```

[Federal Register Volume 87, Number 86 (Wednesday, May 4, 2022)]
[Proposed Rules]
[Pages 26304-26311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09548]

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DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2019-BT-STD-0036]
RIN 1904-AE82

Energy Conservation Program: Energy Conservation Standards for 
Consumer Boilers

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'' or ``the Department'') 
announces the availability of the preliminary analysis it has conducted 
for purposes of evaluating the need for amended energy conservation 
standards for consumer boilers, 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; the results of preliminary analyses performed; potential 
energy conservation standard levels derived from these analyses (if DOE 
determines that proposed amendments are necessary); and any other 
relevant issues. In addition, DOE encourages written comments on these 
subjects.

DATES: 
    Comments: Written comments and information will be accepted on or 
before, July 5, 2022.
    Meeting: DOE will hold a public meeting webinar on Thursday, June 
16, 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. Follow the 
instructions for submitting comments. Alternatively, interested persons 
may submit comments, identified by docket number EERE-2019-BT-STD-0036 
and/or RIN 1904-AE82, by any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: [email protected]. Include docket 
number EERE-2019-BT-STD-0036 and/or RIN 1904-AE82 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 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 coronavirus (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: 
www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=32.
    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/#!docketDetail;D=EERE-2019-BT-STD-0036. 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: 
    Ms. Julia Hegarty, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(240) 597-6737. Email: [email protected].
    Mr. Eric Stas, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-5827. Email: [email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting 
webinar, contact the Appliance and Equipment Standards Program staff at 
(202) 287-1445 or by email: [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
    A. Authority
    B. Rulemaking Process
    C. Deviations 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 Public Meeting Webinar
    B. Procedure for Submitting Prepared General Statements for 
Distribution
    C. Conduct of the Public Meeting Webinar
    D. Submission of Comments
V. Approval of the Office of the Secretary

[[Page 26305]]

I. Introduction

A. Authority

    The Energy Policy and Conservation Act, as amended (``EPCA''),\1\ 
Public Law 94-163 (42 U.S.C. 6291-6317, as codified), authorizes DOE to 
regulate the energy efficiency of a number of consumer products and 
certain industrial equipment. Title III, Part B \2\ of EPCA established 
the Energy Conservation Program for Consumer Products Other Than 
Automobiles. (42 U.S.C. 6291-6309) These products include consumer 
boilers, the subject of this document. (42 U.S.C. 6292(a)(5)) \3\
---------------------------------------------------------------------------

    \1\ All references to EPCA in this document refer to the statute 
as amended through the Infrastructure Investment and Jobs Act, 
Public Law 117-58 (Nov. 15, 2021).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \3\ DOE notes that consumer boilers are defined as a subcategory 
of covered consumer furnaces (see 42 U.S.C. 6291(23)).
---------------------------------------------------------------------------

    EPCA prescribed energy conservation standards for these products 
(42 U.S.C. 6295(f)(3)), and the statute directed DOE to conduct future 
rulemakings to determine whether to amend these standards. (42 U.S.C. 
6295(f)(4)(C)) 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 product do not need to be amended, or a notice of proposed 
rulemaking (``NOPR'') including new proposed energy conservation 
standards (proceeding to a final rule, as appropriate). (42 U.S.C. 
6295(m)(1)) Not later than three years after issuance of a final 
determination not to amend standards, DOE must publish either a notice 
of determination that standards for the product do not need to be 
amended, or a NOPR including new proposed energy conservation standards 
(proceeding to a final rule, as appropriate). (42 U.S.C. 6295(m)(3)(B))
    Pursuant to 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 consumer boilers. 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))
    Particularly in light of the climate crisis, 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. As such, energy savings that reduce GHG emissions 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 U.S. energy 
infrastructure can be more pronounced than those of products with 
relatively constant demand. In evaluating the significance of energy 
savings, DOE considers differences in not only site energy use, but 
also 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.\5\ Accordingly, DOE evaluates the significance 
of energy savings on a case-by-case basis.
---------------------------------------------------------------------------

    \4\ See 86 FR 70892, 70901 (Dec. 13, 2021).
    \5\ The FFC metric is discussed in DOE's statement of policy and 
notice of policy amendment. 76 FR 51281 (August 18, 2011), as 
amended at 77 FR 49701 (August 17, 2012).
---------------------------------------------------------------------------

    The preliminary TSD details DOE's analyses to estimate the amount 
of FFC energy savings which would be anticipated to result from 
technologically feasible improvements to consumer boiler efficiencies. 
Based on the amount of FFC savings, the corresponding reduction in 
emissions, and need to confront the global climate crisis, DOE has 
initially determined the energy savings estimated for the efficiency 
levels considered in this preliminary analysis are ``significant'' 
within the meaning of 42 U.S.C. 6295(o)(3)(B).
    To determine whether a proposed new or amended energy conservation 
standard is economically justified, EPCA requires that DOE determine 
whether the benefits of the standard exceed its burdens by considering, 
to the greatest extent practicable, the following seven factors:

    (1) The economic impact of the standard on the manufacturers and 
consumers of the products subject to the standard;
    (2) The savings in operating costs throughout the estimated 
average life of the covered products in the type (or class) compared 
to any increase in the price, initial charges, or maintenance 
expenses for the covered products that are likely to result from the 
standard;
    (3) The total projected amount of energy (or as applicable, 
water) savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the 
products likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy 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.

[[Page 26306]]

       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   Manufacturer Impact
     and consumers.                       Analysis.
                                          Life-Cycle Cost and
                                          Payback Period Analysis.
                                          Life-Cycle Cost
                                          Subgroup Analysis.
                                          Shipments Analysis.
    2. Lifetime operating cost savings    Markups for Product
     compared to increased cost for the   Price Analysis.
     product.
                                          Energy 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         Manufacturer Impact
     competition.                         Analysis.
    6. Need for national energy           Shipments Analysis.
     conservation.
                                          National Impact
                                          Analysis.
    7. Other factors the Secretary        Employment Impact
     considers relevant.                  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))
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 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 higher 
or lower level was established. (42 U.S.C. 6295(q)(2))
    Finally, pursuant to the amendments to EPCA contained in the Energy 
Independence and Security Act of 2007 (``EISA 2007''), 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's current test procedures for consumer boilers 
address standby mode and off mode energy use. In this rulemaking, DOE 
intends to consider such energy use in any amended energy conservation 
standards it adopts in the final rule.
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that DOE intends to use to 
evaluate potential standards for the product at issue and the results 
of preliminary analyses DOE performed for the product.
    DOE is examining whether to amend the current energy conservation 
standards for consumer boilers pursuant

[[Page 26307]]

to its obligations under EPCA. This document 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 webinar to solicit feedback from 
interested parties on its analytical framework, models, and preliminary 
results.

C. Deviations From Appendix A

    In accordance with section 3(a) of 10 CFR part 430, subpart C, 
appendix A (``appendix A''), ``Procedures, Interpretations, and 
Policies for Consideration of New or Revised Energy Conservation 
Standards and Test Procedures for Consumer Products and Certain 
Commercial/Industrial Equipment,'' DOE notes that it is deviating from 
the provision in appendix A regarding the pre-NOPR stages for an energy 
conservation standards rulemaking. See 86 FR 70892 (Dec. 13, 2021). 
Section 6(a)(2) of appendix A states that if the Department determines 
it is appropriate to proceed with a rulemaking, 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.
    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 section II.B of this document, prior 
to this notification of the preliminary analysis, DOE published an 
early assessment review and request for information (``RFI'') in the 
Federal Register in which DOE identified and sought comment on the 
analyses conducted in support of the most recent energy conservation 
standards rulemakings for consumer boilers. 86 FR 15804 (March 25, 
2021; ``March 2021 Early Assessment Review RFI''). In the March 2021 
Early Assessment Review RFI, DOE sought data and information as to 
whether any new or amended rule would be cost-effective, economically 
justified, technologically feasible, or would result in a significant 
savings of energy. Id. DOE sought such data and information to assist 
in its consideration of whether (and if so, how) to amend the standards 
for consumer boilers. Id. Further, DOE provided an overview of the 
analysis it would use to evaluate new or amended energy conservation 
standards, including references to and requests for comment on the 
analyses conducted as part of the most recent energy conservation 
standards rulemakings. Id. 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 March 2021 Early Assessment Review RFI. As such, DOE is not 
publishing a framework document.
    Section 6(d)(2) of appendix A provides 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 provide a 60-day comment period. As stated, DOE requested 
comment in the March 2021 Early Assessment Review RFI on the previous 
energy conservation standards analyses. 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 comment period for 
the March 2021 Early Assessment Review RFI provides sufficient time for 
interested parties to review the preliminary analysis and develop 
comments.

II. Background

A. Current Standards

    In a final rule published in the Federal Register on January 15, 
2016 (``January 2016 Final Rule''), DOE prescribed the current energy 
conservation standards for consumer boilers, which are applicable to 
such products manufactured on and after January 15, 2021. 81 FR 2320, 
2416-2417. These standards are set forth in the Code of Federal 
Regulations (CFR) at 10 CFR 430.32(e)(2) and are repeated here in Table 
II.1.

                    Table II.1--Federal Energy Conservation Standards for Consumer Boilers *
----------------------------------------------------------------------------------------------------------------
                                                 PW,SB (watts)  PW,OFF (watts)
         Product class          AFUE (percent)     [dagger]        [dagger]            Design requirements
                                      **
----------------------------------------------------------------------------------------------------------------
Gas-fired Hot Water...........              84               9               9  Constant-burning pilot not
                                                                                 permitted. Automatic means for
                                                                                 adjusting water temperature
                                                                                 required (except for boilers
                                                                                 equipped with tankless domestic
                                                                                 water heating coils).
Gas-fired Steam...............              82               8               8  Constant-burning pilot not
                                                                                 permitted.
Oil-fired Hot Water...........              86              11              11  Automatic means for adjusting
                                                                                 temperature required (except
                                                                                 for boilers equipped with
                                                                                 tankless domestic water heating
                                                                                 coils).
Oil-fired Steam...............              85              11              11  None.
Electric Hot Water............            None               8               8  Automatic means for adjusting
                                                                                 temperature required (except
                                                                                 for boilers equipped with
                                                                                 tankless domestic water heating
                                                                                 coils).
Electric Steam................            None               8               8  None.
----------------------------------------------------------------------------------------------------------------
* A boiler that is manufactured to operate without any need for electricity or any electric connection, electric
  gauges, electric pumps, electric wires, or electric devices is not required to meet the AFUE or design
  requirements. Instead, such boilers must meet a minimum AFUE of 80 percent (for all classes except gas steam),
  and 75 percent for gas steam.
** AFUE stands for Annual Fuel Utilization Efficiency, as determined in 10 CFR 430.23(n)(2).
[dagger] PW,SB and PW,OFF stand for standby mode power consumption and off mode power consumption, respectively.

B. Current Process

    On March 25, 2021, DOE published a notice in the Federal Register 
through a request for information (RFI) 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 consumer boilers. 86 FR 15804. 
Specifically, through the published notice and RFI, DOE sought data and 
information that could enable the agency to determine whether DOE 
should propose a ``no new standard'' determination because a more-
stringent standard: (1) Would not result in a significant savings of 
energy; (2) is not

[[Page 26308]]

technologically feasible; (3) is not economically justified; or (4) any 
combination of foregoing. Id.
    Comments received to date as part of the current process have 
helped DOE identify and resolve issues related to development of 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 products covered in this preliminary analysis, DOE 
conducted in-depth technical analyses in the following areas: (1) 
Engineering; (2) markups to determine product price; (3) energy use; 
(4) life-cycle cost (``LCC'') and payback period (``PBP''); and (5) 
national impacts. The preliminary TSD that presents the methodology and 
results of each of these analyses is available at: 
www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=45.
    DOE also conducted, and has included in the preliminary TSD, 
several other analyses that support the major analyses or are 
preliminary analyses that will be expanded if DOE determines that a 
NOPR is warranted to propose amended energy conservation standards. 
These analyses include: (1) The market and technology assessment; (2) 
the screening analysis, which contributes to the engineering analysis; 
and (3) the shipments analysis, which contributes to the LCC and PBP 
analysis and the national impact analysis (``NIA''). In addition to 
these analyses, DOE has begun preliminary work on the manufacturer 
impact analysis and has identified the methods to be used for the 
consumer subgroup analysis, the emissions analysis, the employment 
impact analysis, the regulatory impact analysis, and the utility impact 
analysis. DOE will expand on these analyses in the NOPR, should one be 
issued.

A. Market and Technology Assessment

    DOE develops information in the market and technology assessment 
that provides an overall picture of the market for the products 
concerned, including general characteristics of the products, the 
industry structure, manufacturers, market characteristics, and 
technologies used in the products. This activity includes both 
quantitative and qualitative assessments, based primarily on publicly-
available information. The subjects addressed in the market and 
technology assessment include: (1) A determination of the scope of the 
rulemaking and product 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 product.
    DOE would note here a number of recent statutory interpretations 
that had bearing on the market and technology assessment for consumer 
boilers. On January 15, 2021, in response to a petition for rulemaking 
\7\ submitted by the American Public Gas Association, Spire, Inc., the 
Natural Gas Supply Association, the American Gas Association, and the 
National Propane Gas Association, DOE published a final interpretive 
rule (``the January 2021 Final Interpretive Rule'') in the Federal 
Register which determined that, in the context of residential furnaces, 
commercial water heaters, and similarly-situated products/equipment 
(which would include consumer boilers), use of non-condensing 
technology (and associated venting) constitute a performance-related 
``feature'' under EPCA that cannot be eliminated through adoption of an 
energy conservation standard. 86 FR 4776.
---------------------------------------------------------------------------

    \7\ After receipt, DOE published the petition for rulemaking in 
the Federal Register for public comment. See 83 FR 54883 (Nov. 1, 
2018).
---------------------------------------------------------------------------

    In the March 2021 RFI, DOE sought information that would allow the 
agency to evaluate non-condensing technology (and the associated 
venting) consistent with the January 2021 Final Interpretive Rule, and 
whether separate product classes for non-condensing and condensing 
boilers is warranted. 86 FR 15804, 15805-15806 (March 25, 2021).
    However, DOE has subsequently published a final interpretive rule 
that returns to the previous and long-standing interpretation (in 
effect prior to the January 15, 2021, final interpretive rule), under 
which the technology used to supply heated air or hot water is not a 
performance-related ``feature'' that provides a distinct consumer 
utility under EPCA. 86 FR 73947 (Dec. 29, 2021).
    Accordingly, in conducting this preliminary analysis, DOE did not 
consider condensing technology to constitute a separate product class 
for consumer boilers.
    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 products 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 products 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 product utility or product availability. If it is 
determined that a technology would have a significant adverse impact on 
the utility of the product for significant subgroups of consumers or 
would result in the unavailability of any covered product type with 
performance characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as products 
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 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 consumer boilers. There 
are two elements to consider in the engineering analysis: (1) The 
selection of efficiency levels to analyze (i.e., the ``efficiency 
analysis'') and (2) the determination of product cost at each 
efficiency level (i.e., the ``cost analysis''). In determining the 
performance of higher-efficiency products, DOE considers technologies 
and design option combinations not eliminated by the screening 
analysis.

[[Page 26309]]

For each product class, DOE estimates the manufacturer production cost 
(``MPC'') for the baseline, as well as higher efficiency levels. The 
output of the engineering analysis is a set of cost-efficiency 
``curves'' that are used in downstream analyses (i.e., the LCC and PBP 
analyses and the NIA).
    DOE converts the MPC to the manufacturer selling price (``MSP'') by 
applying a manufacturer markup. The MSP is the price the manufacturer 
charges its first customer when selling into the consumer boilers 
distribution channels. The manufacturer markup accounts for 
manufacturer non-production costs and profit margin. DOE developed the 
manufacturer markup by examining publicly-available financial 
information for manufacturers of the covered product.
    See chapter 5 of the preliminary TSD for additional detail on the 
engineering analysis. 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., retailer 
markups, distributor markups, contractor markups) in the distribution 
chain and sales taxes to convert MSP estimates derived in the 
engineering analysis to consumer prices, which are then used in the LCC 
and PBP analysis. At each step in the distribution channel, companies 
mark up the price of the product to cover business costs and profit 
margin.
    DOE developed baseline and incremental markups for each actor in 
the distribution chain for consumer boilers. Baseline markups are 
applied to the price of products with baseline efficiency, while 
incremental markups are applied to the difference in price between 
baseline and higher-efficiency models (the 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.\8\
---------------------------------------------------------------------------

    \8\ Because the projected price of standards-compliant products 
is typically higher than the price of baseline products, using the 
same markup for the incremental cost and the baseline cost would 
result in higher per-unit operating profit. While such an outcome is 
possible, DOE maintains that in markets that are reasonably 
competitive, it is unlikely that standards would lead to a 
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------

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

E. Energy Use Analysis

    The purpose of the energy use analysis is to determine the annual 
energy consumption of consumer boilers at different efficiencies in 
representative U.S. single-family homes, multi-family residences, and 
commercial buildings, and to assess the energy savings potential of 
increased consumer boiler efficiency. The energy use analysis estimates 
the range of energy use of consumer boilers in the field (i.e., as they 
are actually used by consumers). In addition, 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 energy 
conservation standards.
    Chapter 7 of the preliminary TSD addresses the energy use analysis.

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 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.\9\ DOE 
calculates the NES and NPV for the potential standard levels considered 
based on projections of annual product 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, product costs, and NPV of consumer 
benefits over the lifetime of consumer boilers sold from 2030 through 
2059.
---------------------------------------------------------------------------

    \9\ 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 (``no-new-standards case'') with 
standards-case projections. The no-new-standards case characterizes 
energy use and consumer costs for each product 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 product 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 
product with efficiencies greater than the standard.
    For the NIA, DOE uses a spreadsheet model to calculate the energy 
savings and the national consumer costs and savings from each 
efficiency level. Interested parties can review DOE's analyses by 
changing various input quantities within the spreadsheet. The NIA 
spreadsheet model uses typical values (as opposed to probability 
distributions) as inputs. Critical inputs to this analysis include 
shipments projections, estimated product lifetimes, product installed 
costs and operating costs, product annual energy consumption, the base 
case efficiency projection, and discount rates.
    DOE estimates a combined total of approximately 0.70 quads of 
potential full-fuel-cycle (FFC) energy savings at the max-tech 
efficiency levels for consumer boilers. Combined potential FFC energy 
savings at Efficiency Level (EL) 1 for all consumer boiler product 
classes analyzed are estimated to be approximately 0.09 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, data, and 
information. After the webinar and the closing of the comment period, 
DOE will consider all timely-submitted comments and additional 
information obtained from interested parties, as well as information 
obtained through further analyses.

[[Page 26310]]

Following such consideration, the Department will publish either a 
determination that the energy conservation standards for consumer 
boilers need not be amended or a NOPR proposing to amend those 
standards. The NOPR, should one be issued, would include proposed 
energy conservation standards for the products covered by 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 Public Meeting 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: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=45. 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 public meeting webinar. Such persons may 
submit requests to speak via email to the Appliance and Equipment 
Standards Program: [email protected]. Persons who 
wish to speak should include with their request a computer file in 
WordPerfect, Microsoft Word, PDF, or text (ASCII) file format that 
briefly describes the nature of their interest in this rulemaking and 
the topics they wish to discuss. Such persons should also provide a 
daytime telephone number where they can be reached.
    Persons requesting to speak should briefly describe the nature of 
their interest in this rulemaking and provide a telephone number for 
contact. DOE requests persons selected to make an oral presentation to 
submit an advance copy of their statements at least two weeks before 
the public meeting webinar. At its discretion, DOE may permit persons 
who cannot supply an advance copy of their statement to participate, if 
those persons have made advance alternative arrangements with the 
Building Technologies Office. As necessary, requests to give an oral 
presentation should ask for such alternative arrangements.

C. Conduct of the Public Meeting Webinar

    DOE will designate a DOE official to preside at the public meeting 
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 public meeting 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 public meeting 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 public meeting 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 discussion of specific topics. DOE will 
allow, as time permits, other participants to comment briefly on any 
general statements.
    At the end of all prepared statements on a topic, DOE will permit 
participants to clarify their statements briefly and comment on 
statements made by others. 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 public 
meeting webinar will accept additional comments or questions from those 
attending, as time permits. The presiding official will announce any 
further procedural rules or modification of the above procedures that 
may be needed for the proper conduct of the public meeting webinar.
    A transcript of the public meeting 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, data, and information on matters addressed in 
this notification and on other matters relevant to DOE's consideration 
of potential amended energy conservations standards for consumer 
boilers. 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

[[Page 26311]]

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 telefacsimiles (faxes) will 
be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This 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 availability of the preliminary technical support 
document and request for comment.

Signing Authority

    This document of the Department of Energy was signed on April 29, 
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 29, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-09548 Filed 5-3-22; 8:45 am]
BILLING CODE 6450-01-P
```