7 of the TSD.

D. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers. The LCC is the total cost of the 
furnace fan to the customer over the life of the product. The LCC 
analysis compares the LCCs of products designed to meet possible energy 
conservation standards with the LCCs of the product likely to be 
installed in the absence of standards. DOE determines LCCs by 
considering: (1) Total installed cost to the purchaser (which consists 
of manufacturer selling price, sales taxes, distribution chain markups, 
and installation cost); (2) the operating cost of the product (energy 
cost, water and wastewater cost, and maintenance and repair cost); (3) 
product lifetime; and (4) a discount rate that reflects the real 
consumer cost of capital and puts the LCC in present-value terms. The 
PBP represents the number of years needed to recover the increase in 
purchase price (including installation cost) of higher-efficiency 
products through savings in the operating cost of the product. PBP is 
calculated by dividing the incremental increase in installed cost of 
the higher efficiency product, compared to baseline product, by the 
annual savings in operating costs. Section 2.8 of chapter 2 and chapter 
8 of the preliminary TSD provide details on the LCC and PBP analyses.

E. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total consumer costs and savings expected to 
result from new standards at specific efficiency levels (referred to as 
candidate standard levels). DOE calculated NES and NPV for each 
candidate standard level for residential furnace fans as the difference 
between a base-case forecast (without new standards) and the standards-
case forecast (with standards). DOE determined national annual energy 
consumption by multiplying the number of units in use (by vintage) by 
the average unit energy consumption (also by vintage). Cumulative 
energy savings are the sum of the annual NES determined from 2018-2047. 
The analysis period is 30 years long, which is consistent with other 
rulemakings and sufficiently long to cover the expected life of the 
product. The analysis period begins in 2018, the expected year of 
compliance with the new standard. The national NPV is the sum over time 
of the discounted net savings each year, which consists of the 
difference between total operating cost savings and increases in total 
installed costs. Critical inputs to this analysis include shipments 
projections, product retirement rates (based on estimated product 
lifetimes), product installed costs and operating costs, product annual 
energy consumption, and discount rates. Section 2.10 of chapter 2 and 
chapter 10 of the preliminary TSD provide details on the NIA.

IV. Public Participation

    DOE invites input from the public on all the topics described 
above. The preliminary analytical results are subject to revision 
following further review and input from the public. A complete and 
revised TSD will be made available upon issuance of a NOPR. The final 
rule establishing any new energy conservation standards will contain 
the final analytical results and be accompanied by a final rule TSD.
    DOE encourages those who wish to participate in the public meeting 
to obtain the preliminary TSD from DOE's Web site and to be prepared to 
discuss its contents. Once again, a copy of the preliminary TSD is 
available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/furnace_fans.html. However, public meeting 
participants need not limit their comments to the topics identified in 
the preliminary TSD. DOE is also interested in receiving views 
concerning other relevant issues that participants believe would affect 
energy conservation standards for these products or that DOE should 
address in the NOPR.
    Furthermore, DOE welcomes all interested parties, regardless of 
whether they participate in the public meeting, to submit in writing by 
September 10, 2012 comments and information on matters addressed in the 
preliminary TSD and on other matters relevant to consideration of 
energy conservation standards for residential furnace fans.
    The public meeting will be conducted in an informal, conference 
style. A court reporter will be present to record the minutes of the 
meeting. There shall be no discussion of proprietary information, costs 
or prices, market shares, or other commercial matters regulated by 
United States antitrust laws.
    After the public meeting and the closing of the comment period, DOE 
will consider all timely-submitted comments and additional information 
obtained from interested parties, as well as information obtained 
through further analyses, and prepare a NOPR. The NOPR will include 
proposed energy conservation standards for the products covered by the 
rulemaking, and members of the public will be given an opportunity to 
submit written and oral comments on the proposed standards.

A. Attendance at Public Meeting

    The time and date of the public meeting are listed in the DATES and 
ADDRESSES sections at the beginning of this NOPM. The public meeting 
will be held at the U.S. Department of Energy, Forrestal Building, Room 
8E-089, 1000 Independence Avenue SW., Washington, DC 20585-0121. To 
attend the public meeting, please notify Ms. Brenda Edwards at (202) 
586-2945. Any foreign national wishing to participate in the meeting 
should advise DOE of this fact as soon as possible by contacting Ms. 
Brenda Edwards to initiate the necessary procedures.
    You can attend the public meeting via webinar, and registration 
information, participant instructions, and information about the 
capabilities available to webinar participants will be published on the 
following Web site: https://www1.gotomeeting.com/register/

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914344761. Participants are responsible for ensuring their computer 
systems are compatible with the webinar software.
    The purpose of the meeting is to receive comments and to help DOE 
understand potential issues associated with this rulemaking. DOE must 
receive requests to speak at the meeting before 4 p.m., July 23, 2012. 
DOE must receive a signed original and an electronic copy of statements 
to be given at the public meeting before 4 p.m., July 23, 2012.

B. Procedure for Submitting Requests to Speak

    Any person who has an interest in today's notice or who is a 
representative of a group or class of persons that has an interest in 
these issues may request an opportunity to make an oral presentation. 
Such persons may hand-deliver requests to speak, along with a computer 
diskette or CD in WordPerfect, Microsoft Word, PDF, or text (ASCII) 
file format to Ms. Brenda Edwards at the address shown in the ADDRESSES 
section at the beginning of this NOPM between 9 a.m. and 4 p.m. Monday 
through Friday, except Federal holidays. Requests may also be sent by 
mail to the address shown in the ADDRESSES section or email to 
Brenda.Edwards@ee.doe.gov.
    Persons requesting to speak should briefly describe the nature of 
their interest in this rulemaking and provide a telephone number for 
contact. DOE requests persons selected to be heard to submit an advance 
copy of their statements at least two weeks before the public meeting. 
At its discretion, DOE may permit any person who cannot supply an 
advance copy of their statement to participate, if that person has made 
advance alternative arrangements with the Building Technologies 
Program. The request to give an oral presentation should ask for such 
alternative arrangements.

C. Conduct of Public Meeting

    DOE will designate a DOE official to preside at the public meeting 
and may also employ a professional facilitator to aid discussion. The 
meeting will not be a judicial or evidentiary-type public hearing, but 
DOE will conduct it in accordance with section 336 of EPCA. (42 U.S.C. 
6306) A court reporter will record the proceedings and prepare a 
transcript. DOE reserves the right to schedule the order of 
presentations and to establish the procedures governing the conduct of 
the public meeting. After the public meeting, interested parties may 
submit further comments on the proceedings as well as on any aspect of 
the rulemaking until the end of the comment period.
    The public meeting will be conducted in an informal conference 
style. DOE will present summaries of comments received before the 
public meeting, allow time for presentations by participants, and 
encourage all interested parties to share their views on issues 
affecting this rulemaking. Each participant will be allowed to make a 
prepared general statement (within DOE-determined time limits) prior to 
the discussion of specific topics. DOE will permit other participants 
to comment briefly on any general statements.
    At the end of all prepared statements on a topic, DOE will permit 
participants to clarify their statements briefly and comment on 
statements made by others. Participants should be prepared to answer 
questions from DOE and other participants concerning these issues. DOE 
representatives may also ask questions of participants concerning other 
matters relevant to this rulemaking. The official conducting the public 
meeting will accept additional comments or questions from those 
attending, as time permits. The presiding official will announce any 
further procedural rules or modification of the above procedures that 
may be needed for the proper conduct of the public meeting.
    A transcript of the public meeting will be posted on the DOE Web 
site and will also be included in the docket, which can be viewed as 
described in the Docket section at the beginning of this notice. In 
addition, any person may buy a copy of the transcript from the 
transcribing reporter.

D. Submission of Comments

    DOE will accept comments, data, and other information regarding 
this rulemaking before or after the public meeting, but no later than 
the date provided at the beginning of this NOPM. Please submit 
comments, data, and other information as provided in the ADDRESSES 
section. Submit electronic comments in WordPerfect, Microsoft Word, 
PDF, or text (ASCII) file format and avoid the use of special 
characters or any form of encryption. Comments in electronic format 
should be identified by the Docket Number EERE-2010-BT-STD-0011 and/or 
RIN 1904-AC22 and, wherever possible, carry the electronic signature of 
the author. No telefacsimiles (faxes) will be accepted.
    Pursuant to 10 CFR 1004.11, any person submitting information that 
he or she believes to be confidential and exempt by law from public 
disclosure should submit two copies: One copy of the document including 
all the information believed to be confidential and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination as to the confidential status of the 
information and treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by or available from other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person which would result from 
public disclosure; (6) a date upon which such information might lose 
its confidential nature due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this NOPM.

    Issued in Washington, DC, on June 28, 2012.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2012-16816 Filed 7-9-12; 8:45 am]
BILLING CODE 6450-01-P
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