14368 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Proposed Rules 

PART 418—RECALLS 

Sec. 

418.1 [Reserved] 

418.2 Notification. 

418.3 Preparation and maintenance of 

current, written recall procedures. 

418.4 Records. 

Authority: 7 U.S.C. 450; 21 U.S.C. 451– 

470, 601–695; 7 CFR 2.18, 2.53. 

§ 418.1 [Reserved] 

§ 418.2 Notification. 

Each official establishment shall 

promptly notify the local FSIS District 

Office (see 9 CFR 300.3(c)) within 48 

hours of learning or determining that an 

adulterated or misbranded meat, meat 

food, poultry, or poultry product 

received by or originating from the 

official establishment has entered 

commerce, if the official establishment 

believes or has reason to believe that 

this has happened. The official 

establishment shall inform the District 

Office of the type, amount, origin, and 

destination of the adulterated or 

misbranded product. 

§ 418.3 Preparation and maintenance of 

current, written recall procedures. 

Each official establishment shall 

prepare and maintain written 

procedures for the recall of any meat, 

meat food, poultry, and poultry product 

produced and shipped by the official 

establishment for use should it become 

necessary for the official establishment 

to remove product from commerce. 

These written procedures shall specify 

how the official establishment will 

decide whether to conduct a product 

recall, and how the establishment will 

effect the recall, should it decide that 

one is necessary. 

§ 418.4 Records. 

All records, including records 

documenting procedures required by 

this part, shall be available for official 

review and copying. 

Done in Washington, DC, on March 19, 

2010. 

Alfred V. Almanza, 

Administrator. 

[FR Doc. 2010–6629 Filed 3–24–10; 8:45 am] 

BILLING CODE 3410–DM–P 

DEPARTMENT OF ENERGY 

10 CFR Part 431 

[Docket No. EERE–2008–BT–STD–0006] 

RIN 1904–AB47 

Energy Conservation Standards for 

Residential Central Air Conditioners 

and Heat Pumps: Public Meeting and 

Availability of the Preliminary 

Technical Support Document 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice of public meeting and 

availability of preliminary technical 

support document. 

SUMMARY: The U.S. Department of 

Energy (DOE) will hold a public meeting 

to discuss and receive comments on the 

product classes that DOE plans to 

analyze for purposes of establishing 

energy conservation standards for 

residential central air conditioners and 

heat pumps; the analytical framework, 

models, and tools that DOE is using to 

evaluate amended standards for these 

products; the results of preliminary 

analyses performed by DOE for these 

products; and potential energy 

conservation standard levels derived 

from these analyses that DOE could 

consider for these products. DOE also 

encourages written comments on these 

subjects. DOE has prepared a 

preliminary technical support document 

(TSD), which is available at: 

http://www1.eere.energy.gov/ 

buildings/appliance_standards/ 

residential/central_ac_hp.html. 

DATES: DOE will hold a public meeting 

on Wednesday, May 5, 2010, from 9 

a.m. to 5 p.m. in Washington, DC. Any 

person requesting to speak at the public 

meeting should submit such request, 

along with an electronic copy of the 

statement to be given at the public 

meeting, before 4 p.m., Wednesday, 

April 21, 2010. Written comments are 

welcome, especially following the 

public meeting, and should be 

submitted by May 10, 2010. 

ADDRESSES: The public meeting held at 

the U.S. Department of Energy, Forrestal 

Building, Room GE–086, 1000 

Independence Avenue, SW., 

Washington, DC 20585–0121. Please 

note that foreign nationals participating 

in the public meeting are subject to 

advance security screening procedures. 

If a foreign national wishes to 

participate in the public meeting, please 

inform DOE of this fact as soon as 

possible by contacting Ms. Brenda 

Edwards at (202) 586–2945 so that the 

necessary procedures can be completed. 

Interested persons may submit 

comments, identified by docket number 

EERE–2008–BT–STD–0006, by any of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov Follow the 

instructions for submitting comments. 

• E-mail: 

Brenda.Edwards@ee.doe.gov Include 

EERE–2008–BT–STD–0006 in the 

subject line of the message. 

• Postal Mail: Ms. Brenda Edwards, 

U.S. Department of Energy, Building 

Technologies Program, Mailstop EE–2J, 

Public Meeting for Residential Central 

Air Conditioners and Heat Pumps, 

EERE–2008–BT–STD–0006, 1000 

Independence Avenue, SW., 

Washington, DC 20585–0121. 

Telephone (202) 586–2945. 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. Telephone (202) 

586–2945. Please submit one signed 

paper original. 

Instructions: All submissions must 

include the agency name and docket 

number. 

Docket: For access to the docket to 

read background documents or a copy of 

the transcript of the public meeting or 

comments received, go to the U.S. 

Department of Energy, Sixth Floor, 950 

L’Enfant Plaza, SW., Washington, DC 

20024, (202) 586–2945, between 9 a.m. 

and 4 p.m., Monday through Friday, 

except Federal holidays. Please call Ms. 

Brenda Edwards at (202) 586–2945 for 

additional information regarding 

visiting the Resource Room. 

FOR FURTHER INFORMATION CONTACT: 

Direct requests for additional 

information to Mr. Wes Anderson, U.S. 

Department of Energy, Office of Energy 

Efficiency and Renewable Energy, 

Building Technologies, EE–2J, 1000 

Independence Avenue, SW., 

Washington, DC 20585–0121, (202) 586– 

7335. E-mail: 

Wes.Anderson@ee.doe.gov. In the Office 

of General Counsel, contact Ms. 

Elizabeth Kohl, U.S. Department of 

Energy, Office of General Counsel, GC– 

71, 1000 Independence Avenue, SW., 

Washington, DC 20585, (202) 586–7796. 

E-mail: Elizabeth.Kohl@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

A. Statutory Authority 

Part A of Title III of the Energy Policy 

and Conservation Act (42 U.S.C. 6291 et 

seq.) (EPCA) established the Energy 

Conservation Program for Consumer 

Products Other than Automobiles. 

Amendments expanded Title III of 

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Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Proposed Rules 14369 

EPCA to include certain commercial 

and industrial equipment, including 

residential central air conditioners and 

heat pumps. (42 U.S.C. 6292(3)) In 

particular, the Energy Policy Act of 

1992, Pub. L. 102–486 amended EPCA 

to direct DOE to prescribe energy 

conservation standards for those 

residential central air conditioners and 

heat pumps for which the Secretary 

determines that standards ‘‘would be 

technologically feasible and 

economically justified, and would result 

in significant energy savings.’’ (42 U.S.C. 

6295(o)(2)(A), (o)(3)) 

DOE must design each standard for 

these products to: (1) Achieve the 

maximum improvement in energy 

efficiency that is technologically 

feasible and economically justified, and 

(2) result in significant conservation of 

energy. (42 U.S.C. 6295(o)(2)(A)) To 

determine whether a proposed standard 

is economically justified, DOE must, 

after receiving comments on the 

proposed standard, determine whether 

the benefits of the standard exceed its 

burdens to the greatest extent 

practicable, considering the following 

seven factors: 

1. The economic impact of the 

standard on manufacturers and 

consumers of products subject to the 

standard; 

2. The savings in operating costs 

throughout the estimated average life of 

the covered products in the type (or 

class) compared to any increase in the 

price, initial charges, or maintenance 

expenses for the covered products 

which are likely to result from the 

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 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 

conservation; and 

7. Other factors the Secretary [of 

Energy] considers relevant. 

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

Prior to proposing a standard, DOE 

typically seeks public input on the 

analytical framework, models, and tools 

that will be used to evaluate standards; 

the results of preliminary analyses; and 

potential energy conservation standard 

levels derived from these analyses. DOE 

is publishing this document to 

announce the availability of the 

preliminary TSD, which details the 

preliminary analyses, discusses the 

comments on the framework document, 

and summarizes the preliminary results. 

In addition, DOE is announcing a public 

meeting to solicit feedback from 

interested parties on its analytical 

framework, models, and preliminary 

results. 

B. History of Standards Rulemaking for 

Residential Central Air Conditioners 

and Heat Pumps 

1. Background 

Part A of Title III of the Energy Policy 

and Conservation Act of 1975 (EPCA), 

Pub. L. 94163, as amended, created the 

‘‘Energy Conservation Program for 

Consumer Products Other Than 

Automobiles.’’ (42 U.S.C. 6291–6309) 

This program includes residential 

central air conditioners and central airconditioning heat pumps (hereafter 

referred to as central air conditioners 

and heat pumps). (42 U.S.C. 6292(3)) 

The National Appliance Energy 

Conservation Act of 1987 (NAECA), 

Pub. L. 100–12, established energy 

conservation standards for central air 

conditioners and heat pumps as well as 

requirements for determining whether 

these standards should be amended. 

Specifically, NAECA established energy 

conservation standards for central air 

conditioners and heat pumps in the 

form of minimum limits on the seasonal 

energy efficiency ratio (SEER) for air 

conditioners and for heat pumps 

operating in the cooling mode, and on 

the heating seasonal performance factor 

(HSPF) for heat pumps operating in the 

heating mode. (42 U.S.C. 6291(22)(C), 

6295(d)) NAECA established the 

following standards for central air 

conditioners and heat pumps: 10.0 

SEER/6.8 HSPF for split systems, and 

9.7 SEER/6.6 HSPF for single-package 

systems. ‘‘Split systems’’ consist of 

outdoor and indoor units which are 

‘‘split’’ from each other and connected 

via refrigerant tubing. The outdoor unit 

resides outdoors and consists of a 

compressor, heat exchanger coil, fan, 

and fan motor. The indoor unit, 

consisting of a heat exchanger coil, 

resides either within a furnace or 

blower-coil unit, and conditioned air is 

conveyed to the home via ducts. In 

‘‘single-package systems,’’ all the 

components that comprise a split 

system, including the air circulation 

products, are placed in a single cabinet. 

The single-package system resides 

outdoors, and conditioned air is 

conveyed to the home via ducts. These 

standards became effective January 1, 

1992 for split systems; standards for 

single-package systems came into effect 

one year later. (42 U.S.C. 6295(d)(1), 

(d)(2)). NAECA also required that DOE 

conduct two cycles of rulemakings to 

determine if more stringent standards 

are economically justified and 

technologically feasible. (42 U.S.C. 

6295(d)(3)) 

Pursuant to 42 U.S.C. 6295(d)(3)(A), 

DOE published a final rule in the 

Federal Register on January 22, 2001 

(2001 final rule), amending the energy 

conservation standards for central air 

conditioners and heat pumps. 66 FR 

7170. The amended standards would 

have increased the minimum SEER to 

13 for all central air conditioners and 

heat pumps, with a corresponding HSPF 

of 7.7. Id. 

Shortly after the publication of the 

2001 final rule, DOE postponed the 

effective date of the rule to reconsider 

the amended standards for central air 

conditioners and heat pumps. DOE then 

promulgated a 12 SEER and 7.4 HSPF 

standard in a final rule published May 

23, 2002, 67 FR 36368. The U.S. Court 

of Appeals for the Second Circuit, 

however, ruled that DOE had 

promulgated the 2002 final rule 

improperly. Natural Resources Defense 

Council v. Abraham, 355 F.3d 179 (2d 

Cir. 2004). As a result, DOE published 

a final rule on August 17, 2004, which 

established a 13 SEER standard for all 

central air conditioners and heat pumps, 

excluding through-the-wall and spaceconstrained systems. 69 FR 50997. This 

final rule constituted the first cycle of 

revised standards for central air 

conditioners and heat pumps. 

In separate court proceedings (New 

York versus Bodman, No. 05 Civ. 7807 

(S.D.N.Y. filed Sept. 7, 2005) and 

Natural Resources Defense Council 

versus Bodman, No. 05 Civ. 7808 

(S.D.N.Y. filed Sept. 7, 2005) the 

resulting consent decree (filed 

November 6, 2006) adopted the 

schedule for central air conditioners and 

heat pumps that DOE published in its 

January 2006 report to Congress, 

requiring DOE to publish a final rule by 

June 30, 2011, with a compliance date 

of June 30, 2016. This final rule would 

constitute the second cycle of revised 

standards for central air conditioners 

and heat pumps. 

More recently, EPCA was amended by 

the Energy Independence and Security 

Act of 2007 (EISA 2007), Pub. L. 

110140. In Section 306 of EISA 2007, 

Congress directed DOE to: (1) Amend 

test procedures for all covered products 

(including central air conditioners and 

heat pumps) to include standby-mode 

and off-mode energy consumption 

unless current test procedures already 

fully account for an incorporate standby 

mode and off mode energy consumption 

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14370 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Proposed Rules 

1For the notice of proposed rulemaking, DOE will 

also develop an economic spreadsheet that will 

evaluate the financial impacts on central air 

conditioners and heat pump manufacturers that 

may result from a standard level. 

or an integrated test procedure is 

technically infeasible, in which case 

DOE must prescribe a separate standby 

mode and off mode energy use test 

procedure, if technically feasible (42 

U.S.C. 6295(gg)(2); and (2) incorporate 

standby mode and off mode energy use 

into any new or amended standard 

published after July 1, 2010. (42 U.S.C. 

6295(gg)(3)) Because this energy 

conservation standards rulemaking for 

central air conditioners and heat pumps 

will be completed in 2011, the 

requirement to incorporate standbymode and off-mode energy use into the 

energy conservation standards analysis 

applies. 

2. Current Rulemaking Process 

DOE prepared and published a notice 

announcing the availability of the 

framework document, ‘‘Energy 

Conservation Standards Rulemaking 

Framework Document for Residential 

Central Air Conditioners and Heat 

Pumps,’’ and a public meeting to discuss 

the proposed analytical framework for 

the rulemaking. 73 FR 32243 (June 6, 

2008). DOE also posted the framework 

document on its Web site describing the 

procedural and analytical approaches 

DOE anticipated using to evaluate the 

establishment of energy conservation 

standards for central air conditioners 

and heat pumps. This document is 

available at: http:// 

www1.eere.energy.gov/buildings/ 

appliance_standards/residential/pdfs/ 

cac_framework.pdf. DOE held a public 

meeting on June 12, 2008, to describe 

the various rulemaking analyses DOE 

would conduct, such as the engineering 

analysis, the life-cycle cost (LCC) and 

payback period (PBP) analyses, and the 

national impact analysis (NIA); the 

methods for conducting them; and the 

relationship among the various 

analyses. Manufacturers, trade 

associations, and environmental 

advocates attended the meeting. The 

participants discussed nine major 

issues: the scope of covered product 

classes, definitions, test procedures, 

DOE’s engineering analysis, life-cycle 

costs, efficiency levels, regional 

standards, efficiency metrics, and 

energy savings. 

DOE developed two spreadsheets for 

analyzing the economic impacts of 

standard levels—one that calculates 

LCC and PBP, and one that calculates 

national impacts.1 DOE prepared an 

LCC and PBP spreadsheet that 

calculates results for each of the 

representative units analyzed. 

This spreadsheet includes product 

efficiency data that allows users to 

determine LCC savings and PBPs based 

on average values, and can also be 

combined with Crystal Ball (a 

commercially available software 

program) to generate a Monte Carlo 

simulation, incorporating uncertainty 

and variability considerations. The 

second economic spreadsheet calculates 

the impacts of candidate standard levels 

on shipments and the national energy 

savings (NES) and net present value 

(NPV) at various standard levels. There 

is one national impact analysis 

spreadsheet for all central air 

conditioners and heat pumps. DOE has 

posted both economic spreadsheets on 

its Web site for review and comment by 

interested parties. 

Comments received since publication 

of the framework document have helped 

DOE identify and resolve issues 

involved in the preliminary analyses. 

Chapter 2 of the preliminary TSD, 

available at the Web link provided in 

the SUMMARY section of this notice, 

summarizes and addresses the 

comments received in response to the 

framework document. 

C. Specific Issues for Which DOE Is 

Seeking Comment 

DOE is specifically presenting two 

issues regarding the energy conservation 

standards rulemaking for residential 

central air conditioners and heat pumps 

in today’s notice. There are additional 

issues presented throughout the 

preliminary TSD for which DOE is also 

seeking comment. DOE presents the 

analysis methodologies throughout the 

preliminary TSD and summarizes the 

issues for which DOE seeks comment at 

the end of the executive summary of the 

preliminary TSD. 

1. Consensus Agreement 

On January 26, 2010, the AirConditioning, Heating and Refrigeration 

Institute (AHRI), American Council for 

an Energy Efficient Economy (ACEEE), 

Alliance to Save Energy (ASE), 

Appliance Standards Awareness Project 

(ASAP), Natural Resources Defense 

Council (NRDC), and Northeast Energy 

Efficiency Partnerships (NEEP) 

submitted a joint comment (hereafter 

referred to as Joint Comment 5) to DOE 

recommending minimum energy 

conservation standards for residential 

central air conditioners, heat pumps, 

and furnaces. (AHRI, ACEEE, ASE, 

ASAP, NRDC, and NEEP, Joint 

Comment 5, No. #47 at pp. 1–33) The 

Joint Comment 5 stated the original 

consensus agreement was completed on 

October 13, 2009 and had 15 signatories, 

including AHRI, ACEEE, ASE, NRDC, 

ASAP, NEEP, Northwest Power and 

Conservation Council (NPCC), 

California Energy Commission (CEC), 

Bard Manufacturing Company Inc., 

Carrier Residential and Light 

Commercial Systems, Goodman Global 

Inc., Lennox Residential, Mitsubishi 

Electric & Electronics USA, National 

Comfort Products, and Trane 

Residential. 

The Joint Comment 5 recommends 

standards that divide the nation into 

three regions for residential central air 

conditioners and two regions for 

residential furnaces based on the 

population-weighted number of heating 

degree days (HDD) of each State. States 

with 5000 HDD or more are considered 

as part of the northern region, while 

States with less than 5000 HDD are 

considered part of the southern region. 

For residential central air conditioners, 

the Joint Comment 5 establishes a third 

region—the ‘‘southwest’’ region—which 

is comprised of California, Arizona, 

New Mexico, and Nevada. For furnaces, 

the southwest region States are included 

in the southern region. The compliance 

date specified in the agreement is May 

1, 2013 for non-weatherized furnaces 

and January 1, 2015 for weatherized 

furnaces. 

In addition to the preliminary TSD, 

DOE is making available on its Web site 

the Joint comment 5, which can be 

found: http://www1.eere.energy.gov/ 

buildings/appliance_standards/ 

residential/furnaces_boilers.html. 

DOE specifically invites comment 

from interested parties on the Joint 

Comment 5. In particular, DOE is 

interested in comments relating to the 

proposed SEER, HSPF, and EER 

requirements, the proposed regional 

divisions, and the proposed compliance 

dates for residential central air 

conditioners and heat pumps. 

2. Combined Rulemaking Approach 

DOE is currently conducting or 

planning separate standards 

rulemakings for three interrelated 

products: (1) Central air conditioners 

and heat pumps; (2) gas furnaces; and 

(3) furnace fans. These rulemakings are 

subject to the following deadlines: (1) 

June 30, 2011 for residential central air 

conditioners and heat pumps, required 

by consent decree; (2) May 1, 2011 for 

furnaces, required as a condition of the 

remand of a November 2007 final rule 

amending the minimum energy 

conservation standards for gas furnaces; 

and (3) January 1, 2013 for furnace fans, 

required by amendments to EPCA in 

EISA 2007. (42 U.S.C. 6295(f)(4)(D)) 

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Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Proposed Rules 14371 

2For past rulemakings under EPCA section 325, 

DOE was required to issue an advanced notice of 

proposed rulemaking (ANOPR) following 

publication of the framework document. EISA 2007 

eliminated this requirement. Given EISA 2007’s 

revisions to EPCA, DOE is now using an alternative 

process to provide the same information and ability 

for public comment as the ANOPR, but without 

publication of analyses in the Federal Register. 

Rather than analyze each set of 

products separately, DOE is considering 

combining the analyses to examine how 

the interaction between the three 

products impacts the cost to consumers 

and the energy savings resulting from 

potential amended standards. If DOE 

conducts such an analysis and the 

results indicate that a combined 

approach yields additional savings 

beyond what can be achieved by 

considering each product separately, 

DOE may decide to pursue a combined 

standards rulemaking that addresses all 

three products, or two of the three 

products (i.e., central air conditioners 

and heat pumps and furnaces), 

simultaneously. If such a combined 

rulemaking is pursued, DOE would be 

required to publish the combined final 

rule by May 1, 2011 in order to comply 

with the conditions of the remand 

agreement for residential furnaces. DOE 

is seeking comment from interested 

parties relating to a combined 

rulemaking regarding energy 

conservation standards for residential 

central air conditioners and heat pumps, 

residential furnaces, and furnace fans. 

D. Summary of the Analyses Performed 

by DOE 

For central air conditioners and heat 

pumps currently under consideration, 

DOE conducted in-depth technical 

analyses in the following areas: (1) 

Engineering, (2) energy-use 

characterization, (3) markups to 

determine product price, (4) life-cycle 

cost and payback period, and (5) 

national impacts. These analyses 

resulted in a preliminary TSD that 

presents the methodology and results of 

each of these analyses. The preliminary 

TSD is available at the Web address 

given in the SUMMARY section of this 

notice. The analyses are described in 

more detail below. 

DOE also conducted several other 

analyses that either support the five 

major analyses or are preliminary 

analyses that will be expanded in the 

notice of proposed rulemaking (NOPR).2

These analyses include the market and 

technology assessment, the screening 

analysis, which contributes to the 

engineering analysis, and the shipments 

analysis, which contributes to the NIA. 

In addition to these analyses, DOE has 

begun some preliminary work on the 

manufacturer impact analysis and 

identified the methods to be used for the 

LCC subgroup analysis, the 

environmental assessment, the 

employment analysis, the regulatory 

impact analysis, and the utility impact 

analysis. DOE will expand on these 

analyses in the NOPR. 

Engineering Analysis 

The engineering analysis establishes 

the relationship between the 

manufacturer selling price and 

efficiency of a product DOE is 

evaluating for energy conservation 

standards. This relationship serves as 

the basis for cost-benefit calculations for 

individual consumers, manufacturers, 

and the nation. The engineering analysis 

identifies a representative baseline 

product, which is the starting point for 

analyzing technologies that provide 

energy efficiency improvements. 

Baseline product refers to a model or 

models having features and technologies 

typically found in the minimum 

efficiency products currently offered for 

sale. The baseline model in each 

product class represents the 

characteristics of certain central air 

conditioners and heat pumps. After 

identifying the baseline models, DOE 

estimated manufacturer selling prices by 

using a consistent methodology and 

pricing scheme including material and 

labor costs, and manufacturer’s 

markups. In this way, DOE developed 

‘‘manufacturer selling prices’’ for the 

baseline and more efficient motor 

designs. Later, in its Markups to 

Determine Installed Price analysis, DOE 

converts these manufacturer selling 

prices into installed prices. In the 

preliminary TSD, section 2.4 of chapter 

2 and chapter 5 each provide detail on 

the engineering analysis and the 

derivation of the manufacturer selling 

prices. 

Markups To Determine Installed Price 

DOE derives the installed prices for 

products based on manufacturer 

markups, retailer markups, distributor 

markups, contractor markups, builder 

markups, and sales taxes. In deriving 

these markups, DOE has determined the 

distribution channels for product sales, 

the markup associated with each party 

in the distribution channels, and the 

existence and magnitude of differences 

between markups for baseline products 

(baseline markups) and for moreefficient products (incremental 

markups). DOE calculates both overall 

baseline and overall incremental 

markups based on the product markups 

at each step in the distribution channel. 

The overall incremental markup relates 

the change in the manufacturer sales 

price of higher efficiency models (the 

incremental cost increase) to the change 

in the retailer or distributor sales price. 

In the preliminary TSD, section 2.5 of 

chapter 2 and chapter 6 each provide 

detail on the estimation of markups. 

Energy Use Characterization 

The energy use characterization 

provides estimates of annual energy 

consumption for central air conditioners 

and heat pumps, which DOE uses in the 

LCC and PBP analyses and the NIA. 

DOE developed energy consumption 

estimates for all of the product classes 

analyzed in the engineering analysis, as 

the basis for its energy use estimates. In 

the preliminary TSD, section 2.6 of 

chapter 2 and chapter 7 each provide 

detail on the energy use 

characterization. 

Life-Cycle Cost and Payback Period 

Analyses 

The LCC and PBP analyses determine 

the economic impact of potential 

standards on individual consumers. The 

LCC is the total consumer expense for 

a product over the life of the product. 

The LCC analysis compares the LCCs of 

products designed to meet possible 

energy conservation standards with the 

LCCs of the products likely to be 

installed in the absence of standards. 

DOE determines LCCs by considering 

(1) total installed cost to the purchaser 

(which consists of manufacturer selling 

price, sales taxes, distribution chain 

markups, and installation cost); (2) the 

operating expenses of the products 

(energy use and maintenance); (3) 

product lifetime; and (4) a discount rate 

that reflects the real consumer cost of 

capital and puts the LCC in presentvalue terms. The PBP represents the 

number of years needed to recover the 

increase in purchase price (including 

installation cost) of more efficient 

products through savings in the 

operating cost of the product. It is the 

change in total installed cost due to 

increased efficiency divided by the 

change in annual operating cost from 

increased efficiency. In the preliminary 

TSD, section 2.7 of chapter 2 and 

chapter 8 each provide detail on the 

LCC and PBP analyses. 

National Impact Analysis 

The NIA estimates the NES and the 

NPV of total consumer costs and savings 

expected to result from new standards at 

specific efficiency levels (referred to as 

candidate standard levels). DOE 

calculated NES and NPV for each level 

for each candidate standard for central 

air conditioners and heat pumps as the 

difference between a base-case forecast 

(without new standards) and the 

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standards case forecast (with standards). 

DOE determined national annual energy 

consumption by multiplying the 

number of units in use (by vintage) by 

the average unit energy consumption 

(also by vintage). Cumulative energy 

savings are the sum of the annual NES 

determined over a specified time period. 

The national NPV is the sum over time 

of the discounted net savings each year, 

which consists of the difference 

between total operating cost savings and 

increases in total installed costs. Critical 

inputs to this analysis include 

shipments projections, retirement rates 

(based on estimated product lifetimes), 

and estimates of changes in shipments 

and retirement rates in response to 

changes in product costs due to 

standards. In the preliminary TSD, 

section 2.8 of chapter 2 and chapter 10 

each provide detail on the NIA. 

DOE consulted with interested parties 

as part of its process for conducting all 

of the analyses and invites further input 

from the public on these topics. The 

preliminary analytical results are 

subject to revision following review and 

input from the public. A complete and 

revised TSD will be made available 

upon issuance of a NOPR. The final rule 

will contain the final analysis results 

and be accompanied by a final rule TSD. 

DOE encourages those who wish to 

participate in the public meeting to 

obtain the preliminary TSD from DOE’s 

Web site and to be prepared to discuss 

its contents. A copy of the preliminary 

TSD is available at the Web address 

given in the SUMMARY section of this 

notice. However, public meeting 

participants need not limit their 

comments to the topics identified in the 

preliminary TSD. DOE is also interested 

in receiving views concerning other 

relevant issues that participants believe 

would affect energy conservation 

standards for these products or that DOE 

should address in the NOPR. 

Furthermore, DOE welcomes all 

interested parties, regardless of whether 

they participate in the public meeting, 

to submit in writing by May 10, 2010, 

comments and information on matters 

addressed in the preliminary TSD and 

on other matters relevant to 

consideration of standards for central air 

conditioners and heat pumps. 

The public meeting will be conducted 

in an informal, conference style. A court 

reporter will be present to record the 

minutes of the meeting. There shall be 

no discussion of proprietary 

information, costs or prices, market 

shares, or other commercial matters 

regulated by United States antitrust 

laws. 

After the public meeting and the 

expiration of the period for submitting 

written statements, DOE will consider 

all comments and additional 

information that is obtained from 

interested parties or through further 

analyses, and it will prepare a NOPR. 

The NOPR will include proposed energy 

conservation standards for the products 

covered by the rulemaking, and 

members of the public will be given an 

opportunity to submit written and oral 

comments on the proposed standards. 

Issued in Washington, DC, on February 22, 

2010. 

Cathy Zoi, 

Assistant Secretary, Energy Efficiency and 

Renewable Energy. 

[FR Doc. 2010–6595 Filed 3–24–10; 8:45 am] 

BILLING CODE 6450–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Parts 701, 723 and 742 

RIN 3133–AD68 

Fixed Assets, Member Business 

Loans, and Regulatory Flexibility 

Program 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: NCUA proposes to revise 

certain provisions of its Regulatory 

Flexibility Program (RegFlex) to 

enhance safety and soundness for credit 

unions. Those provisions pertain to 

fixed assets, member business loans 

(MBL), stress testing of investments, and 

discretionary control of investments. 

Some of these revisions will require 

conforming amendments to NCUA’s 

fixed assets and MBL rules. 

DATES: Comments must be received on 

or before May 24, 2010. 

ADDRESSES: You may submit comments 

by any of the following methods (Please 

send comments by one method only): 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• NCUA Web Site: http:// 

www.ncua.gov/ 

RegulationsOpinionsLaws/ 

proposed_regs/proposed_regs.html. 

Follow the instructions for submitting 

comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 

name] Comments on Proposed Rule 742, 

Regulatory Flexibility Program’’ in the email subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for e-mail. 

• Mail: Address to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Public Inspection: All public 

comments are available on the agency’s 

website at http://www.ncua.gov/ 

RegulationsOpinionsLaws/comments as 

submitted, except as may not be 

possible for technical reasons. Public 

comments will not be edited to remove 

any identifying or contact information. 

Paper copies of comments may be 

inspected in NCUA’s law library at 1775 

Duke Street, Alexandria, Virginia 22314, 

by appointment weekdays between 

9 a.m. and 3 p.m. To make an 

appointment, call (703) 518–6546 or 

send an e-mail to OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Frank Kressman, Staff Attorney, Office 

of General Counsel, at the above address 

or telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

A. Background—Regulatory Flexibility 

Program 

The RegFlex Program exempts from 

certain regulatory restrictions and grants 

additional powers to those federal credit 

unions (FCUs) that have demonstrated 

sustained superior performance as 

measured by CAMEL ratings and net 

worth classifications. 12 CFR 742.1. An 

FCU may qualify for RegFlex treatment 

automatically or by application to the 

appropriate regional director. 12 CFR 

742.2. Specifically, an FCU 

automatically qualifies when it has 

received a composite CAMEL rating of 

‘‘1’’ or ‘‘2’’ for the two preceding 

examinations and has maintained a net 

worth classification of ‘‘well capitalized’’ 

under Part 702 of NCUA’s rules for six 

consecutive preceding quarters or, if 

subject to a risk-based net worth 

(RBNW) requirement under Part 702, 

has remained ‘‘well capitalized’’ for six 

consecutive preceding quarters after 

applying the applicable RBNW 

requirement. An FCU that does not 

automatically qualify may apply for a 

RegFlex designation with the 

appropriate regional director. 12 CFR 

742.2(a) and (b). An FCU’s RegFlex 

authority can be lost or revoked. 12 CFR 

742.3. 

The NCUA Board established RegFlex 

in 2002. 66 FR 58656 (November 23, 

2001). Since then, NCUA has amended 

RegFlex a number of times to increase 

available relief for FCUs from a variety 

of regulatory restrictions or lessen the 

criteria required for obtaining RegFlex 

status. 71 FR 4039 (January 25, 2006); 72 

FR 30247 (May 31, 2007); 74 FR 13083 

(March 26, 2009). 

mstockstill on DSKH9S0YB1PROD with PROPOSALS