[Federal Register Volume 87, Number 80 (Tuesday, April 26, 2022)]
[Proposed Rules]
[Pages 24469-24475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08869]


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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.

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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: 
<a href="/cdn-cgi/l/email-protection#3f7d69720d0f0d0f6c6b7b0f0f0e0b7f5a5a115b505a11585049"><span class="__cf_email__" data-cfemail="a7e5f1ea95979597f4f3e397979693e7c2c289c3c8c289c0c8d1">[email protected]</span></a>. 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/EERE-2020-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/EERE-2020-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: 
<a href="/cdn-cgi/l/email-protection#65241515090c040b06003611040b010417011634100016110c0a0b162500004b010a004b020a13"><span class="__cf_email__" data-cfemail="cb8abbbba7a2aaa5a8ae98bfaaa5afaab9afb89abeaeb8bfa2a4a5b88baeaee5afa4aee5aca4bd">[email protected]</span></a>.
    Ms. Sarah Butler, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.

[[Page 24470]]

Telephone: (202) 586-1777. Email: <a href="/cdn-cgi/l/email-protection#65360417040d4b271011090017250d144b010a004b020a13"><span class="__cf_email__" data-cfemail="86d5e7f4e7eea8c4f3f2eae3f4c6eef7a8e2e9e3a8e1e9f0">[email protected]</span></a>.
    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: 
<a href="/cdn-cgi/l/email-protection#99d8e9e9f5f0f8f7fafccaedf8f7fdf8ebfdeac8ecfceaedf0f6f7ead9fcfcb7fdf6fcb7fef6ef"><span class="__cf_email__" data-cfemail="79380909151018171a1c2a0d18171d180b1d0a280c1c0a0d1016170a391c1c571d161c571e160f">[email protected]</span></a>.

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))
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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), which reflect the last statutory amendments that impact 
Parts A and A-1 of EPCA.
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \3\ Because 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.
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    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 full-fuel-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.
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    \4\ See 86 FR 70892, 70901 (Dec. 13, 2021).
    \5\ See Executive Order 14008, 86 FR 7619 (Feb. 1, 2021) 
(``Tackling the Climate Crisis at Home and Abroad'').
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    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

[[Page 24471]]

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.
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    \6\ On 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.

       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 Use Analysis.
Technological Feasibility..............  <bullet> Market and Technology
                                          Assessment.
                                         <bullet> Screening Analysis.
                                         <bullet> Engineering Analysis.
Economic Justification:
    (1) Economic impact on               <bullet> Manufacturer Impact
     manufacturers and consumers.         Analysis.
                                         <bullet> Life-Cycle Cost and
                                          Payback Period Analysis.
                                         <bullet> Life-Cycle Cost
                                          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 Use 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             <bullet> Screening Analysis.
     performance.                        <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.\6\
                                         <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 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''),

[[Page 24472]]

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
------------------------------------------------------------------------
                                                Maximum daily  energy
              Equipment class                consumption kilowatt hours
                                                       per day
------------------------------------------------------------------------
Class A...................................  0.052 x V + 2.43.
Class B...................................  0.052 x V + 2.20.
Combination A.............................  0.086 x V + 2.66.
Combination B.............................  0.111 x 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/EERE-2020-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

[[Page 24473]]

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 cost-efficiency ``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 non-production 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\
---------------------------------------------------------------------------

    \7\ Because the projected price of standards-compliant 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.
---------------------------------------------------------------------------

    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.

[[Page 24474]]

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:
    <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.

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.
---------------------------------------------------------------------------

    \8\ 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 equipment lifetimes, equipment installed costs and operating 
costs, equipment annual energy consumption, the no-new-standards-case 
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/public-meetings-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 
<a href="/cdn-cgi/l/email-protection#5b1a2b2b37323a35383e082f3a353f3a293f280a2e3e282f323435281b3e3e753f343e753c342d"><span class="__cf_email__" data-cfemail="84c5f4f4e8ede5eae7e1d7f0e5eae0e5f6e0f7d5f1e1f7f0edebeaf7c4e1e1aae0ebe1aae3ebf2">[email protected]</span></a>. 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

[[Page 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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