Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 76831 

1For editorial reasons, upon codification in the 

U.S. Code, Part B was redesignated Part A. 

2All references to EPCA in this rulemaking refer 

to the statute as amended through the Energy 

Independence and Security Act of 2007, Public Law 

110–140. 

* * * * * 

[FR Doc. 2012–31373 Filed 12–28–12; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2011–BT–TP–0007] 

RIN 1904–AC44 

Energy Conservation Program for 

Consumer Products: Test Procedures 

for Residential Furnaces and Boilers 

(Standby Mode and Off Mode) 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Final rule. 

SUMMARY: In an earlier final rule, the 

U.S. Department of Energy (DOE) 

prescribed amendments to its test 

procedures for residential furnaces and 

boilers to include provisions for 

measuring the standby mode and off 

mode energy consumption of those 

products, as required by the Energy 

Independence and Security Act of 2007. 

These test procedure amendments were 

primarily based on provisions 

incorporated by reference from the 

International Electrotechnical 

Commission (IEC) Standard 62301 (First 

Edition), ‘‘Household electrical 

appliances—Measurement of standby 

power.’’ In this current final rule, DOE 

further amends its test procedure to 

incorporate by reference the latest 

edition of the IEC Standard, specifically 

IEC Standard 62301 (Second Edition). 

The new version of this IEC standard 

includes a number of methodological 

changes designed to increase accuracy 

while reducing testing burden. This 

final rule also clarifies the rounding 

guidance and sampling provisions for 

the new measurement of standby mode 

and off mode wattage. 

DATES: This rule is effective January 30, 

2013. The incorporation by reference of 

certain publications listed in the rule is 

approved by the Director of the Federal 

Register on January 30, 2013. 

For purposes of compliance with 

energy conservation standards, 

compliance with the amended test 

procedures is required on and after May 

1, 2013 (for non-weatherized gas and oil 

furnaces including mobile home 

furnaces, and all electric furnaces). The 

compliance date for any representations 

relating to standby mode and off mode 

of residential furnaces and boilers is 

July 1, 2013; on and after this date, any 

such representations must be based 

upon results generated under these test 

procedures and sampling plans. 

ADDRESSES: The docket for this 

rulemaking is available for review at 

www.regulations.gov, including Federal 

Register notices, public meeting 

attendee lists and transcripts, 

comments, and other supporting 

documents/materials. All documents in 

the docket are listed in the 

www.regulations.gov index. However, 

not all documents listed in the index 

may be publically 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;dct=FR%252BPR%25

2BN%252BO%252BSR;rpp=25;po=0;D

=EERE-2011-BT-TP-0007. The 

www.regulations.gov Web page contains 

simple instructions on how to access all 

documents, including public comments, 

in the docket. 

For further information on how to 

review the docket, contact Ms. Brenda 

Edwards at (202) 586–2945 or by email: 

Brenda.Edwards@ee.doe.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mohammed Khan, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies Program, EE–2J, 1000 

Independence Avenue SW., 

Washington, DC, 20585–0121. 

Telephone: (202) 586–7892. Email: 

Mohammed.Khan@ee.doe.gov. 

Mr. Eric Stas, U.S. Department of 

Energy, Office of the General Counsel, 

GC–71, 1000 Independence Avenue 

SW., Washington, DC, 20585–0121. 

Telephone: (202) 586–9507. Email: 

Eric.Stas@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background and Authority 

II. Summary of the Final Rule 

III. Discussion 

A. The September 2011 Proposed Rule 

B. Public Comments on DOE’s September 

2011 Proposed Rule 

1. Crown Boiler Comments 

2. Air-Conditioning, Heating, and 

Refrigeration Institute Comments 

IV. Effective Date and Compliance Dates 

V. Compliance With Other EPCA 

Requirements 

VI. Procedural Issues and Regulatory Review 

A. Review Under Executive Order 12866 

B. Review Under the Regulatory Flexibility 

Act 

C. Review Under the Paperwork Reduction 

Act of 1995 

D. Review Under the National 

Environmental Policy Act of 1969 

E. Review Under Executive Order 13132 

F. Review Under Executive Order 12988 

G. Review Under the Unfunded Mandates 

Reform Act of 1995 

H. Review Under the Treasury and General 

Government Appropriations Act, 1999 

I. Review Under Executive Order 12630 

J. Review Under the Treasury and General 

Government Appropriations Act, 2001 

K. Review Under Executive Order 13211 

L. Review Under Section 32 of the Federal 

Energy Administration Act of 1974 

M. Congressional Notification 

VII. Approval of the Office of the Secretary 

I. Background and Authority 

Title III, Part B1 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 

most major household appliances, 

including residential furnaces and 

boilers (referenced below as one of the 

‘‘covered products’’).2 (42 U.S.C. 

6292(a)(5) and 6295(f)) 

Under the Act, this program consists 

essentially of four parts: (1) Testing; (2) 

labeling; (3) Federal energy conservation 

standards; and (4) certification and 

enforcement procedures. The testing 

requirements consist of test procedures 

that manufacturers of covered products 

must use as the basis for certifying to 

DOE that their products comply with 

applicable energy conservation 

standards adopted pursuant to EPCA 

and for making representations about 

the efficiency of those products. (42 

U.S.C. 6293(c); 42 U.S.C. 6295(s)) 

Similarly, DOE must use these test 

procedures in any enforcement action to 

determine whether covered products 

comply with these energy conservation 

standards. (42 U.S.C. 6295(s)) 

Under 42 U.S.C. 6293, EPCA sets forth 

criteria and procedures for DOE’s 

adoption and amendment of such test 

procedures. Specifically, EPCA provides 

that ‘‘[a]ny test procedures prescribed or 

amended under this section shall be 

reasonably designed to produce test 

results which measure energy 

efficiency, energy use * * * or 

estimated annual operating cost of a 

covered product during a representative 

average use cycle or period of use, as 

determined by the Secretary [of Energy], 

and shall not be unduly burdensome to 

conduct.’’ (42 U.S.C. 6293(b)(3)) In 

addition, if DOE determines that a test 

procedure amendment is warranted, it 

must publish proposed test procedures 

and offer the public an opportunity to 

present oral and written comments on 

them. (42 U.S.C. 6293(b)(2)) Finally, in 


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76832 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 

3EISA 2007 directs DOE to also consider IEC 

Standard 62087 when amending its test procedures 

to include standby mode and off mode energy 

consumption. See 42 U.S.C. 6295(gg)(2)(A). 

However, IEC Standard 62087 addresses the 

methods of measuring the power consumption of 

audio, video, and related equipment. Accordingly, 

the narrow scope of this particular IEC standard 

reduces its relevance to today’s final rule. 

any rulemaking to amend a test 

procedure, DOE must determine ‘‘to 

what extent, if any, the proposed test 

procedure would alter the measured 

energy efficiency * * * of any covered 

product as determined under the 

existing test procedure.’’ (42 U.S.C. 

6293(e)(1)) If DOE determines that the 

amended test procedure would alter the 

measured efficiency of a covered 

product, DOE must amend the 

applicable energy conservation standard 

accordingly. (42 U.S.C. 6293(e)(2)) 

On December 19, 2007, the Energy 

Independence and Security Act of 2007 

(EISA 2007), Public Law 110–140, was 

enacted. The EISA 2007 amendments to 

EPCA, in relevant part, require DOE to 

amend the test procedures for all 

covered products to include measures of 

standby mode and off mode energy 

consumption. Specifically, section 310 

of EISA 2007 provides definitions of 

‘‘standby mode’’ and ‘‘off mode’’ (42 

U.S.C. 6295(gg)(1)(A)) and permits DOE 

to amend these definitions in the 

context of a given product (42 U.S.C. 

6295(gg)(1)(B)). The statute requires 

integration of such energy consumption 

into the overall energy efficiency, 

energy consumption, or other energy 

descriptor for each covered product, 

unless the Secretary determines that: (1) 

The current test procedures for a 

covered product already fully account 

for and incorporate the standby mode 

and off mode energy consumption of the 

covered product; or (2) such an 

integrated test procedure is technically 

infeasible for a particular covered 

product, in which case the Secretary 

shall prescribe a separate standby mode 

and off mode energy use test procedure 

for the covered product, if technically 

feasible. (42 U.S.C. 6295(gg)(2)(A)) 

Under the statutory provisions 

adopted by EISA 2007, any such 

amendment must consider the most 

current versions of IEC Standard 62301, 

Household electrical appliances— 

Measurement of standby power, and IEC 

Standard 62087, Methods of 

measurement for the power 

consumption of audio, video, and 

related equipment.3 Id. At the time of 

enactment of EISA 2007, the most 

current versions of these standards were 

IEC Standard 62301 (First Edition 2005– 

06) and IEC Standard 62087 (First 

Edition 2002). 

DOE’s current test procedure for 

residential furnaces and boilers is found 

at 10 CFR part 430, subpart B, appendix 

N, Uniform Test Method for Measuring 

the Energy Consumption of Furnaces 

and Boilers. This procedure establishes 

a means for determining annual energy 

efficiency and annual energy 

consumption of these products. On 

October 20, 2010, DOE published a final 

rule in the Federal Register (hereafter 

called the October 2010 final rule) 

amending the test procedures for 

residential furnaces and boilers to 

account for the standby mode and off 

mode energy consumption of these 

products, as required by EISA 2007. 75 

FR 64621. For a more detailed 

procedural history of the test procedure 

rulemaking to address standby mode 

and off mode energy consumption of 

residential furnaces and boilers, please 

consult the October 2010 final rule. Id. 

at 64622. 

II. Summary of the Final Rule 

As discussed above, EISA 2007 

amended EPCA to require that DOE test 

procedures for covered products include 

provisions for measuring standby mode 

and off mode energy consumption. (42 

U.S.C. 6295(gg)(2)(A)) In establishing 

test procedures to address standby mode 

and off mode energy consumption, EISA 

2007 requires consideration of the most 

current version of IEC Standard 62301 

to support the added measurement 

provisions. Id. In the October 2010 final 

rule, DOE amended its test procedures 

to prescribe the use of IEC Standard 

62301, ‘‘Household electrical 

appliances—Measurement of standby 

power,’’ Publication 62301 First Edition 

2005–06, which was the most current 

version of this standard at the time of its 

incorporation into the DOE regulations. 

This final rule fulfilled DOE’s obligation 

under EISA 2007. 

However, since that time, DOE has 

continued to address the requirements 

of EISA 2007 as it relates to standby 

mode and off mode for other products. 

For example, DOE has issued similar 

test procedure amendments for other 

heating products (water heaters, direct 

heating equipment, and pool heaters), 

and during that rulemaking, 

commenters identified improvements to 

IEC Standard 62301 that were under 

development and nearly finalized. 

These commenters, representing both 

manufacturers and energy conservation 

advocacy groups, are presumably the 

same as those that would comment on 

the proposals for furnaces and boilers, 

and they supported the draft revisions 

to IEC Standard 62301 as applied to the 

other heating products. The second 

edition of IEC Standard 62301 has now 

been finalized. In the abstract of its 

January 27, 2011 publication, the IEC 

reports that the second edition provides 

practical improvement and possible 

reduction in testing burden. DOE has 

reviewed IEC Standard 62301 (Second 

Edition) and agrees that the second 

edition does provide for improvement 

in terms of measurement accuracy and, 

in addition, provides for possible 

reduced testing burden by allowing for 

direct meter reading techniques, where 

appropriate. DOE believes these 

improvements would be applicable to a 

variety of heating products, including 

furnaces and boilers, as well as the other 

heating products discussed above. 

Accordingly, after careful review, in a 

notice of proposed rulemaking (NOPR) 

published on September 13, 2011 (76 FR 

56339; ‘‘the September 2011 NOPR’’). 

DOE decided to exercise its discretion to 

consider incorporation of the revised 

version of the industry standard into the 

DOE test procedure for residential 

furnaces and boilers. (42 U.S.C. 

6293(b)(2)) In the September 2011 

NOPR, DOE proposed to incorporate by 

reference the second edition of the IEC 

Standard 62301 standard in its entirety, 

calling out the appropriate provisions of 

that standard in DOE’s test procedure 

regulations for residential furnaces and 

boilers. 76 FR 56339, 56341 (Sept. 13, 

2011). This proposal also clarified the 

rounding guidance and sampling 

provisions for the new measurements of 

standby mode and off mode wattage. A 

public meeting was held on October 3, 

2011 to discuss and receive comments 

on the issues presented in the 

September 2011 NOPR. The comment 

period ended on November 28, 2011. 

III. Discussion 

A. The September 2011 Proposed Rule 

The September 2011 proposed rule 

was part of the continued efforts of DOE 

to address the requirements of EISA 

2007 as it relates to standby mode and 

off mode for all covered products. In 

particular, after the standby mode and 

off mode amendments were developed 

for furnaces and boilers, DOE 

considered similar test procedure 

amendments for other heating products 

(water heaters, direct heating 

equipment, and pool heaters), and 

during that rulemaking, commenters 

identified improvements to IEC 

Standard 62301 that were under 

development and nearly finalized. 

These commenters, which are largely 

the same as those that would comment 

on the proposals for furnaces and 

boilers, supported the draft revisions to 


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Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 76833 

IEC Standard 62301. The second edition 

of the standard has now been finalized. 

In the abstract of that finalized 

publication, the IEC reported that the 

second edition would provide practical 

improvement and possible reduction in 

testing burden. DOE reviewed IEC 

Standard 62301 (Second Edition) and 

agrees that the second edition does 

provide for improvement in terms of 

measurement accuracy and, in addition, 

provides for possible reduced testing 

burden by allowing for direct meter 

reading techniques where appropriate. 

DOE believes these improvements are 

applicable to a variety of heating 

products, including furnaces and 

boilers, as well as the other heating 

products mentioned above. 

Accordingly, after careful review, DOE 

decided to exercise its discretion to 

consider incorporation by reference of 

the revised version of the industry 

standard into the DOE test procedure for 

residential furnaces and boilers. (42 

U.S.C. 6293(b)(2)) Thus, in the 

September 2011 NOPR, DOE proposed 

to incorporate into DOE’s test procedure 

regulations the second edition of IEC 

Standard 62301 in its entirety, and call 

out the appropriate provisions of that 

standard in DOE’s test procedure 

regulations for residential furnaces and 

boilers. 

More specifically, DOE’s technical 

review of IEC Standard 62301 (Second 

Edition) determined that some 

improvement to the current DOE test 

procedure is possible with the 

incorporation of the second edition of 

the IEC standard as it applies to 

residential furnaces and boilers. First, a 

more comprehensive specification of 

required accuracy is provided in IEC 

Standard 62301 (Second Edition) that 

depends upon the characteristics of the 

power being measured. DOE believes 

that this most recent revision to the IEC 

standard provides improved and 

realistic accuracy provisions for a range 

of electricity consumption patterns, 

thereby making the updated test method 

appropriate for the variety of electricityconsuming devices that form part of 

residential furnaces and boilers. The 

new specification can be met by typical, 

commercially-available test equipment, 

whereas requirements in the first 

version may have necessitated 

specialized instrumentation that is not 

readily available. 

Another important change in IEC 

Standard 62301 (Second Edition) that 

relates to the measurement of standby 

mode and off mode power consumption 

in residential furnaces and boilers 

involves the specification of the stability 

criteria required to measure that power. 

IEC Standard 62301 (Second Edition) 

contains more detailed techniques to 

evaluate the stability of the power 

consumption and to measure the power 

consumption for loads with different 

stability characteristics. In IEC Standard 

62301 (First Edition), the stability of the 

system is determined by measuring the 

power consumption over a 5-minute 

period. If the variation over that period 

is less than 5 percent, the signal is 

considered to be stable. There are 

potential operational modes, however, 

that could show variation over longer 

time frames. For example, an electronic 

component could go into a sleep mode 

after a 10-minute period. This change in 

power consumption would not be 

captured in the 5-minute stability test. 

IEC Standard 62301 (Second Edition) 

acknowledges the existence of these 

different types of modes by creating 

stability tests for these variable power 

modes. For constant power modes, the 

test method specified in the second 

edition of IEC Standard 62301 matches 

that specified in the first edition. For 

cyclical power consumption, the second 

edition of IEC Standard 62301 adds 

measurement provisions for situations 

in which the variation in the signal 

might not be constant over a 5-minute 

period. The power measurements would 

take at least 60 minutes; a test period of 

this duration is required to accurately 

capture standby mode and off mode 

energy consumption for equipment with 

varying power consumption and is an 

improvement introduced by IEC 

Standard 62301 (Second Edition) 

compared to IEC Standard 62301 (First 

Edition). These techniques will result in 

more complete and accurate measures of 

standby mode and off mode energy 

consumption over a variety of 

operational modes. The manufacturer is 

given a choice of measurement 

procedures, including less burdensome 

methods such as direct meter reading 

methods if certain clearly-described 

stability conditions are met. DOE 

believes that the changes incorporated 

in IEC Standard 62301 (Second Edition) 

will allow for use of less burdensome 

methods when appropriate and will 

ensure accurate measures of standby 

energy consumption over a range of 

operating conditions that may be 

present in residential furnaces and 

boilers. 

Accordingly, for the reasons 

discussed above, DOE proposed to 

incorporate IEC Standard 62301 (Second 

Edition) in its entirety into the overall 

list of incorporated references in 10 CFR 

430.3 and to call out the appropriate 

provisions of that standard in DOE’s test 

procedure regulations for residential 

furnaces and boilers. 

In addition, the September 2011 

NOPR clarified that the rounding 

guidance in the IEC Standard 62301 

(Second Edition) should be used for the 

new proposed wattage measurements. 

Specifically, it was proposed that the 

following sentence be added to the 

measurement provisions in sections 

8.6.1 and 8.6.2: ‘‘The recorded standby 

power (PW,SB) (or PW,OFF where 

appropriate) shall be rounded to the 

second decimal place, and for loads 

greater than or equal to 10W, at least 

three significant figures shall be 

reported.’’ 76 FR 56339, 56342 (Sept. 13, 

2011). 

Finally, DOE proposed to apply the 

existing DOE sampling plans used by 

residential furnace and boiler 

manufacturers to determine the 

representative values for annual energy 

consumption to the newly proposed 

standby mode and off mode ratings 

(PW,SB and PW,OFF). Id. at 56342–43. For 

a more complete discussion of DOE’s 

analysis of IEC Standard 62301 (Second 

Edition), see sections III.A through III.C 

of the September 2011 NOPR. 76 FR 

56339, 56341–43 (Sept. 13, 2011). 

B. Public Comments on DOE’s 

September 2011 Proposed Rule 

In response to the September 2011 

NOPR, DOE received very little in the 

way of comment on this matter. In 

particular, there was no objection 

expressed as to the use of the updated 

version of the IEC standard. Only two 

comments were received from Crown 

Boiler and the Air-Conditioning, 

Heating, and Refrigeration Institute 

(Crown, No. 5 and AHRI, No. 7, 

respectively), and they are discussed in 

detail below. In overview, these 

comments dealt with the overall burden 

of measuring standby mode and off 

mode energy consumption and the 

associated rounding guidance. No 

comments were received on the added 

clarification provisions related to 

sampling. 

1. Crown Boiler Comments 

Comments from Crown Boiler were 

supportive of the September 2011 

NOPR, in that the company agreed that 

the use of the second edition of IEC 

Standard 62301 in lieu of the first 

edition would result in reduced cost of 

testing. However, despite this reduction 

in cost, Crown Boiler opposed testing 

provisions for standby mode and off 

mode energy consumption generally, 

applying to both the current rulemaking 

and the October 2010 final rule, stating, 

‘‘...[T]he rule imposes an undue 

regulatory burden on boiler 

manufacturers, given the fact that it is 

unlikely to result in any significant 


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76834 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 

reduction in energy use. In light is this, 

and in light of Executive Order 13563 

(‘‘Improving Regulations and Regulatory 

Review’’), we believe that DOE should 

modify this rule [in this case, the 

provisions prescribed by the October 

2010 final rule] so that the burden it 

imposes is commensurate with the realworld benefit it provides (essentially 

none).’’ (emphasis added) (Crown, No. 5 

at p.1–2) 

Initially, DOE notes that most of 

Crown Boiler’s comment involves 

provisions prescribed by the October 

2010 final rule rather than those 

proposed in the September 2011 NOPR, 

which are matters beyond the scope of 

the current rulemaking. However, DOE 

is addressing the concerns of Crown 

Boiler here because of the 

interrelationship between these rules. 

Crown Boiler maintained that the 

energy savings potential associated with 

limiting the standby mode and off mode 

power consumption of residential 

boilers would be insignificant because 

of the small magnitude of energy 

consumption in these modes. In support 

of this position, Crown Boiler estimated 

that most residential boilers would 

consume less than 5W of standby mode 

and off mode power and that the annual 

shipments are only 400,000 units. In 

response, as summarized in the 

September 2011 NOPR and as Crown 

Boiler acknowledges, the EISA 2007 

amendments to EPCA, in relevant part, 

statutorily require DOE to amend the 

test procedures for all covered products 

(including furnaces and boilers) to 

include measures of standby mode and 

off mode energy consumption. 76 FR 

56339, 56341 (Sept. 13, 2011). 

Specifically, the statute requires 

integration of such energy consumption 

into the overall energy efficiency, 

energy consumption, or other energy 

descriptor for each covered product, 

unless the Secretary determines that: (1) 

The current test procedures for a 

covered product already fully account 

for and incorporate the standby mode 

and off mode energy consumption of the 

covered product; or (2) such an 

integrated test procedure is technically 

infeasible for a particular covered 

product, in which case the Secretary 

shall prescribe a separate standby mode 

and off mode energy use test procedure 

for the covered product, if technically 

feasible. (42 U.S.C. 6295(gg)(2)(A)) 

Furthermore, although DOE realizes 

that, as pointed out by Crown Boiler, the 

level of standby mode and off mode 

energy consumption of boilers is 

inherently smaller than that of other 

products, such as forced air furnaces, it 

nevertheless represents a significant 

level of energy consumption when 

viewed in the aggregate. For example, 

the cost of annual standby mode and off 

mode energy consumption for the 

commenter’s estimate of annual 

shipments (400,000 units) and wattage 

would be nearly $2 million each year for 

a single year’s shipments of boilers 

(400,000 × 8000 hours × 5W × .00012 $/ 

whr = $1.92 million). Some amount of 

this energy consumption could be 

limited by an applicable energy 

conservation standard in the future. 

This energy saving potential would be 

part of the analysis in support of such 

a standard. Accordingly, for these 

reasons, DOE cannot eliminate the 

integration of standby mode and off 

mode into the residential furnaces and 

boilers test procedures on the basis of 

insignificant energy savings potential. 

Crown Boiler also argued that the 

overall burden of conducting the 

additional tests for standby mode and 

off mode is significant for small 

businesses. The commenter specifically 

stated that the purchase cost of 

equipment needed to run the IEC 

Standard 62301 test is significant for 

small boiler manufacturers. On this 

matter, DOE certified in the October 

2010 final rule that the added 

provisions to address standby mode and 

off mode energy consumption will not 

a have a significant economic impact on 

a significant number of small entities. 

75 FR 64621, 64628–29 (Oct. 20, 2010). 

Furthermore, in the September 2011 

NOPR, DOE tentatively certified that the 

possible additional burden represented 

by the adoption of the second edition of 

IEC Standard 62301 also would not have 

a significant economic impact on a 

substantial number of small entities. 76 

FR 56339, 56343–44 (Sept. 13, 2011). In 

today’s final rule, DOE affirms its 

certification, because it has concluded 

that the possible additional equipment 

cost for affected manufacturers is a 

small investment compared to 

manufacturers’ overall financial 

investment needed to undertake the 

business enterprise of testing consumer 

products, including residential boilers. 

Crown Boiler also commented on the 

additional testing time that IEC 

Standard 62301 (Second Edition) may 

require on units with unstable readings. 

DOE analyzed this issue in the 

September 2011 NOPR and tentatively 

concluded that in the worst case, the 

labor costs associated with wait time 

during testing would result in a small 

additional cost of $30 per test unit. Id. 

at 56344. Crown Boiler maintained that 

in addition to the possible labor cost, 

the waiting time would result in less 

availability for the test stand. In 

response, DOE does not view this as 

additional burden, since there is no 

provision in the rule that requires the 

standby mode and off mode 

measurements to be made on a 

particular test stand. Typically, a test 

stand for full efficiency testing of boilers 

would require fossil fuel and electricity 

connections, as well as venting 

arrangements. If such test stands are in 

demand, the standby mode and off 

mode testing could be done in a more 

convenient place where only an 

electrical connection is needed. 

In its comments, Crown Boiler argued 

that a second testing burden would arise 

from the need to separately test different 

controls systems on various boiler 

models for standby mode and off mode 

energy consumption. If, in fact, the 

energy consumption is different for each 

type of control system and there are 

numerous control system options 

applied to a given basic model, 

additional testing may be required for 

those basic models. However, this 

situation is not unlike any other design 

feature of a covered product that affects 

energy consumption. DOE believes this 

possible difference between control 

systems, and its potential additional 

testing costs, could be mitigated by the 

existing rules regarding conservative 

ratings, while still satisfying the 

requirement in EISA 2007 for 

incorporation into the DOE test 

procedures. In a recent rulemaking on 

certification, compliance, and 

enforcement, DOE clarified the 

conservative ratings concept within that 

final rule’s discussion of the concept of 

‘‘basic model.’’ 76 FR 12422, 12428–29 

(March 7, 2011). Specifically, that 

discussion elaborated on the permitted 

flexibility in determining how 

manufacturers choose to group 

individual models into a basic model 

with essentially identical energy 

consumption characteristics. Generally, 

characteristics, such as different control 

systems, that have a small effect on 

overall energy consumption or 

efficiency need not constitute different 

basic models and, therefore, would not 

require additional separate testing. 

Rather, at the manufacturer’s discretion, 

a basic model could include a variety of 

control systems, provided that the 

resulting rated energy consumption 

would be sufficiently conservative to 

account for the least-efficient model 

within the basic model. DOE believes it 

is reasonable to assume that the 

manufacturer can determine which 

control system would be likely to have 

the highest energy consumption, 

thereby allowing the manufacturer to 

avail itself of the conservative ratings in 

lieu of additional testing, if it so 

chooses. 


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Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 76835 

Finally, Crown Boiler mentioned as a 

burden the differences in ambient air 

specifications between IEC Standard 

62301 and the existing DOE test 

procedure. This is not a valid point, 

because the October 2010 final rule 

specifies, expressly to eliminate 

unnecessary burden, that the existing 

test procedure specification for ambient 

air is to be used for all testing. 75 FR 

64621, 64623–25 (Oct. 20, 2010). 

Today’s final rule does nothing to alter 

DOE’s existing specifications for 

ambient temperature. 

In sum, the concerns raised by Crown 

Boiler have not demonstrated an undue 

burden associated with DOE’s proposed 

standby mode and off mode 

measurement provisions, which have 

been adopted pursuant to DOE’s 

mandate in EISA 2007. 

Although Crown Boiler would prefer 

the elimination of standby mode and off 

mode measurements for residential 

boilers, in the alternative, it requested 

consideration of some simplification of 

the measurement procedures. 

Specifically, Crown Boiler asked that in 

lieu of requiring the IEC Standard 62301 

measurements, that manufacturers 

could be allowed, as an option, to assess 

the standby mode and off mode wattage 

with a preliminary and less 

sophisticated measurement procedure. 

More specifically, Crown Boiler 

suggested that if that value is below 

some threshold, the manufacturer 

would be allowed to report a 

conservative default value (i.e., a value 

greater than the measured value). If the 

preliminary value is above the relevant 

threshold, Crown Boiler suggested that 

the IEC Standard 62301 provisions must 

be used. Crown Boiler mentioned 7.5 

watts and 10 watts as the threshold and 

default values respectively. This 

concept could have merit, in that it may 

reduce testing burden; however, it may 

not, in effect, be significantly different 

than the conservative rating concept 

discussed above. Specifically, the 

manufacturer, in its discretion, may 

assess the magnitude of the standby 

mode/off mode loss through limited 

testing and choose to make a 

conservative rating. Therefore, DOE 

believes the conservative rating 

allowance is a reasonable pathway for 

the commenter to use to reduce testing 

burden. Accordingly, DOE has 

concluded that there is not a compelling 

need to modify the test procedure to 

assign specific threshold and default 

values along with a defined, lessaccurate test measurement procedure as 

the commenter suggested. 

2. Air-Conditioning, Heating, and 

Refrigeration Institute Comments 

In addition to proposing the use of the 

second edition of IEC Standard 62301, 

the September 2011 NOPR provided 

rounding guidance applicable to the 

new measures of energy consumption 

for furnaces and boilers (i.e., PW,SB and 

PW,OFF). For these values, the September 

2011 NOPR clarified that the rounding 

guidance provided in IEC Standard 

62301 (Second Edition) would apply. 76 

FR 56339, 56342, 56347 (Sept. 13, 

2011). Specifically, DOE proposed to 

add the following sentence to the 

measurement provisions of the 

proposed regulatory text, where 

appropriate: ‘‘The recorded standby 

power (PW,SB) (or off mode power 

PW,OFF, where appropriate) shall be 

rounded to the second decimal place, 

and for loads greater than or equal to 

10W, at least three significant figures 

shall be reported.’’ Id. at 56342. DOE 

requested comments as to the adequacy 

and appropriateness of this clarification. 

Here, it is important to note that DOE 

has established energy conservation 

standards utilizing these power 

measurements (see 76 FR 37408 (June 

27, 2011); 76 FR 67037 (Oct. 31, 2011)). 

These standards are expressed to two 

significant figures (i.e., 10 watts PW,SB

(or off mode power PW,OFF, where 

appropriate) for gas-fired and electric 

furnaces and 11 watts PW,SB (or off mode 

power PW,OFF, where appropriate) for 

oil-fired furnaces). Therefore, 

certification to these standards, utilizing 

the IEC rounding guidance, would likely 

require reporting to the second decimal 

place (i.e., values below the 10 watt 

level where the IEC rounding guidance 

requires three significant figures or the 

second decimal place). Only reported 

values between 11 watts and 10 watts 

for oil-fired and electric furnaces would 

be allowed a single decimal place report 

using the IEC rounding guidance. AHRI, 

in its comments, opined that the second 

decimal place rounding represents an 

unnecessary rounding burden on 

manufacturers without adding any value 

when one considers the annualized 

accounting of total electrical energy 

consumption as represented in the term 

ESO. (AHRI No. 7 at p. 1–2) 

DOE believes that the IEC rounding 

provisions for wattage measurements 

are appropriate and within the 

capabilities of the instrumentation 

specified in the IEC standard. 

Specifically, DOE’s review of IEC 

Standard 62301-compliant 

instrumentation has determined that 

one can easily support this level of 

reporting. Moreover, the test procedures 

for other DOE covered products already 

utilize IEC Standard 62301 for the 

wattage measurements, and DOE 

believes there is benefit in measuring 

the standby mode and off mode energy 

consumption of various covered 

products in a consistent manner for the 

various DOE requirements (i.e., annual 

consumption representations or 

standards compliance reports). In sum, 

carrying the IEC level of precision (three 

significant figures) through the 

annualized consumption calculations 

does not represent any additional 

burden, because it is simply a matter of 

running a calculation and reporting the 

result. Accordingly, DOE has concluded 

that this comment does not justify a 

departure from the IEC provisions, so 

DOE is adopting the rounding guidance 

as proposed. 

IV. Effective Date and Compliance 

Dates 

The effective date for these 

amendments is January 30, 2013. At that 

time, representations may be made 

using the new metrics PW,SB and PW,OFF

and any other measure of energy 

consumption which depends on PW,SB

and PW,OFF, which were adopted 

pursuant to these amendments. The 

compliance date for any representations 

relating to standby mode and off mode 

energy consumption of residential 

furnaces and boilers is July 1, 2013; on 

and after this date, any such 

representations must be based upon 

results generated under these test 

procedures and sampling plans. 

However, DOE is clarifying here that 

use of these test procedure amendments 

related to standby mode and off mode 

energy consumption are not required for 

purposes of energy conservation 

standards compliance until May 1, 2013 

(for non-weatherized gas and oil 

furnaces including mobile home 

furnaces, and all electric furnaces); this 

is the compliance date of the recently 

amended energy conservation standards 

for residential furnaces, which include 

standards for standby mode and off 

mode energy consumption. 76 FR 37408 

(June 27, 2011); 76 FR 67037 (Oct. 31, 

2011). Again, DOE makes this statement 

with the caveat that the amended 

standards only apply to furnaces and 

not boilers. Amended energy 

conservation standards addressing 

standby mode and off mode for boilers 

will be addressed and apply on the 

compliance date for the next energy 

conservation standards rulemaking for 

those products. 

V. Compliance With Other EPCA 

Requirements 

EPCA requires that any test 

procedures prescribed or amended must 


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be reasonably designed to produce test 

results which measure energy 

efficiency, energy use, or estimated 

annual operating cost of a covered 

product during a representative average 

use cycle or period of use, and it must 

not be unduly burdensome to conduct. 

(42 U.S.C. 6293(b)(3)) If DOE amends its 

test procedures, it must determine to 

what extent, if any, the proposed test 

procedure would alter the measured 

energy efficiency or energy use of the 

covered product, as determined under 

the existing test procedure. (42 U.S.C. 

6293(e)(1)) If DOE determines that the 

amended test procedure would alter the 

measured energy efficiency or energy 

use, it must amend the applicable 

energy conservation standard to reflect 

the average energy efficiency or energy 

use, as determined using the amended 

test procedure. (42 U.S.C. 6293(e)(2)) 

Today’s amendments to the DOE test 

procedure for residential furnaces and 

boilers incorporates the most current 

version of IEC Standard 62301 in lieu of 

the previous version. DOE has 

concluded that these new provisions 

will continue to produce valid test 

results, while reducing testing burden. 

Accordingly, this final rule meets the 

requirements of 42 U.S.C. 6293(b)(3). 

In addition, DOE has determined that 

these amendments will not alter the 

measured efficiency or energy use when 

determining compliance with the 

current energy conservation standards 

for these products or with future 

standards related to standby mode and 

off mode for furnaces. Accordingly, no 

modifications to the currently 

applicable energy conservation 

standards are required. This is because 

the currently applicable energy 

conservation standard is based on the 

annual fuel utilization efficiency 

(AFUE) metric which does not include 

or depend on the new measures of 

energy consumption regarding standby 

mode and off mode. In addition, 

consistent with its mandate pursuant to 

EISA 2007, DOE is further clarifying 

here that use of these test procedure 

amendments related to standby mode 

and off mode energy consumption are 

not required for purposes of energy 

conservation standards compliance, 

until the compliance date of the next 

standards final rule that addresses 

standby mode and off mode. As noted 

above, DOE has adopted amended 

energy efficiency standards, as well as 

standby mode and off mode energy 

conservation standards, for residential 

furnaces (but not boilers). 76 FR 37408 

(June 27, 2011); 76 FR 67037 (Oct. 31, 

2011). 

Lastly, DOE does not believe that 

these test procedure amendments, 

which adopt a revised version of the IEC 

test procedure, would significantly alter 

the energy consumption as measured by 

the existing DOE test procedure 

provisions related to standby mode and 

off mode for residential furnaces and 

boilers, because the test procedure 

provisions of IEC Standard 62301 

(Second Edition) are limited to 

providing additional accuracy for the 

measurements and clarification on the 

test method. Consequently, DOE does 

not believe that potential adoption of 

amendments pertaining to these 

clarifications and additions would alter 

any estimates of energy consumption 

under either DOE’s current energy 

conservation standards or the recently 

promulgated amended standards. 

VI. Procedural Issues and Regulatory 

Review 

A. Review Under Executive Order 12866 

The Office of Management and Budget 

has determined that test procedure 

rulemakings do not constitute 

‘‘significant regulatory actions’’ under 

section 3(f) of Executive Order 12866, 

‘‘Regulatory Planning and Review.’’ 58 

FR 51735 (Oct. 4, 1993). Accordingly, 

this regulatory action was not subject to 

review under the Executive Order 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., as amended by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996) 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. A 

regulatory flexibility analysis examines 

the impact of the rule on small entities 

and considers alternative ways of 

reducing negative effects. Also, 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 DOE 

rulemaking process. 68 FR 7990. DOE 

has made its procedures and policies 

available on the Office of the General 

Counsel’s Web site at www.gc.doe.gov/ 

gc/office-general-counsel. 

Today’s final rule adopts test 

procedure provisions to measure 

standby mode and off mode energy 

consumption of residential furnaces and 

boilers, generally through the 

incorporation by reference of IEC 

Standard 62301 (Second Edition). DOE 

reviewed today’s final rule under the 

provisions of the Regulatory Flexibility 

Act and the policies and procedures 

published on February 19, 2003. For the 

reasons explained below, DOE certifies 

that the final rule will not have a 

significant impact on a substantial 

number of small entities. 

As noted above, the test procedure 

incorporates by reference provisions 

from IEC Standard 62301 for the 

measurement of standby mode and off 

mode energy consumption. IEC 

Standard 62301 is widely accepted and 

used internationally to measure electric 

power in standby mode and off mode. 

Based on its analysis of IEC Standard 

62301 (Second Edition), DOE has 

determined that the only possible 

additional burden represented by the 

adoption of IEC Standard 62301 (Second 

Edition) is associated with the testing 

time. For measurements of power 

consumption that are determined to be 

stable, test time would not change. Test 

time would increase under IEC Standard 

62301 (Second Edition), as compared to 

IEC Standard 62301 (First Edition), 

should the stability test indicate that the 

power is being used in a variable 

manner. For these cases, the revised 

procedure would increase the time of 

measurement from the current 15 

minutes to up to 60 minutes. No 

additional setup time would be required 

for these tests. This possible increase in 

test time does not necessarily require 

active labor, because no additional set 

up is required, and the additional time 

essentially amounts to a waiting period 

to determine stability. Nonetheless, 

assuming the 45 minutes additional test 

time does incur additional labor cost, 

the worst-case estimate of an additional 

$30 per test unit is a small incremental 

change compared to the overall 

financial investment needed to 

undertake the business enterprise of 

testing consumer products. For these 

reasons, DOE does not believe that this 

final rule adds significant costs nor 

requires any significant investment in 

test facilities or new equipment. 

The Small Business Administration 

(SBA) considers an entity to be a small 

business if, together with its affiliates, it 

employs fewer than a threshold number 

of workers specified in 13 CFR part 121, 

which relies on size standards and 

codes established by the North 

American Industry Classification 

System (NAICS). The threshold number 

for NAICS classification 333415, which 

applies to Air-Conditioning and Warm 


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4U.S. Small Business Administration, Table of 

Small Business Size Standards (Nov. 5, 2010) 

(Available at: http://www.sba.gov/sites/default/ 

files/Size_Standards_Table.pdf). 

5The Air-Conditioning, Heating and Refrigeration 

Institute, Directory of Certified Product 

Performance (June 7, 2010) (Available at: http:// 

www.ahridirectory.org/ahridirectory/pages/ 

home.aspx). 

6The U.S. Environmental Protection Agency and 

the U.S. Department of Commerce, ENERGY STAR 

Furnaces—Product Databases for Gas and Oil 

Furnaces (Jan. 4, 2010) (Available at: http:// 

www.energystar.gov/ 

index.cfm?c=furnaces.pr_furnaces). 

7The California Energy Commission, Appliance 

Database for Residential Furnaces and Boilers 

(2010) (Available at: http:// 

www.appliances.energy.ca.gov/QuickSearch.aspx). 

8Consortium of Energy Efficiency, Qualifying 

Furnace and Boiler List (2010) (Available at: http:// 

www.cee1.org/gas/gs-ht/gs-ht-main.php3). 

9Categorical Exclusion A5 provides: 

‘‘Rulemaking interpreting or amending an existing 

rule or regulation that does not change the 

environmental effect of the rule or regulation being 

amended.’’ 

Air Heating Equipment and Commercial 

and Industrial Refrigeration Equipment 

Manufacturing (including residential 

furnaces and boilers), is 750 

employees.4 DOE reviewed the AirConditioning, Heating, and Refrigeration 

Institute’s Directory of Certified Product 

Performance for Residential Furnaces 

and Boilers (June 7, 2010),5 the ENERGY 

STAR Product Databases for Gas and Oil 

Furnaces (Jan. 4, 2010),6 the California 

Energy Commission’s Appliance 

Database for Residential Furnaces and 

Boilers,7 and the Consortium for Energy 

Efficiency’s Qualifying Furnace and 

Boiler List (2010).8 From this review, 

DOE found that there are approximately 

14 small businesses in the furnace and 

boiler industry. Even though there are a 

significant number of small businesses 

within the furnace and boiler industry, 

DOE has concluded that the test 

procedure amendments contained in 

this final rule would not represent a 

substantial burden to any manufacturer, 

including small manufacturers, as 

explained above. 

Accordingly, DOE has not prepared a 

regulatory flexibility analysis for this 

rulemaking. DOE’s certification and 

supporting statement of factual basis 

were provided to the Chief Counsel for 

Advocacy of the SBA for review under 

5 U.S.C. 605(b). DOE did not receive any 

comments demonstrating a significant 

economic impact on any small entities. 

Thus, DOE reaffirms and certifies that 

this rule will not have a significant 

economic impact on a substantial 

number of small entities. 

C. Review Under the Paperwork 

Reduction Act of 1995 

Today’s final rule would impose no 

new information or recordkeeping 

requirements. Accordingly, OMB 

clearance is not required under the 

Paperwork Reduction Act. (44 U.S.C. 

3501 et seq.) 

D. Review Under the National 

Environmental Policy Act 

In this rule, DOE is amending the test 

procedure for residential furnaces and 

boilers to address measurement of the 

standby mode and off mode energy 

consumption of these products. DOE 

has determined that this final rule falls 

into a class of actions that are 

categorically excluded from review 

under the National Environmental 

Policy Act of 1969 (Pub. L. 91–190, 

codified at 42 U.S.C. 4321 et seq.), and 

DOE’s implementing regulations at 10 

CFR part 1021. Specifically, this final 

rule, which adopts an industry standard 

for measurement of standby mode and 

off mode energy consumption, amends 

an existing rule without changing its 

environmental effect, and, therefore, is 

covered by Categorical Exclusion A5 

found in 10 CFR part 1021, subpart D, 

appendix A. Today’s final rule does not 

affect the amount, quality, or 

distribution of energy usage, and, 

therefore, does not result in any 

environmental impacts.9 Accordingly, 

neither an environmental assessment 

nor an environmental impact statement 

is required. 

E. Review Under Executive Order 13132 

Executive Order 13132, ‘‘Federalism,’’ 

imposes certain requirements on 

agencies formulating and implementing 

policies or regulations that preempt 

State law or that have Federalism 

implications. 64 FR 43255 (August 10, 

1999). The Executive Order requires 

agencies to examine the constitutional 

and statutory authority supporting any 

action that would limit the 

policymaking discretion of the States, 

and to carefully assess the necessity for 

such actions. The Executive Order also 

requires agencies to have an accountable 

process to ensure meaningful and timely 

input by State and local officials in the 

development of regulatory policies that 

have Federalism implications. On 

March 14, 2000, DOE published a 

statement of policy describing the 

intergovernmental consultation process 

that it will follow in developing such 

regulations. 65 FR 13735. DOE has 

examined this final rule and has 

determined that it does not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. EPCA governs and 

prescribes Federal preemption of State 

regulations as to energy conservation for 

the products that are the subject of 

today’s final rule. States can petition 

DOE for exemption from such 

preemption to the extent, and based on 

criteria, set forth in EPCA. (42 U.S.C. 

6297(d)) Therefore, Executive Order 

13132 requires no further action. 

F. Review Under Executive Order 12988 

Regarding the review of existing 

regulations and the promulgation of 

new regulations, section 3(a) of 

Executive Order 12988, ‘‘Civil Justice 

Reform,’’ 61 FR 4729 (Feb. 7, 1996), 

imposes on Federal agencies the general 

duty to adhere to the following 

requirements: (1) eliminate drafting 

errors and ambiguity; (2) write 

regulations to minimize litigation; (3) 

provide a clear legal standard for 

affected conduct rather than a general 

standard; and (4) promote simplification 

and burden reduction. Regarding the 

review required by section 3(a), section 

3(b) of Executive Order 12988 

specifically requires that Executive 

agencies make every reasonable effort to 

ensure that the regulation: (1) Clearly 

specifies the preemptive effect, if any; 

(2) clearly specifies any effect on 

existing Federal law or regulation; (3) 

provides a clear legal standard for 

affected conduct while promoting 

simplification and burden reduction; (4) 

specifies the retroactive effect, if any; (5) 

adequately defines key terms; and (6) 

addresses other important issues 

affecting clarity and general 

draftsmanship under any guidelines 

issued by the Attorney General. Section 

3(c) of Executive Order 12988 requires 

Executive agencies to review regulations 

in light of applicable standards in 

sections 3(a) and 3(b) to determine 

whether they are met or it is 

unreasonable to meet one or more of 

them. DOE has completed the required 

review and determined that, to the 

extent permitted by law, this rule meets 

the relevant standards of Executive 

Order 12988. 

G. Review Under the Unfunded 

Mandates Reform Act of 1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) (Pub. L. 

104–4, codified at 2 U.S.C. 1501 et seq.) 

requires each Federal agency to assess 

the effects of Federal regulatory actions 

on State, local, and Tribal governments 

and the private sector. For regulatory 

actions likely to result in a rule that may 

cause expenditures by State, local, and 

Tribal governments, in the aggregate, or 

by the private sector, of $100 million or 

more in any one year (adjusted annually 

for inflation), section 202 of UMRA 


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requires a Federal agency to publish a 

written statement that estimates the 

resulting costs, benefits, and other 

effects on the national economy. (2 

U.S.C. 1532(a) and (b)) Section 204 of 

UMRA also requires a Federal agency to 

develop an effective process to permit 

timely input by elected officers of State, 

local, and Tribal governments on a 

proposed ‘‘significant intergovernmental 

mandate.’’ UMRA also requires an 

agency plan for giving notice and 

opportunity for timely input to small 

governments that may be potentially 

affected before establishing any 

requirement that might significantly or 

uniquely affect them. On March 18, 

1997, DOE published a statement of 

policy on its process for 

intergovernmental consultation under 

UMRA. 62 FR 12820. (This policy is 

also available at http://www.gc.doe.gov/ 

gc/office-general-counsel). Today’s final 

rule, which modifies the current test 

procedures for residential furnaces and 

boilers, contains neither an 

intergovernmental mandate, nor a 

mandate that may result in the 

expenditure by State, local, and Tribal 

governments, or by the private sector, of 

$100 million or more in any year. 

Accordingly, no further assessment or 

analysis is required under the Unfunded 

Mandates Reform Act of 1995. 

H. Review Under the Treasury and 

General Government Appropriations 

Act, 1999 

Section 654 of the Treasury and 

General Government Appropriations 

Act, 1999 (Pub. L. 105–277) requires 

Federal agencies to issue a Family 

Policymaking Assessment for any rule 

that may affect family well-being. 

Today’s final rule amending DOE test 

procedures would not have any impact 

on the autonomy or integrity of the 

family as an institution. Accordingly, 

DOE has concluded that it is not 

necessary to prepare a Family 

Policymaking Assessment. 

I. Review Under Executive Order 12630 

Pursuant to Executive Order 12630, 

‘‘Governmental Actions and Interference 

with Constitutionally Protected Property 

Rights,’’ 53 FR 8859 (March 15, 1988), 

DOE has determined that this final rule 

will not result in any takings that might 

require compensation under the Fifth 

Amendment to the United States 

Constitution. 

J. Review Under the Treasury and 

General Government Appropriations 

Act, 2001 

The Treasury and General 

Government Appropriations Act, 2001 

(Pub. L. 106–554, codified at 44 U.S.C. 

3516 note) provides for agencies to 

review most disseminations of 

information to the public under 

information quality guidelines 

established by each agency pursuant to 

general guidelines issued by OMB. 

OMB’s guidelines were published at 67 

FR 8452 (Feb. 22, 2002), and DOE’s 

guidelines were published at 67 FR 

62446 (Oct. 7, 2002). DOE has reviewed 

today’s final rule under the OMB and 

DOE guidelines and has concluded that 

it is consistent with applicable policies 

in those guidelines. 

K. Review Under Executive Order 13211 

Executive Order 13211, ‘‘Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use,’’ 66 FR 28355 (May 

22, 2001), requires Federal agencies to 

prepare and submit to OMB a Statement 

of Energy Effects for any proposed 

significant energy action. A ‘‘significant 

energy action’’ is defined as any action 

by an agency that promulgated or is 

expected to lead to promulgation of a 

final rule, and that: (1) is a significant 

regulatory action under Executive Order 

12866, or any successor order; and (2) 

is likely to have a significant adverse 

effect on the supply, distribution, or use 

of energy; or (3) is designated by the 

Administrator of OIRA as a significant 

energy action. For any proposed 

significant energy action, the agency 

must give a detailed statement of any 

adverse effects on energy supply, 

distribution, or use should the proposal 

be implemented, and of reasonable 

alternatives to the action and their 

expected benefits on energy supply, 

distribution, and use. Today’s final rule 

is not a significant regulatory action 

under Executive Order 12866 or any 

successor order; will not have a 

significant adverse effect on the supply, 

distribution, or use of energy; and has 

not been designated by the 

Administrator of OIRA as a significant 

energy action. Therefore, DOE has 

determined that this rule is not a 

significant energy action. Accordingly, 

DOE has not prepared a Statement of 

Energy Effects for this rulemaking. 

L. Review Under Section 32 of the 

Federal Energy Administration Act of 

1974 

Under section 301 of the Department 

of Energy Organization Act (Pub. L. 95– 

91; 42 U.S.C. 7101 et seq.), DOE must 

comply with all laws applicable to the 

former Federal Energy Administration, 

including section 32 of the Federal 

Energy Administration Act of 1974 

(Pub. L. 93–275), as amended by the 

Federal Energy Administration 

Authorization Act of 1977 (Pub. L. 95– 

70). (15 U.S.C. 788) Section 32 provides 

that where a proposed rule authorizes or 

requires use of commercial standards, 

the notice of proposed rulemaking must 

inform the public of the use and 

background of such standards. In 

addition, section 32(c) requires DOE to 

consult with the Attorney General and 

the Federal Trade Commission (FTC) 

concerning the impact of commercial or 

industry standards on competition. 

Certain of the amendments and 

revisions in this final rule incorporate 

testing methods contained in the 

following commercial standard, the 

International Electrotechnical 

Commission (IEC) Standard 62301, 

‘‘Household electrical appliances— 

Measurement of standby power’’ 

(Second Edition 2011). DOE has 

evaluated this standard and is unable to 

conclude whether it fully complies with 

the requirements of section 32(b) of the 

Federal Energy Administration Act (i.e., 

that it was developed in a manner that 

fully provides for public participation, 

comment, and review). DOE has 

consulted with the Attorney General 

and the Chairman of the FTC 

concerning the impact on competition 

of requiring manufacturers to use the 

test methods contained in this standard, 

and neither recommended against 

incorporation of this standard. 

M. Congressional Notification 

As required by 5 U.S.C. 801, DOE will 

report to Congress on the promulgation 

of today’s final rule before its effective 

date. The report will state that it has 

been determined that the rule is not a 

‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

VII. Approval of the Office of the 

Secretary 

The Secretary of Energy has approved 

publication of this final rule. 

List of Subjects in 10 CFR Part 430 

Administrative practice and 

procedure, Confidential business 

information, Energy conservation, 

Household appliances, Imports, 

Incorporation by reference, 

Intergovernmental relations, Small 

businesses. 

Issued in Washington, DC, on November 

16, 2012. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

For the reasons stated in the 

preamble, DOE is amending part 430 of 

Chapter II, Subchapter D of Title 10 of 

the Code of Federal Regulations, as set 

forth below: 


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Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 76839 

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. 

§ 430.3 [Amended] 

■ 2. Section 430.3 is amended by: 

■ a. Removing, in paragraph (m)(1), the 

words ‘‘appendix I, and appendix N’’ 

and adding in its place ‘‘and appendix 

I’’; 

■ b. Adding after ‘‘J2,’’ in paragraph 

(m)(2), ‘‘N,’’. 

■ 3. Appendix N to subpart B of part 

430 is amended: 

■ a. By revising the second sentence of 

the introductory note. 

■ b. In section 2.4., by removing the 

phrase ‘‘(First Edition 2005–06)’’ and 

adding in its place ‘‘(Edition 2.0 2011– 

01)’’; 

■ c. In section 8.6.1, by removing in the 

third sentence, the phrase ‘‘4.5 Power 

measurement accuracy’’ and adding in 

its place, the phrase ‘‘4.4 Power 

measurement instruments’’ and by 

adding a sentence at the end of the 

section. 

■ d. In section 8.6.2, by removing in the 

third sentence, the phrase ‘‘4.5 Power 

measurement accuracy’’ and adding in 

its place the phrase ‘‘4.4 Power 

measurement instruments’’, and by 

adding a sentence at the end of the 

section. 

The additions and revisions read as 

follows: 

Appendix N to Subpart B of Part 430— 

Uniform Test Method for Measuring the 

Energy Consumption of Furnaces and 

Boilers 

Note: * * * However, any representation 

related to standby mode and off mode energy 

consumption of these products made after 

July 1, 2013 must be based upon results 

generated under this test procedure, 

consistent with the requirements of 42 U.S.C. 

6293(c)(2). * * * 

* * * * * 

8.6.1 Standby power measurement. * * * 

The recorded standby power (PW,SB) shall be 

rounded to the second decimal place, and for 

loads greater than or equal to 10W, at least 

three significant figures shall be reported. 

8.6.2. Off mode power measurement. 

* * * The recorded off mode power (PW,OFF) 

shall be rounded to the second decimal 

place, and for loads greater than or equal to 

10W, at least three significant figures shall be 

reported. 

* * * * * 

[FR Doc. 2012–31175 Filed 12–28–12; 8:45 am] 

BILLING CODE 6450–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1003 

[Docket No. CFPB–2012–0049] 

Home Mortgage Disclosure 

(Regulation C): Adjustment To AssetSize Exemption Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official commentary. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

publishing a final rule amending the 

official commentary that interprets the 

requirements of the Bureau’s Regulation 

C (Home Mortgage Disclosure) to reflect 

a change in the asset-size exemption 

threshold for banks, savings 

associations, and credit unions based on 

the annual percentage change in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W). 

The exemption threshold is adjusted to 

increase to $42 million from $41 

million. The adjustment is based on the 

2.23 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2012. Therefore, 

banks, savings associations, and credit 

unions with assets of $42 million or less 

as of December 31, 2012, are exempt 

from collecting data in 2013. 

DATES: This final rule is effective 

December 31, 2012. 

FOR FURTHER INFORMATION CONTACT: Joan 

Kayagil, Senior Counsel, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Home Mortgage Disclosure Act of 

1975 (HMDA) (12 U.S.C. 2801–2810) 

requires most mortgage lenders located 

in metropolitan areas to collect data 

about their housing-related lending 

activity. Annually, lenders must report 

those data to the appropriate Federal 

agencies and make the data available to 

the public. The Bureau’s Regulation C 

(12 CFR part 1003) implements HMDA. 

Prior to 1997, HMDA exempted 

certain depository institutions as 

defined in HMDA (i.e., banks, savings 

associations, and credit unions) with 

assets totaling $10 million or less as of 

the preceding year-end. In 1996, HMDA 

was amended to expand the asset-size 

exemption for these depository 

institutions. 12 U.S.C. 2808(b). The 

amendment increased the dollar amount 

of the asset-size exemption threshold by 

requiring a one-time adjustment of the 

$10 million figure based on the 

percentage by which the CPI–W for 

1996 exceeded the CPI–W for 1975, and 

it provided for annual adjustments 

thereafter based on the annual 

percentage increase in the CPI–W, 

rounded to the nearest multiple of $1 

million dollars. 

The definition of ‘‘financial 

institution’’ in Regulation C provides 

that the Bureau will adjust the asset 

threshold based on the year-to-year 

change in the average of the CPI–W, not 

seasonally adjusted, for each 12-month 

period ending in November, rounded to 

the nearest million. 12 CFR 1003.2. For 

2012, the threshold was $41 million. 

During the 12-month period ending in 

November 2012, the CPI–W increased 

by 2.23 percent. As a result, the 

exemption threshold is increased to $42 

million. Thus, banks, savings 

associations, and credit unions with 

assets of $42 million or less as of 

December 31, 2012, are exempt from 

collecting data in 2013. An institution’s 

exemption from collecting data in 2013 

does not affect its responsibility to 

report data it was required to collect in 

2012. 

II. Procedural Requirements 

Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

Bureau finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). Pursuant to 

this final rule, comment 1003.2 

(Financial institution)–2 in Regulation 

C, supplement I, is amended to update 

the exemption threshold. The 

amendment in this final rule is 

technical and nondiscretionary, and it 

merely applies the formula established 

by Regulation C for determining any 

adjustments to the exemption threshold. 

For these reasons, the Bureau has 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary and the amendment is 

adopted in final form. 

Under section 553(d) of the APA, the 

required publication or service of a 

substantive rule shall be made not less 

than 30 days before its effective date 

except for certain instances, including 

when a substantive rule grants or 

recognizes an exemption or relieves a 

restriction. 5 U.S.C. 553(d). As this rule 

increases the exemption threshold, and 

is therefore a substantive rule that grants 

or recognizes an exemption or relieves 

a restriction, the Bureau is publishing 

this final rule less than 30 days before 

its effective date. Additionally, as it is 

in the public interest to make the 


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