i Energy Conservation Standards Rulemaking Framework Document for Metal Halide Lamp Fixtures
RIN: 1904-AC00

U.S. Dep artment of Energy Office of Energy Efficiency and Renewable Energy

Building Technologies Program

December 18, 2009ii TABLE OF CONTENTS

1 INTRODUCTION .................................................................................................................. 1
1.1 The Appliances and Commercial Equipment Standards Program ................................... 2

1.2 Overview of the Scope of Metal Halide Fixture Energy Conservation Standards........... 5

1.2.1 S cope of Existing Energy Conservation Standards .................................................. 5

1.2.2 S cope of Energy Conservation Standards Rulemaking ............................................ 5

1.2.3 S tandby Mode and Off Mode Standards ................................................................... 6

1.3 Overview of the Rulemaking Process .............................................................................. 8

1.3.1 Te st Procedures ......................................................................................................... 8

1.3.2 R

ulemaking Process and Participation of Interested Parties..................................... 8

1.4 Preliminary Analysis ...................................................................................................... 10

1.5 Notice of Proposed Rulemaking .................................................................................... 12

1.6 Final Rule ....................................................................................................................... 12

2 OVERVIEW OF ANALYSES FOR RULEMAKING......................................................... 13
3 MARKET AND TECHNOLOGY ASSESSMENT ............................................................. 15
3.1 Market Assessment ........................................................................................................ 15

3.1.1 Equipm ent Classes .................................................................................................. 16

3.2 Technology Assessment ................................................................................................. 22

4 SCREENING ANALYSIS ................................................................................................... 24

5 ENGINEERING ANALYSIS ............................................................................................... 25
5.1 Engineering Analysis Overview..................................................................................... 25

5.2 Representative Equipment Classes................................................................................. 26

5.3 Scaling Method .............................................................................................................. 27

5.4 Baseline Models ............................................................................................................. 28

5.5 Cost-Efficiency Relationship and Analysis.................................................................... 29

5.6 Proprietary Designs ........................................................................................................ 30

5.7 Outside Regulatory Changes Affecting the Engineering Analysis ................................ 31

6 ENERGY USE AND END-USE LOAD CHARACTERIZATION .................................... 31

7 MARKUPS F OR EQUIPMENT PRICE DETERMINATION ............................................ 32
8 LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSES ......................................... 34
8.1 Energy Prices.................................................................................................................. 35

8.2 Life-Cycle Cost Discount Rates ..................................................................................... 36

8.3 Metal Halide Lamp Fixture Lifetimes ............................................................................ 36

8.4 Installation, Maintenance, and Repair Costs .................................................................. 36

9 SHIPMENTS ANALYSIS ................................................................................................... 37
9.1 Base-Case Forecast ........................................................................................................ 37
9.2 Accounting Methodology ............................................................................................... 38

9.3 Standards Impacts on Metal Halide Lamp Fixture Shipmen ts ....................................... 39
10 NATIONAL IMPACT ANALYSIS ..................................................................................... 39
10.1 Inputs to Forecasts ...................................................................................................... 40
10.2 C alculation of National Energy Savings .................................................................... 42

10.3 Ne t Present Value of Consumer Savings .................................................................... 42

11 LIFE-CYCLE COST SUBGROUP ANALYS IS ................................................................. 43iii

12 MANUFACTURER IMPACT ANALYSIS......................................................................... 43
12.1 S ources of Information for the Manufacturer Impact Analysis .................................. 44

12.2 I ndustry Cash-Flow Analysis ..................................................................................... 45

12.1 Manufa cturer Subgroup Analysis ............................................................................... 45

12.2 C ompetitive Impacts Analysis .................................................................................... 45

12.3 C umulative Regulatory Burden .................................................................................. 46

13 UTILITY IMPACT ANALYSIS .......................................................................................... 47

14 EMPLOYMENT IMPACT ANALYSIS .............................................................................. 47
15 ENVIRONMENTAL ASSESSMENT ................................................................................. 48
16 MONETIZATION OF EMISSIONS REDUCTIONS.......................................................... 50
17 REGULATORY IMPACT ANALYSIS .............................................................................. 53
APPEND IX A – LIST OF ITEMS FOR COMMENT ................................................................. 53
APPEND IX B – DEFINITIONS .................................................................................................. 56
APPEND IX C – ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 ..................... 59

LIST OF TABLES

Table 1.1 Rulemaking Schedule for Metal Halide Lamp Fixtures Energy Conservation Standard

................................ ....................................................................................................................... 10
Table 3.1 EP CA Equipment Categories Established by EISA 2007 for Metal Halide Lamp
Ballasts .......................................................................................................................................... 17
Table 3.2 Initial Equipment Classes ............................................................................................. 22
Table 5.1 I nitial Representative Equipment Classes..................................................................... 27
Table 5.2 Initial Baseline Models ................................................................................................. 28
Table 8.1 Inputs to the Life-Cycle Cost and Payback Period Analyses ....................................... 35
Table 10.1 Inputs to the National Impact Analysis....................................................................... 41

LIS T OF FIGURES

Figure 1 Flow Diagram of Analyses Conducted for an Energy Conservation Standard Rulemaking 14iv LIST OF ACRONYMS

AEO Annual Energy Outlook
ANSI American National Standards Institute
BOM bill of materials

BT Building Technologies Program
C Celsius
CAIR Clean Air Interstate Ru le CAMR Clean Air Mercury Rule CBECS Commercial Building Energy Consumption Survey CFR Code of Federal Regulations
CO 2 carbon dioxide
CSL candidate standard level CWA constant-wattage autotransformer CWI constant-wattage isolated autotransform er DALI digital addressable lighting interface
DC District of Columbia
DOE U.S. Department of Energy
DOJ U.S. Department of Justice EGU electricity generating unit EIA Energy Information Administration EISA 2007 Energy Independence and Security Act of 2007 EMI electromagnetic interference EPA U.S. Environmental Protection Agency EPACT 2005 Energy Policy Act of 2005 EPCA Energy Policy and Conservation Act
FCC Federal Communications Commission

FR Federal Register
FTC Federal Trade Commission
GHG greenhouse gas emissions GRIM Government Regulatory Impact Model GSFL general service fluorescent lamp GSIL general service incandescent lamp Hg mercury HID high intensity discharge

HX -HPF high-reactance autotransformer

Hz Hertz ImSET Impact of Sector Energy Technologies IQ intelligence quotient IRL incandescent reflector lamp
kWh kilowatt hour LCC life-cycle cost LMC U.S. Lighting Market Characterization mag-reg magnetically regulated lamp ballast MECS Manufacturer Energy Consumption Survey MIA manufacturer impact analysisv

MPC manufacturer production cost MSP manufacturer selling price NCI Navigant Consulting, Inc. NEMS National Energy Modeling System
NEMS- BT National Energy Modeling System – Building Technologies
NES national energy savings NIA national impact analysis NOPR notice of proposed rulemaking
NO X oxides of nitrogen NPV net present value
OEM original equipment manufacturer OMB U.S. Office of Management and Budget PBP payback period

PM particulate matter
RoHS Restriction on Hazardous Substance
SCC social cost of carbon SEC U.S. Securities and Exchange Commission
SO 2 sulfur dioxide TSD technical support document
TSL trial standard level

UL Underwriters Laboratories
U.S. C. United States Code
V volt

W watt1 Rulemaking Framework Document for Metal Halide Lamp Fixtures

1 INTRODUCT ION

The U.S. Department of Energy (DOE) Appliances and Commercial Equipment Standards Program, within the Office of Energy Efficiency and Renewable Energy‘s Building Technologies Program (BT), develops and promulgates test procedures and energy conservation standards for certain consumer appliances and commercial equipment. The process for developing standards involves analysis, public notice and comment, and consultation with
intere sted parties. ―Interested pa rties‖ include manufacturers, consumers, energy conservation and environmental advocates, State and Federal agencies, and any other groups or individuals with an interest in these standards and test procedures. A DOE Report to Congress 1 submitted on

Ja nuary 31, 2006, which has been updated twice a year since first publication, identifies the numerous rulemakings for a variety of products that DOE has scheduled for completion by January 2015 and explains many of the techniques DOE will be applying during the rulemaking

proce ss to meet this schedule.

The purpose of this document is to describe the procedural and analytical approaches DOE anticipates using to evaluate potential amended energy conservation standards for metal halide lamp fixtures (see section 1.1 below for a discussion of the statutory authority for this rulemaking) . This document is intended to inform interested parties of the process DOE will follow for the standards rulemaking for these metal halide lamp fixtures and to encourage and facilitate the input of interested parties during the rulemaking. This document is merely the starting point for developing energy conservation standards and is not a definitive statement on any issue to be determined in the rulemaking.

Section 1 of this report provides an overview of DOE‘s rulemaking process. Sections 2 through 16 discuss analyses DOE intends to conduct to fulfill the statutory requirements and guidance for this particular energy conservation standards rulemaking. The foundation of this rulemaking includes a statutory mandate to determine whether to amend statutorily-prescribed energy conservations standards for ―metal halide lamp fixture s,‖ w hich sp ecify requirements for several distinct types of metal halide lamp ballasts commonly found in such fixtures. DOE will
anal yze each fixture type to determine whether amended energy conservation standards are technologi cally feasible, economically justified, and would result in significant energy savings.
DOE will maintain infor

mation about this rulemaking on its website at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/metal_halide_lamp_bal
lasts.html

.

1 Energy Conservation Standards Activities; Submitted Pursuant to Section 141 of the Energy Policy Act of 2005(EPACT 2005) and in response to section 305 of the Energy Independence and Security Act of 2007 (EISA 2007), Pub. L. 110-140; U.S. Department of Energy (August 2009). Available at: http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/seventh_report_congress_aug_09.pdf

.2

While DOE invites comment on all aspects of the material presented in this document, several specific issues on which DOE seeks comment are set out in comment boxes like this one. DOE uses these comment boxes to highlight issues and ask specific questions on the approaches DOE plans to follow to conduct the analyses required for the energy conservation standards rulemaking. Such requests for feedback are numbered sequentially throughout the document and are repeated in appendix A.

1.1 The Appliances and Commercial Equipment Standards Program

T itle III of the Energy Policy and Conservation Act (EPCA) of 1975, Pub. L. 94-163, (42 United States Code (U.S.C.) 6291 et seq .) established an energy conservation program for major household applianc es and industrial and commercial equipment. More specifically, Part A of Title III (42 U.S.C. 6291-6309) establishes the ―Energy Conservation Program for Consumer
Products Other Than Automobile s.‖ Subseque nt amendments to EPCA have given DOE the authority to regulate the energy efficiency of several additional kinds of equipment, including certain metal halide lamp fixtures, which is the focus of this document.

The discussion below summarizes the pertinent legislative and regulatory history for metal halide lamp fixtures, and it sets the stage for the issues raised in the balance of this framework document. Through the framework document, DOE is initiating its first rulemaking cycle to review and consider amendments to the energy conservation standards in effect for metal halide lamp fixtures, as required under 42 U.S.C. 6295(hh)(2), which provides as follows:

(2) Final rule by January 1, 2012. — (A) In general. —

Not later than J anuary 1, 2012, the Secretary shall publish a final rule to
determi ne whether the standards established under paragraph (1) should be
amended. (B) Administration. —

The final r

ule shall— (i) contain a ny amended standard; and (ii) apply to products manufactured on or after January 1, 2015.

By way of background, on December 19, 2007, the President signed the Energy Independence and Security Act of 2007 (EISA 2007) (Pub. L. 110-140), which made numerous amendments to EPCA and directed DOE to undertake several new rulemakings for appliance energy conservation standards. For a complete listing of the metal halide lamp fixtures provisions contained in EISA 2007, please see appendix D of this framework document. To
summariz e these metal halide lamp fixture provisions (as more fully explained below), section
324 of EI SA 2007 amended EPCA by:

Inserting definitions pertaining to ―metal halide balla st,‖ 2 ―metal halide lamp, ‖ 3 and

―meta l halide lamp fixtures ‖ 4 (among others) into section 321 of EPCA (42 U.S.C. 6291(62),(63), and (64));

2 ―Metal halide b allast‖ mea ns ―a ballast used to start and operate metal halide lamps. ‖ (42 U.S.C 6291(62))3

Amending section 323(b) of EPCA to direct DOE to develop a test procedure for metal
hali de lamp ballasts based on the American National Standard Institute (ANSI) Standard C82.6-2005, American National Standard for Lamp Ballasts-Ballasts for High-Intensity Discharge (HID) Lamps-Methods of Measurement (42 U.S.C. 6293(b)(18)); Amending section 324(a)(2) of EPCA by directing the Federal Trade Commission (FTC) to conduct a labeling rulemaking for metal halide lamp fixtures (42 U.S.C. 6294(a)( 2)(C)); and Amending section 325 of EPCA by prescribing energy conservation standards for metal halide lamp fixtures that require the equipment to contain ballasts that meet or exceed
define d efficiency levels. Compliance with the EISA 2007-prescribed standards was required as of January 1, 2009. (42 U.S.C. 6295(hh)(1)) Additionally, the Secretary is directed to publish a final rule no later than January 1, 2012, after publication to determine whether the energy conservation standards established by EISA 2007 for metal halide lamp fixtures should be amended, and if such amended standards are appropriate under the relevant statutory criteria, the final rule shall also contain amended standards for those products which shall apply to products manufactured on or after January 1, 2015. (42 U.S.C. 6295( hh)(2)). The Secretary is further directed to conduct a second rulemaking to review and amend its energy conservation standards for metal halide lamp fixtures, which requires publication of a final rule by January 1, 2019. (42 U.S.C. 6295(hh)(3))

The following statutory provisions are directly relevant to the energy conservation standards rulemaking for metal halide lamp fixtures that is the subject of this framework document. As amended by EISA 2007, EPCA regulates metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to 150 watts (W) but less than or equal to 500W by prescribing performance requirements for the metal halide lamp ballasts used in those metal halide lamp fixtures. Both metal halide lamps and ballasts are energy-consuming components of metal ha lide fixtures. For this metal halide lamp wattage range, metal halide lamp
fixtures must contain:

(i) a pulse-start metal halide ballast with a minimum ballast efficiency of 88 percent; (ii) a magnetic probe-start ballast with a minimum ballast efficiency of 94 percent; or (iii) a nonpulse-start electronic ballast with— (I) a minimum ballast efficiency of 92 percent for wattages greater than 250 watts; and (II ) a minimum ballast efficiency of 90 percent for wattages less than or equal to

250 watts.

(U.S.C 6292 (hh)(1)(A))

3 ―Metal halide lamp ‖ mea ns ―a high intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors. ‖ (42 U.S.C 6291(63))

4 ―Metal halide lamp fixtur e‖ m eans ―a light fixture for general lighting application designed to be operated with a metal halide lamp and a ballast for a metal halide lamp. ‖ (42 U.S.C 6291(64))4

In addition to prescribing minimum efficiency requirements for the above-described metal halide lamp ballasts contained in metal halide lamp fixtures, EISA 2007 amended EPCA to exclude the following types of metal halide lamp fixtures from the statutorily-prescribed energy

conserva tion standards:

(i) fixtures with regulated lag ballasts; (ii) fix tures that use electronic ballasts that operate at 480 volts; or (iii) fixtures that— (I ) are rated only for 150 watt lamps; (II) are rated for use in wet locations, as specified by the National Electrical Code 2002, section 410.4(A); and (III) contain a ballast that is rated to operate at ambient air temperatures above 50° C, as specified by UL [Underwriters Laboratories] 1029–2001 [―Standard for High- Intensity-Discharge Lamp Ballasts ‖ ].

(42 U.S.C 6292 (hh)(1)(B))

Pursuant to section 310 of EISA 2007, EPCA further directs DOE to incorporate standby
mode and off mode energy use in any amended (or new) standard adopted after July 1, 2010. (42 U.S.C. 6295(gg )(3)) Because this energy conservation standards rulemaking must be completed by J anuary 1, 2012, the requirement to incorporate standby mode and off mode energy use into
the ener gy conservation standards analysis is applicable. The application of standby mode and off mode energy use in this rulemaking is discussed in detail in section 1.2.3

.

The f ollowing statutory provisions (and associated rulemakings) are related to metal halide lamp fixtures generally but are separate from and not directly related to the current standards rulemaking.

• In conjunction with energy conservation standards for metal halide lamp fixtures, EPCA require s DOE to undertake a determination to see if energy conservation standards for high intensity discharge (HID) lamps (including metal halide lamps) would be technologically feasible and economically justified, and would result in significant energy savings. (42 U.S.C 6317(a)(1)) DOE must complete the HID determination by

June 2010.

• Additionally, as discussed in section 1.3.1, DOE will complete a test procedure rulemaking for metal halide lamp ballasts, as required by EPCA through amendments from EISA 2007. (U.S.C 6293(b)(18)) In furtherance of this obligation, DOE published
a noti ce of proposed rulemaking for this test procedure in the Federal Register on July 10, 2009. 74 FR

33171.

• As part of the requirements set forth by EISA 2007 for metal halide lamp fixtures, the
FTC i s directed to conduct a labeling rulemaking. (42 U.S.C. 6294(a)(2)(C)) To this end, the FTC published a

final rule in the Federal Register on July 9, 2008, amending 16 Code
of Fe deral Regulations (CFR) Part 305, ―Rule Concerning Disclosures Regarding Energy
Consum ption and Water Use of Certain Home Appliances and Other Products Required5

Under the Energy Policy and Conservation Act ( ̳Appliance Labeling Rule‘). ‖ 73 FR
39221. On Oc tober 23, 2008, the FTC published in the Fede ral Register additional
amendme nts to 16 CFR part 305 for metal halide lamp fixtures in the form of technical

corre ctions. 73 FR 63066. Both final rules fulfilled the FTC‘s obligations under EISA 2007 pertaining to labeling requirements for metal halide lamp fixtures and metal halide lamp balla sts.

1.2 Overview of the Scope of Metal Halide Fixture Energy Conservation Standards

1.2.1 Scope of Existing Energy Conservation Standards

As noted above, the existing energy conservation standards for metal halide lamp fixtures

are e stablished by EPCA through amendments made by EISA 2007. (U.S.C 6292(hh)(1)(A)) EISA 2007 prescribed energy conservation standards for metal halide lamp fixtures by setting
minim um ballast efficiency requirements for new fixtures. The performance requirements prescribed by EISA 2007 pertain to new fixtures manufactured after January 1, 2009. Currently, coverage is determined by selected rated wattages of lamps used in the metal halide lamp fixtures (150W to 500W). Such lamps must be equipped with a ballast with a designated starting method (pulse- start and probe-start) and electronic configuration (magnetic or electromagnetic and electronic). However, the statute excludes from coverage metal halide lamp fixtures with regulate d lag ballasts, electronic ballasts that operate at 480 volts (V), and fixtures that: (1) are rated only

for 150W lamps, (2) are rated for use in wet locations, 5 and (3) contain a ballast that is rated to ope rate at ambient air temperatures above 50 °Celsius (C). 6

1.2.2 Scope of Energy Conservation Standards Rulemaking

EPCA gives DOE authority to determine whether current energy conservation standards for metal halide lamp fixtures should be amended. (42 U.S.C. 6295(hh)(2)(A) ) DOE note s that though metal halide fixtures may be composed of a metal halide lamp and metal halide ballast, in establishing metal halide fixture energy conservation standards, EPCA set minimum efficiency requirements for only the ballast component of the fixture. As DOE is evaluating minimum efficiency requirements for metal halide lamps in a separate rulemaking (the HID determination), DOE has pr eliminarily decided that in amending metal halide fixture standards, DOE will only evaluate amending minimum ballast efficiency requirements, consistent with the current
statutory approach. DOE welcomes comment on its approach of amending only minimum ballast efficiency requirements as part of the metal halide lamp fixture energy conservation standards rulemaking.

DOE interprets its statutory mandate as permitting consideration of changes to the
exist ing scope of energy conservation standards to include currently excluded equipment or equipment not captured in the existing regulation (due to the 150W-500W lamp wattage limitation) that could provide significant energy savings. A wide variety of metal halide lamp fixtures are not covered by existing energy conservation standards. Accordingly, these metal
halide lamp fixtures are potential candidates for expanded coverage pursuant to 42 U.S.C.

5 Specifications for ―wet locations ‖ are from the National Electrical Code 2002, section 410.4(A).

6 Specifications for ballasts that operate at ambient air temperatures above 50 °C are found in UL 1029- 2001.6

6295(hh)(2)(A). Significant additional energy savings may be possible by regulating fixtures that operate la mps with additional rated lamp wattages and metal halide ballasts exempted by EISA 2007, through requirements on their ballasts‘ efficiency.

DOE is considerin g expanding its coverage of energy conservation standards to include all metal halide lamp fixtures that operate lamps rated to less than 150W and above 500W
beca use of the potential for significant energy savings. Similar to the current standards, energy savings would be achieved through requirements on the ballasts for those fixtures. DOE‘s initial review of ballast manufacturer catalogs (an indication of product availability of fixtures) shows many types of metal halide lamp ballasts outside the lamp rated wattage range of current ly regulate d fixtures are available in the market. The catalogs also show that approximately 30

perc ent of available metal halide ballasts are designed for lamps rated below 150W. Approximately 13 percent of available metal halide ballasts are designed for lamps rated above 500W. DOE has tentatively concluded that there is potential for significant energy savings by including the enti re range of lamp rated wattage for the analysis. DOE invites comments on its planned expansion of scope for metal halide lamp fixtures that operate lamps rated less than
150W and a

bove 500W.

DOE is also considering expanding its coverage of energy conservation standards to include metal halide fixtures excluded by EISA 2007, including fixtures with regulated lag
balla sts; electronic ballasts that operate at 480V; and ballasts that are rated only for 150W lamps, are rated for use in wet locations, and are rated to operate at ambient air temperatures above 50 °C. (42 U.S.C 6292 (hh)(1)(B)) Although DOE‘s initial review of ballast manufacturer catalogs
indica tes that a small number of excluded fixtures is available in the market, DOE has limited
information on t hose products and consequently intends to explore further the potential energy savings fo r this equipment. DOE invites comments on its planned expansion of coverage to include metal halide lamp fixtures excluded by EISA 2007.

A detailed init ial consideration of scope, including the rationale for coverage for individual fixtures, will be published with DOE‘s preliminary analysis. DOE invites comment on its pl anned expansion of scope for metal halide lamp fixtures.

1.2.3 Standby Mode and Off Mode Standards

DOE is directed to incorporate standby mode and off mode energy use in any amended energy conservation standard adopted after July 1, 2010. (42 U.S.C. 6295(gg)(3)) Because this energy conservation standards rulemaking will be completed by January 1, 2012, the requirement to incorporate standby mode and off mode energy use into the energy conservation standards analysis is applicable.

In amending 42 U.S.C. 6295(gg)(1)(A)(i), (ii), and (iii), section 310 of EISA 2007
defined the terms ―active mode,‖ ―of f mode ,‖ and ―standby mode .‖ ―Active mode ‖ is defined as
the condit ion in which an energy-using piece of equipment is connected to a main power source,
has been a ctivated, and provides one or more main functions. ―Off mode ‖ is defined as the
condit ion in which an energy-using piece of equipment is connected to a main power source, and is not prov iding any standby or active mode function. ―Standby mode ‖ is defined as the
condit ion in which an energy-using piece of equipment is connected to a main power source and7

offers one or more of the following user-oriented or protective functions: facilitating the
acti vation or deactivation of other functions (including active mode) by remote switch (including

remote control), internal sensor, or timer; or providing continuous functions, including information or status displays (including clocks) or sensor-based functions.

In developing the metal halide lamp ballast test procedure, DOE proposed adopting the
statutory definitions of ―active mode, ‖ ―off mode, ‖ and ― standby mode ‖ and analyzed them to determine their applicability to metal halide lamp ballasts. DOE tentatively found that while it is possible for metal halide ballasts to operate in active mode and standby mode, the off mode condition does not apply because it addresses a mode of energy use in which metal halide ballasts do not operate. 74 FR 33171, 33175 (July 10, 2009). The definition of ―off mode ‖ requires that balla sts be connected to a main power source and not provide any standby mode or active mode function. (42 U.S.C. 6295(gg)(1)(A)(ii)) As discussed in th e proposed test procedure, DOE does not believe there is any condition in which the ballast is connected to the main power source and is not already accounted for in either active mode or standby mode. Therefore, for this metal halide lamp fixtures energy conservation standard rulemaking, DOE is only considering the active mode and standby mode energy use provisions from EISA 2007 applicable to metal halide lamp fixtures that are (or could be) covered by this rulemaking. DOE has tentatively concluded that no further consideration of power consumption in off mode is

necessary.

DOE recognizes that metal halide ballasts can be designed with auxiliary control devices, which may consume energy in standby mode. One example of this ballast design is a DALI 7

- enabled ballast. These ballasts may consume power in standby mode, as the internal circuitry
that is inte gral to the design of the ballast remains on and active even when the ballast is not driving any lamps. DOE continues to study DALI-enabled ballasts, as well as other types of metal halide lamp ballasts, to evaluate the issue of standby mode energy use in metal halide lamp
fixtures . DOE invites comments on this issue of standby mode and off mode energy use.

Item 1 DOE welcomes comment on its approach of amending only minimum ballast efficiency requirements, and not lamp efficiency requirements, as part of the metal halide lamp fixture energy conservation standards rulemaking.

Item 2 DOE welcomes comments on the expansion of the scope of this rulemaking to potentially in clude all metal halide lamp fixtures that operate lamps rated to less than 150W and above 500W, in addition to those fixtures already covered by standards which operate lamps in the 150W to 500W range.

Item 3 DOE welcomes comments on the expansion of the scope of this rulemaking to include all metal halide lamp fixtures currently excluded under 42 U.S.C. 6295(hh)(1)(B).

7 DALI stands for the ―Digital Addressable Lighting Interface. ‖ It represents a system that enables communication between a central lighting controls system and the individual components, including the ballasts.8

Item 4 DOE welcomes comment on issues arising from the standby mode and off mode provisions from EISA 2007, including: (a) whether DOE should modify its test procedure for metal halide lamp ballasts, and if so, how; (b) whether metal halide lamp fixtures consume energy in off mode, and if so, which ones; (c) which covered metal halide lamp fixtures use energy in standby mode; and (d) how DOE should incorporate standby mode energy consumption into its analysis for the energy conservation
standard.

1.3 Overview of the Rulemaking Process

1.3.1 Test Procedures

EPCA directs DOE to establish test procedures for metal halide lamp ballasts that are in
accord with ANSI Standa rd C82.6-2005, ―Ballasts for High Intensity Discharge Lamps—
Methods of Measuremen t.‖ ( 42 U.S.C. 6293(b) (18)) DOE published the notice of proposed rulemaking for the test procedure for metal halide lamp ballasts on July 10, 2009, which included definitions and test procedures for that equipment. 74 FR 33171. Additionally, the proposed test

proce dure provides a method for measuring the standby mode of metal halide lamp ballasts. If these ANSI test procedures are updated during the course of this rulemaking, DOE will consider updating its test procedure for metal halide lamp ballasts.

Item 5 DOE welcomes comments on the issue of whether it is necessary to update the metal halide lamp ballast test procedure, and if so, how.

1.3.2 Rulemaking Process and Participation of Interested Parties

EPCA specifies that any standard DOE prescribes for consumer products shall be designed to ―achieve the maximum improvement in energy efficiency . . . which the Secretary [of Ene rgy] determines is technologically feasible and economically justifie d.‖ (42 U.S.C. 6295(o) (2)(A)) Moreover, EPCA states that the Secretary may not establish an amended standard if such standard would not result in ―significant conservation of energy ,‖ or ―is not technologically feasible or economically justified .‖ (42 U.S.C. 6295(o)(3)(B)) When DOE

eva luates any new or amended energy conservation standard for covered products under EPCA, DOE considers to the greatest extent practicable the following seven factors to determine whether a standard is economically justified:

(1) The economic impact of the standard on the manufacturers and on the consumers of the products subject to such 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, or in the initial
char ges for, or maintenance expenses of the covered products which are likely to result from the imposition of the standard;9

(3) The total projected amount of energy (or as applicable, water) savings likely to result directly from the imposition of the standard; (4) Any lessening of the utility or the performance of the covered products likely to result from the imposition of 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 imposition of the standard; (6) The need for national energy and water conservation; and (7) Other factors the Secretary considers relevant.

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

Additional statutory requirement s of general applicability for prescribing new or amended standards are set forth in 42 U.S.C. 6295(o)(1)–(2)(A), (2)(B)(ii)-(iii), and (3)–(5).

The proce ss for developing energy conservation standards involves analysis, public notice and comment, and consultation with interested parties. Interested parties generally include
manufac turers, consumers, environmental advocates, State and Federal agencies, and other groups and individuals with an interest in energy conservation standards and test procedures. DOE considers the participation of interested parties to be a very important part of the rulemaking process. Accordingly, DOE encourages the participation of all interested parties during the comment period provided at each stage of the rulemaking. The broad array of interested parties who routinely provide comments promotes a balanced discussion of critical information required to conduct the standards rulemaking, beginning with public comments on
the framework document.

In conducting the test procedure rulemakings and the energy conservation standards rulemakings, DOE involves interested parties through a variety of means. As discussed in further detail below, the standards rulemaking process involves three public notices, which are published
in the Federal Register following publication of the framework document. Publication of the preliminary analyses as well as the notice of proposed rulemaking (NOPR) will be accompanied by publi c meetings to solicit comment from interested parties to enhance the rulemaking process.

• Preliminary Analysis (se ction 1.4 ). The preliminary analysis is designed to publicly vet
the models and tool s that DOE will use in the rulemaking, and to facilitate public participation before the proposed rule stage. Candidate standard levels, which span the range of efficiencies from baseline equipment to the most efficient technology, are the basis for demonstrating the functionality of the models and tools.

• Notice of Proposed Rulemaking (se ction 1.5 ). The NOPR presents a discussion of

comm ents received in response to the preliminary analysis; DOE‘s analysis of the impacts of potential standards on consumers, manufacturers, and the Nation; DOE‘s weighting of the se impacts; and the proposed standard levels for public comment.

• Final Rule (se ction 1.6 ). The final rule presents a discussion of comments received in response to the N OPR, the revised analysis of the impacts of standards, DOE‘s weighting10

of the impacts, and the standard levels DOE is adopting. The final rule also establishes the compliance date of the standards.

DOE ha s prepared and intends to follow the schedule below for the metal halide lamp fixtures rulemaking.

Table 1.1 Rulemaking Schedule for Metal Halide Lamp Fixtures Energy Conservation
Stand ard

Rulemaking Notice Publication Date

Framework Document December 2009

Preliminary Analysis August 2010

NOPR June 2011

Final Rule January 1, 2012

The statute provides that any amended energy conservation standard for metal halide lamp fixtures will apply to products manufactured on or after January 1, 2015. (42 U.S.C 6295(hh)(2) (B)(ii))

1.4 Preliminary Analysis

As pa rt of its initial rulemaking activity, DOE typically identifies equipment technology options and makes a preliminary determination on whether to retain that option for detailed analysis or to eliminate it from further consideration. This process includes a market and technology assessment (section 3) and a screening analysis (section 4). DOE applies four screening criteria in the screening analysis to determine which technology options to eliminate from further consideration. These four criteria are: (1) technological feasibility; (2) practicability
to manufa cture, install, and service; (3) adverse impacts on product utility or availability; and (4) adverse impacts on health or safety. Technologies that pass through the screening analysis are referred to as design options in the engineering analysis.

DOE consults with interested parties and independent technical experts to identify the key issues and design options or efficiency levels that DOE will consider in the rulemaking. DOE initiates that dialogue with this framework document, the public meeting following its publication, and the request for public comment. This provides an opportunity for input into the

structur al and analytical approach planned for this energy conservation standards rulemaking.

At the start of the preliminary analysis, DOE considers design options or efficiency levels for each equipment class. DOE uses these design options or efficiency levels to collect manufacturer cost data, historical shipment data, shipment-weighted average efficiency data, and preliminary manufacturer impact data ( e.g. , capital conversion expenditures, marketing costs,
and re search and development costs). Concurrent with the preliminary analysis, DOE also conducts other principal analyses, including: (1) the engineering analysis (section 5 ); (2) the

consum er life-cycle cost (LCC) and payback period (PBP) analyses (section 8 ); (3) the national11

impact analysis, which considers national energy savings (NES) and consumer net present value (NPV) (section 10 ); and (4) a preliminary manufacturer impact analysis (section 12 ). DOE w ill present the results of these analyses in the preliminary analysis technical support document (TSD).

Based on the results of the preliminary analysis, DOE selects candidate standard levels 8 (CSLs) from the energy efficiency or energy use levels considered in the preliminary analysis. Discussion of various candidate standard levels in the preliminary analysis will help interested parties review the spreadsheet models that underpin the analyses. DOE will use interested parties‘ comments to refine the models for the next stage of the rulemaking analyses, where DOE will propose specific efficiency levels for adoption. In addition to the efficiency corresponding to the maximum technologically-feasible (―max-tech ‖ ) design and the efficiency corresponding to the minimum LCC point, DOE generally considers levels or design options that span the full range of technologically-achievable efficiencies. The range of levels DOE typically analyzes
includes:

• The baseline efficiency level ( i.e. , the mini mum level), which is defined by the type of equipment with the lowest energy efficiency level currently sold on the market for a given category. For equipment categories where minimum energy conservation standards already exist, the baseline efficiency level is typically defined by the existing energy conservation standard;

• The level with the minimum LCC or greatest LCC savings;

• The highest energy efficiency level or lowest energy consumption level that is

tec hnologically feasible ( i.e., max- tech); and

• Levels that incorporate noteworthy technologies or fill in large gaps between other

e fficiency levels considered.

At the preliminary analysis stage, DOE uses analytical models and tools to assess the different equipment classes at each efficiency or energy use level analyzed. Many of these analytical models and tools are in the form of spreadsheets, which are used to conduct the LCC and PBP analyse s and to determine the national energy savings and NPV of prospective
standards. In addition, preliminary analytical results may facilitate discussions among interested parties on potenti al joint recommendations for standard levels.

DOE will make the spreadsheet tools and results of the preliminary analysis available on
its website for review. 9 When it publishes the preliminary analysis, DOE will also make a TSD

ava ilable containing the details of all the analyses performed to date. After publication of the

8 CSLs are a set of efficiency levels considered in the preliminary analysis that spans the range of ballast
eff iciencies from baseline equipment to maximum technologically feasible equipment.

9 All materials associated with the rulemakings for metal halide lamp fixtures test procedures and energy

con servation standards are available on DOE‘s website at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/metal_halide_lamp_ballasts.html

.12

preliminary analysis, DOE will provide a 60-day public comment period and hold one public meeting . At that point, DOE encourages interested parties to develop joint recommendations for
standard le vels.

1.5 Notice of Proposed Rulemaking

I n developing the NOPR, DOE will consider all the comments it received after publication of the preliminary analysis. This process may result in revisions to the preliminary analysis, including the engineering and LCC analyses. At this point, DOE will conduct additional economic and environmental impact analyses. These analyses generally include a consumer LCC subgroup analysis (section 11 ), a complete manufacturer impact analysis (section 12 ), a utility impa ct analysis (section 13 ), an employment impact analysis (section 14), an environmental assessment (section 15), and a regulatory impact analysis (section 17 ).

DOE will describe the methodology used and make the results of all the analyses available on its website for review. Based on comments from interested parties, further revisions to the analysis may be made. This analytical process ends with the selection of proposed standard levels (if an y) that DOE will present in the NOPR. DOE selects the proposed standard levels from the trial standard levels (TSLs) analyzed during the NOPR phase of the rulemaking. The NOPR, published in the Federal Register , will document the evaluation and selection of any proposed standards levels, along with a discussion of other TSLs considered but not selected and
the reasons DOE did not select them.

For each equipment class, DOE will identify the max-tech efficiency level. If DOE proposes a lower level, it will sequentially explain the reasons for eliminating higher levels, beginning with the highest level considered. DOE will present the analytical results in the NOPR, and provide the details of the analysis in an accompanying TSD.

DOE considers many factors in selecting proposed standards, as discussed in section 1.3.2. These factors are contained in EPCA and take into consideration the benefits, costs, and impacts of energy conservation standards. Additionally, DOE encourages interested parties to develop joint recommendations for standard levels. DOE will carefully consider such recommendations in its decision process.

When DOE publishes the NOPR, it will provide the Department of Justice (DOJ) with copies of the NOPR and TSD to solicit feedback on the impact of the proposed standard levels on competition in both the metal halide lamp fixtures and metal halide lamp ballasts industries. DOJ will review these standard levels in light of any lessening of competition likely to result
from the imposition of standards (42 U.S.C. 6295(o)(2)(B)(i)(V) and (B)(ii)). Publication of the

NOPR will be followed by a 60-day public comment period that includes one public meeting.

1.6 Final Rule

After publication of the NOPR, DOE will consider public comments it receives on the proposal and accompanying analyses. DOE will review the engineering and economic impact analyses and proposed standards based on these comments and consider modifications where necessary. Before the final rule is issued, DOE also will consider DOJ comments on the NOPR13

relating to the impacts of the proposed standard levels on competition to determine whether changes to these standard levels are needed. DOE will publish the DOJ comments and DOE‘s

response as p art of the final rule.

The standards rulemaking will conclude with publication of the final rule. DOE will select the final standard level based on the complete record of the standards rulemaking. The final rule will promulgate the final standard level and the effective date and explain the basis for their selection. The final rule will be accompanied by a final TSD.

2 OVERVIEW OF ANALYSES FOR RULEMAKING

The purpose of the analyses is to ensure that DOE selects energy conservation standards that achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified and will result in significant energy savings, as required by EPCA. Economic justification includes the consideration of economic impacts on domestic manufacturers and consumers, national benefits including environmental impacts, issues of consumer utility, and impacts from any lessening of competition. DOE expects the selection of such standards to achieve the maximum energy savings that are technologically feasible and economically justified without imposing excessive financial burden on any particular party.

Figure 1 summarizes the analytical components of the DOE standard-setting process. The

ana lyses are presented in the center column. Each analysis has a set of key inputs, which are data and information required for the analysis. Approaches are the methods that DOE will use to obtain key inputs, which may vary depending on the information in question. For example, some key input s exist in public databases; DOE will collect other information from interested parties or experts with special knowledge, and DOE will develop yet other information independently in support of this rulemaking. The results of each analysis are key outputs, which feed directly into the rulemaking. Arrows indicate the flow of information between the various analyses. DOE ensures a consistent approach to its analyses throughout the rulemaking by considering each analysis as a part of the overall standard-setting framework.14

Figure 1 Flow Diagram of Analyses Conducted for an Energy Conservation Standard

Rulem aking15

3 MARKET AND TECHNOLOGY ASSESSMENT

The market and technology assessment will provide information about the manufacturers
of metal halide la mp fixtures and ballasts and the performance attributes of these equipment. Although EPCA directs DOE to consider amended energy conservation standards for metal halide lamp fixtures, DOE is considering regulating the lamp component of the fixture in a separate rulemaking (the HID determination). Accordingly, the statutorily-prescribed standards and DOE‘s plans for amending those standards revolve around changes to the requirements for metal halide lamp ballast efficiency. This market and technology assessment is particularly important at the outset of the rulemaking for developing equipment classes and for identifying technology options that improve ballast efficiency.

3.1 Market Assessment

DO E will qualitatively and quantitatively characterize the structure of the markets for metal halide lamp fixtures and ballasts. In the market assessment, DOE will identify and characterize the manufacturers of this equipment, estimate market shares and trends, address regulatory and non-regulatory initiatives intended to improve the efficiency or reduce the energy consumption of covered fixtures and ballasts, and explore the potential for technological improvements in the design and manufacturing of such equipment.

Th is market assessment will establish the context for this rulemaking, and it will serve as a resource to guide the analyses that follow. For example, DOE may use historical shipments and prices as an indicator of future shipments and prices. Similarly, DOE plans to use market structure data for the manufacturer impact analysis, data that will be particularly useful for assessing competitive impacts. This phase also allows DOE to start updating design options by reviewing equipment literature and industry publications.

DOE recognizes that there may be limited public information on national shipments, manufacturing costs, channels of distribution, and manufacturer market shares of metal halide lamp fixtures and ballasts. This type of data is an important input for analyses that determine if

ener gy conservation standards are economically justified and will result in significant energy savings. Therefore, DOE encourages interested parties to submit data that will improve DOE‘s understanding of the metal halide la mp fixtures and ballast markets. These data may be provided
under a confidentiality agreement with DOE‘s contractor responsible for this part of the rulemaking analysis, Navigant Consulting, Inc. (NCI). In other rulemakings, NCI works with confidential data provided by manufacturers and other organizations in preparing aggregated results for DOE‘s analysis. These aggregated results do not divulge the sensitive, individual raw data, but e nable other interested parties to comment on the aggregated dataset.

Alternatively, interested parties may submit confidential data to DOE, indicating in writing which data should remain confidential. Interested parties must submit confidential information to DOE according to the procedures outlined in 10 CFR 1004.11. Under 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 shall include16

all the information believed to be confidential, and the other copy shall have the information
believed to be confidential deleted. DOE will make its own determination about the confidential status of the information and treat it accordingly. 10

DOE is creating a database of commonly-available equipment based on recent manufacturer catalogues from small and large metal halide lamp ballast manufacturers. This
database will enable DOE to understand which ballasts are available in the market and better assess which fixtures should be considered in the expansion of scope (section 1.2). DOE will use
the result ing knowledge about equipment availability to evaluate how the market may respond to various standard levels ( e.g. , consumers substituting metal halide lamp fixtures that are not subjec t to regulation), and to gain insight on the performance attributes of various commerciallyavailable ballast technologies.

Item 6 DOE welcomes input on estimates of market shares, equipment, features, and efficiency trends for the metal halide lamp fixtures covered in this rulemaking.

Item 7 DO

E welcomes input on manufacturers of covered equipment as well as distribution channels used for sales of covered equipment.

3.1.1 Equipment Classes

When necessary, DOE divides covered equipment into classes by: (a) the type of energy used; (b) the c apacity of the equipment; or (c) any other performance-related feature that justifies
differe nt standard levels, such as features affecting consumer utility. (42 U.S.C. 6295(q)) DOE then conducts its analysis and considers establishing or amending standards to provide separate standard levels for each equipment class.

In amending EPCA, EISA 2007 effectively set four equipment categories for metal halide lamp fixture s based upon the ballasts used and the wattage of the lamps in those fixtures, and in

presc ribing initial energy conservation standards for metal halide lamp fixtures, the statute established minimum efficiency requirements for the metal halide lamp ballasts contained in
those fixture s. (42 U.S.C. 6295(hh)(1)(A)) The current equipment categories for metal halide lamp fixture s are presented in Table 3.1.

10 Factors that DOE considers when evaluating requests to treat submitted information as confidential include: (1) a
descr iption 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 public 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 after which such information might lose its confidential character; and (7) why disclosure of the information would be contrary to the public interest.17

Table 3.1 EPCA Equipment Categories Established by EISA 2007 for Metal Halide Lamp
Fixtur es (by Ballast Type and Lamp Wattage)

Ballast Type and Starting

M ethod Total Rated Lamp Watts

Pulse

- Start ≥ 150W and ≤ 500W

Magnetic Probe

- Start ≥ 150W and ≤ 500W

Non

- Pulse

- Start Electronic ≥ 150W and ≤ 250W

> 250W and ≤ 500W

As discussed above, the equipment categories for metal halide lamp fixtures set forth in
Table 3.1 ar e a composite of ballast type and lamp wattage. For pulse-start metal halide ballasts, EPCA does not distinguish by electronic configuration (magnetic or electronic), so fixtures with either type of pulse-start ballast would be subject to the statutory standards

. Magnetic probestart , pulse-start, and non-pulse-start electronic ballasts are considered separately, and two rated lamp watta ge ranges are identified for non-pulse-start electronic ballasts, thereby resulting in a total of f our equipment categories.

Given DOE‘s statutory directive under 42 U.S.C. 6295(hh)(2) to consider amended energy conservation standards for metal halide lamp fixtures, it is necessary to evaluate the market to analyze other ballast types applicable to those fixtures. DOE must also consider the impacts that the statutorily-prescribed standard levels have had on the metal halide lamp fixtures
market , as would potentially necessitate a change in the existing equipment classes.

In a ddition to the metal halide lamp fixtures identified in Table 3.1 , the metal halide lamp
fixture market includes fixtures that contain ballasts that operate low-wattage ( e.g. , less than

150W ) and high-wattage ( e.g. , greater than 500W) lamps. In addition, EISA 2007 exempts
fixtures that conta in certain ballasts such as regulated lag ballasts and electronic ballasts that
operate at 480 volts. As stated earlier, DOE is considering expanding coverage to these exempted
fixtures.

DOE has also examined recent market trends. One example is that pulse-start ballasts are gaini ng market share, whereas probe-start ballasts are becoming less popular and consequently, are losing market share. This market shift is expected to have accelerated in 2009. Based on an
initia l review of catalog information of commercially-available equipment, the standard levels ( i.e. , the ballast efficiencies) established by EISA 2007 for metal halide lamp fixtures will essentially

eliminate magnetic probe-start ballasts from the marketplace by requiring a ballast efficiency that is not currently attainable with electromagnetic ballast technology. Because magnetic ballasts comprised the large majority of metal halide ballast sales in the past, therelikely will be a further increase in the shipments of metal halide electronic and magnetic pulsestart ballasts when standards prevent the sales of magnetic probe-start ballasts.18

Because of these market changes and because DOE is anticipating expanding its scope of energy conservation standards for metal halide lamp fixtures, DOE is considering amending the equipment classes for these fixtures and their associated ballasts. When determining equipment classes, DO E examines characteristics or features commonly found in commercially-available equipment such as the type of energy used, equipment capacity, or any other performance-related feature that justifies different standard levels. For metal halide lamp fixtures, DOE examined

severa l possible characteristics or features that could warrant separation into different equipment classes, including: (1) rated lamp wattage; (2) input voltage; (3) number of lamps per ballasts; (4) lamp starting method; (5) electronic configuration; and (6) circuit type. Each of the listed
chara cteristics or features is discussed below. DOE‘s initial position on possible expansion of equipm ent classes by characteristic or feature is also discussed.

Rated Lamp Wattage

An initial review of manufacturer catalogs shows that metal halide lamp ballasts are
avai lable for lamps with rated wattages as low as 20W and as high as 2,000W. Metal halide lamp

watta ge will vary depending on the application. Lamp wattage affects the utility of the lamp and is one of the performance features that determines the amount of light output, intensity, quality, and efficiency of the lamp-ballast system. Generally, ballast efficiency increases with higher rated wattages. An initial review of manufacturer catalogs show that there are ballast efficiency variations within a specific rated wattage. In addition, ballast efficiencies gradually increase as rated wattage increase, but reach a certain maximum near the 250W range.

Reviewing manufacturer catalogs shows that metal halide lamp ballasts can be grouped as servicing three main lamp wattage ranges, including: (1) low (less than 150W); (2) medium (grea ter than or equal to 150W but less than or equal to 500W); and (3) high (greater than 500W). In terms of applications, low-wattage lamps are mainly used in commercial and some residential applications for general lighting purposes. Medium-wattage lamps are the most widely used and include warehouse, street, and general commercial lighting. High-wattage lamps are mainly used in searchlights, stadiums, stage applications, and other applications that require powerful white light.

EISA 2007 separates equipment classes by a single rated lamp wattage range (150W to 500W) for both pulse-start and probe-start metal halide lamp ballasts. For non-pulse-start metal
halide lamp ballasts, EISA 2007 separates equipment classes by two rated lamp wattage ranges (less tha n or equal to 250W, and greater than 250W). DOE is considering establishing the separation of metal halide lamp fixture equipment classes by including additional lamp wattage

rang es. In total, potential rated lamp wattage ranges may include less than 150W, greater than or equal t o 150W but less than or equal to 250W, greater than 250W but less than or equal to 500W, and greater than 500W.

Light output changes as lamp wattage changes. Depending on the application, a specific or minimum light output is necessary. Because the rated lamp wattage affects lamp-ballast system efficiency, DOE believes each listed rated lamp wattage range has a separate utility purpose and different efficiency, thereby warranting a separate standard.19

Input Voltage

An initial review of manufacturer catalogs shows that various metal halide lamp fixtures are equipped with metal halide lamp ballasts that operate at several different input voltages. Voltage affects the power the ballast uses, as well as I 2 R losses, 11 and, therefore, it affects
eff iciency. Generally, as voltage increases, current decreases, thereby reducing current losses and increasing ballast efficiency. Metal halide lamp ballast input voltages range by application and are commonly available from the typical residential 120 volts (V) up to industrial applications of 480V. Additionally, there are types of niche equipment that can operate at 600V input voltage. On reviewing manufacturer catalogs, DOE determined that metal halide lamp ballasts can be grouped into three main input voltage ranges: (1) residential/commercial (retail) at less than 150V; (2) commercial/industrial at greater than or equal to 150V but less than or equal to 300V; and (3) commercial/industrial at greater than 300V.

DOE is considering also establishing the separation of metal halide lamp fixture equipment classes by including the separation of ballast input voltages. Voltage ranges would include common residential to commercial voltages under the less than 150V category, greater than or equa l to 150V but less than or equal to 300V category, and the greater than 300V. According to initial findings from manufacturer catalogs, available ballasts with higher voltages tend to have higher efficiency than ballasts with lower voltage. However, some manufacturers do
not show dif

ferences in efficiency for ballasts at different voltages. DOE believes each suggested input volta ge range has a separate utility purpose and characteristics that affect efficiency, as would warrant a separate standard. Additionally, some commercially-available ballasts operate
at mult iple input voltages (universal voltage systems). While manufacturers may achieve some
economi c benefit from producing these ballasts, DOE does not believe that universal voltage systems provide additional utility. DOE seeks comments on multiple input voltage ballasts and
whether D OE should provide a separate class for metal halide lamp fixtures equipped with metal halide lamp ballasts that employ this feature.

Number of L

amps Per Ballasts

Metal halide lamp ballasts are commonly designed to operate with a single lamp because of lamp characteristics such as re-striking and voltage regulation. However, an initial review of manufacturer catalogs shows that while a majority of available ballasts only operate one lamp, a limi ted number are designed for two lamps.

If appropriate, DOE could further divide metal halide lamp fixtures equipment classes by including separa te equipment classes for ballasts that are designed to be operated with multiple lamps ( e.g. , two lamp ballasts). The limited information DOE has gathered shows little to no
cha nge in efficiency between a one-lamp or two-lamp metal halide ballast. DOE seeks comments on the differences between one-lamp and two-lamp metal halide ballasts and whether DOE should separate metal halide lamp fixture equipment classes by this feature.

Lamp Start ing Method

11 I 2 R losses are the power losses due to the flow of current through copper conductors. As current flows through

w ires and electrical components, the resistance causes some of the power to dissipate as heat.20

Metal halide lamp ballasts currently available in the market are specifically designed to
operate w ith either a probe-start or pulse-start lamp, but not both types of lamps at the same time. The main differences between both types of starting methods is the inclusion of a third probe in probe-start lamps, the need for an igniter circuit for pulse-start lamps, and the different wiringspecification for ballasts of each starting method. Most new applications in the market are pulsestart due to its inherently better efficacy than probe-start. However, with minor changes to thewiring specification and configuration within a fixture as well as the swap of lamp type, probestart ballasts can be replaced by pulse-start ballasts.

If appropriate, DOE could further divide equipment classes by the ballast starting method ( e.g. , pulse-start or probe-start). However, DOE‘s initial view is that equipment classes should
not be f urther divided by starting method due to their interchangeability and lack of unique or

separa te utility that would affect efficiency. DOE seeks comments on the different lamp starting
methods and whether

there should be an additional separation of metal halide lamp fixture equipme nt classes by this feature.

Electronic Configuration

Metal halide lamp ballasts have two distinct types of electronic configuration: electronic and electromagnetic (magnetic). The more commonly used magnetic ballasts are typically composed of transformer-like copper windings on a steel or iron core. The newer and more efficient electronic ballasts rely on the use of electronic filters, switches, and capacitors/inductors to control current and voltage to the lamp. In metal halide lamp fixtures, electronic ballasts can be used to achieve higher efficiency than magnetic ballasts. In the current metal halide lamp fixtures market, electronic ballasts are direct replacements for magnetic ballasts for lower to medium wattage applications (less than 150W up to 500W). Initial review of manufacturer catalogs shows that at higher wattages, few electronic ballasts are available due to th e significantly higher cost of components. The use of higher frequencies has also prevented market penetration of electronic ballasts for higher wattages. Due to acoustic resonance issues as well as electromagnetic interference (EMI) effects, ballasts frequencies above 300 Hz become difficult to manufacture and have difficulty complying with Federal Communications Commission (FCC)
standards. 12

EISA 2007 distinguishes non-pulse-start electronic equipment classes by separation into two rated lamp wattage ranges (greater than or equal to 150W but less than or equal to 250W, and greater than 250W but less than or equal to 500W). According to an initial review of manufacturer catalogs, non-pulse-start electronic metal halide lamp ballasts are not available in
th e market. While EISA 2007 provisions may have been intended to capture alternative technologies that could be available in the near term, DOE does not believe equipment classes

12 FCC regulations at 47 CFR Part 18, Subpart C set forth technical standards for industrial, scientific, and medical

equ ipment that specify frequency bands and ranges tolerances as well as electromagnetic fields strength limits. Some metal halide lamp ballasts may be covered under the se ―industrial, scientific, and medical (ISM) equipmen t‖ standards, which list the general operating conditions for ISM equipment. Ballasts designed to exceed 9 kHz ballast frequency have to be designed such that interference with transmitted radio frequencies is eliminated. 47 CFR

18.111.21

should necessarily be divided by electronic configuration. Electronic configuration does not

prese nt separate utility or efficiency. DOE seeks comments on the different electronic configurations and the separation of metal halide lamp fixtures equipment classes by these
balla st features.

Circuit Typ e

Magnetic metal halide lamp ballasts are available in the market in several types of circuit configurations, including high-reactance autotransformer (HX-HPF), constant-wattage isolated transformer (CWI), constant-wattage autotransformer (CWA), linear reactor (reactor), and magnetically regulated lag (mag-reg) ballasts. Each circuit type listed has different characteristics that could have separate utilities. These characteristics include weight, size, efficiency, power regulation, and cost. For electronic ballasts, the only difference in circuit type is either ―hig h‖ or ―

low‖ frequency circuit type. For low-frequency electronic ballasts (100 to 400 Hz), a square current waveform is used to diminish acoustic resonance and maintain lamp life. However, higher-frequency electronic ballasts have inherent issues with EMI and acoustic resonance, and therefore have limited availability in the market.

As noted above, each ballast circuit type may have different utilities and efficiency
chara cteristics. Energy conservation standards established by EISA 2007 for metal halide lamp fixtures prescribe efficiency levels for magnetic probe-start ballasts at the 150W to 500W rated lamp wattage that may not be currently achievable with any circuit type at low to medium lamp rated wattage ranges. For pulse-start ballasts at the 150W to 500W rated lamp wattage, currentenergy conservation standards are achievable only by electronic ballasts or certain reactor, magreg, or CWA ballasts. Due to the limited information about differentiation, utility, and efficiency characteristics among circuit types, DOE tentatively believes that equipment classes should not
be fur ther divided by circuit type at this time. Electronic ballasts also can essentially replace any
ty pe of magnetic ballast and, therefore, eliminate the need for differentiation of circuit type
within a magnetic ballast category. However, if appropriate, DOE could further divide equipment classes by the circuit type based on new data indicating that separation is warranted. DOE seeks comments on the different circuit types and the need for additional separation of metal halide lamp fixtures equipment classes by this feature.

Based on all the characteristics and features previously listed, DOE intends initially to establish separate equipment classes for metal halide lamp fixtures by focusing on metal halide lamp ballasts that operate specific lamp wattages at specific input voltages. For example, DOE is
consi dering establishing one equipment class for all ballasts that operate metal halide lamps with rated input wattages between 150W and 250W with input voltages less than 150V. To account for the variance in ballast efficiency by rated lamp wattage in an equipment class like this, DOE could develop an equation from which manufacturers could calculate the minimum ballast efficiency energy conservation standard based on the metal halide lamp wattage and or voltage. If DOE chooses not to establish an equation for the minimum ballast efficiency standard that accounts for metal halide lamp wattage and or voltage, DOE may choose to subdivide equipment classes by the wattage of the lamp operated by the ballast. Table 3.2 shows DOE‘s initial plan for equipme nt classes for this rulemaking.22

Table 3.2 Initial Equipment Classes

Rated Lamp Wattage Input Voltage Equipment
Classes

< 150W < 150V 1

≥ 150V and ≤ 300V 2

>300V 3

≥ 150W and ≤ 250W < 150V 4

≥ 150V and ≤ 300V 5

>300V 6

> 250W and ≤ 500W < 150V 7

≥ 150V and ≤ 300V 8

>300V 9

> 500W < 150V 10

≥ 150V and ≤ 300V 11

>300V 12

DOE seeks comments on all of the possible approaches described above for equipment classes, and any other methods for establishing equipment classes corresponding to the requirements of 42 U.S.C. 6295(q).

Item 8 DOE welcomes comments on equipment classes for metal halide lamp fixtures and approaches to defining classes in accordance with the requirements of 42 U.S.C. 6295(q).

Item 9 DOE seeks input on how ballast efficiency varies by lamp wattage and input voltage.

Item 10 DOE seeks input on the rated lamp wattage bins identified for equipment classes. Specifically, DOE is interested in information that could be used to alter the number of bins or alter the wattages included in each bin.

Item 11 DOE welcomes comments on how to approach universal voltage systems that are gaining market share and becoming more readily available.

3.2 Technology Assessment

The technology assessment centers on understanding how equipment uses energy and efficiency measures that would reduce energy consumption by the metal halide lamp ballast, which is a key component of the metal halide lamp fixture. Measures that improve the energy
eff iciency of the equipment are called technology options, and they are based on existing23

technologies, as well as prototype designs and concepts. In consultation with interested parties, DOE will develop a list of technology options for consideration in this rulemaking. Following research into this list of technology options, DOE will consider each one against four screening criteria: (1 ) technological feasibility; (2) practicability to manufacture, install, and service; (3) adverse impacts on equipment utility or availability; and (4) adverse impacts on health or safety (see section 4). Those technology options that pass the four screening criteria are called design options a nd will be considered as appropriate ways of improving the efficiency of the equipment in the engineering analysis and will assist DOE in determining the max-tech design.

DOE is studying technology options by reviewing manufacturer catalogues, recent trade publications, technical journals, and patent filings. DOE also intends to consult with technical experts who have worked on metal halide lamp ballast designs and to conduct manufacturer interviews about these technology options.

At this time, DOE is aware of a limited set of technology options that could improve
ball ast efficiency. For the preliminary analysis, DOE intends to study the following options:

Electronic Ballasts . For equivalent light output, electronic ballasts generally consume
less ene rgy than magnetic ballasts. The electronic ballast converts the 60 hertz
alte rnating current input power into a high-frequency voltage (20 kilohertz or higher) to operate the lamp. Generally, higher frequency has correspondingly higher
efficie ncy. However, EMI and acoustic resonance issues are generally associated with hig h frequencies.

o Low-Frequency Electronic Ballasts - Electronic ballasts operate at higher
fre quencies than magnetic ballasts. Therefore, the losses near the lamp electrode are decreased. In addition, high er -frequency operation of this type of electronic ballast requires smaller components, thereby reducing ballast losses and making th e ballast more efficient. Low-frequency electronic ballasts are designed to use a square current wave to avoid acoustic resonance and maintain lamp life.

o High-Frequency Electronic Ballasts

- Generally, increasing ballast frequency

may improve ballast efficiency. Higher frequencies can contribute to a gain in ballast efficiency between 4 and 6 percent. However, high-frequency
electronic ballasts have issues with acoustic resonance and EMI that limit the available ballasts in the market to the low- to mid-rated lamp wattage range.
Acoustic r esonance may reduce lamp lifetime and disrupt regular operation. The higher cost of high-frequency components also makes this option less
attractive in the current market.

Integrated Circuits . By substituting integrated circuits for discrete components,
elec tronic ballasts can save additional energy by reducing conductive energy losses.

Higher-Grade Components . Higher-grade components can further reduce energy
losse s in ballasts. For example, using higher-grade magnetic materials in both highfrequency transformers and inductors can increase the efficiency of electronic24 ballasts. Improved semiconductor materials used in integrated circuits can also improve the efficiency of a metal halide lamp ballast.

Improved Circuit Design . Better circuit design may also improve the efficiency of an
elec tronic ballast. For instance, through better circuit design, a ballast‘s power factor can be increased. The higher a ballast‘s power factor, the lower the current per watt required to operate the ballast. These decreased currents reduce additional losses in the power distribut ion system because of lower conductive losses (also called I2R losses). Other improvements in design may include using smaller inductors, designing circuits to reduce harmonics, or changing component characteristics to increase

curre nt control. However, improvements in circuit design or additional components may also use energy ( e.g. , use of power factor correction circuits), which could mitigate some of the potential energy savings from this technology option.

Item 12 DOE welcomes comments on the preliminary technology options identified in this section and whether there are other technology options it should consider. In commenting on design options, please discuss their impacts on safety, performance, and consumer utility (if any).

4 SCREENING ANALYSIS

The purpose of the screening analysis is to screen out technology options, which will not
be fur ther analyzed in the engineering analysis. DOE will follow the process set forth below to screen out technology options.

DOE will develop a list of technology options (developed through its own research and in consultation with interested parties) for consideration in the engineering analysis (section 5). The identified candidate technology options will encompass all those technologies that may be technologically feasible. Thereafter, DOE will review each technology option or best available technology in light of the following four criteria, as provided in sections 4(a)(4) and 5(b) of the
Process Rule 13 and tailored to the current rulemaking:

1. Technological feasibility. DO E will screen out technologies that are not incorporated in

comm ercially-available products or working prototypes.

2. Practicability to manufacture, install, and service. If DOE determines that mass produc tion of a technology in commercial products and reliable installation and servicing of the technology could not be achieved on the scale necessary to serve the relevant market by the time of the effective date of the standard, it will not consider that technology further.

13 The Process Rule establishes procedures, interpretations, and policies to guide DOE in the consideration and

pr omulgation of new or amended energy conservation standards under EPCA and is found at 10 CFR Part 430, Subpart C, Appendix A.25

3. Adverse impacts on product or equipment utility or availability. If DOE determines a technolog y has a significant adverse impact on the utility of the product for significant consumer subgroups, or results in the unavailability of any covered product type with performance characteristics (including reliability), features, size, capacities, and volumes that are substantially the same as products generally available in the United States at the time, it will not consider that technology further.

4. Adverse impacts on health or safety. If DOE determines that a technology will have signific ant adverse impacts on health or safety, it will not consider that technology
further.

DOE will fully document its reasons for eliminating any technology options during the screening analysis, and will publish this documentation for interested parties to review as part of the preliminary analysis. Those technology options not screened out by the above four criteria will be considered design options in the development of cost-efficiency curves in the engineering analysis.

Item 13 DOE welcomes comments on how the above four screening criteria might apply to any additional technology option(s) that an interested party recommends to

DOE.

5 ENGINEERING ANALYSIS

Af ter conducting the screening analysis described above, DOE will perform an engineering analysis based on the remaining design options that are available to improve equipment efficiency. The engineering analysis consists of estimating the energy consumption and cost of equipment at various levels of increased efficiency. Section 5.1 provides an overview
of the e ngineering analysis. Section 5.2 discusses representative equipment classes. Section 5.3
discusses sca ling methodology. Section 5.4 discusses baseline models. Section 5.5 describes
DOE‘ s planned approach. Section 5.6 addresses proprietary designs. Section 5.7 discusses
cumul ative regulatory burdens that might affect the engineering analysis.

5.1 Engineering Analysis Overview

The purpose of the engineering analysis is to determine the relationship between metal halide lamp ballast efficiency and the portion of the metal halide lamp fixture manufacturer selling price (MSP) that relates to the ballast. This relationship between price and efficiency
serves as the basis for cost/benefit calculations to individual consumers in the LCC analysis and
to the Na tion in the national impact analysis (NIA).26

The engineering analysis will focus on selecting commercially-available ballasts that incorporate design options that improve the ballast efficiency. The engineering analysis will also identify the highest efficiency that is technologically feasible within each equipment class ( i.e.

, the max-tech model). DOE may determine the max-tech model by investigating the existence of

an y metal halide ballast prototypes with higher efficiency than those commercially available.

5.2 Representative Equipment Classes

F or the engineering analysis, DOE will first review the metal halide lamp ballasts available for the associated metal halide lamp fixtures equipment classes. When a type of equipme nt has multiple equipment classes ( e.g. , ballasts with rated lamp wattage below 150W
have three proposed equipment classes), DOE selects certain classes as representative and concentrates its analytical effort on these. DOE selects representative equipment classes prima rily because of their high market volumes. For those equipment classes that are not analyzed, DOE extrapolates CSLs from representative equipment classes.

As previously discussed, DOE is proposing to revise the equipment classes established by
EPCA and include a total of 12 equipment classes ( Table 3.2 ). Of these equipment classes, DOE
is init ially planning to analyze at least one representative equipment class from each rated lamp

watta ge range. DOE found in manufacturer catalogs many types of equipment for each of these equipment class es . However, DOE does not plan to directly analyze all equipment classes. The
direc t analyses for representative equipment classes can be scaled to those equipment classes that
are not di rectly analyzed

. The representative classes of metal halide lamp fixtures selected will
be eva luated in both the engineering and LCC analyses (section 8). Table 5.1 shows the equipme nt classes that DOE has initially identified as representative equipment classes.27

Table 5.1 Initial Representative Equipment Classes

Rated Lamp Wattage Input Voltage Equipment
Classes

< 150W < 150V Representative Equipment Class

≥ 150V and ≤ 300V Scaled

>300V Scaled

≥ 150W and ≤ 250W < 150V Representative Equipment Class

≥ 150V and ≤ 300V Scaled

>300V Scaled

> 250W and ≤ 500W < 150V Scaled

≥ 150V and ≤ 300V Representative Equipment Class

>300V Scaled

> 500W < 150V Scaled

≥ 150V and ≤ 300V Representative Equipment Class

>300V Scaled

Once the representative class analysis is complete, DOE will then scale those findings to the other equipment classes that were not analyzed. For this reason, careful selection of

repr esentative equipment classes is critical.

Item 14 DOE welcomes comments on the identification and selection of representative equipment classes for metal halide lamp fixtures.

5.3 Scaling Method

DO E has tentatively decided to choose representative equipment classes based primarily
on their ava ilability or possibly unique performance characteristics that deserve special consideration. It may be possible to extrapolate analyses conducted on one equipment class to another ( e.g. , extrapolate minimum ballast efficiency from ballasts that operate one lamp to
ball asts that operate two lamps). For the equipment classes not analyzed directly, DOE plans to

sca le the engineering results and CSLs from the representative equipment class test data based on
rati os observed in catalog data or by extrapolation using regression equations. If specific data fora particular equipment class are unavailable, DOE may substitute a scaling factor from a closelyrelated pie ce of equipment.28

Item 15 DOE welcomes comments on its approach to scaling from representative equipment classes to classes not directly analyzed in the engineering analysis.

5.4 Baseline Models

Onc e DOE establishes representative equipment classes, it will need to identify baseline models of metal halide lamp ballasts (contained in fixtures) that will serve as reference points against which it can measure changes resulting from potential energy conservation standards. DOE will develop a separate engineering analysis for each baseline model selected. The results of DOE‘s analysis will then be scaled from the representative equipment classes to the other equipme nt classes that were not analyzed.

Selection of the baseline model is a critical aspect of DOE‘s analytical approach. The baseline model should represent the characteristics of common equipment sold in a given equipment class. Typically, the baseline model would be a model that just meets current energy

conserva tion standards, which in the case of metal halide lamp fixtures, means the minimum
eff iciency requirements for ballasts established by EISA 2007. If no standards apply to a type of equipme nt, as is the case with the additional metal halide lamp fixtures and ballasts that DOEintends to consider in this rulemaking, DOE will select baseline models typical of the leastefficie nt model offered for sale in the market. In the present case, selection of the baseline
model will enc ompass consideration of ballast features and performance characteristics such as rated lamp wattage, input voltage, and ballast efficiency. Table 5.2 shows DOE‘s initial plans for
baseli ne models for the various representative equipment classes.

Table 5.2 Initial Baseline Models

Representative Equipment Class Baseline Mo dels Characteristics

Rated Lamp Wattage Input

Voltage Baseline Model

Rated Lamp Wattage Baseline

Model Input Voltage Baseline

Model Efficiency

< 150W < 150V 70W 120V 71.0%

≥ 150W and ≤ 250W < 150V 250W 120V 88.0%

> 250W and ≤ 500W ≥ 150V and
≤ 300V 400 W 277V 88.0%

> 500W ≥ 150V and

≤ 300V 1000W 277V 87.0%

The planned baseline model characteristics selections are based on an initial review of
manufac turer catalogs. For the representative ballast that is design ed to operate at the less than

150W r ated lamp wattage range, DOE selected a ballast that operates at 70W and 120V due to its predomi nance in the market. To characterize the efficiency of this ballast, DOE used the lowest

ca talog efficiency available in the current market. DOE selected 120V input voltage because the majority of metal halide lamps at the less than 150W range are used in residential/commercial29

applications, which commonly use the 120V line voltage. For the mid-rated lamp wattage range, DOE selected ballasts from both residential and commercial applications and with efficiencies that match the EISA 2007 levels. For the high-rated lamp wattage range, DOE selected a ballast that operates at 1,000W and 277V due to its predominance in the market. To characterize the
efficie ncy of this equipment, DOE used the lowest catalog efficiency available in the current market. DOE selected the 277V input voltage because the majority of metal halide lamps at the high rated lamp wattage range are used in commercial or industrial applications, which commonly use 277V to 480V line voltage.

Item 16 DOE welcomes comments on the selection of baseline models from the representative equipment classes.

5.5 Cost-Efficiency Relationship and Analysis

The engineering analysis primarily involves estimating the energy consumption and cost of equipment at various levels of increased efficiency. These estimates are then used to identify the cost-efficiency relationship for the equipment. DOE typically structures its estimation of the cost-efficiency relationship around one of three methodologies: (1) the design-option approach, which calculates the incremental cost of adding specific design options to the baseline model; (2) the efficiency-level approach, which calculates the incremental costs of achieving increases in energy efficiency, without regard to the particular design options used to achieve such increases; and (3) the reverse engineering cost-assessment approach, which involves a ―bottom- up‖
manufa cturing cost assessment based on a detailed bill of materials (BOM) derived from teardowns of equipment being analyzed. Deciding which methodology to use for the engineering analysis depends on the equipment, the technologies under study, and any historical data DOE can draw upon. Due to the limited availability of public information on cost and efficiency of metal halide lamp ballasts, DOE has tentatively decided to use both the efficiency-level approach
to identi fy incremental improvements in efficiency for each piece of equipment and the costassessment approach to develop a cost for each efficiency level.

In the e ngineering analysis, DOE will select a series of more-efficient, commerciallyava ilable ballasts for each of the baseline models considered within each representative equipment class. After identifying both the baseline ballast and the more-efficient substitutes, DOE will ge nerate a BOM by disassembling multiple manufacturers‘ ballasts spanning a range of efficiency levels for each representative equipment class. The BOMs describe the equipment in detail, including all manufacturing steps required to make and/or assemble each part. DOE will then develop a cost model to convert the BOMs and efficiency levels into manufacturer produc tion costs (MPCs). By applying derived manufacturer markups to the MPCs, DOE will calculate the manufacturer selling prices and construct industry cost-efficiency curves. For each metal halide lamp ballast for which DOE is not able to generate a BOM, DOE will evaluate retail prices and estimate an MSP.

DOE will select metal halide lamp ballasts for the analysis such that potential substitutions maintain light output of the lamp-ballast system within 10 percent from the baseline30

system. In identifying more-efficient substitutes, DOE will use a database of commerciallyavailable ballasts. There are limited publicly-available data on efficiency and costs of metal
halide lamp ballasts. Therefore, DOE encourages interested parties to submit data that would improve DOE‘s understanding of the metal halide lamp ballast cost-efficiency relationship.
Th ese data may be provided under a confidentiality agreement with NCI. As discussed previously, DOE presents aggregated results and does not divulge sensitive raw data from interested parties.

After identifying the more-efficient substitutes for each of the baseline lamp-and-ballast systems, DOE w ill develop CSLs. CSLs are a set of efficiency levels considered in the preliminary analysis that spans the range of ballast efficiencies from baseline equipment to maximum technologically feasible. Each CSL is analyzed in the LCC and NIA analyses. At the
NOPR stage of the rulemaking process, DOE will propose energy conservation standard levels for each equipment class and invite public comment.

CSLs for metal halide lamp ballasts (contained in metal halide lamp fixtures) are generally based on consideration of several factors, including: (1) design options associated with the specific b allasts being studied; (2) the ability of ballasts that operate across multiple wattages to comply with t he standard level of a given equipment class; 14 and (3) the maximum technolog ically-feasible level. DOE welcomes comment from interested parties on its costefficiency approach and the selection of higher-efficiency metal halide lamp ballasts used in metal halide lamp fix tures.

Item 17 DOE

seeks comments on its approach to calculating the cost-efficiency relationship for metal halide lamp ballasts used in metal halide lamp fixtures.

Item 18 DOE welcomes comments on commercially-available metal halide lamp ballasts for each baseline model with incrementally increasing ballast efficiency, all the way to the max-tech ballast.

Item 19 DOE welcomes comments on how ballast efficiency varies with lamp wattage, voltage, or any other ballast parameter.

5.6 Proprietary Designs

DO E will consider in its engineering and economic analyses all design options that are commercially available or present in a working prototype, including proprietary designs, that meet the screening criteria discussed in section 4 . However, DOE will consider a proprietary desig n in the subsequent analyses only if it does not represent a unique path to a given efficiency level. If the proprietary design is the only approach available to achieve a given efficiency level, then DOE will eliminate the efficiency level from further analysis. DOE will reject a standard

14 The efficiency of a given ballast will vary depending on the wattage of the lamp it is operating. In selecting

CS Ls, DOE will consider whether ballasts that operate lamps at multiple wattages will meet a given CSL.31

level that can only be met with a single proprietary technology because it could result in an anticompetitive ma rket, a principle consistently applied in past DOE rulemakings as economically unjusti fiable. However, if a given energy efficiency level can be achieved by a number of design approaches, including a proprietary design, DOE will continue to examine the given efficiency level, in spite of the proprietary nature of that one design.

DOE is sensitive to manufacturer concerns about proprietary designs and will take steps to maintain the confidentiality of any proprietary data provided by manufacturers. This information will provide input to the competitive impacts assessment and other economic analyses.

Item 20 DOE seeks information on proprietary designs it should be aware of for the metal halide lamp ballasts under consideration in this rulemaking, and if such proprietary designs exist, how DOE can acquire the cost data necessary for evaluating these designs.

5.7 Outside Regulatory Changes Affecting the Engineering Analysis

I n conducting an engineering analysis, DOE consider s the effects of regulatory burdens outside DOE‘s statutory energy conservation standards rulemaking process that can affect manufacturers of the covered equipment. Some regulatory requirements can also affect the energy efficiency or energy consumption of the metal halide lamp fixtures or ballasts covered
under this rulemakin g. DOE will attempt to identify all outside regulatory requirements that could affect the engineering analysis. The consideration of these requirements is closely related to the cumulative regulatory burden assessment that DOE will conduct as part of the
manufac turer impact analysis. Based on consideration of the comments received on the engineering analysis, DOE will make any necessary changes to its analysis. Those changes will
be r eflected in the NOPR.

Item 21 DOE welcomes comments on regulatory burdens and changes that should be considered in the engineering analysis of metal halide lamp fixtures.

Item 22 DOE welcomes comments on other engineering issues that could affect the engineering analysis.

6 ENERGY USE AND END-USE LOAD CHARACTERIZATION

The purpose of the energy-use and end-use load characterization is to identify how consumers use equipment, thereby helping to determine the energy savings potential of energy efficiency improvements. For metal halide lamp fixtures, DOE‘s analysis will focus on how end users install and operate these fixtures.

Th e energy-use and end-use load characterization is an input to the LCC and national impact analyses, and it will capture and represent the typical energy consumption in the field.32

This usage profile will enable DOE to determine the LCC and PBP of more-efficient metal halide lamp fixture technologies relative to the baseline technologies.

For metal halide lamp fixtures, energy consumption is derived by multiplying the system power rating by the number of operating hours in a given year. DOE is considering using data
from the U.S. Lighting Market Characterization: Volume I (LMC), 15 the Energy Information
Administra tion‘s (EIA) 2003 Commercial Building Energy Consumption Survey (CBECS), 16 and
the 2002 Manufacture r Energy Consumption Survey (MECS) 17 to develop a distribution of

opera ting hours for metal halide lamp fixtures by sector and Census Division. The EIA studies provide information on the distribution of buildings within the United States by building type and Census Division. The LMC, which is based on thousands of building audits and surveys, provides na tional data on annual operating hours by building and lamp type for all sectors. These operating hours are broken down by application for the commercial and industrial sectors. DOE compares the LMC data to th e EIA data to derive annual operating hours by Census Division and
for se lected large States. This approach allows DOE to correlate the electricity price and sales tax
distributi ons with the operating hours distribution by Census Division and for selected large States in the LCC spreadsheet.

Using this methodology will allow DOE to conduct a sensitivity analysis to determine how high and low estimates of energy use might affect the economic feasibility of any amended energy conservation standards. DOE will also be able to correlate regional electricity prices and sales tax data to develop a more accurate distribution of the variability in consumer impacts in the LCC analysis.

Item 23 DOE welcomes comments on its use of the planned operating hours profile for metal halide lamp fixtures. DOE also welcomes comments on whether the end-use operating profiles are different for the various types of metal halide lamp fixtures covered under this rulemaking, and if so, how.

7 MARKUPS FOR EQUIPMENT PRICE DETERMINATION

DO E uses manufacturer- to -c ustomer markups to convert the manufacturer selling price estimates from the engineering analysis to customer prices, which are then used in the LCC and

PB P analyses, as well as the manufacturer impact analysis. Retail prices are necessa ry for the

15 U.S. Department of Energy C Off ice of Energy Efficiency and Renewable Energy, Final Report: U.S. Lighting Market Characterization, Volume I: National Lighting Inventory and Energy Consumption Estimate (2002)

. Available at: www.eere.energy.gov/buildings/info/documents/pdfs/lmc_vol1_final.pdf

.

16 U.S. Department of Energy C En ergy Information Agency, Commercial Building Energy Consumption Survey: Micro-level data, file 2 Building Activities, Special Measures of Size, and Multi-building Facilities (2003)

. Available at: http://www.eia.doe.gov/emeu/cbecs/public_use.html

.

17 U. S. Department of Energy C E nergy Information Agency, Manufacturing Energy Consumption Survey , Table 1.4: Number of Establishments by First Use of Energy for All Purposes (Fuel and Nonfuel) (2002). Available at: http://www.eia.doe.gov/emeu/mecs/mecs2002/data02/shelltables.html

.33

baseline efficiency level and all other efficiency levels under consideration. DOE will obtain these retail prices by applying manufacturer- to -customer markups (consisting of distribution channel markups and sales tax) to the manufacturer selling price estimates which will be calculated as part of the engineering analysis.

Before it can develop markups, DOE must identify distribution channels ( i.e. , how the equipment is distributed from the manufacturer to the customer). As depicted below, DOE has identified the primary distribution channel for metal halide lamp fixtures to be as follows

Ballast Manufacturer  Original Equipment Manufacturer (OEM) or Fixture

Man ufacturer  Electrical Wholesaler (Distributor)  Contractor  End-User of

L ighting System

Once it establishes proper distribution channels for each equipment class, DOE will rely on economic data from public sources and industry input to determine how equipment is marked up from the manufacturer to the customer. Publicly-owned companies are required to disclose financial information on a regular basis by filing different forms with the U.S. Securities and Exchange Commission (SEC). Filed annually, SEC form 10-K provides a comprehensive overview of the company‘s business and financial conditions. To estimate OEM and wholesaler markups, DOE will use financial data from 10-K reports from publicly-owned lighting fixture manufacturers and electrical wholesalers, respectively. 18 DOE is considering using a contractor markup c onsistent with that used in the 2000 Fluorescent Ballast Rule. 19 DOE intends to use the
State Tax Clearinghouse to calculate applicable sales taxes. 20 To the extent possible, DOE also
will use c ollected retail price data to help quantify manufacturer- to -customer markups.

Item 24 DOE requests comments on the planned distribution path for the metal halide lamp fixtures covered under this rulemaking and whether DOE should consider any additional paths. DOE also requests information on the relative fraction of shipments expected for each path.

Item 25 DOE requests feedback on the overall markups for the metal halide lamp fixtures covered under this rulemaking for each path in the distribution chain.

Item 26 DOE seeks comments on other sources of relevant data that could be used to characterize markups for metal halide lamp fixtures.

18 10 -K reports are filed with the U.S. Securities and Exchange Commission and are available at: http ://www.sec.gov/index.htm

19 The 2000 Fluorescent Lamp Ballast Rule was published in the Federal Register on September 19, 2000 and is available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/gs_fluorescent_lamps.html

20 Sales Tax Clearinghouse, Inc., Sta te Sales Tax Rates along with Combined Average City and County Rates

. Available at: http://thestc.com/STrates.stm

.34

8 LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSE S

The effects of amended energy conservation standards on consumers include a change in operating expense (usually decreased) and a change in purchase price (usually increased). The LCC of a product is the cost a product incurs over its lifetime, taking into account both purchase price and operating expenses. The PBP represents the time it takes to recover the additional installed cost of the more-efficient device through annual operating cost savings. DOE analyzes the net effect on consumers by calculating the LCC and PBP using the engineering performance data (section 5 ), the energy-use and end-use load characterization data (section 6 ), and the markups for

equipment price determination (section 7 ). Inputs to the LCC calculation include the
insta lled cost to the consumer (purchase price plus installation cost), operating expenses (energy expenses, and, if applicable, repair costs and maintenance costs), the lifetime of the equipment or other defined period of analysis, and a discount rate. Inputs to the payback period calculation include the installed cost to the consumer and annual operating costs.

In addition to the LCC and PBP calculations, DOE also conducts a rebuttable presumption analysis for certain equipment. Under 42 U.S.C. 6295(o)(2)(B)(iii), the statute
establishes a

rebuttable presumption that a standard is economically justified ―[i]f the Secretary finds that the additional cost to the consumer of purchasing a product complying with an energy conservation standard level will be less than three times the value of the energy ... savings during the first year that the consumer will receive as a result of the standard, as calculated under the applicable test procedure ....‖ Because the DOE test procedure for metal halide lamp ballasts does not include an input for operating hours, DOE plans to use the average annual operating hours of the most common end-use application. While the rebuttable presumption calculation is helpful in understanding that certain standard levels have short payback periods, DOE routinely conducts a full economic analysis that considers the full range of impacts, including those to the consumer, manufacturer, Nation, and environment, as required under 42 U.S.C. 6295(o)(2)(B)(i). The results of this analysis serve as the basis for DOE to definitively evaluate the economic justification for a potential standard level (thereby supporting or rebutting the results of any preliminary determination of economic justification). Economic justification is based on a weighing of the seven EPCA factors described in section 1.3.2 . The LCC and PBP analyses
desc ribed in the following section reflect field conditions and are, therefore, a more accurate depiction of consumer impacts.

For the preliminary analysis, DOE will conduct the LCC and PBP analyses using typical values to reflect conditions in the field for equipment retail price and life, energy costs, energy usage, and discount rates. If DOE determines that there is significant variability in any of these inputs, it will conduct sensitivity analyses to determine how high and low estimates for each input affects the LCC and PBP. For any sensitivity analyses that it conducts, DOE will account for correlations that may exist between inputs ( e.g. , energy usage may be correlated to energy price s). The detailed impact calculation, which DOE will conduct after the preliminary analysis, may include an assessment of impacts on consumer subgroups, as described in section 11

.

For the NOPR, DOE will carefully review all of the comments it receives on the LCC analysis, evaluate additional parameters not included in the preliminary analysis, and make any necessary revisions.35

The following sections discuss the methodologies DOE plans to use to develop energy prices, discount rates, maintenance, repair, and installation costs, and ballast lifetimes for metal
halide lamp fixtures. Table 8.1 lists some of the major inputs DOE anticipates it will develop for
the L CC and PBP analyses.

Table 8.1 Inputs to the Life-Cycle Cost and Payback Period Analyses

Input Description Equipment Price The price of certain metal halide lamp fixtures will be established as described in section 7, Markups for Equipment Price Deter mination.

Sales Tax Sales tax is applied to convert the product price to a final consumer price. Sales tax
mark

- ups will be developed as described in section 7, Markups for Equipment Price
Determination.
Installation, Maintenance, and Repair costs Th ese input s represent the cost to customers of installing and maintaining the metal halide lamp fixture.
Annual Operating Hours The annual operating hours are the estimated hours that a metal halide lamp fixture is in use over 1 year. Operating hours will be developed as described in section 6, Energy

Use and End

- Use Load Characterization.
Product Energy Consumption Rate The product energy consumption rate is the site

- energy usage rate associated with operating the lamp system. This rate will be developed as described in section 6, Energy

- Use and End

- Use Load Characterization.
Electricity Prices Electricity prices used in the analysis are the average price per kilowatt

- hour ( i.e

., $/kilowatt hour ( $/kWh) ) that customers pay.
Electricity Price Trends Electri city price trends estimate the future cost of electricity.

Lifetime Lifetime is the number of hours a fixture is in operation before the consumer retires the
fixture or components of the fixture from service.

Discount Rate The d iscount rate is the rate at which DOE discounts future expenditures to establish their present value.
Analysis Period The analysis period is the time span over which DOE calculates the LCC

.

8.1 Energy Prices

DOE will survey residential, commercial, and industrial energy tariffs 21 as a means for
establi shing marginal electricity prices for consumers of metal halide lamp fixtures. DOE will
also use data from CBECS 22 to estimate building energy use characteristics that affect electricity price s. If the tariff survey and EIA data demonstrate a large variability in electricity prices, DOE will conduct a sensitivity analysis to determine how high and low electricity price estimates might affect the economic feasibility of any amended energy conservation standards. DOE will use projections of national average energy prices—principally from the most recent EIA Annual Energy Outl ook (

AEO ) 23 —as inputs for future energy prices in the LCC analysis.

Item 27 DOE welcomes input on the electricity prices used in this analysis.

21 Energy tariffs are the rules for calculating energy bills. DOE contractors maintain a database of hundreds of
tarif fs that can be used to calculate incremental energy bill impacts from energy savings at: http://tariffs.lbl.gov

. 22 See www.eia.doe.gov/emeu/cbecs

. 23 See http://www.eia.doe.gov/oiaf/aeo/.36

8.2 Life-Cycle Cost Discount Rates

C alculation of consumer LCC requires use of an appropriate discount rate. DOE uses the discount rate to determine the present value of lifetime operating expenses. Because consumers of metal halide lamp fixtures are typically commercial and industrial entities, DOE will derive the discount rates for consumers of metal halide lamp fixtures by estimating the cost of capital of companies that purchase commercial equipment. The cost of capital is commonly used to estimate the present value of cash flows to be derived from a typical company project or investment. Most companies use both debt and equity capital to fund investments, so the cost of capital is the weighted-average cost of equity and debt financing. This corporate finance approach is referred to as the ―weighted-average cost of capita l.‖ H owever , because the set of commercial or industrial companies purchasing metal halide fixtures may differ from those who purchase another product such as distribution transformers, each rulemaking requires development of its own targeted discount rates.

DOE will publi sh the discount rates and documentation on the derivation of these discount rates in the preliminary analysis. It will invite interested parties to comment on consumer discount rates during the preliminary analysis comment period. DOE will make necessary changes to the preliminary analysis based on the comments it receives on the LCC and PBP analyses, and will reflect those changes in the NOPR.

Item 28 DOE welcomes input on the planned approaches for estimating discount rates for consumers of the metal halide lamp fixtures covered under this rulemaking.

8.3 Metal Halide Lamp Fixture Lifetimes

DO E will use inf

ormation from manufacturer product catalogues, various literature sources such as technical reports and conference proceedings, and input from manufacturers and other interested parties, to establish metal halide lamp fixtures lifetimes for use in the LCC and subsequent anal yses. As DOE believes that fixture lifetime is highly dependent on ballast
lifeti me, DOE will also estimate metal halide lamp ballast lifetimes to further develop inputs to the LCC and subsequent analyses. Based on consideration of the comments received for the preliminary analysis, DOE will make necessary changes to the analysis. These changes will be
reflected in the NOPR.

Item 29 DOE welcomes comments on appropriate lifetimes for the metal halide lamp fixtures and the ballasts contained in those fixtures covered in this rulemaking.

8.4 Installation, Maintenance, and Repair Costs

T ypically, DOE considers expected changes to installation, maintenance, and repair costs for covered equipment in a rulemaking due to new or amended standards. Often, small
incrementa l changes in equipment efficiency would incur little or no change in installation,maintenance, and repair costs over baseline equipment. For equipment with significant energy37

efficiency improvements over the baseline, there may be increased installation, maintenance, and repair costs, because such equipment is more likely to incorporate technologies that are not widely available or used.

DOE intends to handle each of these costs in its LCC analysis of metal halide lamp
fixtures as follows:

Installation costs —DOE does not expect that installation costs for metal halide lamp fix tures will change with more energy efficient metal halide ballast designs, as new regulations are not expected to change either the metal halide ballast lifetime or the labor costs for installing a standards-compliant fixture.

Maintenance costs —DOE expects that more energy efficient ballasts could signific antly affect the useful lifetime ( i.e., longer) of the lamps operated by those
balla sts. Long er -life lamps would be expected to defer maintenance of metal halide lamp fixtures since lamp failure is one of the largest maintenance factors of these fixtures. If fewer lamp replacements occur during the lifespan of the fixture, this could reduce total maintenance costs and labor costs for metal halide lamp fixture s. DOE does not expect that more energy efficient ballasts will significantly affect the useful lifetime (shorter or longer) of the fixture.

Repair costs —Repair costs will not be part of the LCC analysis because DOE
does not believe that metal halide lamp fixtures are subject to repair, as ballast
fail ure generally causes a complete replacement of the fixture, rather than repair.

Item 30 DOE welcomes comments on how to develop installation, maintenance, and (if applicable) repair costs for metal halide lamp fixtures. If the lamps operated bymore-efficient ballasts would be affected, DOE invites comments on whether relamping practices (i.e., group re-lamping or spot re-lamping) would change as a result of energy conservation standards.

9 SHIPMENTS ANALYSIS

DO E develops shipment forecasts of products to calculate the national impacts o f standards on energy consumption, NPV, and future manufacturer cash flows. DOE plans to
deve lop shipments forecasts based on an analysis of key market drivers for metal halide lamp
fixtures.

9.1 Base-Case Forecast

To e valuate the various impacts of standards, DOE develops a base-case shipments forecast against which to compare standards-case shipments forecasts at higher efficiency levels (based on the CSLs). DOE will design the base-case forecast to depict what might happen to energy consumption and energy costs over time if energy conservation standards for the metal38

halide lamp fixtures covered under this rulemaking are not adopted. In determining the base-case forecast, DOE will consider historical shipments, the mix of efficiencies currently sold in the absence of regulation, and how that mix might change over time. For these purposes, DOE seeks data on historical equipment shipments and the market shares of the different efficiency levels offered in each equipment class.

Alternati vely, DOE could base its shipments analysis on the shipments analysis from the

HID Lamp Determination, selected national market reports, and/or historical sales data from the U.S. Census Bureau. The Census Bureau publishes limited information on the quantity and dollar value of metal halide lamp fixture shipments; however, those shipments are not broken down by equipment class. DOE is also interested in data on efficiency trends in the base case ( i.e. , the trends of consumers purchasing fixtures with ballasts that use less energy) that would enable DOE to repr esent these market trends in its analysis.

DOE intends to develop shipment data within each metal halide lamp fixture equipment class, and to understand the breakdown of efficiency levels within each equipment class. However, this information may be difficult to collect, so DOE may ultimately need to consider other approaches, such as interviewing experts who work in the metal halide lamp fixture
market.

Item 31 DOE welcomes recommendations on sources of data for shipments of metal halide lamp fixtures by product class. In addition, DOE welcomes comments on how it might characterize long-term trends in the efficiency of metal halide lamp fixtures for the base-case shipments forecast.

9.2 Accounting Methodology

DO E plans to determine annual shipments in the base case by accounting for new metal halide lamp fixture installation, metal halide lamp fixture replacements due to failure, and metal
halide lamp fixture ballast retrofits. Each of these three impacts on the accounting methodology
is discussed below:

New construction means the new metal halide lamp fixtures that are installed each year in new or remodeled buildings, due to growth in the commercial and industrial sectors. DOE plans to determine a value for this input by using the National Energy Modeling S ystem (NEMS) growth projections for the commercial and industrial equipment sectors.

Replacements mean the new metal halide lamp fixtures that are installed each year to replac e fixtures with failed ballasts. As previously stated, it is common practice to replac e the fixtures entirely when ballasts fail. DOE plans to base this calculation on equipment sales and retirement rates.

Retrofits means the metal halide lamp fixtures that replace existing functioning metal
hali de lamp fixtures before the end of their useful life.39

DOE intends to use an accounting model to prepare shipment scenarios for the base case and the standards-level cases. The model will keep track of the aging and replacement of metal halide lamp fixtures given a projection of future metal halide lamp fixture sales growth.

Item 32 DOE welcomes comments on the accounting methodology described above for each type of metal halide lamp fixture covered in this rulemaking.

9.3 Standards Impacts on Metal Halide Lamp Fixture Shipments

DO E will develop a set of shipment forecasts for covered fixtures for each efficiency
level anal yzed and then develop CSLs. DOE will use these standards-level-case forecasts to evaluate the impacts of standards on fixtures shipments. DOE derives standards-level-case
forec asts using the same data sets it uses for base-case forecasts. However, because the standards-level-case forecasts take into account the increase in purchase price and the decrease in operating costs caused by standards, forecasted shipments typically deviate from the base case. The magnitude of the difference between the standards-level-case and base-case shipment forecasts depends on the estimated purchase-price increase, as well as the operating-cost savings from the standard. Because the purchase price tends to have a larger impact than operating cost on equipment purchase decisions, standards-level-case forecasts typically do show an elasticity of demand, manifested as a drop in shipments relative to the base case.

Market-pull programs, such as consumer rebate programs that encourage the purchase of more-efficient metal halide lamp fixtures or ballasts, also affect standards-case shipment
fore casts. Regulatory efforts also affect shipment forecasts. As of 2008, the State of California requires similar efficiency requirements for pulse-start metal halide fixtures to those prescribed in EISA 2007. Furthermore, Arizona, California, New York, Oregon, Rhode Island, and Washington have restricted the sale of probe-start ballasts. To the extent that such programs
exist , DOE will consider their impact on the forecast of both standards-case and base-case shipments.

Item 33 DOE welcomes comments on how amended energy conservation standards might affect shipments of metal halide lamp fixtures. DOE also requests information about existing market-pull programs, such as consumer rebate programs, to promote the adoption of more-efficacious ballasts.

10 NATIONAL IMPACT ANALYSIS

The national impact analysis discusses DOE‘s assessment of the aggregate impacts of potential efficiency standards at the national level. Measures of impact that DOE will report include future NES from CSLs ( i.e. , the cumulative incremental energy savings from an40

increased energy conservation standard relative to a base case of no change in the energy conservation national standard over a specified forecast period) and the NPV from CSLs ( i.e. , the
cumulative incremental LCC from an increased energy conservation standard relative to the base

ca se over a specified forecast period).

10.1 Inputs to Forecasts

Ana lyzing impacts of amended Federal energy conservation standards for metal halide lamp fixtures requires comparing projected energy consumption in the United States with and without amended energy conservation standards. The forecasts contain projections of unit energy

consum ption of new lamp fixtures, annual equipment shipments, the price of purchased equipment, and base-case and standards-case efficiencies. Derivations of the base-case shipments
forecasts are discussed in section 9 . Approaches to determine retail prices for equipment are
desc ribed in section 7 . Approaches to determine unit energy consumption are described in

sec tion 6

.

Se ction 8 discusses the rebound effect, another input to the NIA. Often, consumers that

enc ounter lower operating costs associated with a more-energy-efficient product will use that product more often than a less-efficient product. The rebound effect analysis accounts for this
increa se in consumer use. Table 10.2 describes some of the major inputs DOE anticipates it will develop for the national impact analysis.41

Table 10.1 Inputs to the National Impact Analysis

Input Data Description of Data Sources
Shipments Annual shipments are developed as described in section 9

, Shipment Analysis

. Stock of Metal Halide Lamp Fixtures This stock is calculated fro m the service life of fixtures developed as described in section 8 , Life Cycle Cost Analysis, and annual shipments from metal halide fixtures developed as described in section 9

, S hipment Analysis.

Effective Date of Standard The effective date of the standard is January 1, 2015.
Analysis Period This analysis period is 2015 to 2044 (30 years).

Base

- Case Forecasted Efficiency Distribution of base

- case shipments by efficiency level over time developed as described in section 9 , Shipment Analysis

. Standards

- Case Forecasted Efficiency Distribution of shipments by efficiency level for each standards case
over time as described in section 9, Shipment Analysis

. Unit Energy Consumption (kWh/yr) This is the average energy consu mption of a metal halide lamp fixture
established as described in section 6 , Energy

- Use and End

- Use Load
Characterization.

Total Installed Cost Established as described in section 7 , Markups for Equipment Price Determination, and section 8 , Life Cycle Cost Analysis.
Electricity Price Forecast Established as described in section 8

, Life Cycle Cost Analysis.
Electricity S ite

- to

- Source Conversion Conversion varies yearly and is generated by EIA Annual Energy
Outlook forecasts of electricity generation and electricity

- related losses.
Heating, Ventilating, and Air

Conditioning (HVAC) Interaction Savings Accounts for the addi tional energy saved through HVAC interactions. The methodology will be similar to that used in the 2000 Fluorescent
Ballast Rule

, 65 FR 56740 ( Sept

. 19, 2000 )

. Discount Rate The d iscount rate is the rate at which DOE discounts future expenditures

to esta blish their present value. DOE will use 3

- and 7

- percent discount

rates.

Present Year Future costs and savings will be discounted to the year 2009.

Rebound Effect The difference between the projected and actual savings due to increased efficiency. DOE w ill use 1 percent in the commercial and
industrial sectors. 24

Item 34 DOE welcomes comments on the data sources it anticipates using to develop inputs for the national impact analysis.

Item 35 DOE welcomes comments from interested parties as to whether a moreefficient metal halide lamp fixture would be expected to be used more as a result of increased efficiency and whether such a rebound effect would be expected for this technology.

24 Greening, L.A., D.L. Greene, and C. Difiglio,  ̳ ̳Energy efficiency and consumption—the rebound effect— a survey,‘‘ 28 Energy Policy (2000), pp. 389– 401.42

10.2 Calculation of National Energy Savings

DO E intends to calculate national energy consumption for each year beginning with the expected effective date of the standards. It will calculate national electricity consumption for the base case and each standard level analyzed. DOE plans to perform this calculation using a spreadsheet model that effectively multiplies annual shipment forecasts by unit energy savings, thereby accounting for the stock of equipment affected by standards.

In response to comments from interested parties who asked for a simple, transparent model, DOE developed NES spreadsheet models for its standards rulemakings starting in 1996. These models project energy savings and demonstrate how to account for the growth in efficiency over time. 25 Although these models are specific to each product, their general
fra mework is applicable to the entire metal halide lamp fixture market. DOE expects that the NES spreadshe et model will provide a stand-alone forecast of national energy savings and NPV for metal halide lamp fixtures. DOE will make any necessary changes to the preliminary analys is based on the comments it receives. It will reflect those changes in the NOPR.

Item 36 DOE welcomes comments from interested parties on the NES spreadsheet models it plans to use for estimating national impacts of amended energy conservation standards for metal halide lamp fixtures.

10.3 Net Present Value of Consumer Savings

DOE calculates the national NPV of the consumer savings resulting from energy

conserva tion standards in conjunction with the NES. It calculates annual energy expenditures from annual energy consumption by incorporating forecasted energy prices, using the shipment and average energy efficiency forecasts described in section 9, Shipment Analysis. DOE calculates annual equipment expenditures by multiplying the price per unit by the forecasted shipments. The difference between a base-case and a standards-case scenario gives the national energy bill savings and increased equipment expenditure in dollars. For the metal halide lamp fixture rulemaking, this differential will likely result in an NES offset against increased fixture expenditures. The difference each year between energy bill savings and increased equipment expenditures is the net savings (if positive) or net costs (if negative). DOE will discount these annual values to the present time and sum them to provide a net present value. Since the national cost of capital may differ from the consumer cost of capital, the discount rate used in the NIA
can be different from the rate used in the LCC

. According to U.S. Office of Management and
Bud get (OMB) guidance, DOE will conduct two NPV calculations, one using a real discount rate of 3 percent and another using a real discount rate of 7 percent. 26 DOE will make any necessary
cha nges to the analysis based on the comments it receives on the preliminary analysis.

25 Several examples of NES spreadsheet models from previous rulemakings can be found on DOE‘s website at: www.eere.energy.gov/buildings/appliance_standards

. 26 OMB, Circular A-4: Regulatory Analysis (Sept. 17, 2003).43

11 LIFE-CYCLE COST SUBGROUP ANALYSIS

At the N OPR stage of this rulemaking, DOE will conduct a LCC subgroup analysis. In this analysis, DOE assesses consumer impacts by dividing consumers into subgroups and accounting for variations in key inputs to the LCC analysis. A consumer subgroup comprises a subset of the populati on likely to be affected disproportionately by new or revised energy conservation standards ( e.g. , small businesses, ethnic minorities, low-income consumers, or seniors). The purpose of a subgroup analysis is to determine the extent of any such disproportional impact. DOE will work with industry and other interested parties early in the rulemaking process to identify any subgroups for consideration.

In comparing potential impacts on the different consumer subgroups, DOE will evaluate variations in regional electricity prices, usage profiles, and installation costs that might affect the NPV of an energy conservation standard to certain consumer subgroups. To the extent possible, DOE will obtain estimates of the variability in each input and consider this variability when calculating consumer impacts. DOE will discuss this variability with interested parties and likely
sources of information.

Item 37 DOE welcomes comments from interested parties on what, if any, consumer subgroups should be considered when developing amended standards for metal halide lamp fixtures.

12 MANUFACTURER IMPACT ANALYSIS

DOE announced changes to the manufacturer impact analysis (MIA) approach in a report to Congress, ―Energy Conservation Standards Activit ies,‖ 27 on January 31, 2006 (as required by

sec tion 141 of the Energy Policy Act of 2005 (EPACT 2005)).

Previously, DOE did not report MIA results during the preliminary analysis phase. Under
this new approach, DOE will collect, evaluate, and report preliminary information on manufacturer impacts in the preliminary analysis. 28 Such preliminary information includes the
anti cipated capital conversion costs by efficiency level and the corresponding anticipated impacts on employment. DOE will invite further input on these issues during manufacturer interviews for the preliminary analysis.

DOE intends the MIA to provide an assessment of the potential impacts of energy conservation standards on manufacturers of metal halide lamp fixtures and ballasts. DOE will
conduct a se parate MIA for each of the fixture types covered under this rulemaking. However, if

27 The report to Congress is available on the DOE website at: http://www1.eere.energy.gov/buildings/appliance_standards/schedule_setting.html

. 28 Id . at 48.44

appropriate, DOE may combine all covered fixture types into a single MIA. In addition to
financial im pacts, a wide range of quantitative and qualitative effects may occur following adoption of a standard that may require changes to manufacturing practices. DOE will identify these potential effects through interviews with manufacturers and other experts.

F or the NOPR, DOE will supplement the results of the preliminary MIA with more detailed analyses (sections 12.1 through 12.3 ). DOE will conduct an industry-wide cash-flow

ana lysis using the Government Regulatory Impact Model (GRIM), identify and analyze subgroups of manufacturers whose business es vary significantly from the industry as a whole, perf orm a competitive impacts assessment, and review the cumulative regulatory burden for the industry.

12.1 Sources of Information for the Manufacturer Impact Analysis

Man y of the analyses described earlier provide important information that DOE will use as inputs for the MIA. Such information includes financial parameters developed in the market assessment (section 3.1 ), retail price forecasts (section 7 ), and shipments forecasts (section 9 ).
DOE will supplement this information with information gathered during manufacturer
interviews.

DOE will conduct detailed interviews with manufacturers to gain insight into the range of potential impacts from amended standards. The interview process plays a key role in the MIA, because it provides an opportunity for directly affected parties to express their views on important i ssues. During the interviews, DOE will solicit information on the possible impacts of amended standards on manufacturing costs, equipment prices, sales, direct employment, capital assets, and industry competitiveness. Both qualitative and quantitative information are valuable in this analysis. DOE will schedule interviews well in advance to provide every opportunity for key individuals to participate. In addition, DOE will provide manufacturers with questionnaires before the interviews to facilitate information gathering. Although a written response to the questionnaire is acceptable, DOE prefers an interactive interview process, because it helps to clarify responses and provides the opportunity to identify additional issues.

DOE will ask interview participants to identify confidential information, and then DOE
will determine whether the information submitted is entitled to confidential treatment. DOE will consider the information gathered in the energy conservation standard decision-making process. DOE will also ask participants to identify any information they wish to have included in the public record, but do not want to have associated with their interview (thereby identifying that particular manufacturer). DOE will incorporate this information into the public record, but will report it without attribution.

DOE will collate the interview results and prepare a summary of the major issues and outcomes. This summary will become part of the technical support document for this rulemaking.45

12.2 Industry Cash-Flow Analysis

The indus try cash-flow analysis will rely primarily on the GRIM. DOE uses the GRIM to analyze the financial impacts of new or more-stringent energy conservation standards on the industry that produces the equipment covered by the standard.

The GRIM uses a number of factors—annual expected revenues; manufacturer costs such as costs of g oods sold; selling, general, and administrative costs; taxes; and capital expenditures (both ordinary capital expenditures and those related to standards)—to determine annual cash
flows associate d with a new standard, beginning from the announcement of the standard andcontinuing for several years after its implementation. DOE compares the results against basecase projections that involve no new standards. The financial impact of new standards is the
differe nce between the two sets of discounted annual cash flows. Other performance metrics, such as return on invested capital, are also available from the GRIM.

DOE will gather the inputs needed for the GRIM from two primary sources: (1) the
anal yses conducted to this point; and (2) interviews with manufacturers and other interested parties. Information gathered from previous analyses will include financial parameters, manufacturing costs, price forecasts, and shipment forecasts. Interviews with manufacturers and other interested parties will be essential in supplementing this information.

12.1 Manufacturer Subgroup Analysis

A verage industry cost values may not reveal differential impacts among metal halide lamp fixture and ballast manufacturer subgroups. Smaller manufacturers, niche players, and
manufac turers exhibiting a cost structure that differs significantly from the industry average may be affected differently by standards. Ideally, DOE would consider the impact on every firm
individuall y. In highly-concentrated industries, this may be possible. In industries having numerous participants, however, DOE uses the results of the market and technology assessment to group manufacturers into subgroups, as appropriate. For metal halide lamp fixtures and ballasts, DOE does not intend to assess the impacts on every manufacturer individually, and, therefore is interested in feedback about potential subgroups. However, the detailed
manufac turer subgroup impact analysis will calculate cash flows separately for each class of
manufac turer.

Item 38 DOE seeks comments on the subgroups of metal halide lamp fixtures and ballast manufacturers that it should consider in a manufacturer subgroup analysis.

12.2 Competitive Impacts Analysis

EPC A directs DOE to consider any lessening of competition likely to result from the imposition of standards. (42 U.S.C. 6295(o)(2)(B)(i)(V)) It further directs the Attorney General to determine in writing the impacts, if any, of any lessening of competition. (42 U.S.C. 6295(o)(2) (B)(ii))46

DOE will make a determined effort to gather firm-specific financial information and impacts and report the aggregated impact of the amended standard on manufacturers. The competitive impacts analysis will focus on assessing the impacts on smaller manufacturers. DOE
will ba se the assessment on manufacturing cost data and information collected from interviews with manufacturers. The manufacturer interviews will focus on gathering information that would help in assessing asymmetrical cost increases to some manufacturers, increased proportion of fixed costs potentially increasing business risks, and potential barriers to market entry ( e.g. , proprie tary technologies). DOE will provide the Attorney General with a copy of the NOPR for consideration in his evaluation of the impact of standards on the lessening of competition. DOE will publish t he Attorney General‘s letter and address any related comments in the final rule.

12.3 Cumulative Regulatory Burden

O ther regulations may apply to the metal halide lamp fixtures and ballasts covered under this rulemaking , and to other equipment produced by metal halide lamp fixture and ballast
manufac turers. Multiple regulations may result in a significant, cumulative regulatory burden on these manufacturers. DOE will consider the impact on these manufacturers of multiple, equipme nt-specific regulatory actions.

Regulations that could impact the industry affected by this rulemaking include:

O ngoing energy conservation standards rulemaking for fluorescent lamp ballasts; Energy conservation standards for general service fluorescent lamps (GSFL) and incandescent reflector lamps (IRL) established by DOE on July 14, 2009 (74 FR

34080 ); New EPCA standards, prescribed in EPACT 2005, for medium-base compact fluorescent lamps and mercury vapor lamp ballasts (42 U.S.C 6295(bb)(1) and (ee) ); New EPCA standards for general service incandescent lamps (GSIL) prescribed in EISA 2007 (42 U.S.C 6295(i)(1)); Existing and/or proposed State standards for metal halide lamp fixtures 29 ; State building energy codes lighting requirements ( e.g. , American Society of Heating,

Re frigerating, and Air-Conditioning Engineers (ASHRAE) Standard 90.1) 30 ; Possible international standards; and Possible restriction of materials used in manufacturing such as the Restriction of Hazardous Substance (RoHS) 31

.

Item 39 DOE welcomes comments on what other regulations or pending regulations it should consider in its examination of cumulative regulatory burden.

29 California Code of Regulations, Title 20, Section 1605.3(n)(2)

30 ASHRAE Standard 90.1-2007 is currently the latest version of the standards. Section 9 of ASHRAE 90.1- 2007
dea ls with lighting requirements. Available at: http://www.ashrae.org

. 31 Guidance by EPA on RoHS is available at: http://www.epa.ie/whatwedo/resource/rohs/

.47

13 UTILITY IMPACT ANALYSIS

To estimate the impacts of am ended energy conservation standards for metal halide lamp fixtures on the electric utility industry, DOE will use a variant of the EIA‘s National Energy Modeling Sy stem called NEMS-BT. 32 NEMS is a large, multi-sectoral, partial-equilibrium
model of the U .S. energy sector that EIA has developed over several years, primarily for the purpose of pr eparing the AEO . NEMS produces a widely-recognized reference-case forecast for the United States through 2030 and is available to the public.

The utility impact analysis is a comparison between the NEMS-BT model results for the base case and standard cases. Outputs of the utility impact analysis usually parallel results that appear in the latest AEO , with some additions. Typical outputs of the utility impact analysis include forecasts of electricity sales, price, and avoided capacity. DOE plans to conduct the utility impact analysis as a scenario departing from the latest AEO reference case. In other words,
DOE will model the anticipated energy savings impacts from amended energy conservation standards using NEMS-BT to generate forecasts that deviate from the AEO reference case. 33

Item 40 DOE seeks input on its plans to use NEMS-BT to conduct the utility impact analysis on the equipment covered under this rulemaking.

14 EMPLOYMENT IMPACT ANALYSIS

DO E estimates the impacts of standards on employment for equipment manufacturers, relevant service industries, energy suppliers, and the economy in general. This analysis covers both direct and indirect employment impacts. Direct employment impacts are changes in the number of empl oyees at the plants that produce the covered equipment, along with the affiliated distribution and service companies. DOE will evaluate direct employment impacts in the MIA (section 12).

Indir ect employment impacts may result from expenditures shifting between goods (the
substituti on effect) and changes in income and overall expenditure levels (the income effect) that occur due to standards. DOE defines indirect employment impacts from standards as net jobs eliminated or created in the general economy as a result of increased spending driven by increased equipment prices and reduced spending on energy.

The combined direct and indirect employment impacts will be investigated in the employment impact analysis using the Pacific Northwest National Laboratory‘s ―Impact of

32 For more information on NEMS, please refer to the U.S. Department of Energy, Energy Information
Ad ministration documentation. A useful summary is National Energy Modeling System: An Overview 2000

, DOE/EIA-0581 (March 2000), available at: http://tonto.eia.doe.gov/ftproot/forecasting/05812000.pdf . EIA approves use of the name NEMS to describe only an official version of the model without any modification to code or data. Because this analysis entails some minor code modifications and the model is run under various policy scenarios that are variations on EIA assumptions, DOE refers to the model by the name NEMS-BT. (―BT ‖ refers to DOE‘s Building Technologies Program, under whose aegis this work is performed.)

33 Several descriptions of NEMS-BT models from previous rulemakings, including residential furnaces and boilers,

can be found on DOE‘s website at: www.eere.energy.gov/buildings/appliance_standards/residential/pdfs/fb_fr_tsd/chapter_13.pdf

.48

Sector Energy Technolo gies‖ (ImSET) model. 34 The ImSET model was developed for DOE‘s
Offic e of Planning, Budget, and Analysis to estimate the employment and income effects of energy-saving technologies in buildings, industry, and transportation. Compar ed with simple

ec onomic multiplier approaches, ImSET allows for more complete and automated analysis of the economic impacts of energy conservation investments.

Item 41 DOE requests feedback on its approach to assessing employment impacts on the equipment covered under this rulemaking.

15 ENVIRONMENTAL ASSESSMENT

The intent of the environmental assessment is to quantify and consider the environmental effects of amended energy conservation standards for metal halide lamp fixtures. The primary
environmental e ffects of these standards would be reduced power plant emissions resulting from
reduce d consumption of electricity. DOE will assess these environmental effects by using
NEMS-B T to provide key inputs to its analysis. The portion of the environmental assessment that will be produced by NEMS-BT considers carbon dioxide (CO 2 ), sulfur dioxide (SO 2 ), nitrogen oxides (NO X ), and mercury (Hg). After a brief discussion of general methodology, this

sec tion will address each of the relevant emissions. The next section (Chapter 16, Monetization of Emissions Reductions) explains how DOE plans to monetize the benefits associated with
emissi ons reductions.

The NEMS-BT is run similarly to the AEO 2008 NEMS, except that metal halide lamp fixture energy use is reduced by the amount of energy saved due to each TSL. The inputs of national energy savings come from the NIA spreadsheet model; the output is the forecasted physical emissions at each TSL. The net benefit of the standard is the difference between emissions estimated by NEMS-BT at each TSL and the AEO Reference Case. NEMS-BT tracks
CO 2 emissions using a detailed module that provides results with broad coverage of all sectors
and inclusi on of interactive effects. DOE obtained the inputs of national energy savings from the NIA spreadsheet model. To assess the environmental impact on CO 2 emissions, DOE analyzes
fore casted physical emissions. The net benefit of the standard is the difference between emissions estimated by NEMS-BT and the AEO2008 Reference Case.

Sulfur Dioxide

DOE has preliminarily determined that SO 2 emissions from affected Electric Generating Units ( EGUs) are subject to nationwide and regional emissions cap and trading programs that create uncertainty about the amended standards‘ impact on SO 2 emissions. Title IV of the Clean
Air Ac t sets an annual emissions cap on SO 2 for all affected EGUs. SO 2 emissions from 28

ea stern States and the District of Columbia (DC) are also limited under the Clean Air Interstate Rule (CAIR, published in the Federal Register on May 12, 2005. 70 FR 25162 (May 12, 2005)),

34 Roop, J. M., M. J. Scott, and R. W. Schultz,  ̳ ̳ImSET: Impact of Sector Energy Technologies,‘‘ PNNL–15273. (Pacific Northwest National Laboratory, Richland, WA)(2005).49

which creates an allowance-based trading program that will gradually replace the Title IV program in those States and DC. (The recent legal history surrounding CAIR is discussed below.) The attainment of the emissions caps is flexible among EGUs and is enforced through the use of emissions allowances and tradable permits. The standard could lead EGUs to trade
allowances and increase SO 2 emissions that offset some or all SO 2 emissions reductions

att ributable to the amended standard. As a result, DOE is not certain that there will be reduced
overall SO 2 emissions from the amended standards. The NEMS-BT modeling system that DOE plans to use to fore cast emissions reductions currently indicates that no physical reductions in power sector emissions would occur for SO 2. However, remaining uncertainty prevents DOE
from esti mating SO 2 reductions from the standards at this time.

Even thoug h DOE is not certain that there will be reduced overall emissions from the standard, there may be an economic benefit from reduced demand for SO 2 emission allowances.
Electricit y savings decrease the generation of SO 2 emissions from power production, which can
lessen the ne ed to purchase SO 2 emissions allowance credits, thereby decreasing the costs of comply ing with regulatory caps on emissions. However, DOE does not plan to monetize this particular b enefit because the effect on the SO 2 allowance price from any single energy

conser vation standard is likely small and highly uncertain.

Nitrogen Oxides

NEMS-BT also has an algorithm for estimating NO

x emissions from power generation.
The im pact of these emissions, however, will be affected by the CAIR, which the Environmental Protection Agency (EPA) issued on May 12, 2005. CAIR will permanently cap emissions of NO

x in 28 easter

n states and the District of Columbia. 70 FR 25162 (May 12, 2005).

Much like SO 2 emissions, a cap on NO X emissions means that the amended metal halide lamp fix tures standards may have little or no physical effect on these emissions in the 28 eastern
States and

the DC covered by CAIR. Although CAIR has been remanded to the EPA by the DC Circuit, it will remain in effect until it is replaced by a rule consistent with the Court‘s July 11, 2008, opinion in North Carolina v. EPA . 531 F.3d 896 (DC Cir. 2008); see also North Carolina

v. EPA , 550 F.3d 1176 (DC Cir. 2008). Because all States covered by CAIR opted to reduce
NO X emissions through participation in cap-and-trade programs for electric generating units,
emissi ons from these sources are capped across the CAIR region.

Standards could produce an environmental-related economic benefit in the form of lower prices for emissions allowance credits. As with SO 2 allowance prices, DOE does not plan to
monetize this particular benefit because the effect on the NO X allowance price from any single

ene rgy conservation standard is likely small and highly uncertain.

Note that DOE plans to use NEMS-BT to estimate the emissions reductions from possible standa rds in the 22 States where emissions are not capped.

Mercury50

Similar to emissions of SO 2 and NO X , future emissions of Hg would have been subject to

e missions caps. In May 2005, EPA issued the Clean Air Mercury Rule (CAMR). 70 FR 28606 (May 18, 2005). CAMR would have permanently capped emissions of mercury for new and existing coal-fired power plants in all States by 2010. However, on February 8, 2008, the DC Circuit issued its decision in New Jersey v. Environmental Protection Agency , in which the DC Circuit, among other actions, vacated the CAMR. 517 F.3d 574 (DC Cir. 2008). EPA has decided to develop emissions standards for power plants under the Clean Air Act (Section 112), consistent with the DC Circuit‘s opinion on the CAMR. See http://www.epa.gov/air/mercuryrule/pdfs/certpetition_withdrawal.pdf . Pending EPA's forthcoming revisions to the rule, DOE is excluding the CAMR from its Environmental Analysis.

DOE plans to develop the emissions reductions for NO X and Hg directly from the

NEMS- BT output for these emissions, similar to its approach for CO 2 emissions. This methodology

is only possible if the NEMS model available at the time of the environmental analysis, namely the NEMS-BT based on AEO2008 , is modified to be c onsistent with current laws regarding NO X and Hg emissions in the power sector.

Item 42 DOE seeks input on its plans to use NEMS-BT to conduct the environmental impact analysis on the equipment covered by this rulemaking. DOE is particularly interested in whether there are any other approaches to the Environmental Assessment that it should consider and the advantages and disadvantages for each approach.

16 MONETIZATION OF EMISSIONS REDUCTIONS

For those emissions for which real national emission reductions are anticipated (CO 2 , Hg,
and NO X ), only a range of estimated economic values based on environmental damage studies of varying quality and applicability is available. Therefore, DOE plans on reporting and weighing
these values . According to U.S. Office of Management and Budget (OMB) guidance, DOE will
then c onduct two calculations, one using a real discount rate of 3 percent and another using a real discount rate of 7 percent. 35

In order to estimate the monetary value of benefits resulting from reduced emissions of

CO 2 emissions, it is DOE‘s intent to use in its analysis the most current Social Cost of Carbon (SCC ) values developed and/or agreed to by interagency reviews. The SCC is intended to be a
monetary measure of the incremental damage resulting from greenhouse gas (GHG) emissions, including, but not limited to, net agricultural productivity loss, human health effects, property
dama ge from sea level rise, and changes in ecosystem services. Any effort to quantify and to
monetize the harms associated with climate change will raise serious questions of science,

35 OMB, Circular A-4: Regulatory Analysis (Sept. 17, 2003).51

economics, and ethics. But with full regard for the limits of both quantification and monetization, the SCC can be used to provide estimates of the social benefits of reductions in GHG emissions.

At the tim e of this notice, the most recent interagency estimates of the potential global
benefits re sulting from reduced CO 2 emissions were $5, $10, $20, $34 and $56 per metric ton,
and the e stimate of the potential domestic benefits was approximately $1 per metric ton. All of
these unit va lues represent emissions that are valued in 2008$ for emissions that occur in 2008.

For e missions (or emission reductions) that occur in later years, these values are escalated in real terms by 3 percent per year, then discounted to the present using real discount rates of 7 percent and 3 percent.

DOE recognizes that scientific and economic knowledge continues to evolve rapidly as to
the contribution of CO 2 and other GHG to changes in the future global climate and the potential
result ing damages to the world economy. Thus, these values are subject to change.

DOE will investigate the potential monetary benefit of reduced SO 2 , NO

x , and Hg emissions from the TSLs it considers. DOE‘s initial analysis will assume the presence of nationwide emission caps on SO 2 and caps on NO

x emissions in the 28 States and DC covered by
the CAI R. In the presence of these caps, the NEMS-BT modeling system that DOE uses to
forec ast emissions reduction indicated that no physical reductions in power sector emissions
would occur for SO 2 , but that the standards could put slight downward pressure on the prices of emissions allowances in cap-and-trade markets. Estimating this effect is very difficult because such factors as credit banking can change the trajectory of prices. From its modeling to date,
DOE is unable to estimate a benefit from SO 2 emissions reductions at this time.

Because the courts have decided to allow the CAIR rule to remain in effect for now, projected a nnual NO

x allowances from NEMS–BT are relevant. The update to the AEO2008

- base d version of NEMS-BT includes the representation of CAIR. As noted above, standards would not produce an economic impact in the form of lower prices for emissions allowance credits in the 28 eastern States and DC covered by the CAIR cap. New or amended energy
conservation standards would reduce NO

x emissions in those 22 States that are not affected by
the CAI R. For the area of the United States not covered by the CAIR, DOE will estimate the
monetized value of NO

x emissions reductions resulting from each of the TSLs considered based on environmental damage estimates from the literature. Available estimates suggest a very wide range of monetary values for NO

x emissions, ranging from $370 per ton to $3,800 per ton of NO

x from stationary sources, measured in 2001$ (equivalent to a range of $442 to $4,540 per ton in 2008$). Refer to the OMB, Office of Information and Regulatory Affairs, ―2006 Report to Congress on the Costs and Benefits of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entit ies,‖ for additional information.

For Hg emissions reductions, DOE will estimate the national monetized values resulting from the TSLs considered based on environmental damage estimates from the literature. DOE conducted research and determined that the impact of mercury emissions from power plants on humans is considered highly uncertain. However, DOE identified two estimates of the
environmental da mage of mercury based on two estimates of the adverse impact of childhood52

exposure to methyl mercury on intelligence quotient ( IQ ) for American children, and subsequent loss of lifetime economic productivity resulting from these IQ losses. The high-end estimate is based on an estimate of the current aggregate cost of the loss of IQ in American children that results from exposure to mercury of U.S. power plant origin ($1.3 billion per year in year 2000$), which works out to $33.3 million per ton emitted per year (2008$). Refer to L. Trasande
et al ., ― Applying Cost Analyses to Drive Policy that Protects Childre n,‖ 1076 Ann. N.Y. Acad. Sci. 911 (2006) for additional information. The low-end estimate is $0.66 million per ton emitted (in 2004$) or $0.745 million per ton in 2008$. DOE derived this estimate from a published evaluation of mercury control using different methods and assumptions from the first study but also based on the present value of the lifetime earnings of children exposed. See Ted Gayer and Robert Hahn, ―Designing Environmental Policy: Lessons from the Regulation of Mercury
Emissi ons,‖ Regulatory Analysis 05–01, American Enterprise Institute-Brookings Joint Center
for Re gulatory Studies, Washington, DC (2004). A version of this paper was published in the Journal of Regulatory Economics in 2006. The estimate was derived by back-calculating the

annua l benefits per ton from the net present value of benefits reported in the study.

Particulate Matter

DOE acknowledges that particulate matter (PM) impacts are of concern due to human exposures that can impact health. But impacts of PM emissions reduction are much more difficult to estimate than other emissions reductions due to the complex interactions between PM, other power plant emissions, meteorology, and atmospheric chemistry that impact human

ex posure to particulates. Human exposure to PM usually occurs at a significant distance from the power plants that are emitting particulates and particulate precursors. When power plant

em issions travel this distance, they undergo highly complex atmospheric chemical reactions. Although the EPA does keep inventories of direct PM emissions of power plants, in its source

att ribution reviews, the EPA does not separate direct PM emissions from power plants from the particula tes indirectly produced through complex atmospheric chemical reactions. This is in part
because SO 2 emissions react with direct PM emissions particles to produce combined sulfate particula tes. Thus, it is not useful to examine how the amended standard impacts direct PM
emissi ons independent of indirect PM production and atmospheric dynamics. Therefore, DOE is not planning to calculate and monetize the value of reduction in emissions of particulate matter
as a result of these standards.

Item 43 DOE invites comments on how to estimate such monetary values associated with emissions reductions or on any widely-accepted values that might be used in DOE’s analyses

Item 44 DOE invites comment on how to estimate the benefits of reduced SO 2 emissions.

Item 45 DOE invites comment on the estimated range ($370 to $3,800 each in 2001$) per ton of NO

x for use in DOE’s analyses.53

Item 46 DOE invites comment on the estimated range ($0.745 to $33.3 million each in 2008$) per ton of Hg for use in DOE’s analyses.

Item 47 DOE invites comment on the estimated social cost of carbon for use in DOE’s analyses.

Item 48 DOE seeks input on other environmental factors to consider in this rulemaking.

17 REGULATORY IMPACT ANALYSIS

DO E will prepare a regulatory impact analysis in the NOPR and final rule stages of this rulemaking. This analysis will address the potential for non-regulatory approaches to supplant or augment amended energy conservation standards to improve the efficiency of metal halide lamp fixtures on the market. DOE recognizes that voluntary and other non-regulatory efforts by manufacturers, utilities, and other interested parties can result in substantial efficiency improvements. DOE intends to analyze the likely effects of non-regulatory initiatives on product energy use, customer utility, and LCCs. DOE will try to base its assessment on the actual impacts of any such initiatives to date, but also will consider information presented on the impacts that any existing initiative might have in the future.

If DOE determines that amended energy conservation standards for metal halide lamp fixtures would constitute a significant regulatory action, DOE will prepare and submit to OMB the assessment of costs and benefits required under section 6(a)(3) of Executive Order 12866, ―Regulatory Planning and Review ,‖ 58 FR 51735 (Oct. 4, 1993).

APPE NDIX A – LIST OF ITEMS FOR COMMENT

This appendix lists all the items for comment contained in this framework document, and the page numbers on which those items can be found.

Item 1 DOE welcomes comment on its approach of amending only minimum ballast efficiency requirements, and not lamp efficiency requirements, as part of the metal halide lamp fixture energy conservation standards rulemaking. ............................................................ 7

Item 2 DO E welcomes comments on the expansion of the scope of this rulemaking to potentially include all metal halide lamp fixtures that operate lamps rated to less than 150W and above 500W, in addition to those fixtures already covered by standards which operate lamps in the 150W to 500W range. .................................................................................... 7

Item 3 DOE welcomes comments on the expansion of the scope of this rulemaking to include all metal halide lamp fixtures currently excluded under 42 U.S.C. 6295(hh)(1)(B). .............. 7

Item 4 DOE welcomes comment on issues arising from the standby mode and off mode provisions from EISA 2007, including: (a) whether DOE should modify its test procedure for metal halide lamp ballasts, and if so, how; (b) whether metal halide lamp fixtures54

consume energy in off mode, and if so, which ones; (c) which covered metal halide lamp fixtures use energy in standby mode; and (d) how DOE should incorporate standby mode

ene rgy consumption into its analysis for the energy conservation standard. ...................... 8

Item 5 DOE welcomes comments on the issue of whether it is necessary to update the metal halide lamp ballast test procedure, and if so, how. ............................................................. 8

Item 6 DO E welcomes input on estimates of market shares, equipment, features, and efficienc y trends for the metal halide lamp fixtures covered in this rulemaking. .............................. 16

Item 7 DO E welcomes input on manufacturers of covered equipment as well as distribution channels used for sales of covered equipment. ................................................................. 16

Item 8 DOE welcomes comments on equipment classes for metal halide lamp fixtures and approaches to defining classes in accordance with the requirements of 42 U.S.C. 6295(q).

22

Item 9 DOE seeks input on how ballast efficiency varies by lamp wattage and input voltage.

22
Item 10 DO E seeks input on the rated lamp wattage bins identified for equipment classes. Specifically, DOE is interested in information that could be used to alter the number of bins or alter the wattages included in each bin. ................................................................ 22

Item 11 DO E welcomes comments on how to approach universal voltage systems that are gaining market share and becoming more readily available. ............................................ 22

Item 12 DOE welcomes comments on the preliminary technology options identified in this section and whether there are other technology options it should consider. In commenting on design options, please discuss their impacts on safety, performance, and consumer utility (if any). ................................................................................................................... 24

Item 13 DOE welcomes comments on how the above four screening criteria might apply to any additional technology option(s) that an interested party recommends to DOE. ........ 25

Item 14 DOE welcomes comments on the identification and selection of representative equipment classes for metal halide lamp fixtures. ............................................................ 27

Item 15 DO E welcomes comments on its approach to scaling from representative equipment classes to classes not directly analyzed in the engineering analysis. ................................ 28

Item 16 DO E welcomes comments on the selection of baseline models from the

repre sentative equipment classes. ..................................................................................... 29

Item 17 DO E seeks comments on its approach to calculating the cost-efficiency relationship for metal halide lamp ballasts used in metal halide lamp fixtures. ................................... 30

Item 18 DOE welcomes comments on commercially-available metal halide lamp ballasts for each baseline model with incrementally increasing ballast efficiency, all the way to the
max-tech ballast. ............................................................................................................... 30

Item 19 DOE welcomes comments on how ballast efficiency varies with lamp wattage, voltage, or any other ballast parameter. ............................................................................ 30

Item 20 DOE seeks information on proprietary designs it should be aware of for the metal halide lamp ballasts under consideration in this rulemaking, and if such proprietary designs exist, how DOE can acquire the cost data necessary for evaluating these designs.

31

Item 21 DOE welcomes comments on regulatory burdens and changes that should be considered in the engineering analysis of metal halide lamp fixtures. ............................. 31

Item 22 DO E welcomes comments on other engineering issues that could affect the engineering analysis. ......................................................................................................... 3155

Item 23 DOE welcomes comments on its use of the planned operating hours profile for metal halide lamp fixtures. DOE also welcomes comments on whether the end-use operating profiles are different for the various types of metal halide lamp fixtures covered under this rulemaking, and if so, how. ........................................................................................ 32

Item 24 DO E requests comments on the planned distribution path for the metal halide lamp fixtures covered under this rulemaking and whether DOE should consider any additional paths. DOE also requests information on the relative fraction of shipments expected for each path. .......................................................................................................................... 33

Item 25 DO E requests feedback on the overall markups for the metal halide lamp fixtures covered under this rulemaking for each path in the distribution chain. ............................ 33

Item 26 DO E seeks comments on other sources of relevant data that could be used to characterize markups for metal halide lamp fixtures. ....................................................... 33

Item 27 DO E welcomes input on the electricity prices used in this analysis. ......................... 35

Item 28 DOE welcomes input on the planned approaches for estimating discount rates for

consume rs of the metal halide lamp fixtures covered under this rulemaking. .................. 36

Item 29 DOE welcomes comments on appropriate lifetimes for the metal halide lamp fixtures and the ballasts contained in those fixtures covered in this rulemaking. .......................... 36

Item 30 DO E welcomes comments on how to develop installation, maintenance, and (ifapplicable) repair costs for metal halide lamp fixtures. If the lamps operated by moreeff icient ballasts would be affected, DOE invites comments on whether re-lamping practices ( i.e. , group re-lamping or spot re-lamping) would change as a result of energy

co nservation standards. ..................................................................................................... 37

Item 31 DOE welcomes recommendations on sources of data for shipments of metal halide lamp fixtures by product class. In addition, DOE welcomes comments on how it migh tcharacterize long-term trends in the efficiency of metal halide lamp fixtures for the basecase shipments forecast. .................................................................................................... 38

Item 32 DOE welcomes comments on the accounting methodology described above for each type of metal halide lamp fixture covered in this rulemaking. ......................................... 39

Item 33 DOE welcomes comments on how amended energy conservation standards might affect shipments of metal halide lamp fixtures. DOE also requests information about
exist ing market-pull programs, such as consumer rebate programs, to promote the adoption of more-efficacious ballasts. .............................................................................. 39

Item 34 DOE welcomes comments on the data sources it anticipates using to develop inputs for the national impact analysis. ....................................................................................... 41

Item 35 DO E welcomes comments from interested parties as to whether a more-efficient metal halide lamp fixture would be expected to be used more as a result of increased efficiency and whether such a rebound effect would be expected for this technology. ... 41

Item 36 DOE welcomes comments from interested parties on the NES spreadsheet models it plans to use for estimating national impacts of amended energy conservation standards for metal halide lamp fixtures. .......................................................................................... 42

Item 37 DO E welcomes comments from interested parties on what, if any, consumer subgroups should be considered when developing amended standards for metal halide lamp fixtures. .................................................................................................................... 43

Item 38 DOE seeks comments on the subgroups of metal halide lamp fixtures and ballast manufacturers that it should consider in a manufacturer subgroup analysis. ................... 4556

Item 39 DOE welcomes comments on what other regulations or pending regulations it should
conside r in its examination of cumulative regulatory burden. .......................................... 46

Item 40 DOE seeks input on its plans to use NEMS-BT to conduct the utility impact analysis on the equipment covered under this rulemaking. ............................................................ 47

Item 41 DO E requests feedback on its approach to assessing employment impacts on the equipment covered under this rulemaking. ....................................................................... 48

Item 42 DOE seeks input on its plans to use NEMS-BT to conduct the environmental impact analysis on the equipment covered by this rulemaking. DOE is particularly interested in whether there are any other approaches to the Environmental Assessment that it should consider and the advantages and disadvantages for each approach. ................................. 50

Item 43 DOE invites comments on how to estimate such monetary values associated with emissions reductions or on any widely-accepted values that might be used in DOE‘s analyses ............................................................................................................................. 52

Item 44 DO E invites comment on how to estimate the benefits of reduced SO 2 emissions. ... 52

Item 45 DOE invites comment on the estimated range ($370 to $3,800 each in 2001$) per ton
of NO

x for use in DOE‘s analyses. ................................................................................... 52

Item 46 DOE invites comment on the estimated range ($0.745 to $33.3 million each in 2008$) per ton of Hg for use in DOE‘s analyses. ......................................................................... 53

Item 47 DOE invites comment on the estimated social cost of carbon for use in DOE‘s analyses. ............................................................................................................................ 53

Item 48 DO E seeks input on other environmental factors to consider in this rulemaking. ..... 53

APPE NDIX B – DEFINITIONS

This appendix provides relevant definitions under the statute (42 U.S.C. 6291) that are applicable to the lighting products covered under this rulemaking. DOE takes the definitions
from the statute and codifies them into the CFR. Please note that due to the recent enactment of
EIS A 2007 (Pub. L. 110-140; December 19, 2007), some terms may only be defined in the statute at the time this framework document is published, as they have not yet been codified into
the CFR.

STATUTORY DEFINITIONS

“Ballast”

42 U.S.C. 6291(58)

The term ―balla st‖ me ans a device used with an electric discharge lamp to obtain necessary circuit conditions (voltage, current, and waveform) for starting and operating.

“Ballast Efficiency”57

42 U.S.C. 6291(59)

(A) IN GENERAL.

-- The term ―ballast efficiency ‖ means, in the case of a high intensity
dischar ge fixture, the efficiency of a lamp and ballast combination, expressed as a percentage, and calculated in accordance with the following formula: Efficiency =

P out /P in

. (B) EFFICIENCY FORMULA.

-- For the purpose of subparagraph (A)

-- (i) P out shall equal the measured operating lamp wattage;

(ii) P in shall equal the measured operating input wattage;

(iii) the lamp, and the capacitor when the capacitor is provided, shall constitute a nominal system in accordance with the ANSI Standard C78.43-2004;

(iv) for ballasts with a frequency of 60 Hz, P in and P
ou t shall be measured after lamps have been stabilized according to section 4.4 of ANSI Standard C82.6- 2005 using a wattmeter with accuracy specified in section 4.5 of ANSI Standard C82.6-2005; and

(v) for ballasts with a frequency greater than 60 Hz, P in and P out shall have a basic

ac curacy of ±0.5 percent at the higher of

--

(I ) 3 times the output operating frequency of the ballast; or

(II) 2 kHz for ballast with a frequency greater than 60 Hz.

(C) MODIFICATION.

-- The Secretary may, by rule, modify the definition of `ballast efficiency' if the Secretary determines that the modification is necessary or appropriate to carry out the purposes of this Act.

“Ele ctronic Ballast”

42 U.S.C. 6291(60)

The term ―electronic ballast ‖ means a device that uses semiconductors as the primary

means t o control lamp starting and operation.

“General Lighting Application”

42 U.S.C. 6291(61)

The term ―general lighting application ‖ means lighting that provides an interior or

ex terior area with overall illumination.

“Metal Halide Ballast”

42 U.S.C. 6291(62)58

The term ―metal halide ballast ‖ means a ballast used to start and operate metal halide lamps.

“M etal Halide Lamp”

42 U.S.C. 6291( 63)

The term ―metal halide lamp ‖ means a high intensity discharge lamp in which the major portion of the li ght is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors.

“Metal Halide Lamp Fixture”

42 U.S.C. 6291(64)

The term ―metal halide lamp fixture ‖ means a light fixture for general lighting appli cation designed to be operated with a metal halide lamp and a ballast for a metal halide lamp.

“Probe-Start Metal Halide Ballast”

42 U.S.C. 6291(65)

The term ―probe-start metal halide ballast ‖ ' means a ballast that

-- `(A) starts a probe-start metal halide lamp that contains a third starting electrode (probe) in the arc tube; and

`(B) does not generally contain an igniter but instead starts lamps with high ballast open circuit voltage.

“Pulse-Start Metal Halide Ballast”

42 U.S.C. 6291(66)

(A) IN GENERAL.

-- The term ―pulse-start metal halide ballast ‖ means an electronic or
elec tromagnetic ballast that starts a pulse-start metal halide lamp with high voltage pulses.

(B) START ING PROCESS.

-- For the purpose of subparagraph (A)

--

`(i) lamps shall be started by first providing a high voltage pulse for ionization of the gas to produce a glow discharge; and

`(ii) to complete the starting process, power shall be provided by the ballast to

susta in the discharge through the glow- to -arc transition.'59

APPENDIX C – ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

On D ecember 19, 2007, the President signed into law the Energy Independence and Security Act of 2007 (EISA 2007) (P.L. 110-140). This legislation amended certain aspects of EPCA, including, in particular, setting mandatory efficiency standards for metal halide lamp fixtures. Among other things, the new standard for metal halide lamp fixtures establishes requirements for the efficiency of the ballasts installed in metal halide lamp fixtures. The entirety of EISA 2007 section 324, ―Metal Halide Lamp Fixture s,‖ is include d here for reference.

― SEC. 324. METAL HALIDE LAMP FIXTURES.

(a) D EFINITIONS

. -- Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) (as
amende d by section 322(a)(2)) is amended by adding at the end the following:

`(58) B ALLAST

. -- The term `ballast' means a device used with an electric discharge lamp
to obta in necessary circuit conditions (voltage, current, and waveform) for starting and operating.

`(59) B ALLAST EFFICIENCY

. --

`(A) I N GENERAL

. -- The term `ballast efficiency' means, in the case of a high intensity
dischar ge fixture, the efficiency of a lamp and ballast combination, expressed as a

perce ntage, and calculated in accordance with the following formula: Efficiency =

P out /P in

.

`(B) E FFICIENCY FORMULA

. -- For the purpose of subparagraph (A)

--

`(i) P
o ut shall equal the measured operating lamp wattage;

`(ii ) P in shall equal the measured operating input wattage;

`(ii i) the lamp, and the capacitor when the capacitor is provided, shall constitute a nominal system in accordance with the ANSI Standard C78.43-2004;

`(iv) for ballasts with a frequency of 60 Hz, P in and P
ou t shall be measured after lamps have been stabilized according to section 4.4 of ANSI Standard C82.6- 2005 using a wattmeter with accuracy specified in section 4.5 of ANSI Standard C82.6-2005; and

`(v) for ballasts with a frequency greater than 60 Hz, P in and P out shall have a basic

ac curacy of ±0.5 percent at the higher of

--

`(I ) 3 times the output operating frequency of the ballast; or

`(II) 2 kHz for ballast with a frequency greater than 60 Hz.60 `(C) M ODIFICATION

. -- The Secretary may, by rule, modify the definition of `ballast
eff iciency' if the Secretary determines that the modification is necessary or appropriate to carry out the purposes of this Act.

`(60) E LECTRONIC BALLAST

. -- The term `electronic ballast' means a device that uses semiconductors as the primary means to control lamp starting and operation.

`(61) G ENERAL LIGHTING APPLICATION

. -- The term `general lighting application' means lig hting that provides an interior or exterior area with overall illumination.

`(62) M ETAL HALIDE BALLAST

. -- The term `metal halide ballast' means a ballast used to start and ope rate metal halide lamps.

`(63) M ETAL HALIDE LAMP

. -- The term `metal halide lamp' means a high intensity
dischar ge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors.

`(64) M ETAL HALIDE LAMP FIXTURE

. -- The term `metal halide lamp fixture' means a light
fixture for general lighting application designed to be operated with a metal halide lamp
and a ba llast for a metal halide lamp.

`(65) P ROBE

- START METAL HALIDE BALLAST

. -- The term `probe-start metal halide ballast'
means a b allast that

--

`(A) starts a probe-start metal halide lamp that contains a third starting electrode (probe) in the arc tube; and

`(B) does not generally contain an igniter but instead starts lamps with high ballast open circuit voltage.

`(66) P ULSE

- START METAL HALIDE BALLAST

. --

`(A) I N GENERAL

. -- The term `pulse-start metal halide ballast' means an electronic or
elec tromagnetic ballast that starts a pulse-start metal halide lamp with high voltage pulses.

`(B ) S TARTING PROCESS

. -- For the purpose of subparagraph (A)

--

`(i) lamps sha ll be started by first providing a high voltage pulse for ionization of the gas to produce a glow discharge; and

`(ii) to complete the starting process, power shall be provided by the ballast to sustain the discharge through the glow- to -arc transition.'.

(b) C OVERAGE

. -- Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a))
is amende d—

(1) by redesignating paragraph (19) as paragraph (20); and61

(2) by inserting after paragraph (18) the following:

`(19) Metal halide lamp fixtures.'.

(c) T EST P ROCEDURES

. -- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293( b)) (as amended by section 301(b)) is amended by adding at the end the following:

`(18) M ETAL HALIDE LAMP BALLASTS

. -- Test procedures for metal halide lamp ballasts
shall be ba sed on ANSI Standard C82.6-2005, entitled `Ballasts for High Intensity Discharge Lamps

-- Method of Measurement'.'.

(d) L ABELING

. -- Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a )(2)) is amended—

(1) by redesignating subparagraphs (C) through (G) as subparagraphs (D) through (H), respectively; and

(2) by inserting after subparagraph (B) the following:

`(C) M ETAL HALIDE LAMP FIXTURES

. --

`(i) I N GENERAL

. -- The Commission shall issue labeling rules under this section applicable to the covered product specified in section 322(a)(19) and to which standards are applicable under section 325.

`(ii) L ABELING

. -- The rules shall provide that the labeling of any metal halide lamp fix ture manufactured on or after the later of January 1, 2009, or the date that is 270 days after the date of enactment of this subparagraph, shall indicate conspicuously, in a manner prescribed by the Commission under subsection (b) by July 1, 2008, a capital letter `E' printed within a circle on the packaging of the fixture, and on the ballast contained in the fixture.'.

(e) S TANDARDS

. -- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) (as
amende d by section 310) is amended—

(1) by redesignating subsection (hh) as subsection (ii);

(2) by inserting after subsection (gg) the following:

`(hh) M ETAL H ALIDE L AMP F IXTURES

. --

`(1) S TANDARDS

. --

`(A) I N GENERAL

. -- Subject to subparagraphs (B) and (C), metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to 150 watts but less than or equal to 500 watts shall contain

--62 `(i) a pulse-start metal halide ballast with a minimum ballast efficiency of 88 percent;

`(ii) a magnetic probe-start ballast with a minimum ballast efficiency of 94 percent; or

`(iii) a nonpulse-start electronic ballast with

--

`(I) a minimum ballast efficiency of 92 percent for wattages greater than 250 watts; and

`(II) a minimum ballast efficiency of 90 percent for wattages less than or equal to 250 watts.

`(B) E XCLUSIONS

. -- The standards established under subparagraph (A)
shall not a

pply to

--

`(i) fixtures with regulated lag ballasts;

`(ii) fixtures that use electronic ballasts that operate at 480 volts; or

`(iii) fixtures that

--

`(I) are rated only for 150 watt lamps;

`(II) are rated for use in wet locations, as specified by the National Electrical Code 2002, section 410.4(A); and

`(III) contain a ballast that is rated to operate at ambient air temperatures above 50°C, as specified by UL 1029-2001.

`(C) A PP LICATION

. -- The standards established under subparagraph (A) shall appl y to metal halide lamp fixtures manufactured on or after the later
of

--

`(i) January 1, 2009; or

`(ii) the date that is 270 days after the date of enactment of this
subsection.

`(2) F INAL RULE BY J ANUARY 1, 2012.

--

`(A) I N GENERAL

. -- Not later than January 1, 2012, the Secretary shall publish a final rule to determine whether the standards established under paragraph (1) should be amended.

`(B) A DMINISTRATION

. -- The final rule shall

--

`(i) c ontain any amended standard; and63 `(ii) apply to products manufactured on or after January 1, 2015.

`(3) F INAL RULE BY J ANUARY 1, 2019.

--

`(A) I N GENERAL

. -- Not later than January 1, 2019, the Secretary shall publish a final rule to determine whether the standards then in effect
should be amended.

`(B) A DMINISTRATION

. -- The final rule shall--

`(i) c ontain any amended standards; and

`(ii) apply to products manufactured after January 1, 2022.

`(4) D ESIGN AND PERFORMANCE REQUIREMENTS

. -- Notwithstanding any other provisi on of law, any standard established pursuant to this subsection may contain both design and performance requirements.'; and

(3) in par agraph (2) of subsection (ii) (as redesignated by paragraph (2)), by striking `(gg)' each place it appears and inserting `(hh)'.

(f) E FFECT ON O THER L AW

. -- Section 327(c) of the Energy Policy and Conservation Act (42 U.S.C. 6297( c)) is amended—

(1) in para graph (8)(B), by striking the period at the end and inserting `; and'; and

(2) by adding at the end the following:

`(9) is a regulation concerning metal halide lamp fixtures adopted by the Californi a Energy Commission on or before January 1, 2011, except that

--

`(A) if the Secretary fails to issue a final rule within 180 days after the deadlines for rulemakings in section 325(hh), notwithstanding any other provision of this section, preemption shall not apply to a regulation concerning metal halide lamp fixtures adopted by the California Energy Commission

--

`(i) on or before July 1, 2015, if the Secretary fails to meet the deadline specified in section 325(hh)(2); or

`(ii) on or before July 1, 2022, if the Secretary fails to meet the deadline specified in section 325(hh)(3).'.