[Federal Register Volume 86, Number 164 (Friday, August 27, 2021)]
[Proposed Rules]
[Pages 48058-48065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18351]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2019-BT-STD-0018]
RIN 1904-AE12


Energy Conservation Program: Energy Conservation Standards for 
Distribution Transformers, Webinar and Availability of the Preliminary 
Technical Support Document

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notification of a webinar and availability of preliminary 
technical support document.

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SUMMARY: The U.S. Department of Energy (DOE) will hold a webinar to 
discuss and receive comments on the preliminary analysis it has 
conducted for purposes of evaluating energy conservation standards for 
distribution transformers. The webinar will cover the analytical 
framework, models, and tools that DOE is using to evaluate potential 
standards for this equipment; the results of preliminary analyses 
performed by DOE for this equipment; the potential energy conservation 
standard levels derived from these analyses that DOE could consider for 
this product should it determine that proposed amendments are 
necessary; and any other issues relevant to the evaluation of energy 
conservation standards for distribution transformers. In addition, DOE 
encourages written comments on these subjects.

DATES: 
    Meeting: DOE will hold a webinar on Wednesday, September 29, 2021, 
from 10 a.m. to 2 p.m. See section IV, ``Public Participation,'' for 
webinar registration information, participant instructions and 
information about the capabilities available to webinar participants.
    Comments: Written comments and information will be accepted on or 
before, November 10, 2021.

ADDRESSES: Interested persons are encouraged to submit comments using 
the Federal eRulemaking Portal at www.regulations.gov. Follow the 
instructions for submitting comments. Alternatively, interested persons 
may submit comments, identified by docket number EERE-2019-BT-STD-0018, 
by any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: to <a href="/cdn-cgi/l/email-protection#a1e5c8d2d5d3c8c3d4d5c8cecff5d3c0cfd2c7d3ceccc4d3d293919098f2f5e591919099e1c4c48fc5cec48fc6ced7"><span class="__cf_email__" data-cfemail="b3f7dac0c7c1dad1c6c7dadcdde7c1d2ddc0d5c1dcded6c1c08183828ae0e7f78383828bf3d6d69dd7dcd69dd4dcc5">[email protected]</span></a>. 
Include docket number EERE-2019-BT-STD-0018 in the subject line of the 
message.

No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document.
    Although DOE has routinely accepted public comment submissions 
through a variety of mechanisms, including the Federal eRulemaking 
Portal, email, postal mail, or hand delivery/courier, the Department 
has found it necessary to make temporary modifications to the comment 
submission process in light of the ongoing Covid-19 pandemic. DOE is 
currently suspending receipt of public comments via postal mail and 
hand delivery/courier. If a commenter finds that this change poses an 
undue hardship, please contact Appliance Standards Program staff at 
(202) 586-1445 to discuss the need for alternative arrangements. Once 
the Covid-19 pandemic health emergency is resolved, DOE anticipates 
resuming all of its regular options for public comment submission, 
including postal mail and hand delivery/courier.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, public meeting transcripts, and other 
supporting documents/materials, is available for review at 
www.regulations.gov. All documents in the docket are listed in the 
www.regulations.gov index. However, some documents listed in the index, 
such as those containing information that is exempt from public 
disclosure, may not be publicly available.
    The docket web page can be found at www.regulations.gov/docket?D=EERE-2019-BT-STD-0018. The docket web page contains 
instructions on how to access all documents, including public comments 
in the docket. See section IV for information on how to submit comments 
through www.regulations.gov.
    To inform interested parties and to facilitate this process, DOE 
has prepared an agenda, a preliminary technical support document 
(``TSD''), and briefing materials, which are available on the

[[Page 48059]]

DOE website at: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55.

FOR FURTHER INFORMATION CONTACT: 
    Mr. Jeremy Dommu, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000 
Independence Avenue SW, Washington, DC 20585-0121. Email: 
<a href="/cdn-cgi/l/email-protection#e3a293938f8a828d8086b097828d8782918790b2968690978a8c8d90a38686cd878c86cd848c95"><span class="__cf_email__" data-cfemail="5a1b2a2a36333b34393f092e3b343e3b283e290b2f3f292e333534291a3f3f743e353f743d352c">[email protected]</span></a>.
    Mr. Matthew Ring, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-2555. Email: <a href="/cdn-cgi/l/email-protection#4c212d383824293b623e25222b0c243d62282329622b233a"><span class="__cf_email__" data-cfemail="4d202c393925283a633f24232a0d253c63292228632a223b">[email protected]</span></a>.
    For further information on how to submit a comment, review other 
public comments and the docket, contact the Appliance and Equipment 
Standards Program staff at (202) 287-1445 or by email: 
<a href="/cdn-cgi/l/email-protection#6d2c1d1d01040c030e083e190c03090c1f091e3c18081e190402031e2d080843090208430a021b"><span class="__cf_email__" data-cfemail="6d2c1d1d01040c030e083e190c03090c1f091e3c18081e190402031e2d080843090208430a021b">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority
    B. Rulemaking Process
II. Background
    A. Current Standards
    B. Current Process
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Markups Analysis
    C. Energy Use Analysis
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis
IV. Public Participation
    A. Participation in the Webinar
    B. Procedure for Submitting Prepared General Statements for 
Distribution
    C. Conduct of the Webinar
    D. Submission of Comments
V. Approval of the Office of the Secretary

I. Introduction

A. Authority

    The Energy Policy and Conservation Act, as amended (``EPCA''),\1\ 
(42 U.S.C. 6291-6317, as codified) authorizes DOE to regulate the 
energy efficiency of a number of consumer products and certain 
industrial equipment. Title III, Part B \2\ of EPCA (42 U.S.C. 6291-
6309, as codified), established the Energy Conservation Program for 
``Consumer Products Other Than Automobiles.'' Title III, Part C \3\ of 
EPCA (42 U.S.C. 6311-6317, as codified), added by Public Law 95-619, 
Title IV, section 411(a), established the Energy Conservation Program 
for Certain Industrial Equipment. The Energy Policy Act of 1992, Public 
Law 102-486, amended EPCA and directed DOE to prescribe energy 
conservation standards for those distribution transformers for which 
DOE determines such standards would be technologically feasible, 
economically justified, and would result in significant energy savings. 
(42 U.S.C. 6317(a)) The Energy Policy Act of 2005, Public Law 109-58, 
amended EPCA to establish energy conservation standards for low-voltage 
dry-type distribution transformers. (42 U.S.C. 6295(y))
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was re-designated Part A.
    \3\ For editorial reasons, upon codification in the U.S. Code, 
Part C was re-designated Part A-1.
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    EPCA further provides that, not later than six years after the 
issuance of any final rule establishing or amending a standard, DOE 
must publish either a notice of determination that standards for the 
product do not need to be amended, or a notice of proposed rulemaking 
(``NOPR'') including new proposed energy conservation standards 
(proceeding to a final rule, as appropriate). (42 U.S.C. 6316(a); 42 
U.S.C. 6295(m)(1)) Not later than three years after issuance of a final 
determination not to amend standards, DOE must publish either a notice 
of determination that standards for the product do not need to be 
amended, or a NOPR including new proposed energy conservation standards 
(proceeding to a final rule, as appropriate). (42 U.S.C. 6316(a); 42 
U.S.C. 6295(m)(3)(B))
    Under EPCA, any new or amended energy conservation standard must be 
designed to achieve the maximum improvement in energy efficiency that 
DOE determines is technologically feasible and economically justified. 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or 
amended standard must result in a significant conservation of energy. 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(3)(B))
    DOE is publishing this Preliminary Analysis to collect data and 
information to inform its decision consistent with its obligations 
under EPCA.

B. Rulemaking Process

    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered products and covered equipment, including 
distribution transformers.\4\ As noted, EPCA requires that any new or 
amended energy conservation standard prescribed by the Secretary of 
Energy (``Secretary'') be designed to achieve the maximum improvement 
in energy efficiency (or water efficiency for certain products 
specified by EPCA) that is technologically feasible and economically 
justified. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) Furthermore, 
DOE may not adopt any standard that would not result in the significant 
conservation of energy. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(3)) The 
Secretary may not prescribe an amended or new standard that will not 
result in significant conservation of energy, or is not technologically 
feasible or economically justified. (42 U.S.C. 6316(a); 42 U.S.C. 
6295(o)(3))
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    \4\ While EPCA includes provisions regarding distribution 
transformers in both Part A and Part A-1, for administrative 
convenience DOE has established the test procedures and standards 
for distribution transformers in title 10 of the Code of Federal 
Regulations (``CFR'') in part 431, Energy Efficiency Program for 
Certain Commercial and Industrial Equipment. DOE refers to 
distribution transformers generally as ``covered equipment'' in this 
document.
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    On February 14, 2020, DOE published an update to its procedures, 
interpretations, and policies for consideration in new or revised 
energy conservation standards and test procedure, i.e., ``Procedures, 
Interpretations, and Policies for Consideration of New or Revised 
Energy Conservation Standards and Test Procedures for Consumer Products 
and Certain Commercial/Industrial Equipment'' (see 10 CFR 431.4; 10 CFR 
part 430, subpart C, appendix A (``Process Rule,'')).\5\ 85 FR 8626. In 
the updated Process Rule, DOE established a significance threshold for 
energy savings under which DOE employs a two-step approach that 
considers both an absolute site energy savings threshold and a 
threshold that is a percent reduction in the energy use of the covered 
product. 10 CFR 431.4; section 6(a) of the Process Rule.
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    \5\ On January 20, 2021, the President issued Executive Order 
13990, Protecting Public Health and the Environment and Restoring 
Science to Tackle the Climate Crisis. Exec. Order No. 13,990, 86 FR 
7037 (Jan. 25, 2021) (``E.O. 13990''). E.O. 13990 affirms the 
Nation's commitment to empower our workers and communities; promote 
and protect our public health and the environment; and conserve our 
national treasures and monuments. To that end, the stated policies 
of E.O. 13990 include: Improving public health and protecting our 
environment; ensuring access to clean air and water; and reducing 
greenhouse gas emissions. E.O. 13990 section 1. Section 2 of E.O. 
13990 directs agencies, in part, to immediately review all existing 
regulations, orders, guidance documents, policies, and any other 
similar agency actions (``agency actions'') promulgated, issued, or 
adopted between January 20, 2017, and January 20, 2021, that are or 
may be inconsistent with, or present obstacles to, the policy set 
forth in the Executive Order. E.O. 13990 section 2. In addition, 
section 2(iii) of E.O. 13990 specifically directs DOE to, as 
appropriate and consistent with applicable law, publishing for 
notice and comment a proposed rule suspending, revising, or 
rescinding the updated Process Rule. In response to this directive, 
DOE has undertaken a review of the updated Process Rule. See, 86 FR 
18901 (Apr. 12, 2021) and 86 FR 35668 (July 7, 2021).

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[[Page 48060]]

    DOE first evaluates the projected energy savings from a potential 
maximum technologically feasible (``max-tech'') standard over a 30-year 
period against a 0.3 quads of site energy savings threshold (Section 
6(b)(2) of the Process Rule). If the 0.3 quad threshold is not met, DOE 
then compares the max-tech savings to the total energy usage of the 
covered product to calculate a percentage reduction in energy usage (10 
CFR 431.4; section 6(b)(3) of the Process Rule). If this comparison 
does not yield a reduction in site energy use of at least 10 percent 
over a 30-year period, the analysis will end and DOE will propose to 
determine that no significant energy savings would likely result from 
setting new or amended standards (10 CFR 431.4; section 6(b)(4) of the 
Process Rule). If either one of the thresholds is reached, DOE will 
conduct analyses to ascertain whether a standard can be prescribed that 
produces the maximum improvement in energy efficiency that is both 
technologically feasible and economically justified and still 
constitutes significant energy savings at the level determined to be 
economically justified. 10 CFR 431.4; section 6(b)(5) of the Process 
Rule. This two-step approach allows DOE to ascertain whether a 
potential standard satisfies EPCA's significant energy savings 
requirements in 42 U.S.C. 6316(a) and 42 U.S.C. 6295(o)(3)(B) to ensure 
that DOE avoids setting a standard that ``will not result in 
significant conservation of energy.''
    EPCA defines ``energy efficiency'' as the ratio of the useful 
output of services from an article of industrial equipment to the 
energy use by such article, measured according to the Federal test 
procedures (42 U.S.C. 6311(3), emphasis added). EPCA defines ``energy 
use'' as the quantity of energy directly consumed by an article of 
industrial equipment at the point of use, as measured by the Federal 
test procedures (42 U.S.C. 6311(4)). Further, EPCA uses a household 
energy consumption metric as a threshold for setting standards for new 
covered products (42 U.S.C. 6316(a); 42 U.S.C. 6295(l)(1)). Given this 
context, DOE relies on site energy as the appropriate metric for 
evaluating the significance of energy savings.
    To determine whether a standard is economically justified, EPCA 
requires that DOE determine whether the benefits of the standard exceed 
its burdens by considering, to the greatest extent practicable, the 
following seven factors:
    (1) The economic impact of the standard on the manufacturers and 
consumers of the 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 that are likely to result from the standard;
    (3) The total projected amount of energy (or as applicable, water) 
savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the products 
likely to result from 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 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy (Secretary) considers 
relevant.

(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

    DOE fulfills these and other applicable requirements by conducting 
a series of analyses throughout the rulemaking process. Table I.1 shows 
the individual analyses that are performed to satisfy each of the 
requirements within EPCA.

       Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
            EPCA requirement                Corresponding DOE analysis
------------------------------------------------------------------------
Significant Energy Savings..............  <bullet> Shipments Analysis.
                                          <bullet> National Impact
                                           Analysis.
                                          <bullet> Energy Analysis.
Technological Feasibility...............  <bullet> Market and Technology
                                           Assessment.
                                          <bullet> Screening Analysis.
                                          <bullet> Engineering Analysis.
Economic Justification:
    1. Economic Impact on Manufacturers   <bullet> Manufacturer Impact
     and Consumers.                        Analysis.
                                          <bullet> Life-Cycle Cost and
                                           Payback Period Analysis.
                                          <bullet> Consumer Subgroup
                                           Analysis.
                                          <bullet> Shipments Analysis.
    2. Lifetime Operating Cost Savings    <bullet> Markups for Product
     Compared to Increased Cost for the    Price Analysis.
     Product.
                                          <bullet> Energy Analysis.
                                          <bullet> Life-Cycle Cost and
                                           Payback Period Analysis.
    3. Total Projected Energy Savings...  <bullet> Shipments Analysis.
                                          <bullet> National Impact
                                           Analysis.
    4. Impact on Utility or Performance.  <bullet> Screening Analysis.
                                          <bullet> Engineering Analysis.
    5. Impact of Any Lessening of         <bullet> Manufacturer Impact
     Competition.                          Analysis.
    6. Need for National Energy and       <bullet> Shipments Analysis.
     Water Conservation.
                                          <bullet> National Impact
                                           Analysis.
    7. Other Factors the Secretary        <bullet> Employment Impact
     Considers Relevant.                   Analysis.
                                          <bullet> Utility Impact
                                           Analysis.
                                          <bullet> Emissions Analysis.
                                          <bullet> Monetization of
                                           Emission Reductions Benefits.
                                          <bullet> Regulatory Impact
                                           Analysis.
------------------------------------------------------------------------

    Further, EPCA establishes a rebuttable presumption that a standard 
is economically justified if the Secretary finds that the additional 
cost to the consumer of purchasing an equipment complying with an 
energy conservation standard level will be less than three times the 
value of the energy savings during the first year that the consumer 
will receive as a result of the standard, as calculated under the 
applicable test

[[Page 48061]]

procedure (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(iii)).
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered equipment 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(1)). Also, the Secretary may not 
prescribe an amended or new standard if interested persons have 
established by a preponderance of the evidence that the standard is 
likely to result in the unavailability in the United States in any 
covered equipment type (or class) of performance characteristics 
(including reliability), features, sizes, capacities, and volumes that 
are substantially the same as those generally available in the United 
States (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(4)).
    Additionally, EPCA specifies requirements when promulgating an 
energy conservation standard for covered equipment that has two or more 
subcategories. DOE must specify a different standard level for a type 
or class of product that has the same function or intended use, if DOE 
determines that products within such group: (A) Consume a different 
kind of energy from that consumed by other covered products within such 
type (or class); or (B) have a capacity or other performance-related 
feature which other products within such type (or class) do not have 
and such feature justifies a higher or lower standard (42 U.S.C. 
6316(a); 42 U.S.C. 6295(q)(1)). In determining whether a performance-
related feature justifies a different standard for a group of 
equipment, DOE must consider such factors as the utility to the 
consumer of the feature and other factors DOE deems appropriate. Id. 
Any rule prescribing such a standard must include an explanation of the 
basis on which such higher or lower level was established (42 U.S.C. 
6316(a); 42 U.S.C. 6295(q)(2)).
    Before proposing a standard, DOE seeks public input on the 
analytical framework, models, and tools that DOE intends to use to 
evaluate standards for the equipment at issue and the results of 
preliminary analyses DOE performed for the equipment.
    DOE is examining whether to amend the current standards pursuant to 
its obligations under EPCA. This notification announces the 
availability of the preliminary TSD, which details the preliminary 
analyses and summarizes the preliminary results of DOE's analyses. In 
addition, DOE is announcing a public webinar to solicit feedback from 
interested parties on its analytical framework, models, and preliminary 
results.

II. Background

A. Current Standards

    In a final rule published on April 18, 2013 (``April 2013 Standards 
Final Rule''), DOE prescribed the current energy conservation standards 
for distribution transformers manufactured on and after January 1, 
2016. 78 FR 23336, 23433. These standards are set forth in DOE's 
regulations at 10 CFR 431.196 and are repeated in Table II.1, Table 
II.2, Table II.3 of this document.

      Table II.1--Federal Energy Conservation Standards for Low-Voltage Dry-Type Distribution Transformers
----------------------------------------------------------------------------------------------------------------
                         Single-phase                                              Three-phase
----------------------------------------------------------------------------------------------------------------
                     kVA                        Efficiency (%)                 kVA                Efficiency (%)
----------------------------------------------------------------------------------------------------------------
15...........................................           97.70   15..............................           97.89
25...........................................           98.00   30..............................           98.23
37.5.........................................           98.20   45..............................           98.40
50...........................................           98.30   75..............................           98.60
75...........................................           98.50   112.5...........................           98.74
100..........................................           98.60   150.............................           98.83
167..........................................           98.70   225.............................           98.94
250..........................................           98.80   300.............................           99.02
333..........................................           98.90   500.............................           99.14
                                                                750.............................           99.23
                                                                1,000...........................           99.28
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         Table II.2--Federal Energy Conservation Standards for Liquid-Immersed Distribution Transformers
----------------------------------------------------------------------------------------------------------------
                         Single-phase                                              Three-phase
----------------------------------------------------------------------------------------------------------------
                     kVA                        Efficiency (%)                 kVA                Efficiency (%)
----------------------------------------------------------------------------------------------------------------
10...........................................           98.70   15..............................           98.65
15...........................................           98.82   30..............................           98.83
25...........................................           98.95   45..............................           98.92
37.5.........................................           99.05   75..............................           99.03
50...........................................           99.11   112.5...........................           99.11
75...........................................           99.19   150.............................           99.16
100..........................................           99.25   225.............................           99.23
167..........................................           99.33   300.............................           99.27
250..........................................           99.39   500.............................           99.35
333..........................................           99.43   750.............................           99.40
500..........................................           99.49   1,000...........................           99.43
667..........................................           99.52   1,500...........................           99.48
833..........................................           99.55   2,000...........................           99.51
                                                                2,500...........................           99.52
----------------------------------------------------------------------------------------------------------------


[[Page 48062]]


                         Table II.3--Federal Energy Conservation Standards for Medium-Voltage Dry-Type Distribution Transformers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                   Single-phase                                                                  Three-phase
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         BIL                                                                    BIL
                                  -------------------------------------------------                      -----------------------------------------------
               kVA                    20-45 kV        46-95 kV         >=96 kV               kVA             20-45 kV        46-95 kV         >=96 kV
                                  -------------------------------------------------                      -----------------------------------------------
                                   Efficiency (%)  Efficiency (%)   Efficiency (%)                        Efficiency (%)  Efficiency (%)  Efficiency (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
15...............................            98.1           97.86  ...............  15..................            97.5           97.18  ..............
25...............................           98.33           98.12  ...............  30..................            97.9           97.63  ..............
37.5.............................           98.49            98.3  ...............  45..................            98.1           97.86  ..............
50...............................            98.6           98.42  ...............  75..................           98.33           98.13  ..............
75...............................           98.73           98.57           98.53   112.5...............           98.52           98.36  ..............
100..............................           98.82           98.67           98.63   150.................           98.65           98.51  ..............
167..............................           98.96           98.83           98.80   225.................           98.82           98.69           98.57
250..............................           99.07           98.95           98.91   300.................           98.93           98.81           98.69
333..............................           99.14           99.03           98.99   500.................           99.09           98.99           98.89
500..............................           99.22           99.12           99.09   750.................           99.21           99.12           99.02
667..............................           99.27           99.18           99.15   1,000...............           99.28            99.2           99.11
833..............................           99.31           99.23           99.20   1,500...............           99.37            99.3           99.21
                                                                                    2,000...............           99.43           99.36           99.28
                                                                                    2,500...............           99.47           99.41           99.33
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Current Process

    On June 18, 2019, DOE published notice that it was initiating an 
early assessment review to determine whether any new or amended 
standards would satisfy the relevant requirements of EPCA for a new or 
amended energy conservation standard for distribution transformers and 
a request for information (``RFI''). 84 FR 28239 (``June 2019 Early 
Assessment Review RFI''). Specifically, through the published notice 
and request for information, DOE sought data and information that could 
enable the agency to determine whether DOE should propose a ``no new 
standard'' determination because a more stringent standard: (1) Would 
not result in a significant savings of energy; (2) is not 
technologically feasible; (3) is not economically justified; or (4) any 
combination of foregoing. Id.
    Comments received to date as part of the current process have 
helped DOE identify and resolve issues related to the preliminary 
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the 
comments received.

III. Summary of the Analyses Performed by DOE

    For the equipment covered in this preliminary analysis, DOE 
conducted in-depth technical analyses in the following areas: (1) 
Engineering; (2) markups to determine product price; (3) energy use; 
(4) life cycle cost (``LCC'') and payback period (``PBP''); and (5) 
national impacts. The preliminary TSD that presents the methodology and 
results of each of these analyses is available at www.regulations.gov/docket/EERE-2019-BT-STD-0018.
    DOE also conducted, and has included in the preliminary TSD, 
several other analyses that support the major analyses or are 
preliminary analyses that will be expanded if DOE determines that a 
NOPR is warranted to propose amended energy conservation standards. 
These analyses include: (1) The market and technology assessment; (2) 
the screening analysis, which contributes to the engineering analysis; 
and (3) the shipments analysis, which contributes to the LCC and PBP 
analysis and the national impact analysis (``NIA''). In addition to 
these analyses, DOE has begun preliminary work on the manufacturer 
impact analysis and has identified the methods to be used for the 
consumer subgroup analysis, the emissions analysis, the employment 
impact analysis, the regulatory impact analysis, and the utility impact 
analysis. DOE will expand on these analyses in the NOPR should one be 
issued.

A. Engineering Analysis

    The purpose of the engineering analysis is to establish the 
relationship between the efficiency and cost of distribution 
transformers. There are two elements to consider in the engineering 
analysis; the selection of efficiency levels to analyze (i.e., the 
``efficiency analysis'') and the determination of equipment cost at 
each efficiency level (i.e., the ``cost analysis''). In determining the 
performance of higher-efficiency equipment, DOE considers technologies 
and design option combinations not eliminated by the screening 
analysis. For each equipment class, DOE estimates the manufacturer 
production cost (``MPC'') for the baseline as well as higher efficiency 
levels. The output of the engineering analysis is a set of cost-
efficiency ``curves'' that are used in downstream analyses (i.e., the 
LCC and PBP analyses and the NIA).
    DOE converts the MPC to the manufacturer selling price (``MSP'') by 
applying a manufacturer markup. The MSP is the price the manufacturer 
charges its first customer, when selling into the equipment 
distribution channels. The manufacturer markup accounts for 
manufacturer non-production costs and profit margin. DOE developed the 
manufacturer markup by examining publicly available financial 
information for manufacturers of the covered product.
    See Chapter 5 of the preliminary TSD for additional detail on the 
engineering analysis.

B. Markups Analysis

    The markups analysis develops appropriate markups (e.g., retailer 
markups, distributor markups, contractor markups) in the distribution 
chain and sales taxes to convert MSP estimates derived in the 
engineering analysis to consumer prices, which are then used in the LCC 
and PBP analysis. At each step in the distribution channel, companies 
mark up the price of the product to cover business costs and profit 
margin.
    DOE developed baseline and incremental markups for each actor in 
the distribution chain. Baseline markups are applied to the price of 
products with baseline efficiency, while incremental markups are 
applied to the difference in price between baseline and higher-
efficiency models (the

[[Page 48063]]

incremental cost increase). The incremental markup is typically less 
than the baseline markup and is designed to maintain similar per-unit 
operating profit before and after new or amended standards.\6\
---------------------------------------------------------------------------

    \6\ Because the projected price of standards-compliant products 
is typically higher than the price of baseline products, using the 
same markup for the incremental cost and the baseline cost would 
result in higher per-unit operating profit. While such an outcome is 
possible, DOE maintains that in markets that are reasonably 
competitive it is unlikely that standards would lead to a 
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------

    Chapter 6 of the preliminary TSD provides details on DOE's 
development of markups for distribution transformers.

C. Energy Use Analysis

    The energy use analysis produces energy use estimates and end-use 
load shapes for distribution transformers. The energy use analysis 
estimates the range of energy use of distribution transformers in the 
field (i.e., as they are actually used by consumers) enabling 
evaluation of energy savings from the operation of distribution 
transformer equipment at various efficiency levels, while the end-use 
load characterization allows evaluation of the impact on monthly and 
peak demand for electricity. The energy use analysis provides the basis 
for other analyses DOE performed, particularly assessments of the 
energy savings and the savings in operating costs that could result 
from adoption of amended or new standards.
    Chapter 7 of the preliminary TSD addresses the energy use analysis.

D. Life-Cycle Cost and Payback Period Analyses

    The effect of new or amended energy conservation standards on 
individual consumers usually involves a reduction in operating cost and 
an increase in purchase cost. DOE used the following two metrics to 
measure consumer impacts:
    <bullet> The LCC is the total consumer expense of an appliance or 
product over the life of that product, consisting of total installed 
cost (manufacturer selling price, distribution chain markups, sales 
tax, and installation costs) plus operating costs (expenses for energy 
use, maintenance, and repair). To compute the operating costs, DOE 
discounts future operating costs to the time of purchase and sums them 
over the lifetime of the product.
    <bullet> The PBP is the estimated amount of time (in years) it 
takes consumers to recover the increased purchase cost (including 
installation) of a more-efficient product through lower operating 
costs. DOE calculates the PBP by dividing the change in purchase cost 
at higher efficiency levels by the change in annual operating cost for 
the year that amended or new standards are assumed to take effect.
    Chapter 8 of the preliminary TSD addresses the LCC and PBP 
analyses.

E. National Impact Analysis

    The NIA estimates the national energy savings (``NES'') and the net 
present value (``NPV'') of total consumer costs and savings expected to 
result from amended standards at specific efficiency levels (referred 
to as candidate standard levels).\7\ DOE calculates the NES and NPV for 
the potential standard levels considered based on projections of annual 
equipment shipments, along with the annual energy consumption and total 
installed cost data from the energy use and LCC analyses. For the 
present analysis, DOE projected the energy savings, operating cost 
savings, equipment costs, and NPV of consumer benefits over the 
lifetime of distribution transformers sold from 2025 through 2054.
---------------------------------------------------------------------------

    \7\ The NIA accounts for impacts in the 50 states and U.S. 
territories.
---------------------------------------------------------------------------

    DOE evaluates the impacts of new or amended standards by comparing 
a case without such standards with standards-case projections (``no-
new-standards case''). The no-new-standards case characterizes energy 
use and consumer costs for each equipment class in the absence of new 
or amended energy conservation standards. For this projection, DOE 
considers historical trends in efficiency and various forces that are 
likely to affect the mix of efficiencies over time. DOE compares the 
no-new-standards case with projections characterizing the market for 
each equipment class if DOE adopted new or amended standards at 
specific energy efficiency levels for that class. For each efficiency 
level, DOE considers how a given standard would likely affect the 
market shares of equipment with efficiencies greater than the standard.
    DOE uses a spreadsheet model to calculate the energy savings and 
the national consumer costs and savings from each efficiency level. 
Interested parties can review DOE's analyses by changing various input 
quantities within the spreadsheet. The NIA spreadsheet model uses 
typical values (as opposed to probability distributions) as inputs. 
Critical inputs to this analysis include shipments projections, 
estimated product lifetimes, product installed costs and operating 
costs, product annual energy consumption, the base case efficiency 
projection, and discount rates.
    DOE estimates a combined total of 4.0 quads of site energy savings 
at the max- tech efficiency levels for distribution transformers. 
Combined site energy savings at Efficiency Level 1 for all equipment 
classes are estimated to be 0.3 quads. Therefore, DOE has determined 
the potential available energy savings for distribution transformers 
are more than the 0.3 quads of site energy threshold established by the 
Process Rule and thus are considered significant under EPCA (42 U.S.C. 
6316(a); 42 U.S.C. 6295(o)(3)(B)).
    Chapter 10 of the preliminary TSD addresses the NIA.

IV. Public Participation

    DOE invites public participation in this process through 
participation in the webinar and submission of written comments and 
information. After the webinar and the closing of the comment period, 
DOE will consider all timely-submitted comments and additional 
information obtained from interested parties, as well as information 
obtained through further analyses. Following such consideration, the 
Department will publish either a determination that the standards for 
distribution transformers need not be amended or a NOPR proposing to 
amend those standards. The NOPR, should one be issued, would include 
proposed energy conservation standards for the products covered by that 
rulemaking, and members of the public would be given an opportunity to 
submit written and oral comments on the proposed standards.

A. Participation in the Webinar

    The time and date of the webinar meeting are listed in the DATES 
section at the beginning of this document. Webinar registration 
information, participant instructions, and information about the 
capabilities available to webinar participants will be published on 
DOE's website: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55. Participants are responsible for ensuring 
their systems are compatible with the webinar software.

B. Procedure for Submitting Prepared General Statements for 
Distribution

    Any person who has an interest in the topics addressed in this 
notice, or who is representative of a group or class of persons that 
has an interest in these issues, may request an opportunity to make an 
oral presentation at the webinar. Such persons may submit such

[[Page 48064]]

request to <a href="/cdn-cgi/l/email-protection#6a2b1a1a06030b04090f391e0b040e0b180e193b1f0f191e030504192a0f0f440e050f440d051c"><span class="__cf_email__" data-cfemail="98d9e8e8f4f1f9f6fbfdcbecf9f6fcf9eafcebc9edfdebecf1f7f6ebd8fdfdb6fcf7fdb6fff7ee">[email protected]</span></a>. Persons who wish to 
speak should include with their request a computer file in WordPerfect, 
Microsoft Word, PDF, or text (ASCII) file format that briefly describes 
the nature of their interest in this rulemaking and the topics they 
wish to discuss. Such persons should also provide a daytime telephone 
number where they can be reached.
    Persons requesting to speak should briefly describe the nature of 
their interest in this rulemaking and provide a telephone number for 
contact. DOE requests persons selected to make an oral presentation to 
submit an advance copy of their statements at least two weeks before 
the webinar. At its discretion, DOE may permit persons who cannot 
supply an advance copy of their statement to participate, if those 
persons have made advance alternative arrangements with the Building 
Technologies Office. As necessary, requests to give an oral 
presentation should ask for such alternative arrangements.

C. Conduct of the Webinar

    DOE will designate a DOE official to preside at the webinar and may 
also use a professional facilitator to aid discussion. The webinar will 
not be a judicial or evidentiary-type public hearing, but DOE will 
conduct it in accordance with section 336 of EPCA (42 U.S.C. 6306). A 
court reporter will be present to record the proceedings and prepare a 
transcript. DOE reserves the right to schedule the order of 
presentations and to establish the procedures governing the conduct of 
the webinar/public meeting. There shall not be discussion of 
proprietary information, costs or prices, market share, or other 
commercial matters regulated by U.S. anti-trust laws. After the webinar 
and until the end of the comment period, interested parties may submit 
further comments on the proceedings and any aspect of the rulemaking.
    The webinar will be conducted in an informal, conference style. DOE 
will present summaries of comments received before the webinar/public 
meeting, allow time for prepared general statements by participants, 
and encourage all interested parties to share their views on issues 
affecting this rulemaking. Each participant will be allowed to make a 
general statement (within time limits determined by DOE), before the 
discussion of specific topics. DOE will permit, as time permits, other 
participants to comment briefly on any general statements.
    At the end of all prepared statements on a topic, DOE will permit 
participants to clarify their statements briefly. Participants should 
be prepared to answer questions by DOE and by other participants 
concerning these issues. DOE representatives may also ask questions of 
participants concerning other matters relevant to this rulemaking. The 
official conducting the webinar will accept additional comments or 
questions from those attending, as time permits. The presiding official 
will announce any further procedural rules or modification of the above 
procedures that may be needed for the proper conduct of the webinar/
public meeting.
    A transcript of the webinar will be included in the docket, which 
can be viewed as described in the Docket section at the beginning of 
this notice. In addition, any person may buy a copy of the transcript 
from the transcribing reporter.

D. Submission of Comments

    DOE invites all interested parties, regardless of whether they 
participate in the public meeting, to submit in writing by November 10, 
2021, comments and information on matters addressed in this 
notification and on other matters relevant to DOE's consideration of 
amended energy conservations standards for distribution transformers. 
Interested parties may submit comments, data, and other information 
using any of the methods described in the ADDRESSES section at the 
beginning of this document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. If this instruction is followed, persons viewing comments 
will see only first and last names, organization names, correspondence 
containing comments, and any documents submitted with the comments.
    Do not submit to www.regulations.gov. information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (CBI)). Comments submitted through 
www.regulations.gov cannot be claimed as CBI. Comments received through 
the website will waive any CBI claims for the information submitted. 
For information on submitting CBI, see the Confidential Business 
Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email. Comments and documents submitted via 
email also will be posted to www.regulations.gov. If you do not want 
your personal contact information to be publicly viewable, do not 
include it in your comment or any accompanying documents. Instead, 
provide your contact information in a cover letter. Include your first 
and last names, email address, telephone number, and optional mailing 
address. The cover letter will not be publicly viewable as long as it 
does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. No faxes will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This

[[Page 48065]]

reduces comment processing and posting time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email two well-marked copies: One copy of the document marked 
``confidential'' including all the information believed to be 
confidential, and one copy of the document marked ``non-confidential'' 
with the information believed to be confidential deleted. DOE will make 
its own determination about the confidential status of the information 
and treat it according to its determination.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this 
notification of a webinar and availability of preliminary technical 
support document.

Signing Authority

    This document of the Department of Energy was signed on August 20, 
2021, by Kelly Speakes-Backman, Principal Deputy Assistant Secretary 
and Acting Assistant Secretary for Energy Efficiency and Renewable 
Energy, pursuant to delegated authority from the Secretary of Energy. 
That document with the original signature and date is maintained by 
DOE. For administrative purposes only, and in compliance with 
requirements of the Office of the Federal Register, the undersigned DOE 
Federal Register Liaison Officer has been authorized to sign and submit 
the document in electronic format for publication, as an official 
document of the Department of Energy. This administrative process in no 
way alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on August 20, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-18351 Filed 8-26-21; 8:45 am]
BILLING CODE 6450-01-P


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