Federal Register / Vol. 79, No. 145 / Tuesday, July 29, 2014 / Rules and Regulations 43927 

1Petition for Review, State of New York, et al. v. 

Department of Energy, et al., Nos. 08–0311–ag(L); 

08–0312–ag(con) (2d Cir. filed Jan. 17, 2008). 

2Petition for Review, American Public Gas 

Association v. U.S. Department of Energy, et al., No. 

11–1485 (D.C. Cir. filed Dec. 23, 2011). 

3Consistent with the settlement agreement, the 

direct final rule’s amended standards for 

weatherized gas furnaces, non-weatherized oil-fired 

furnaces, and central air conditioners and heat 

pumps were allowed to be implemented on 

schedule. 

4Petition for Review, Hearth, Patio, & Barbecue 

Association v. Department of Energy, et al., No 10– 

1113 (D.C. Cir. filed May 27, 2010). 

■ h. In paragraph (f)(2), by removing the 

words ‘‘CervidTB Stat-Pak®’’ and 

adding the word ‘‘DPP®’’ in their place. 

Done in Washington, DC, this 23rd day of 

July 2014. 

Kevin Shea, 

Administrator, Animal and Plant Health 

Inspection Service. 

[FR Doc. 2014–17877 Filed 7–28–14; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2014–BT–STD–0026] 

RIN 1904–AD32 

Energy Conservation Program for 

Consumer Products: Energy 

Conservation Standards for 

Residential Furnaces; Energy 

Conservation Standards for 

Residential Direct Heating Equipment 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: The U.S. Department of 

Energy (DOE) is issuing a final rule 

technical amendment to implement two 

orders issued by the U.S. Court of 

Appeals for the District of Columbia 

Circuit in separate litigation. 

Specifically, DOE is amending the 

relevant portions of its regulations to 

reflect the Court’s order vacating the 

amended energy conservation standards 

for non-weatherized gas furnaces 

(including mobile home furnaces), 

which were adopted in the June 27, 

2011 direct final rule for residential 

furnaces and residential central air 

conditioners and heat pumps. Similarly, 

DOE is also amending the relevant 

portions of its regulation to reflect the 

Court’s decision to vacate the regulatory 

definition of ‘‘vented hearth heater’’ 

(and by implication, the associated 

energy conservation standards), which 

were developed in the April 27, 2010 

and November 18, 2011 final rules for 

residential direct heating equipment. 

DATES: Effective Date: July 29, 2014. 

FOR FURTHER INFORMATION CONTACT: Mr. 

John Cymbalsky, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies Office, EE–5B, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 287–1692. Email: 

John.Cymbalsky@ee.doe.gov. 

Mr. Eric Stas, U.S. Department of 

Energy, Office of the General Counsel, 

GC–71, 1000 Independence Avenue 

SW., Washington, DC 20585–0121. 

Telephone: (202) 586–9507. Email: 

Eric.Stas@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Residential Furnaces 

On November 19, 2007, DOE 

published a final rule in the Federal 

Register (hereinafter the ‘‘November 

2007 final rule’’) that amended the 

energy conservation standards for 

residential furnaces and boilers. 72 FR 

65136. The compliance date for the 

standards was set at November 19, 2015. 

However, following DOE’s adoption of 

the November 2007 final rule, several 

parties jointly sued DOE in the United 

States Court of Appeals for the Second 

Circuit (Second Circuit) to invalidate 

the rule.1 The petitioners asserted that 

the standards for residential furnaces 

promulgated in the November 2007 final 

rule did not reflect the ‘‘maximum 

improvement in energy efficiency’’ that 

‘‘is technologically feasible and 

economically justified,’’ as required 

under 42 U.S.C. 6295(o)(2)(A). On April 

16, 2009, DOE filed with the Court a 

motion for voluntary remand that the 

petitioners did not oppose. The motion 

did not state that the November 2007 

final rule would be vacated, but 

indicated that DOE would revisit its 

initial conclusions outlined in the 

November 2007 final rule in a 

subsequent rulemaking action. DOE also 

agreed that the final rule resulting from 

the subsequent rulemaking action 

would address both regional standards 

for furnaces, as well as the effects of 

alternate standards on natural gas 

prices. On April 21, 2009, the U.S. Court 

of Appeals for the Second Circuit 

granted DOE’s motion, thereby 

remanding the rule to DOE for further 

proceedings without vacating the 

November 2007 final rule. 

On June 27, 2011 DOE published a 

final rule in the Federal Register 

(hereinafter the ‘‘June 2011 direct final 

rule’’) that amended the energy 

conservation standards for residential 

furnaces pursuant to the voluntary 

remand in State of New York, et al. v. 

Department of Energy, et al. On October 

31, 2011, DOE published a notice of 

effective date and compliance dates to 

confirm these amended energy 

conservation standards and compliance 

dates contained in the June 2011 direct 

final rule. 76 FR 67037. After the 

publication of the October 2011 notice, 

the American Public Gas Association 

(APGA) sued DOE in the United States 

Court of Appeals for the District of 

Columbia Circuit (DC Circuit) to 

invalidate the rule as it pertained to 

non-weatherized gas furnaces.2 On 

March 11, 2014, DOE and APGA, as 

well as the various intervenors in the 

case, filed a joint motion for approval of 

a settlement in which DOE agreed to 

seek a remand of the non-weatherized 

gas furnaces portion of the June 27, 2011 

direct final rule. On April 24, 2014, the 

DC Circuit approved the settlement 

agreement and issued an order that the 

standards established for nonweatherized gas furnaces and mobile 

home gas furnaces be vacated and 

remanded to DOE for further 

rulemaking.3 As a result, the standards 

established by the June 2011 direct final 

rule for the non-weatherized gas 

furnaces and mobile home gas furnaces 

will not go into effect, and instead, the 

standards established for these product 

classes of furnaces in the November 19, 

2007 final rule will come into effect, 

with compliance required beginning on 

November 19, 2015. Thus, DOE is 

amending the Code of Federal 

Regulations (CFR) to reflect the Court’s 

order impacting the standards for nonweatherized gas furnaces and mobile 

home gas furnaces. 

B. Residential Hearth Products 

In a final rule published in the 

Federal Register on April 16, 2010 

(hereinafter the ‘‘April 2010 final rule’’), 

DOE promulgated a definition for 

‘‘vented hearth heater,’’ established 

product classes for vented gas hearth 

direct heating equipment, and set 

minimum energy conservation 

standards for vented gas hearth direct 

heating equipment. 75 FR 20112. 

Compliance with the standard would 

have been required by April 16, 2013. 

Following DOE’s adoption of the April 

2010 final rule, the Hearth, Patio & 

Barbecue Association (HPBA) sued DOE 

in the DC Circuit to invalidate the rule 

as it pertained to vented gas hearth 

products.4

On November 18, 2011, DOE 

published a final rule in the Federal 

Register that amended the definition of 

‘‘vented hearth heater’’ to clarify the 


rmajette on DSK2TPTVN1PROD with RULES2
43928 Federal Register / Vol. 79, No. 145 / Tuesday, July 29, 2014 / Rules and Regulations 

5Hearth, Patio & Barbecue Association v. 

Department of Energy, et al., 706 F.3d 499 (D.C. Cir. 

2013). 

scope of the exclusion from coverage 

under energy conservation standards for 

those vented hearth heaters that are 

primarily decorative hearth products. 76 

FR 71836. On February 8, 2013, the 

Court issued a decision in which it 

ordered that the definition of ‘‘vented 

hearth heater’’ be vacated and remanded 

the matter to DOE to interpret the 

challenged provisions in accordance 

with the opinion of the Court.5

Consequently, the standards established 

by the April 2010 final rule for vented 

gas hearth direct heating equipment will 

not go into effect, with the result being 

that there are no standards for these 

products at this time. Thus, DOE is 

amending the CFR to reflect the Court’s 

order to vacate the definition for 

‘‘vented hearth heater.’’ In addition, 

DOE is removing the standards set for 

vented gas hearth direct heating 

equipment in the April 2010 final rule, 

as there is no longer a definition that 

covers this type of equipment. 

II. Summary of the Need for Correction 

By this action, DOE is updating the 

CFR to implement changes to DOE’s 

regulations for residential furnaces and 

residential direct heating equipment 

required by two Court orders, as 

described in section I. This is a purely 

technical amendment, and at this time, 

DOE is not exercising any of the 

authority that Congress has provided in 

the Energy Policy and Conservation Act 

of 1975 (EPCA; 42 U.S.C. 6291 et seq.), 

as amended, for the Secretary of Energy 

to revise definitions and energy 

conservation standards. 

III. Final Action 

DOE has determined, pursuant to 5 

U.S.C. 553(b)(B), that prior notice and 

an opportunity for public comment on 

this final rule are unnecessary. DOE is 

merely implementing changes to the 

CFR text prescribed by two Court orders 

and making other limited revisions to its 

regulations as necessitated by those 

orders. DOE is not exercising any of the 

discretionary authority that the 

Congress has provided to the Secretary 

of Energy in EPCA. DOE, therefore, 

finds that good cause exists to waive 

prior notice and an opportunity to 

comment for this rulemaking. For the 

same reasons, DOE, pursuant to 5 U.S.C. 

553(d)(3), finds that good cause exists 

for making this final rule effective upon 

publication in the Federal Register. 

IV. Procedural Issues and Regulatory 

Review 

A. Review Under Executive Orders 

12866 and 13563 

This final rule is not a ‘‘significant 

regulatory action’’ under section 3(f)(1) 

of Executive Order 12866 and the 

principles reaffirmed in Executive Order 

13563. Accordingly, this action was not 

subject to review by the Office of 

Information and Regulatory Affairs 

(OIRA) in the Office of Management and 

Budget (OMB). 

B. Review Under the Regulatory 

Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) requires preparation 

of an initial regulatory flexibility 

analysis for any rule that by law must 

be proposed for public comment, unless 

the agency certifies that the rule, if 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities. As required by 

Executive Order 13272, ‘‘Proper 

Consideration of Small Entities in 

Agency Rulemaking,’’ 67 FR 53461 

(August 16, 2002), DOE published 

procedures and policies on February 19, 

2003, to ensure that the potential 

impacts of its rules on small entities are 

properly considered during the 

rulemaking process. 68 FR 7990. DOE 

has made its procedures and policies 

available on the Office of the General 

Counsel’s Web site (http://energy.gov/

gc/office-general-counsel). Because this 

is a technical amendment for which a 

general notice of proposed rulemaking 

is not required, the analytical 

requirements of the Regulatory 

Flexibility Act do not apply to this 

rulemaking. 

List of Subjects in 10 CFR Part 430 

Administrative practice and 

procedure, Confidential business 

information, Energy conservation, 

Household appliances, Imports, 

Intergovernmental relations, Small 

businesses. 

Issued in Washington, DC on July 21, 2014. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

For the reasons stated in the 

preamble, DOE amends part 430 of 

Chapter II, subchapter D of title 10, 

Code of Federal Regulations as set forth 

below: 

PART 430—ENERGY CONSERVATION 

PROGRAM FOR CONSUMER 

PRODUCTS 

■ 1. The authority citation for part 430 

continues to read as follows: 

Authority: 42 U.S.C. 6291–6309; 28 U.S.C. 

2461 note. 

§ 430.2 [Amended] 

■ 2. Section 430.2 is amended by 

removing the definition of ‘‘vented 

hearth heater.’’ 

■ 3. Section 430.32 is amended by: 

■ a. Revising paragraph (e)(1); and 

■ b. Revising paragraph (i)(2). 

The revisions read as follows: 

§ 430.32 Energy and water conservation 

standards and their compliance dates. 

(e) Furnaces and boilers. (1) Furnaces. 

(i) The Annual Fuel Utilization 

Efficiency (AFUE) of residential 

furnaces shall not be less than the 

following for non-weatherized gas 

furnaces manufactured before November 

19, 2015, non-weatherized oil furnaces 

manufactured before May 1, 2013, and 

weatherized furnaces manufactured 

before January 1, 2015: 

Product class AFUE 

(percent) 1

(A) Furnaces (excluding classes noted below) ................................................................................................................................... 78 

(B) Mobile Home furnaces ................................................................................................................................................................... 75 

(C) Small furnaces (other than those designed solely for installation in mobile homes) having an input rate of less than 45,000

Btu/hr ................................................................................................................................................................................................ ........................

(1) Weatherized (outdoor) ................................................................................................................................................................... 78 

(2) Non-weatherized (indoor) ............................................................................................................................................................... 78 

1Annual Fuel Utilization Efficiency, as determined in § 430.23(n)(2) of this part. 


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Federal Register / Vol. 79, No. 145 / Tuesday, July 29, 2014 / Rules and Regulations 43929 

(ii) The AFUE of residential furnaces 

shall not be less than the following 

starting on the compliance date 

indicated in the table below: 

Product class AFUE 

(percent) 1 Compliance date 

(A) Non-weatherized gas furnaces (not including mobile home furnaces) ................................................. 80 November 19, 2015. 

(B) Mobile Home gas furnaces .................................................................................................................... 80 November 19, 2015. 

(C) Non-weatherized oil-fired furnaces (not including mobile home furnaces) ........................................... 83 May 1, 2013. 

(D) Mobile Home oil-fired furnaces ............................................................................................................. 75 September 1, 1990. 

(E) Weatherized gas furnaces ..................................................................................................................... 81 January 1, 2015. 

(F) Weatherized oil-fired furnaces ............................................................................................................... 78 January 1, 1992. 

(G) Electric furnaces .................................................................................................................................... 78 January 1, 1992. 

1Annual Fuel Utilization Efficiency, as determined in § 430.23(n)(2) of this part. 

(iii) Furnaces manufactured on or 

after May 1, 2013, shall have an 

electrical standby mode power 

consumption (PW,SB) and electrical off 

mode power consumption (PW,OFF) not 

more than the following: 

Product class 

Maximum standby mode 

electrical power consumption, PW,SB (watts) 

Maximum off mode electrical power consumption, PW,OFF (watts) 

(A) Non-weatherized oil-fired furnaces (including mobile home furnaces) ............................. 11 11 

(B) Electric furnaces ................................................................................................................ 10 10 

* * * * * 

(i) * * * 

(2) Vented home heating equipment 

manufactured on or after April 16, 2013, 

shall have an annual fuel utilization 

efficiency no less than: 

Product class 

Annual fuel utilization efficiency, April 16, 2013 

(percent) 

Gas wall fan type up to 42,000 Btu/h .................................................................................................................................. 75 

Gas wall fan type over 42,000 Btu/h ................................................................................................................................... 76 

Gas wall gravity type up to 27,000 Btu/h ............................................................................................................................ 65 

Gas wall gravity type over 27,000 Btu/h up to 46,000 Btu/h .............................................................................................. 66 

Gas wall gravity type over 46,000 Btu/h ............................................................................................................................. 67 

Gas floor up to 37,000 Btu/h ............................................................................................................................................... 57 

Gas floor over 37,000 Btu/h ................................................................................................................................................ 58 

Gas room up to 20,000 Btu/h .............................................................................................................................................. 61 

Gas room over 20,000 Btu/h up to 27,000 Btu/h ................................................................................................................ 66 

Gas room over 27,000 Btu/h up to 46,000 Btu/h ................................................................................................................ 67 

Gas room over 46,000 Btu/h ............................................................................................................................................... 68 

* * * * * 

[FR Doc. 2014–17876 Filed 7–28–14; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 207 

[Docket No. FR–5583–F–02] 

RIN 2502–AJ16 

Federal Housing Administration (FHA) 

Multifamily Mortgage Insurance; 

Capturing Excess Bond Proceeds 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Final rule. 

SUMMARY: This final rule amends HUD’s 

regulations covering the contract rights 

and obligations of mortgagees 

participating in FHA multifamily 

mortgage insurance programs, to 

address reimbursement to FHA of 

excess bond proceeds. When a 

mortgagee finances mortgages through 

the issuance and sale of bonds or 

through bond anticipation notes, the 

mortgagee uses the funds from the 

payment of a mortgage insurance claim 

under HUD regulations addressing FHA 

multifamily insurance claim payment to 

pay off the remaining bond debts. At 

times, the amount paid by the FHA 

multifamily insurance claim is greater 

than the remaining bond debts. This 

final rule requires mortgagees that 

finance a project using a project-specific 

trust indenture agreement to include 

language in the trust indenture to 

require that excess bond funds that 

remain after FHA’s multifamily 

insurance claim payment is used to 

satisfy the bonds are returned to FHA. 

HUD requires similar payments of 

excess bond funds on obligations of 

public housing agencies and, thus, the 

final rule provides consistency in the 

administration of HUD’s bond-financed 

mortgages. 

DATES: Effective Date: August 28, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Claire T. Brolin, Management Analyst 

(Directives), Office of the Deputy 

Assistant Secretary for Multifamily 

Housing Programs, Program 

Administration Office, Office of 

Housing, Department of Housing and 

Urban Development, 451 7th Street SW., 

Room 6106, Washington, DC 20410; 

telephone number 202–402–6634 (this 

is not a toll-free number). Persons with 

hearing or speech impairments may 

access this number through TTY by 

calling the Federal Relay Service, toll 

free, at 800–877–8339. 


rmajette on DSK2TPTVN1PROD with RULES2