This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

65603 

Vol. 79, No. 214 

Wednesday, November 5, 2014 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 50 

[NRC–2014–0238] 

RIN 3150–AJ48 

Definition of a Utilization Facility 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Proposed rule; correction. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is correcting the 

docket identification number and 

Regulation Identifier Number (RIN) for a 

Proposed Rule that was published in the 

Federal Register (FR) on October 17, 

2014, to amend the NRC’s regulations to 

add SHINE Medical Technologies, Inc.’s 

accelerator-driven subcritical operating 

assemblies, as described in the 

application assigned docket number 50– 

608, to the definition of utilization 

facility. 

DATES: This correction is effective 

November 5, 2014. 

ADDRESSES: Please refer to Docket ID 

NRC–2014–0238 when contacting the 

NRC about the availability of 

information for this document. You may 

obtain publicly-available information 

related to this proposed rule by any of 

the following methods: 

• Federal Rulemaking Web site: Go to 

http://www.regulations.gov and search 

for Docket ID NRC–2014–0238. Address 

questions about NRC dockets to Carol 

Gallagher; telephone: 301–287–3422; 

email: Carol.Gallagher@nrc.gov. For 

technical questions, contact the 

individual listed in the FOR FURTHER

INFORMATION CONTACT section of this 

document. 

• NRC’s Agencywide Documents 

Access and Management System 

(ADAMS): You may obtain publiclyavailable documents online in the 

ADAMS Public Documents collection at 

http://www.nrc.gov/reading-rm/

adams.html. To begin the search, select 

‘‘ADAMS Public Documents’’ and then 

select ‘‘Begin Web-based ADAMS 

Search.’’ For problems with ADAMS, 

please contact the NRC’s Public 

Document Room (PDR) reference staff at 

1–800–397–4209, at 301–415–4737, or 

by email to pdr.resource@nrc.gov. 

• NRC’s PDR: You may examine and 

purchase copies of public documents at 

the NRC’s PDR, Room O1–F21, One 

White Flint North, 11555 Rockville 

Pike, Rockville, Maryland 20852. 

FOR FURTHER INFORMATION CONTACT: 

Steven Lynch, Office of Nuclear Reactor 

Regulation; U.S. Nuclear Regulatory 

Commission, Washington, DC 20555– 

0001, telephone: 301–415–1524; email: 

Steven.Lynch@nrc.gov. 

SUPPLEMENTARY INFORMATION: On 

October 17, 2014, (79 FR 62360), the 

NRC published a Proposed Rule to 

amend the NRC’s regulations to add 

SHINE Medical Technologies, Inc.’s 

accelerator-driven subcritical operating 

assemblies, as described in the 

application assigned docket number 50– 

608, to the definition of utilization 

facility. That rule incorrectly identified 

the docket identification number for the 

action as NRC–2013–0053, and the RIN 

for the action as 3150–AJ18. 

Correction 

Accordingly, in proposed rule FR 

Doc. 2014–24733, on page 62360, in the 

Friday issue of October 17, 2014 (79 FR 

62360), the docket identification 

number NRC–2013–0053 in the heading 

of the document and in all other 

instances on page 62360, is revised to 

read NRC–2014–0238. In addition, the 

RIN 3150–AJ18 in the heading of the 

document is revised to read 3150–AJ48. 

Dated at Rockville, Maryland, this 30th day 

of October, 2014. 

For the Nuclear Regulatory Commission. 

Cindy Bladey, 

Chief, Rules, Announcements, and Directives 

Branch, Division of Administrative Services, 

Office of Administration. 

[FR Doc. 2014–26253 Filed 11–4–14; 8:45 am] 

BILLING CODE 7590–01–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket Number EERE–2014–BT–STD– 

0048] 

RIN 1904–AD37 

Energy Conservation Program: Energy 

Conservation Standards for 

Residential Central Air Conditioners 

and Heat Pumps; Request for 

Information 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Request for information (RFI). 

SUMMARY: The U.S. Department of 

Energy (DOE) is initiating an effort to 

determine whether to amend the current 

energy conservation standards for 

residential central air conditioner and 

heat pump products. According to the 

Energy Policy and Conservation Act’s 6- 

year review requirement (42 U.S.C. 

6295(m)(1)), DOE must publish a notice 

of proposed rulemaking to propose new 

standards for residential central air 

conditioner and heat pump products or 

a notice of determination that the 

existing standards do not need to be 

amended by June 6, 2017. This RFI 

seeks to solicit information from the 

public to help DOE determine whether 

amended standards for residential 

central air conditioner and heat pump 

products would result in a significant 

amount of additional energy savings and 

whether those standards would be 

technologically feasible and 

economically justified. 

DATES: Written comments and 

information are requested on or before 

December 5, 2014. 

ADDRESSES: Interested parties are 

encouraged to submit comments 

electronically. However, comments may 

be submitted by any of the following 

methods: 

• Federal eRulemaking Portal: 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email to the following address: CAC

HeatPump2014STD0048@ee.doe.gov. 

Include docket number EERE–2014–BT– 

STD–0048 and/or RIN 1904–AD37 in 

the subject line of the message. All 

comments should clearly identify the 

name, address, and, if appropriate, 

organization of the commenter. 


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65604 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules 

• Postal Mail: Ms. Brenda Edwards, 

U.S. Department of Energy, Building 

Technologies Program, Mailstop EE–2J, 

Request for Information for Energy 

Conservation Standards for Residential 

Central Air Conditioners and Heat 

Pumps, Docket No. EERE–2014–BT– 

STD–0048 and/or RIN 1904–AD37, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. Please 

submit one signed paper original. 

• Hand Delivery/Courier: Ms. Brenda 

Edwards, U.S. Department of Energy, 

Building Technologies Program, Sixth 

Floor, 950 L’Enfant Plaza SW., 

Washington, DC 20024. Please submit 

one signed paper original. 

Instructions: All submissions received 

must include the agency name and 

docket number and/or RIN for this 

rulemaking. No telefacsimiles (faxes) 

will be accepted. 

Docket: The docket is available for 

review at www.regulations.gov, 

including Federal Register notices, 

comments, and other supporting 

documents/materials. All documents in 

the docket are listed in the 

www.regulations.gov index. However, 

not all documents listed in the index 

may be publicly available, such as 

information that is exempt from public 

disclosure. 

A link to the docket Web page can be 

found at: http://www.regulations.gov/#

!docketDetail;D=EERE-2014-BT-STD0048. This Web page contains a link to 

the docket for this notice on the 

www.regulations.gov Web site. The 

www.regulations.gov Web page contains 

simple instructions on how to access all 

documents, including public comments, 

in the docket. 

For information on how to submit a 

comment, review other public 

comments and the docket, or participate 

in the public meeting, contact Ms. 

Brenda Edwards at (202) 586–2945 or by 

email: Brenda.Edwards@ee.doe.gov. 

FOR FURTHER INFORMATION CONTACT: 

Direct requests for additional 

information may be sent to: 

Ms. Ashley Armstrong, U.S. Department 

of Energy, Office of Energy Efficiency 

and Renewable Energy, Building 

Technologies Program, EE–2J, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: 202–586–6590. Email: 

Ashley.Armstrong@ee.doe.gov. 

Ms. Johanna Hariharan, U.S. 

Department of Energy, Office of the 

General Counsel, GC–33, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 287–6307. Email: 

johanna.hariharan@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

A. Authority and Background 

B. Rulemaking Process 

II. Request for Information and Comments 

A. Market Assessment and Screening 

Analysis 

B. Engineering Analysis 

C. Markups Analysis 

D. Energy Use Analysis 

E. Life-Cycle Cost and Payback Period 

Analysis 

F. Shipments Analysis 

G. National Impact Analysis 

H. Manufacturer Impact Analysis 

I. Submission of Comments 

I. Introduction 

A. Authority and Background 

Title III, Part B of the Energy Policy 

and Conservation Act of 1975 (EPCA or 

the Act), Public Law 94–163, (42 U.S.C. 

6291–6309, as codified) sets forth a 

variety of provisions designed to 

improve energy efficiency and 

established the Energy Conservation 

Program for Consumer Products Other 

Than Automobiles, a program covering 

major household appliances 

(collectively referred to as ‘‘covered 

products’’), including residential central 

air conditioners and heat pumps that are 

the subject of this rulemaking. (42 

U.S.C. 6292(a)(3)) 

EPCA prescribed energy conservation 

standards for central air conditioners 

and heat pumps and directed DOE to 

conduct two cycles of rulemakings to 

determine whether to amend these 

standards. (42 U.S.C. 6295(d)(1)–(3)) 

DOE completed the second of the two 

rulemaking cycles by publishing a direct 

final rule on June 27, 2011 (2011 Direct 

Final Rule). 76 FR 37414. The DFR 

amended standards for central air 

conditioners and heat pumps 

manufactured on or after January 1, 

2015. These amended standards differ 

by region. (10 CFR 430.32(c)(2)–(5)) 

DOE seeks comment from interested 

parties as to whether DOE should 

consider and analyze amended 

standards on a national basis or 

amended standards that differ by region 

for central air conditioners and heat 

pumps. 

EPCA requires that, not later than 6 

years after the issuance of a final rule 

establishing or amending a standard, 

DOE publish a NOPR proposing new 

standards or a notice of determination 

that the existing standards do not need 

to be amended. (42 U.S.C. 6295(m)(1)) 

Based on this provision, DOE must 

publish by June 6, 2017 either a NOPR 

proposing new standards for residential 

central air conditioners and heat pumps 

or a notice of determination that the 

existing standards do not need to be 

amended. Today’s notice seeks input 

from the public to assist DOE with its 

determination on whether amended 

standards pertaining to residential 

central air conditioners and heat pumps 

are warranted. In making this 

determination, DOE must evaluate 

whether more amended standards 

would (1) yield a significant savings in 

energy use and (2) be both 

technologically feasible and 

economically justified. (42 U.S.C. 

6295(o)(3)(B)) 

B. Rulemaking Process 

DOE must follow specific statutory 

criteria for prescribing new or amended 

standards for covered products. EPCA 

requires that any new or amended 

energy conservation standard be 

designed to achieve the maximum 

improvement in energy or water 

efficiency that is technologically 

feasible and economically justified. To 

determine whether a standard is 

economically justified, EPCA requires 

that DOE determine whether the 

benefits of the standard exceed its 

burdens by considering, to the greatest 

extent practicable, the following: 

1. The economic impact of the 

standard on the manufacturers and 

consumers of the affected products; 

2. The savings in operating costs 

throughout the estimated average life of 

the product compared to any increases 

in the initial cost, or maintenance 

expense, likely to result from the 

imposition of the standard; 

3. The total projected amount of 

energy savings likely to result directly 

from the imposition of the standard; 

4. Any lessening of the utility or the 

performance of the 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 of 

Energy (Secretary) considers relevant. 

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

DOE fulfills these and other 

applicable requirements by conducting 

a series of analyses throughout the 

rulemaking process. Table B.1 shows 

the individual analyses that are 

performed to satisfy each of the 

requirements within EPCA. 


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TABLE B.1—EPCA REQUIREMENTS AND CORRESPONDING DOE ANALYSIS

EPCA Requirement Corresponding DOE analysis 

Technological Feasibility .......................................................................... • Market and Technology Assessment. 

• Screening Analysis. 

• Engineering Analysis. 

Economic Justification: 

1. Economic impact on manufacturers and consumers ................... • Manufacturer Impact Analysis. 

• Life-Cycle Cost and Payback Period Analysis. 

• Life-Cycle Cost Subgroup Analysis. 

• Shipments Analysis. 

2. Lifetime operating cost savings compared to increased cost for 

the product.

• Markups for Product Price Determination. 

• Energy and Water Use Determination. 

• Life-Cycle Cost and Payback Period Analysis. 

3. Total projected energy savings ..................................................... • Shipments Analysis. 

• National Impact Analysis. 

4. Impact on utility or performance ................................................... • Screening Analysis. 

• Engineering Analysis. 

5. Impact of any lessening of competition ........................................ • Manufacturer Impact Analysis. 

6. Need for national energy and water conservation ........................ • Shipments Analysis. 

• National Impact Analysis. 

7. Other factors the Secretary considers relevant ............................ • Emissions Analysis. 

• Utility Impact Analysis. 

• Employment Impact Analysis. 

• Monetization of Emission Reductions Benefits. 

• Regulatory Impact Analysis. 

As detailed throughout this RFI, DOE 

is specifically publishing this notice as 

the first step in the analysis process and 

is specifically requesting input and data 

from interested parties to aid in the 

development of the technical analyses. 

II. Request for Information and 

Comments 

In the next section, DOE has 

identified a variety of questions that 

DOE would like to receive input on to 

aid in the development of the technical 

and economic analyses regarding 

whether new standards for residential 

central air conditioners and heat pumps 

may be warranted. In addition, DOE 

welcomes comments on other issues 

relevant to the conduct of this 

rulemaking that may not specifically be 

identified in this notice. 

A. Market Assessment and Screening 

Analysis 

The market and technology 

assessment provides information about 

the residential central air conditioner 

and heat pump industry that would be 

used throughout the rulemaking 

process. For example, this information 

may address technological 

improvements used in the design and 

manufacturing of such products. DOE 

uses qualitative and quantitative 

information to characterize the structure 

of the residential central air conditioner 

and heat pump industry and market. In 

this analysis, DOE will identify and 

characterize the manufacturers of 

residential central air conditioners and 

heat pumps, estimate market shares and 

trends, address regulatory and nonregulatory initiatives intended to 

improve energy efficiency or reduce 

energy consumption, and explore the 

potential for technological 

improvements in the design and 

manufacturing of residential central air 

conditioners and heat pumps. DOE will 

also review product literature, industry 

publications, and company Web sites. 

Additionally, DOE will also consider 

conducting interviews with 

manufacturers to assess the overall 

market for residential central air 

conditioners and heat pumps. 

Product Classes 

When evaluating and establishing 

energy conservation standards, DOE 

may divide covered products into 

product classes by the type of energy 

used or by capacity or other 

performance-related features that would 

justify a different standard. In making a 

determination whether a performancerelated feature justifies a different 

standard, DOE must consider factors 

such as the utility to the consumer of 

the feature and other factors DOE 

determines are appropriate. (42 U.S.C. 

6295(q)) The energy conservation 

standards for residential central air 

conditioners and heat pumps 

established by the 2011 Direct Final 

Rule will become effective on January 1, 

2015. 10 CFR Part 430.32(c)(2) lists the 

seven product classes for residential 

central air conditioners and heat pumps 

and their corresponding energy 

conservation standards. The product 

classes are: 

(1) Split system air conditioners 

(2) Split system heat pumps 

(3) Single-package air conditioners 

(4) Single-package heat pumps 

(5) Small duct, high velocity (SDHV) 

systems 

(6) Space-constrained air conditioners 

(7) Space-constrained heat pumps 

For this rulemaking, DOE plans to 

maintain the existing product classes for 

residential central air conditioners and 

heat pumps, as presented above. 

Issue A.1 DOE requests feedback on 

whether it should consider any changes 

to the existing product classes for 

residential central air conditioners and 

heat pumps. 

Technology Assessment and Screening 

Analysis 

The purpose of the technology 

assessment is to develop a preliminary 

list of technologies that could 

potentially be used to improve the 

efficiency of residential central air 

conditioners and heat pumps. The 

purpose of the screening analysis is to 

screen out technologies that are not 

appropriate for consideration in the 

engineering analysis due to the 

following four factors: (1) Technological 

feasibility, (2) practicability to 

manufacture, install, and service, (3) 

impacts on product utility to 

consumers, and (4) health and safety. 

(10 CFR 430, subpart C, appendix A, 

section (4)(a)(4)) The technologies that 

pass the screening are called design 

options and are considered in the 

engineering analysis. DOE uses 

information about existing and past 

technology options and prototype 

designs to help identify technologies 


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65606 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules 

1 In addition, the American Manufacturing 

Technical Corrections Act of 2012 established 

minimum energy conservation standards for small 

duct, high velocity systems that will become 

effective on January 1, 2015. These were added to 

the code of regulations in a December 3, 2013 

Technical Amendment. 78 FR 72533. 

2AHRI is the trade association representing 

manufacturers of HVACR and water heating 

equipment within the global industry. Products of 

different manufacturers are certified to AHRI and 

listed in the AHRI directory: https://www.ahri

directory.org/ahridirectory/pages/home.aspx. 

that manufacturers could use to meet 

and/or exceed energy conservation 

standards. 

The 2011 Direct Final Rule identified 

several design options that are 

employed in central air conditioners 

and heat pumps. The design options 

used in the 2011 Direct Final Rule 

analyses may still be representative of 

the range of design options currently 

employed by product manufacturers, as 

listed below: 

A. Higher-efficiency compressors 

B. Higher-efficiency fan motors 

C. Higher-efficiency fan blades 

D. Improvements to baseline coils 

E. Micro-channel heat exchangers 

F. Flat-tube heat exchangers 

G. Heat pump defrost controls 

H. Inverter technology 

I. High-efficiency expansion valves 

However, DOE understands that 

manufacturers typically introduce new 

design options into the market as 

technology evolves over time. 

Issue A.2 DOE requests comment on 

whether DOE should consider design 

options other than those considered in 

the analyses supporting the 2011 Direct 

Final Rule, as listed above. 

B. Engineering Analysis 

The engineering analysis estimates 

the cost-efficiency relationship of 

products at different levels of increased 

energy efficiency. This relationship 

serves as the basis for the cost-benefit 

calculations for consumers, 

manufacturers, and the nation. In 

determining the cost-efficiency 

relationship, DOE estimates the increase 

in manufacturer cost associated with 

increasing the efficiency of products 

above the baseline to the maximum 

technologically feasible (‘‘max-tech’’) 

efficiency level for each product class. 

The baseline model is used as a 

reference point for each product class in 

the engineering analysis and the lifecycle cost and payback-period analyses. 

Efficiency Levels 

For each established product class, 

DOE selects a baseline model as a 

reference point against which any 

changes resulting from energy 

conservation standards can be 

measured. The baseline model in each 

product class represents the 

characteristics of common or typical 

products in that class. Typically, a 

baseline model is one that meets the 

current minimum energy conservation 

standards by a small or zero margin. 

In the 2011 Direct Final Rule, DOE 

established minimum energy 

conservation standards that will become 

effective on January 1, 2015.1 DOE 

would consider these minimum energy 

conservation standards as the baseline 

efficiency levels for any analyses 

conducted to consider amending the 

standards. 

During the 2011 DFR rulemaking, 

DOE also established maximumtechnology (max-tech) efficiency levels 

for residential central air conditioner 

and heat pump product classes. DOE 

determined each max-tech level by 

researching the Air-Conditioning, 

Heating, and Refrigeration Institute 

(AHRI) directory 2 and the major 

manufacturers’ product literature. 

DOE also set regional cooling 

performance standards for split system 

air conditioners as a function of a 

Seasonal Energy Efficiency Ratio (SEER) 

in the states of Virginia, Maryland, 

Kentucky, North and South Carolina, 

Tennessee, Georgia, Florida, Alabama, 

Mississippi, Arkansas, Louisiana, Texas, 

and Oklahoma (South), and regional 

performance standards for split system 

and single-package air conditioners as a 

function of SEER and Energy Efficiency 

Ratio (EER) in the states of Arizona, 

California, Nevada, or New Mexico 

(Southwest). In both cases, DOE has 

identified baseline and max-tech 

efficiency levels for the respective SEER 

and EER values. Table B.1 summarizes 

these efficiency levels. 

TABLE B.1—BASELINE AND MAX-TECH EFFICIENCY LEVELS OF COVERED PRODUCTS

Product class Baseline Max-Tech 

SEER or EER (Btu/hr-W) 

Split system air conditioner .................................................................................................................... SEER 13.0 26.0 

<45,000 Btu/hr ................................................................................................................................ EER 12.2 16.5 

≥45,000 Btu/hr ................................................................................................................................. EER 11.7 13.0 

Single-package air conditioner ............................................................................................................... SEER 14.0 20.0 

EER 11.0 13.0 

Split system heat pump .......................................................................................................................... SEER 14.0 24.0 

Single-packaged heat pump .................................................................................................................. SEER 14.0 16.4 

Small-duct, high-velocity systems .......................................................................................................... SEER 12.0 12.5 

Space constrained air conditioner .......................................................................................................... SEER 12.0 14.0 

Space constrained heat pump ............................................................................................................... SEER 12.0 12.0 

Issue B.1 DOE requests comment on 

the baseline and max-tech efficiency 

levels for each product class. 

C. Markups Analysis 

To carry out the life-cycle cost (LCC) 

and payback period (PBP) calculations, 

DOE needs to determine the cost to the 

residential consumer of baseline 

products that satisfies the currently 

applicable standards, and the cost of the 

more-efficient unit the consumer would 

purchase under potential amended 

standards. By applying a multiplier 

called a ‘‘markup’’ to the manufacturer’s 

selling price, DOE is able to estimate the 

residential consumer’s price. 

For the 2011 Direct Final Rule, DOE 

used two distribution channels to 

characterize how products pass from the 

manufacturer to the customer: 

Replacement applications and new 

construction. 76 FR 37464–65 (June 27, 

2011). For residential central air 

conditioning and heat pump products 

installed in replacement applications, 

the manufacturer sells the equipment to 

a wholesaler, who in turn sells it to a 

mechanical contractor, who in turns 

sells it to the consumer. For products 

installed in new construction 

applications, an additional link in the 

distribution chain for the general 


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contractor is added. In this new 

construction distribution channel, the 

manufacturer sells the equipment to a 

wholesaler, who in turn sells it to a 

mechanical contractor, who in turn sells 

it to a general contractor, who in turns 

sells it to the consumer. 

To be consistent with the approach 

followed in the 2011 rulemaking and for 

other energy consuming product 

rulemakings, DOE plans to estimate the 

manufacturer markup based on publicly 

available data (e.g., SEC 10–K reports, 

corporate annual reports) and feedback 

obtained from manufacturers during 

interviews. DOE also plans to estimate 

average wholesaler, mechanical 

contractor, and general contractor 

markups based on available income 

statement data (e.g., Heating, Airconditioning & Refrigeration 

Wholesalers International (HARDI) 

Profit Planning Reports, Air 

Conditioning Contractors of America 

(ACCA), U.S. Census Bureau). 

Issue C.1 DOE seeks input on 

distribution channels relevant for 

residential central air conditioners and 

heat pumps as well as the percent of 

equipment being distributed through the 

channels. 

Issue C.2 DOE seeks recent data to 

establish the markups for the parties 

involved with the distribution of the 

equipment addressed by today’s notice. 

D. Energy Use Analysis 

The purpose of the energy analysis is 

to assess the energy-savings potential of 

different product efficiencies. DOE uses 

the annual energy consumption and 

energy-savings potential in the LCC and 

PBP analyses to establish the savings in 

consumer operating costs at various 

product efficiency levels. As part of the 

energy use analysis, certain assumptions 

may be required regarding product 

application, including how and under 

what conditions the product is operated. 

DOE’s energy use analysis estimates 

the range of energy use of residential 

central air conditioner and heat pump 

products in the field, i.e., as they are 

actually used by consumers. Because 

energy use by such products varies 

greatly based on efficiency level, 

consumer usage patterns, and 

environmental attributes, DOE will 

establish a range of energy use. 

Because DOE has set regional coolingperformance standards for split system 

and single-package air conditioners as 

function of SEER and EER, DOE will 

analyze the impact of increasing SEER 

and EER on cooling energy savings. 

Issue D.1 DOE requests stakeholder 

input regarding the impact of changes in 

SEER and EER on cooling energy 

savings. 

In the 2011 Direct Final Rule, DOE 

estimated that, based on stakeholder 

input, seven-percent of central air 

conditioner and heat pump shipments 

were utilized in commercial building 

applications. DOE utilized simulations 

of a reference office building modeled 

with EnergyPlus to estimate the 

representative space-cooling and spaceheating energy consumption of central 

air conditioners and heat pumps in 

commercial buildings. For this 

rulemaking, DOE is considering using 

the same methodology to estimate 

energy use in commercial building 

applications. 

Issue D.2 DOE requests stakeholder 

comment on whether a significant 

enough percentage of residential central 

air conditioners and heat pumps are 

utilized in commercial buildings to 

warrant considering their use in 

commercial applications. 

E. Life-Cycle Cost and Payback Period 

Analysis 

The purpose of the LCC and PBP 

analysis is to analyze the effects of 

potential amended energy conservation 

standards on consumers of residential 

central air conditioner and heat pump 

products by determining how a 

potential amended standard affects the 

consumers’ operating expenses (usually 

decreased) and total installed costs 

(usually increased). 

DOE intends to analyze the potential 

for variability and uncertainty by 

performing the LCC and PBP 

calculations on a representative sample 

of households from RECS for the 

considered product classes using Monte 

Carlo simulation and probability 

distributions. The analysis results are a 

distribution of results showing the range 

of LCC savings and PBPs for a given 

efficiency level relative to the baseline 

level. DOE plans to analyze all seven 

product classes of residential central air 

conditioner and heat pump products. 

Inputs to the LCC and PBP analysis 

are categorized as: (1) Inputs for 

establishing the purchase expense, 

otherwise known as the total installed 

cost, and (2) inputs for calculating the 

operating expense. The primary inputs 

for establishing the total installed cost 

are the baseline consumer price, 

standard-level consumer price 

increases, and installation costs. 

Baseline consumer prices and standardlevel consumer price increases will be 

determined by applying markups to 

manufacturer price estimates. The 

installation cost is added to the 

consumer price to arrive at a total 

installed cost. 

In the 2011 Direct Final Rule, DOE 

derived the total installed cost from 

central air conditioner data in RS 

Means. 76 FR 37472 (June 27, 2011). 

DOE plans to use similar data sources 

for this rulemaking, with adjustments to 

reflect current-day labor and material 

prices as well as to scale installation 

cost for higher-efficiency products based 

on equipment weight. 

Issue E.1 DOE seeks input on the 

appropriateness to estimate that changes 

in installation costs will scale with 

equipment weight. 

The primary inputs for calculating the 

operating costs are product energy 

consumption, product efficiency, 

electricity and gas prices and forecasts, 

maintenance and repair costs, product 

lifetime, and discount rates. Both 

product lifetime and discount rates are 

used to calculate the present value of 

future operating expenses. 

Maintenance costs are costs 

associated with maintaining the 

operation of the product. In the 2011 

Direct Final Rule, DOE utilized sources 

of preventative maintenance pricing to 

determine maintenance costs. 76 FR 

37476 (June 27, 2011). DOE also 

assumed that such maintenance costs do 

not change with efficiency. 76 FR 

37471, 37476. 

Issue E.2 DOE seeks stakeholder 

input on the appropriateness to assume 

that changes in maintenance costs will 

be negligible for more-efficient 

products. 

Repair costs are costs associated with 

a major repair to the product. In the 

2011 Direct Final Rule, DOE determined 

the costs of major repairs (e.g., 

compressor replacement) from RS 

Means and industry literature. 76 FR 

37476 (June 27, 2011). DOE also 

assumed that repair costs vary in direct 

proportion with the product price at 

higher efficiency levels as replacement 

costs for more-efficient components are 

likely to be greater than components in 

baseline products. 76 FR 37471, 37476. 

Issue E.3 DOE seeks stakeholder 

comment on the assumption that repair 

costs vary in direct proportion to 

product price. 

DOE measures LCC and PBP impacts 

of potential standard levels relative to a 

base case that reflects the market in the 

absence of amended standards. DOE 

plans to develop market-share efficiency 

data (i.e., the distribution of product 

shipments by efficiency) for the product 

classes DOE is considering, for the year 

in which compliance with any amended 

or new standards would be required. By 

accounting for consumers who already 

purchase more efficient products, DOE 

avoids overstating the potential benefits 

from potential standards. 

Issue E.4 DOE seeks stakeholder 

input and data on the fraction of central 


rmajette on DSK2VPTVN1PROD with PROPOSALS
65608 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules 

3Available at: http://www.sba.gov/content/smallbusiness-size-standards. 

air conditioners and heat pumps that are 

sold above the minimum energy 

efficiency standards. DOE requests such 

data to be provided by product class 

and, for split system air conditioners, by 

region. DOE also requests information 

on expected trends in product efficiency 

over the next five years. 

F. Shipments Analysis 

DOE uses shipment projections by 

product class and efficiency level in its 

analysis of the national impacts of 

potential standards, as well as in the 

manufacturer impact analysis. 

In the 2011 Direct Final Rule, DOE 

developed a shipments model for 

residential central air conditioner and 

heat pump products driven by historical 

shipments data, which were used to 

build up a product stock and calibrate 

the shipments model. 76 FR 37482 (June 

27, 2011). Shipments of each product 

class were projected for two market 

sectors that use these products: 

Residential and commercial sectors; for 

three product placement channels in 

each market sector: New construction, 

existing owners, and new owners; and 

for three climatic regions: hot-dry, hothumid, and rest of the U.S., which 

correspond to the regions for which 

DOE ultimately adopted regional 

standards. 

Issue F.1 DOE seeks stakeholder 

input and data showing the distribution 

of shipments by product class, market 

sector, product placement channel, and 

climactic region. 

In the 2011 Direct Final Rule, DOE 

modeled the decision to repair or 

replace equipment for existing owners 

and the impact that decision would 

have on the shipments model. 76 FR 

37482–84. DOE investigated how 

increases in product purchase price and 

decreases in product operating costs due 

to standards impact product shipments 

due to standards. 

Issue F.2 DOE seeks input and data 

on factors that influence a consumer’s 

decisions to repair or replace failed 

products. In particular, DOE is seeking 

historical repair cost data as a function 

of efficiency. 

G. National Impact Analysis 

The purpose of the national impact 

analysis (NIA) is to estimate aggregate 

impacts of potential efficiency standards 

at the national level. Impacts that DOE 

reports include the national energy 

savings (NES) from potential standards 

and the national NPV of the total 

consumer benefits. The NIA considers 

lifetime impacts of potential standards 

on residential central air conditioner 

and heat pump products shipped in a 

30-year period that begins with the 

expected compliance date for new or 

amended standards. To develop the 

NES, DOE calculates annual energy 

consumption of products in the building 

stock for the base case and each 

standards case. To develop the national 

NPV of consumer benefits from 

potential standards, DOE calculates 

national annual energy expenditures 

and annual product expenditures for the 

base case and the standards cases. DOE 

calculates total annual energy 

expenditures using data on annual 

energy consumption in each case, 

forecasted average annual energy prices, 

and shipment projections. The 

difference each year between operating 

cost savings and increased product 

expenditures is the net savings or net 

costs. 

A key component of DOE’s estimates 

of NES and NPV is the product energy 

efficiency forecasted over time for the 

base case and for each of the standards 

cases. In the 2011 Direct Final Rule, 

DOE based projections of base-case 

shipment-weighted efficiency (SWEF) 

for the single-packaged and split system 

air conditioner and heat pump product 

classes off SWEF growth rates 

determined from historical data 

provided by AHRI. 76 FR 37484–86 

(June 27, 2011). Since DOE only 

received efficiency data at the national 

level, it assumed that the efficiency 

distributions and trends developed for 

the entire Nation are also representative 

at the regional level (i.e., efficiency 

distributions and trends do not vary by 

region). For this rulemaking, DOE plans 

on considering recent trends in 

efficiency and input from stakeholders 

to update product energy efficiency 

forecasts, and maintain the assumption 

that efficiency trends developed for the 

entire Nation are also representative at 

the regional level. 

Issue G.1 DOE seeks stakeholder 

input and historical SWEF data for 

residential central air conditioner and 

heat pumps by product class and by 

region. 

H. Manufacturer Impact Analysis 

The purpose of the manufacturer 

impact analysis (MIA) is to estimate the 

financial impact of potential energy 

conservation standards on 

manufacturers of residential central air 

conditioners and heat pumps and to 

evaluate the potential impact of such 

standards on employment and 

manufacturing capacity. The MIA 

includes both quantitative and 

qualitative aspects. The quantitative 

part of the MIA primarily relies on the 

Government Regulatory Impact Model 

(GRIM), an industry cash-flow model 

used to estimate a range of potential 

impacts on manufacturer profitability. 

The qualitative part of the MIA 

addresses a proposed standard’s 

potential impacts on manufacturing 

capacity and industry competition, as 

well as factors such as product 

characteristics, impacts on particular 

subgroups of firms, and important 

market and product trends. 

As part of the MIA, DOE intends to 

analyze impacts of potential energy 

conservation standards on small 

business manufacturers of covered 

products. DOE intends to use the Small 

Business Administration’s small 

business size standards to determine 

whether manufacturers qualify as small 

businesses. The size standards are listed 

by North American Industry 

Classification System (NAICS) code and 

industry description.3 Manufacturing of 

residential central air conditioners and 

heat pumps is classified under NAICS 

333415, ‘‘Air-Conditioning and Warm 

Air Heating Equipment and Commercial 

and Industrial Refrigeration Equipment 

Manufacturing.’’ The SBA sets a 

threshold of 750 employees or less for 

an entity to be considered as a small 

business for this category. This 750- 

employee threshold would include all 

employees in a business’s parent 

company and any other subsidiaries. 

DOE conducted a market survey using 

publicly available information to 

identify potential small manufacturers. 

DOE’s used DOE’s Compliance 

Certification Management System 

(CCMS), industry trade association 

membership directories (including 

AHRI), individual company Web sites, 

and market research tools (e.g., Hoovers 

reports) to create a list of companies that 

manufacture or sell products covered by 

this rulemaking. DOE has initially 

identified seven domestic small 

businesses that manufacture residential 

central air conditioners and heat pumps. 

The small businesses identified are: 

• Aerosys, Inc. 

• Bard Manufacturing Company 

• First Co. 

• Heat Controller, Inc. 

• National Refrigeration and Air 

Conditioning Products, Inc. 

• Style Crest Enterprises, Inc. 

• Unico, Inc. 

Issue H.1 DOE requests comment on 

what small business manufacturers of 

residential central air conditioners and 

heat pumps have not been identified in 

the above list that it should consider in 

its analysis. 

I. Submission of Comments 

DOE invites all interested parties to 

submit in writing by December 5, 2014, 


rmajette on DSK2VPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Proposed Rules 65609 

1Web IV is short for Webcasting IV. This 

proceeding is the fourth since the compulsory 

license for webcasting was established. 

comments and information on matters 

addressed in this notice and on other 

matters relevant to DOE’s consideration 

of new or amended energy 

conservations standards for residential 

central air conditioners and heat pumps. 

After the close of the comment period, 

DOE will begin collecting data, 

conducting the analyses, and reviewing 

the public comments, as needed. These 

actions will be taken to aid in the 

development of a NOPR for residential 

central air conditioner and heat pump 

products if DOE decides to amend the 

standards for such products. 

DOE considers public participation to 

be a very important part of the process 

for developing test procedures and 

energy conservation standards. DOE 

actively encourages the participation 

and interaction of the public during the 

comment period in each stage of the 

rulemaking process. Interactions with 

and between members of the public 

provide a balanced discussion of the 

issues and assist DOE in the rulemaking 

process. Anyone who wishes to be 

added to the DOE mailing list to receive 

future notices and information about 

this rulemaking should contact Ms. 

Brenda Edwards at (202) 586–2945, or 

via email at Brenda.Edwards@ee.doe.

gov. 

Issued in Washington, DC, on October 30, 

2014. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

[FR Doc. 2014–26247 Filed 11–4–14; 8:45 am] 

BILLING CODE 6450–01–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 380 

[Docket No. 2014–CRB–0001–WR (2016– 

2020) (Web IV)] 

Digital Performance Right in Sound 

Recordings and Ephemeral 

Recordings 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Proposed rule. 

SUMMARY: The Copyright Royalty Judges 

are publishing for comment proposed 

regulations governing the rates and 

terms for the digital performances of 

sound recordings by noncommercial 

educational webcasters and for the 

making of ephemeral recordings 

necessary for the facilitation of such 

transmissions for the period 

commencing January 1, 2016, and 

ending on December 31, 2020. 

DATES: Comments and objections, if any, 

are due no later than November 26, 

2014. 

ADDRESSES: The proposed rule is posted 

on the agency’s Web site (www.loc.gov/ 

crb). Submit electronic comments 

online at http://www.regulations.gov or 

via email to crb@loc.gov. Those who 

chose not to submit comments 

electronically should see How to Submit 

Comments in the SUPPLEMENTARY

INFORMATION section below for physical 

addresses and further instructions. 

FOR FURTHER INFORMATION CONTACT: 

Richard Strasser, Senior Attorney, or 

Kimberly Whittle, Attorney Advisor, by 

telephone at (202) 707–7658, or by 

email at crb@loc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On October 7, 2014, the Copyright 

Royalty Judges received a joint motion 

from SoundExchange, Inc. and College 

Broadcasters, Inc. to adopt a partial 

settlement of their interests regarding 

Web IV rates and terms for 2016–2020.1

Joint Motion to Adopt Partial 

Settlement, Docket No. 2014–CRB– 

0001–WR (2016–2020). Their interests 

concern the rule setting copyright 

royalty minimum fees and terms that 

the Judges will establish for compulsory 

copyright licenses for certain internet 

transmissions of sound recordings by 

college radio stations and other 

noncommercial educational webcasters 

for the period from January 1, 2016, 

through December 31, 2020. 

SoundExchange, Inc. represents the 

interests of sound recording copyright 

owners and performers. College 

Broadcasters, Inc. represents the 

interests of users of the copyrighted 

material which users include college, 

university and high school radio and 

television stations and other electronic 

media organizations. The Judges hereby 

publish the proposal and request 

comments from the public. 

Section 114 of the Copyright Act, title 

17 of the United States Code, provides 

a statutory license that allows for the 

public performance of sound recordings 

by means of a digital audio transmission 

by, among others, eligible 

nonsubscription transmission services 

and new subscription services. 

17 U.S.C. 114(f). For purposes of the 

section 114 license, an ‘‘eligible 

nonsubscription transmission’’ is a 

noninteractive digital audio 

transmission that does not require a 

subscription for receiving the 

transmission. The transmission must 

also be made as part of a service that 

provides audio programming consisting 

in whole or in part of performances of 

sound recordings the purpose of which 

is to provide audio or other 

entertainment programming, but not to 

sell, advertise, or promote particular 

goods or services. See 17 U.S.C. 

114(j)(6). A ‘‘new subscription service’’ 

is a ‘‘service that performs sound 

recordings by means of noninteractive 

subscription digital audio transmissions 

and that is not a preexisting 

subscription or preexisting satellite 

digital audio radio service.’’ 17 U.S.C. 

114(j)(8). 

Services using the section 114 license 

may need to make one or more 

temporary or ‘‘ephemeral’’ copies of a 

sound recording in order to facilitate the 

transmission of that recording. The 

section 112 statutory license allows for 

the making of these ephemeral 

reproductions. 17 U.S.C. 112(e). 

Chapter 8 of the Copyright Act 

requires the Copyright Royalty Judges 

(‘‘Judges’’) to conduct proceedings every 

five years to determine the rates and 

terms for the sections 114 and 112 

statutory licenses. 17 U.S.C. 801(b)(1), 

804(b)(3)(A). The current proceeding 

commenced in January 2014 for rates 

and terms that will become effective on 

January 1, 2016, and end on December 

31, 2020. Pursuant to section 

804(b)(3)(A), the Judges published in the 

Federal Register a notice commencing 

the proceeding and requesting that 

interested parties submit their petitions 

to participate. 79 FR 412 (January 3, 

2014). The following parties submitted 

Petitions to Participate: 8tracks, Inc.; 

AccuRadio, LLC; Amazon.com, Inc.; 

Apple Inc; Beats Music, LLC; Clear 

Channel; CMN, Inc.; College 

Broadcasters, Inc. (CBI); 

CustomChannels.net, LLC; Digital 

Media Association (DiMA); Digitally 

Imported, Inc.; Educational Media 

Foundation; Feed Media, Inc.; Geo 

Music Group; Harvard Radio 

Broadcasting Inc. (WHRB); idobi 

Network; Intercollegiate Broadcasting 

System, Inc. (IBS); Music Reports Inc.; 

National Association of Broadcasters 

(NAB); National Music Publishers 

Association (NMPA); National Public 

Radio (NPR); National Religious 

Broadcasters Noncommercial Music 

License Committee (NRBNMLC); 

Pandora Media Inc.; Rhapsody 

International, Inc.; Sirius XM Radio Inc.; 


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