Federal Register / Vol. 87, No. 80 / Tuesday, April 26, 2022 / Proposed Rules 24469 

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). 

VI. Approval of the Office of the 

Secretary 

The Secretary of Energy has approved 

publication of this notification of 

proposed determination and request for 

comment. 

Signing Authority 

This document of the Department of 

Energy was signed on April 20, 2022, by 

Kelly J. Speakes-Backman, Principal 

Deputy 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 April 21, 

2022. 

Treena V. Garrett, 

Federal Register Liaison Officer, U.S. 

Department of Energy. 

[FR Doc. 2022–08868 Filed 4–25–22; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF ENERGY 

10 CFR Part 431 

[EERE–2020–BT–STD–0014] 

RIN 1904–AE68 

Energy Conservation Program: Energy 

Conservation Standards for 

Refrigerated Bottled or Canned 

Beverage Vending Machines 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notification of availability of 

preliminary technical support document 

and request for comment. 

SUMMARY: The U.S. Department of 

Energy (‘‘DOE’’) announces the 

availability of the preliminary analysis 

it has conducted for purposes of 

evaluating the need for amended energy 

conservation standards for refrigerated 

bottled or canned beverage vending 

machines, which is set forth in the 

Department’s preliminary technical 

support document (‘‘TSD’’) for this 

rulemaking. DOE will hold a public 

meeting via webinar to discuss and 

receive comment on its preliminary 

analysis. The meeting will cover the 

analytical framework, models, and tools 

used to evaluate potential standards for 

this equipment; the results of 

preliminary analyses performed by 

DOE; the potential energy conservation 

standard levels derived from these 

analyses (if DOE determines that 

proposed amendments are necessary); 

and other relevant issues. In addition, 

DOE encourages written comments on 

these subjects. 

DATES: Comments: Written comments 

and information will be accepted on or 

before June 27, 2022. 

Meeting: DOE will hold a webinar on 

Monday, May 23, 2022, from 1:00 p.m. 

to 4:00 p.m. See section IV, ‘‘Public 

Participation,’’ for webinar registration 

information, participant instructions, 

and information about the capabilities 

available to webinar participants. 

ADDRESSES: Interested persons are 

encouraged to submit comments using 

the Federal eRulemaking Portal at 

www.regulations.gov, under docket 

number EERE–2020–BT–STD–0014. 

Follow the instructions for submitting 

comments. Alternatively, comments 

may be submitted by email to: 

BVM2020STD0014@ee.doe.gov. Include 

docket number EERE–2020–BT–STD– 

0014 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 and hand delivery/courier, 

the Department has found it necessary 

to make temporary modifications to the 

comment submission process in light of 

the ongoing corona virus 2019 

(‘‘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. 

To inform interested parties and to 

facilitate this rulemaking process, DOE 

has prepared an agenda, a preliminary 

TSD, and briefing materials, which are 

available on the DOE website at: 

www.regulations.gov/docket/EERE2020-BT-STD-0014. 

Docket: The docket for this activity, 

which includes Federal Register 

notices, comments, 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, 

not all documents listed in the index 

may be publicly available, such as those 

containing information that is exempt 

from public disclosure. 

The docket web page can be found at 

www.regulations.gov/docket/EERE2020-BT-STD-0014. 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. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Stephanie Johnson, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies, EE–2J, 1000 

Independence Avenue SW, Washington, 

DC 20585–0121. Telephone: (202) 287– 

1943. Email: 

ApplianceStandardsQuestions@

ee.doe.gov. 

Ms. Sarah Butler, U.S. Department of 

Energy, Office of the General Counsel, 

GC–33, 1000 Independence Avenue SW, 

Washington, DC 20585–0121. 


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24470 Federal Register / Vol. 87, No. 80 / Tuesday, April 26, 2022 / Proposed Rules 

1All 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), which 

reflect the last statutory amendments that impact 

Parts A and A–1 of EPCA. 

2For editorial reasons, upon codification in the 

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

3Because Congress included beverage vending 

machines in Part A of Title III of EPCA, the 

consumer product provisions of Part A (rather than 

the industrial equipment provisions of Part A–1) 

apply to beverage vending machines. DOE placed 

the regulatory requirements specific to beverage 

vending machines in 10 CFR part 431, ‘‘Energy 

Efficiency Program for Certain Commercial and 

Industrial Equipment’’ as a matter of administrative 

convenience based on their type and will refer to 

beverage vending machines as ‘‘equipment’’ 

throughout this document because of their 

placement in 10 CFR part 431. Despite the 

placement of beverage vending machines in 10 CFR 

part 431, the relevant provisions of Title A of EPCA 

and 10 CFR part 430, which are applicable to all 

product types specified in Title A of EPCA, are 

applicable to beverage vending machines. See 74 FR 

44914, 44917 (Aug. 31, 2009) and 80 FR 45758, 

45759 (Jul. 31, 2015). The regulatory provisions of 

10 CFR 430.33 and 430.34 and subparts D and E of 

10 CFR part 430 are applicable to beverage vending 

machines. 

4See 86 FR 70892, 70901 (Dec. 13, 2021). 

5See Executive Order 14008, 86 FR 7619 (Feb. 1, 

2021) (‘‘Tackling the Climate Crisis at Home and 

Abroad’’). 

Telephone: (202) 586–1777. Email: 

Sarah.Butler@hq.doe.gov. 

For further information on how to 

submit a comment, review other public 

comments, and review the docket, 

contact the Appliance and Equipment 

Standards Program staff at (202) 287– 

1445 or by email: 

ApplianceStandardsQuestions@

ee.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

A. Authority 

B. Rulemaking Process 

C. Deviation from Appendix A 

II. Background 

A. Current Standards 

B. Current Process 

III. Summary of the Analyses Performed by 

DOE 

A. Market and Technology Assessment 

B. Screening Analysis 

C. Engineering Analysis 

D. Markups Analysis 

E. Energy Use Analysis 

F. Life-Cycle Cost and Payback Period 

Analyses 

G. 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 authorizes 

DOE to regulate the energy efficiency of 

a number of consumer products and 

certain industrial equipment. (42 U.S.C. 

6291–6317) Title III, Part B 2 of EPCA 

established the Energy Conservation 

Program for Consumer Products Other 

Than Automobiles. These products 

include refrigerated bottled or canned 

beverage vending machine (‘‘BVM’’) 

equipment, the subject of this 

document. (42 U.S.C. 6295(v)) 3 EPCA 

directed DOE to prescribe energy 

conservation standards for beverage 

vending machines not later than 4 years 

after August 8, 2005. (42 U.S.C 

6295(v)(1)) 

EPCA further provides that, not later 

than 6 years after the issuance of any 

final rule establishing or amending a 

standard, DOE must publish either a 

notification of determination that 

standards for the products 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. 6295(m)(1)) Not 

later than 3 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. 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. 6295(o)(2)(A)) Furthermore, the 

new or amended standard must result in 

a significant conservation of energy. (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, 

including beverage vending machines. 

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. 

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. 6295(o)(3)(B)) 

The significance of energy savings 

offered by a new or amended energy 

conservation standard cannot be 

determined without knowledge of the 

specific circumstances surrounding a 

given rulemaking.4 For example, the 

United States has now rejoined the Paris 

Agreement on February 19, 2021. As 

part of that agreement, the United States 

has committed to reducing greenhouse 

gas (‘‘GHG’’) emissions in order to limit 

the rise in mean global temperature.5 As 

such, energy savings that reduce GHG 

emission have taken on greater 

importance. Additionally, some covered 

products and equipment have most of 

their energy consumption occur during 

periods of peak energy demand. The 

impacts of these products on the energy 

infrastructure can be more pronounced 

than products with relatively constant 

demand. In evaluating the significance 

of energy savings, DOE considers 

differences in primary energy and fullfuel-cycle (‘‘FFC’’) effects for different 

covered products and equipment when 

determining whether energy savings are 

significant. Primary energy and FFC 

effects include the energy consumed in 

electricity production (depending on 

load shape), in distribution and 

transmission, and in extracting, 

processing, and transporting primary 

fuels (i.e., coal, natural gas, petroleum 

fuels), and thus present a more complete 

picture of the impacts of energy 

conservation standards. Accordingly, 

DOE evaluates the significance of energy 

savings on a case-by-case basis, taking 

into account the significance of 

cumulative FFC national energy savings, 

the cumulative FFC emissions 

reductions, and the need to confront the 

global climate crisis, among other 

factors. 

DOE has initially determined the 

energy savings estimated for the 

candidate standard levels considered in 

this preliminary analysis are 

‘‘significant’’ within the meaning of 42 

U.S.C. 6295(o)(3)(B). 

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 


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Federal Register / Vol. 87, No. 80 / Tuesday, April 26, 2022 / Proposed Rules 24471 

6On March 16, 2022, the Fifth Circuit Court of 

Appeals (No. 22–30087) granted the federal 

government’s emergency motion for stay pending 

appeal of the February 11, 2022, preliminary 

injunction issued in Louisiana v. Biden, No. 21–cv– 

1074–JDC–KK (W.D. La.). As a result of the Fifth 

Circuit’s order, the preliminary injunction is no 

longer in effect, pending resolution of the federal 

government’s appeal of that injunction or a further 

court order. Among other things, the preliminary 

injunction enjoined the defendants in that case 

from ‘‘adopting, employing, treating as binding, or 

relying upon’’ the interim estimates of the social 

cost of greenhouse gases—which were issued by the 

Interagency Working Group on the Social Cost of 

Greenhouse Gases on February 26, 2021—to 

monetize the benefits of reducing greenhouse gas 

emissions. In the absence of further intervening 

court orders, DOE will revert to its approach prior 

to the injunction and present monetized benefits 

where appropriate and permissible under law. 

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 

considers relevant. 

(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 ....................................................................... • Shipments Analysis. 

• National Impact Analysis. 

• Energy Use Analysis. 

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

• Screening Analysis. 

• Engineering Analysis. 

Economic Justification: 

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

• Life-Cycle Cost and Payback Period Analysis. 

• Life-Cycle Cost Subgroup Analysis. 

• Shipments Analysis. 

(2) Lifetime operating cost savings compared to increased cost for 

the product.

• Markups for Product Price Analysis. 

• Energy Use Analysis. 

• Life-Cycle Cost and Payback Period Analysis. 

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

• National Impact Analysis. 

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

• Engineering Analysis. 

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

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

• National Impact Analysis. 

(7) Other factors the Secretary considers relevant ........................... • Employment Impact Analysis. 

• Utility Impact Analysis. 

• Emissions Analysis. 

• Monetization of Emission Reductions Benefits.6

• 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 a product 

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 

procedure. (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 

product. (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 product 

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. 6295(o)(4)) 

Additionally, EPCA specifies 

requirements when promulgating an 

energy conservation standard for a 

covered product 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 a feature justifies a 

higher or lower standard. (42 U.S.C. 

6295(q)(1)) In determining whether a 

performance-related feature justifies a 

different standard for a group of 

products, 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 

a higher or lower level was established. 

(42 U.S.C. 6295(q)(2)) 

Finally, pursuant to the amendments 

contained in the Energy Independence 

and Security Act of 2007 (‘‘EISA 2007’’), 


jspears on DSK121TN23PROD with PROPOSALS1
24472 Federal Register / Vol. 87, No. 80 / Tuesday, April 26, 2022 / Proposed Rules 

Public Law 110–140, any final rule for 

new or amended energy conservation 

standards promulgated after July 1, 

2010, is required to address standby 

mode and off mode energy use. (42 

U.S.C. 6295(gg)(3)) Specifically, when 

DOE adopts a standard for a covered 

product after that date, it must, if 

justified by the criteria for adoption of 

standards under EPCA (42 U.S.C. 

6295(o)), incorporate standby mode and 

off mode energy use into a single 

standard, or, if that is not feasible, adopt 

a separate standard for such energy use 

for that product. (42 U.S.C. 

6295(gg)(3)(A)–(B)) DOE reviewed the 

operating modes available for beverage 

vending machines and determined that 

this equipment does not have operating 

modes that meet the definition of 

standby mode or off mode, as 

established at 42 U.S.C. 6295(gg)(3). 

Specifically, beverage vending machines 

are typically always providing at least 

one main function—refrigeration. (42 

U.S.C. 6295(gg)(1)(A)) DOE recognizes 

that in a unique equipment design, the 

low power mode includes disabling the 

refrigeration system, while for other 

equipment the low power mode controls 

only elevate the thermostat set point. 

Because low power modes still include 

some amount of refrigeration for most 

equipment for the vast majority of 

equipment, DOE believes that such a 

mode does not constitute a ‘‘standby 

mode,’’ as defined by EPCA, for 

beverage vending machines. Therefore, 

DOE believes that beverage vending 

machines do not operate under standby 

and off mode conditions as defined in 

EPCA, and that the energy use of a 

beverage vending machine would be 

captured in any standard established for 

active mode energy use. This 

preliminary analysis does not 

specifically address standby and off 

mode energy consumption for the 

equipment. 

Before proposing a standard, DOE 

typically 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 meeting to solicit 

feedback from interested parties on its 

analytical framework, models, and 

preliminary results. 

C. Deviation From Appendix A 

In accordance with section 3(a) of 10 

CFR part 430, subpart C, appendix A 

(‘‘appendix A’’), applicable to BVM 

equipment under 10 CFR 431.4, DOE 

notes that it is deviating from the 

provision in appendix A regarding the 

pre-NOPR stages for an energy 

conservation standards rulemaking. 

Section 6(a)(2) of appendix A states that 

if the Department determines it is 

appropriate to proceed with a 

rulemaking (after initiating the 

rulemaking process through an early 

assessment), the preliminary stages of a 

rulemaking to issue or amend an energy 

conservation standard that DOE will 

undertake will be a framework 

document and preliminary analysis, or 

an advance notice of proposed 

rulemaking (‘‘ANOPR’’). DOE is opting 

to deviate from this step by publishing 

a preliminary analysis without a 

framework document. A framework 

document is intended to introduce and 

summarize the various analyses DOE 

conducts during the rulemaking process 

and requests initial feedback from 

interested parties. As discussed further 

in the following section, prior to this 

notification of the preliminary analysis, 

DOE issued an early assessment request 

for information (‘‘RFI’’) in which DOE 

identified and sought comment on the 

analyses conducted in support of the 

most recent energy conservation 

standards rulemaking (i.e., 81 FR 1028; 

January 8, 2016 (the ‘‘January 2016 Final 

Rule’’)). 85 FR 35394 (June 10, 2020) 

(the ‘‘June 2020 RFI’’). DOE provided a 

60-day comment period for the early 

assessment RFI. 85 FR 35394. As DOE 

is intending to rely on substantively the 

same analytical methods as in the most 

recent rulemaking, publication of a 

framework document would be largely 

redundant with the published early 

assessment RFI. As such, DOE is not 

publishing a framework document. 

Section 6(d)(2) of appendix A 

specifies that the length of the public 

comment period for pre-NOPR 

rulemaking documents will vary 

depending upon the circumstances of 

the particular rulemaking, but will not 

be less than 75 calendar days. For this 

preliminary analysis, DOE has opted to 

instead provide a 60-day comment 

period. As stated, DOE requested 

comment in the June 2020 RFI on the 

analysis conducted in support of the 

January 2016 Final Rule and provided 

stakeholders a 60-day comment period. 

For this preliminary analysis, DOE has 

relied on many of the same analytical 

assumptions and approaches as used in 

the previous rulemaking and has 

determined that a 60-day comment 

period in conjunction with the prior 60- 

day comment period provides sufficient 

time for interested parties to review the 

preliminary analysis and develop 

comments. 

II. Background 

A. Current Standards 

In the January 2016 Final Rule, DOE 

prescribed the current energy 

conservation standards for BVM 

equipment manufactured on and after 

January 8, 2019. 81 FR 1028. These 

standards are set forth in DOE’s 

regulations at 10 CFR 431.296 and are 

repeated in Table II.1. 

TABLE II.1—FEDERAL ENERGY CONSERVATION STANDARDS FOR REFRIGERATED BOTTLED OR CANNED

BEVERAGE VENDING MACHINES

Equipment class 

Maximum daily 

energy consumption 

kilowatt hours per day 

Class A ...................... 0.052 × V + 2.43. 

Class B ...................... 0.052 × V + 2.20. 

Combination A .......... 0.086 × V + 2.66. 

Combination B .......... 0.111 × V + 2.04. 

B. Current Process 

In the June 2020 RFI, DOE published 

a notification 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 BVM 

equipment as well as a request for 

information. 85 FR 35394. 

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 equipment 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/EERE2020-BT-STD-0014. 

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 


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7Because the projected price of standardscompliant equipment is typically higher than the 

price of baseline equipment, 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. 

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. Market and Technology Assessment 

DOE develops information in the 

market and technology assessment that 

provides an overall picture of the 

market for the equipment concerned, 

including general characteristics of the 

equipment, the industry structure, 

manufacturers, market characteristics, 

and technologies used in the equipment. 

This activity includes both quantitative 

and qualitative assessments, based 

primarily on publicly available 

information. The subjects addressed in 

the market and technology assessment 

include the following: (1) A 

determination of the scope of the 

rulemaking and equipment classes, (2) 

manufacturers and industry structure, 

(3) existing efficiency programs, (4) 

shipments information, (5) market and 

industry trends, and (6) technologies or 

design options that could improve the 

energy efficiency of the equipment. 

See chapter 3 of the preliminary TSD 

for further discussion of the market and 

technology assessment. 

B. Screening Analysis 

DOE uses the following five screening 

criteria to determine which technology 

options are suitable for further 

consideration in an energy conservation 

standards rulemaking: 

(1) Technological feasibility. 

Technologies that are not incorporated 

in commercial equipment or in working 

prototypes will not be considered 

further. 

(2) Practicability to manufacture, 

install, and service. If it is determined 

that mass production and reliable 

installation and servicing of a 

technology in commercial equipment 

could not be achieved on the scale 

necessary to serve the relevant market at 

the time of the projected compliance 

date of the standard, then that 

technology will not be considered 

further. 

(3) Impacts on equipment utility or 

equipment availability. If it is 

determined that a technology would 

have a significant adverse impact on the 

utility of the equipment for significant 

subgroups of consumers or would result 

in the unavailability of any covered 

equipment type with performance 

characteristics (including reliability), 

features, sizes, capacities, and volumes 

that are substantially the same as 

equipment generally available in the 

United States at the time, it will not be 

considered further. 

(4) Adverse impacts on health or 

safety. If it is determined that a 

technology would have significant 

adverse impacts on health or safety, it 

will not be considered further. 

(5) Unique-pathway proprietary 

technologies. If a design option utilizes 

proprietary technology that represents a 

unique pathway to achieving a given 

efficiency level, that technology will not 

be considered further due to the 

potential for monopolistic concerns. 

10 CFR 431.4; 10 CFR part 430, 

subpart C, appendix A, sections 6(b)(3) 

and 7(b). 

If DOE determines that a technology, 

or a combination of technologies, fails to 

meet one or more of the listed five 

criteria, it will be excluded from further 

consideration in the engineering 

analysis. 

See chapter 4 of the preliminary TSD 

for further discussion of the screening 

analysis. 

C. Engineering Analysis 

The purpose of the engineering 

analysis is to establish the relationship 

between the efficiency and cost of BVM 

equipment. 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 costefficiency ‘‘curves’’ that is 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 nonproduction costs and profit margin. DOE 

developed the manufacturer markup by 

examining publicly available financial 

information for manufacturers of the 

covered equipment. 

See chapter 5 of the preliminary TSD 

for additional detail on the engineering 

analysis. See chapter 12 of the 

preliminary TSD for additional detail on 

the manufacturer markup. 

D. Markups Analysis 

The markups analysis develops 

appropriate markups (e.g., wholesaler 

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 equipment 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 

equipment with baseline efficiency, 

while incremental markups are applied 

to the difference in price between 

baseline and higher-efficiency models 

(the 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.7

Chapter 6 of the preliminary TSD 

provides details on DOE’s development 

of markups for BVM equipment. 

E. Energy Use Analysis 

The purpose of the energy use 

analysis is to determine the annual 

energy consumption of BVM equipment 

at different efficiencies in representative 

U.S. commercial buildings, and to 

assess the energy savings potential of 

increased BVM equipment efficiency. 

The energy use analysis estimates the 

range of energy use of BVM equipment 

in the field (i.e., as they are actually 

used by consumers). The energy use 

analysis provides the basis for other 

analyses DOE performed, particularly 

assessments of the energy savings and 

the savings in consumer operating costs 

that could result from adoption of 

amended or new standards. 

Chapter 7 of the preliminary TSD 

addresses the energy use analysis. 


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8The NIA accounts for impacts in the 50 states 

and U.S. territories. 

F. 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: 

• 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. 

• The PBP is the estimated amount of 

time (in years) it takes consumers to 

recover the increased purchase cost 

(including installation) of a moreefficient 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. 

G. 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).8 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 BVM 

equipment sold from 2028 through 

2057. 

DOE evaluates the impacts of new or 

amended standards by comparing a case 

without such standards with standardscase 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 equipment lifetimes, 

equipment installed costs and operating 

costs, equipment annual energy 

consumption, the no-new-standardscase efficiency projection, discount 

rates, electricity price projection, and 

equipment type market share 

distribution projection. 

DOE estimates a combined total of 

0.152 quads of FFC energy savings over 

the analysis period at the max-tech 

efficiency levels for BVM equipment. 

Combined FFC energy savings at 

Efficiency Level 1 for all equipment 

classes are estimated to be 0.021 quads. 

Chapter 10 of the preliminary TSD 

addresses the NIA. 

IV. Public Participation 

DOE invites public engagement in this 

process through participation in the 

webinar and submission of written 

comments and data. 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 energy 

conservation standards for BVM 

equipment 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 

equipment covered by this 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 for 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: 

www.energy.gov/eere/buildings/publicmeetings-and-comment-deadlines. 

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 document, 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 

requests to speak via email to the 

Appliance and Equipment Standards 

Program at 

ApplianceStandardsQuestions@

ee.doe.gov. Persons who wish to speak 

should include with their request a 

computer file in 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. 

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 meeting 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. 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 a general overview of the topics 

addressed in this rulemaking, 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 


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Federal Register / Vol. 87, No. 80 / Tuesday, April 26, 2022 / Proposed Rules 24475 

discussion of specific topics. DOE will 

permit, as time allows, 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/public meeting 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. 

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 

document. 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 webinar, to submit 

in writing no later than the date 

provided in the DATES section at the 

beginning of this document, comments 

and information on matters addressed in 

this notification and on other matters 

relevant to DOE’s consideration of 

potential amended energy conservations 

standards for BVM equipment. 

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, 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 

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 the 

availability of the preliminary technical 

support document and request for 

comment. 

Signing Authority 

This document of the Department of 

Energy was signed on April 20, 2022, by 

Kelly J. Speakes-Backman, Principal 

Deputy 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 April 21, 

2022. 

Treena V. Garrett, 

Federal Register Liaison Officer, U.S. 

Department of Energy. 

[FR Doc. 2022–08869 Filed 4–25–22; 8:45 am] 

BILLING CODE 6450–01–P 


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