[Federal Register Volume 87, Number 125 (Thursday, June 30, 2022)]
[Proposed Rules]
[Pages 39008-39015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13957]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2017-BT-STD-0009]
RIN 1904-AD79


Energy Conservation Program: Energy Conservation Standards for 
Walk-In Coolers and Freezers

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'' or ``the Department'') 
announces the availability of the preliminary analysis it has conducted 
for purposes of evaluating the need for amending the current energy 
conservation standards for walk-in coolers and freezers (``walk-ins'' 
or ``WICFs''). The analysis is set forth in the Department's 
accompanying preliminary technical support document (``TSD'') for this 
rulemaking. DOE will hold a public meeting via webinar to discuss and 
receive comment on the preliminary analysis. The meeting will cover the 
analytical framework, models, and tools that DOE is using to evaluate 
potential standards; 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, August 29, 2022.
    Meeting: DOE will hold a webinar on Friday, July, 22, 2022, from 1 
to 4 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 https://www.regulations.gov, under 
docket number EERE-2017-BT-STD-0009. Follow the instructions for 
submitting comments. Alternatively, interested persons may submit 
comments, identified by docket number EERE-2017-BT-STD-0009, by any of 
the following methods:
    (1) Email: <a href="/cdn-cgi/l/email-protection#54031d1712666465630700106464646d1431317a303b317a333b22"><span class="__cf_email__" data-cfemail="a7f0eee4e195979690f4f3e39797979ee7c2c289c3c8c289c0c8d1">[email protected]</span></a>. Include the docket number 
EERE-2017-BT-STD-0009 in the subject line of the message.
    (2) Postal Mail: Appliance and Equipment Standards Program, U.S. 
Department of Energy, Building Technologies Office, Mailstop EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 287-1445. If possible, please submit all items on a compact disc 
(``CD''), in which case it is not necessary to include printed copies.
    (3) Hand Delivery/Courier: Appliance and Equipment Standards 
Program, U.S. Department of Energy, Building Technologies Office, 950 
L'Enfant Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202) 
287-1445. If possible, please submit all items on a CD, in which case 
it is not necessary to include printed copies.
    No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document.
    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: https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=56&action=viewlive.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, public meeting transcripts, and other 
supporting documents/materials, is available for review at https://www.regulations.gov. All documents in the docket are listed in the 
https://www.regulations.gov index. However, some documents listed in 
the index, such as those containing information that is exempt from 
public disclosure, may not be publicly available.
    The docket web page can be found at https://www.regulations.gov/docket/EERE-2017-BT-STD-0009. The docket web page contains instructions 
on how to access all documents, including

[[Page 39009]]

public comments in the docket. See section IV of this document for 
information on how to submit comments through https://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-5B, 1000 
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 
287-1943. Email: <a href="/cdn-cgi/l/email-protection#d594a5a5b9bcb4bbb6b086a1b4bbb1b4a7b1a6e9b4f5bda7b0b3e8" mailto:Questions@ee.doe.gov"><span class="__cf_email__" data-cfemail="29785c4c5a5d4046475a694c4c074d464c074e465f">[email protected]</span></a>">ApplianceStandards<a href="/cdn-cgi/l/email-protection#58092d3d2b2c3137362b183d3d763c373d763f372e"><span class="__cf_email__" data-cfemail="cb9abeaeb8bfa2a4a5b88baeaee5afa4aee5aca4bd">[email protected]</span></a></a>.
    Mr. Michael Kido, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-8145. Email: <a href="/cdn-cgi/l/email-protection#8ac7e3e9e2ebefe6a4c1e3eee5cae2fba4eee5efa4ede5fc"><span class="__cf_email__" data-cfemail="5e13373d363f3b327015373a311e362f703a313b70393128">[email protected]</span></a>.
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact the Appliance and Equipment Standards Program staff at (202) 
287-1445 or by email: <a href="/cdn-cgi/l/email-protection#024372726e6b636c61675176636c66637066713e63226a7067643f" mailto:Questions@ee.doe.gov"><span class="__cf_email__" data-cfemail="702105150304191f1e033015155e141f155e171f06">[email protected]</span></a>">ApplianceStandards<a href="/cdn-cgi/l/email-protection#39684c5c4a4d5056574a795c5c175d565c175e564f"><span class="__cf_email__" data-cfemail="d081a5b5a3a4b9bfbea390b5b5feb4bfb5feb7bfa6">[email protected]</span></a></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 C \2\ of EPCA established the Energy Conservation 
Program for Certain Industrial Equipment. This equipment includes walk-
in coolers and walk-in freezers, the subject of this document. (42 
U.S.C. 6311(1)(G))
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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 C was redesignated Part A-1.
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    EPCA prescribes a set of basic requirements for walk-ins. First, 
all walk-in doors narrower than 3 feet 9 inches and shorter than 7 feet 
must have automatic door closers that firmly close all walk-in doors 
that have been closed to within 1 inch of full closure. All walk-ins 
must also have strip doors, spring hinged doors, or other methods of 
minimizing infiltration when doors are open. Additionally, walk-ins 
must contain wall, ceiling, and door insulation of at least R-25 for 
coolers and R-32 for freezers, excluding glazed portions of doors and 
structural members, and floor insulation of at least R-28 for freezers. 
Walk-in evaporator fan motors of under 1 horsepower (``hp'') and less 
than 460 volts must be electronically commutated motors (brushless 
direct current motors) or three-phase motors, and walk-in condenser fan 
motors of under 1 horsepower must use permanent split capacitor motors, 
electronically commutated motors, or three-phase motors. Interior light 
sources must have an efficacy of 40 lumens per watt or more, including 
any ballast losses; less-efficacious lights may only be used in 
conjunction with a timer or device that turns off the lights within 15 
minutes of when the walk-in is unoccupied. (See 42 U.S.C. 6313(f)(1))
    Additionally, EPCA requires that walk-in freezers with transparent 
reach-in doors and windows must have triple-pane glass with either 
heat-reflective treated glass or gas fill. Transparent walk-in cooler 
doors and windows must have either double-pane glass with heat-
reflective treated glass and gas fill or triple-pane glass with heat-
reflective treated glass or gas fill. (42 U.S.C. 6313(f)(3)(A)-(B)) 
EPCA also prescribes specific anti-sweat heater-related requirements: 
Walk-ins without anti-sweat heater controls must have a heater power 
draw of no more than 7.1 or 3.0 watts per square foot of door opening 
for freezers and coolers, respectively. If walk-ins have a heater power 
draw of more than 7.1 or 3.0 watts per square foot of door opening for 
freezers and coolers, respectively, then the walk-in must have anti-
sweat heater controls that reduce the energy use of the heater in a 
quantity corresponding to the relative humidity of the air outside the 
door or to the condensation on the inner glass pane. See 42 U.S.C. 
6313(f)(3)(C)-(D).
    Additionally, EPCA prescribed two cycles of WICF-specific 
rulemakings; the first to establish performance-based standards that 
achieve the maximum improvement in energy that the Secretary determines 
is technologically feasible and economically justified, and the second 
to determine whether to amend those standards. (42 U.S.C. 6313(f)(4) 
and (5)) DOE has satisfied the first of these requirements. See 79 FR 
32050 (June 3, 2014) (establishing WICF performance standards) and 82 
FR 31808 (July 10, 2017) (addressing prior rulemaking errors by 
amending certain refrigeration system class standards). This document 
addresses the second cycle of rulemaking.
    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 equipment do not need to be amended, or a notice of proposed 
rulemaking (``NOPR'') including new proposed energy conservation 
standards (proceeding to a final rule, as appropriate). (42 U.S.C. 
6316(a); 42 U.S.C. 6295(m)(1)) Not later than three years after 
issuance of a final determination not to amend standards, DOE must 
publish either a notice of determination that standards for the 
equipment do not need to be amended, or a NOPR including new proposed 
energy conservation standards (proceeding to a final rule, as 
appropriate). (42 U.S.C. 6316(a); 42 U.S.C. 6295(m)(3)(B))
    Under EPCA, any new or amended energy conservation standard must be 
designed to achieve the maximum improvement in energy efficiency that 
DOE determines is technologically feasible and economically justified. 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or 
amended standard must result in a significant conservation of energy. 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(3)(B))
    DOE is publishing this Preliminary Analysis to collect data and 
information to inform its decision consistent with its obligations 
under EPCA.

B. Rulemaking Process

    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered equipment, including walk-ins. 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

[[Page 39010]]

economically justified. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) 
Furthermore, DOE may not adopt any standard that would not result in 
the significant conservation of energy. (42 U.S.C. 6316(a); 42 U.S.C. 
6295(o)(3))
    The 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.\3\ 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.\4\ 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 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.
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    \3\ Procedures, Interpretations, and Policies for Consideration 
in New or Revised Energy Conservation Standards and Test Procedures 
for Consumer Products and Commercial/Industrial Equipment, 86 FR 
70892, 70901 (Dec. 13, 2021).
    \4\ 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 for the candidate 
standard levels evaluated in this preliminary analysis rulemaking 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 price, initial charges, or maintenance 
expenses for the covered products that are likely to result from the 
standard;
    (3) The total projected amount of energy (or as applicable, 
water) savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the 
products likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy (Secretary) considers 
relevant.

(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
    DOE fulfills these and other applicable requirements by conducting 
a series of analyses throughout the rulemaking process. Table I.1 shows 
the individual analyses that are performed to satisfy each of the 
requirements within EPCA.
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    \5\ 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      <bullet> Markups for Equipment Price
     savings compared to increased   Analysis.
     cost for the product.          <bullet> Energy Use Analysis.
                                    <bullet> Life-Cycle Cost and Payback
                                     Period Analysis.
    3. Total projected energy       <bullet> Shipments Analysis.
     savings.                       <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     <bullet> Shipments Analysis.
     and water conservation.        <bullet> National Impact Analysis.
    7. Other factors the Secretary  <bullet> Employment Impact Analysis.
     considers relevant.            <bullet> Utility Impact Analysis.
                                    <bullet> Emissions Analysis.
                                    <bullet> Monetization of Emission
                                     Reductions Benefits.\5\
                                    <bullet> Regulatory Impact Analysis.
------------------------------------------------------------------------


[[Page 39011]]

    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 equipment complying with an energy 
conservation standard level will be less than three times the value of 
the energy savings during the first year that the consumer will receive 
as a result of the standard, as calculated under the applicable test 
procedure. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(iii))
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered 
equipment. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(1)) Also, the 
Secretary may not prescribe an amended or new standard if interested 
persons have established by a preponderance of the evidence that the 
standard is likely to result in the unavailability in the United States 
in any covered equipment type (or class) of performance characteristics 
(including reliability), features, sizes, capacities, and volumes that 
are substantially the same as those generally available in the United 
States. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(4))
    Additionally, EPCA specifies requirements when promulgating an 
energy conservation standard for covered equipment that has two or more 
subcategories. DOE must specify a different standard level for a type 
or class of equipment 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 equipment within 
such type (or class); or (B) have a capacity or other performance-
related feature which other equipment within such type (or class) do 
not have and such feature justifies a higher or lower standard. (42 
U.S.C. 6316(a); 42 U.S.C. 6295(q)(1)) In determining whether a 
performance-related feature justifies a different standard for a group 
of 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. 
6316(a); 42 U.S.C. 6295(q)(2))
    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 product.
    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 walk-ins 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 provision 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 on 
July 16, 2021 (``July 2021 RFI'') in which DOE identified and sought 
data, information, and comment to evaluate whether the existing energy 
conservation standards for walk-ins should be amended. 86 FR 37687, 
37689. DOE provided a 30-day comment period for the RFI. DOE intends to 
rely on substantively the same analytical methods as those used in the 
most recent rulemakings for walk-ins, making publication of a framework 
document largely redundant with the July 2021 RFI. As such, DOE is not 
publishing a framework document.
    DOE notes that it is also deviating from the provision in appendix 
A regarding the length of comment periods for the pre-NOPR stages for 
an energy conservation standards rulemaking. Section 6(d)(2) of 
appendix A specifies that the length of the public comment period for 
pre-NOPR rulemaking documents will not be less than 75 calendar days. 
For the preliminary analysis, DOE has opted instead to provide a 60-day 
comment period. As stated, DOE requested comment in the July 2021 RFI 
on the analysis conducted in support of the last energy conservation 
standard rulemaking for WICFs. Given that the analysis will largely 
remain the same, and in light of the 30-day comment period DOE has 
already provided with its July 2021 RFI, DOE has determined that a 60-
day comment period is sufficient to enable interested parties to review 
the tentative methodologies and accompanying analysis to develop 
meaningful comments in response to the preliminary TSD.

II. Background

A. Current Standards

    In a final rule published on June 3, 2014 (``June 2014 Final 
Rule''), DOE adopted the current energy conservation standards for 
walk-in doors, panels, and medium-temperature dedicated condensing 
systems manufactured on and after June 5, 2017. 79 FR 32050. In the 
June 2014 Final Rule, DOE also adopted standards for other classes of 
refrigeration systems; however, after publication of the June 2014 
Final Rule, the Air-Conditioning, Heating and Refrigeration Institute 
(``AHRI'') and Lennox International, Inc. (``Lennox''), a manufacturer 
of walk-in refrigeration systems, filed petitions for review of DOE's 
final rule and DOE's subsequent denial of a petition for 
reconsideration of the rule (79 FR 59090 (October 1, 2014)) with the 
United States Court of Appeals for the Fifth Circuit. Lennox Int'l v. 
Dep't of Energy, Case No. 14-60535 (5th Cir.). As a result of this 
litigation, a settlement agreement was reached to address, and a 
controlling order from the Fifth Circuit vacated, standards for six of 
the refrigeration system equipment classes--the two energy conservation 
standards applicable to multiplex condensing refrigeration systems 
(subsequently re-named as ``unit coolers'') operating at medium and low 
temperatures and the four energy conservation standards applicable to 
dedicated condensing refrigeration systems operating at low 
temperatures.\6\ After the Fifth Circuit issued its order, DOE 
established a Working Group to negotiate energy

[[Page 39012]]

conservation standards to replace the six vacated standards. 80 FR 
46521 (August 5, 2015). The Working Group assembled its recommendations 
into a Term Sheet (See Docket EERE-2015-BT-STD-0016-0056) that was 
presented to, and approved by, the Appliance Standards and Rulemaking 
Federal Advisory Committee (``ASRAC'') on December 18, 2015. (EERE-
2015-BT-STD-0016-0055 at p. 11)
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    \6\ The thirteen other standards established in the June 2014 
Final Rule (i.e., the four standards applicable to dedicated 
condensing refrigeration systems operating at medium-temperatures; 
the three standards applicable to panels; and the six standards 
applicable to doors) were not vacated.
---------------------------------------------------------------------------

    In a final rule published on July 10, 2017 (``July 2017 Final 
Rule''), DOE published a final rule adopting current energy 
conservation standards for the six classes of walk-in refrigeration 
systems for which the prior standards were vacated--specifically, unit 
coolers and low-temperature dedicated condensing systems manufactured 
on and after July 10, 2020. 82 FR 31808. These standards are set forth 
in DOE's regulations at 10 CFR 431.306 and are repeated in Tables II.1 
through II.3.

  Table II.1--Federal Energy Conservation Standards for Walk-In Coolers
                        and Walk-In Freezer Doors
------------------------------------------------------------------------
                                                Equations for maximum
              Equipment class                daily energy use  (kWh/day)
------------------------------------------------------------------------
Display door, medium temperature...........  0.04 x Add + 0.41
Display door, low temperature..............  0.15 x Add + 0.29
Passage door, medium temperature...........  0.05 x And + 1.7
Passage door, low temperature..............  0.14 x And + 4.8
Freight door, medium temperature...........  0.04 x And + 1.9
Freight door, low temperature..............  0.12 x And + 5.6
------------------------------------------------------------------------
Add or And = surface area of the display door or non-display door,
  respectively, expressed in ft\2\, as determined in appendix A to
  subpart R of 10 CFR part 431.


  Table II.2--Federal Energy Conservation Standards for Walk-In Coolers
                       and Walk-In Freezer Panels
------------------------------------------------------------------------
                                                        Minimum R-value
                   Equipment class                      (h-ft\2\-[deg]F/
                                                              Btu)
------------------------------------------------------------------------
Wall or ceiling panels, medium temperature...........                 25
Wall or ceiling panels, low temperature..............                 32
Floor panels, low temperature........................                 28
------------------------------------------------------------------------


  Table II.3--Federal Energy Conservation Standards for Walk-In Coolers
                and Walk-In Freezer Refrigeration Systems
------------------------------------------------------------------------
              Equipment class                  Minimum AWEF  (Btu/W-h)
------------------------------------------------------------------------
Dedicated condensing system, medium          5.61
 temperature, indoor.
Dedicated condensing system, medium          7.60
 temperature, outdoor.
Dedicated condensing system, low             9.091 x 10-5 x qnet + 1.81
 temperature, indoor with a net capacity
 (qnet) of <6,500 Btu/h.
Dedicated condensing system, low             2.40
 temperature, indoor with a net capacity
 (qnet) of >=6,500 Btu/h.
Dedicated condensing system, low             6.522 x 10-5 x qnet + 2.73
 temperature, outdoor with a net capacity
 (qnet) of <6,500 Btu/h.
Dedicated condensing system, low             3.15
 temperature, outdoor with a net capacity
 (qnet) of >=6,500 Btu/h.
Unit cooler, medium temperature............  9.00
Unit cooler, low temperature, indoor with a  1.575 x 10-5 x qnet + 3.91
 net capacity (qnet) of <15,500 Btu/h.
Unit cooler, low temperature, indoor with a  4.15
 net capacity (qnet) of >=15,500 Btu/h.
------------------------------------------------------------------------

B. Current Process

    As noted earlier, DOE published an RFI to initiate 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 walk-ins and to solicit relevant 
information from the public. 86 FR 37687. Through the RFI, DOE sought 
data and information to, among other things, help the agency determine 
whether DOE should propose a ``no new standard'' determination because 
a more stringent standard: (1) would not result in a significant 
savings of energy; (2) is not technologically feasible; (3) is not 
economically justified; or (4) any combination of foregoing. Id.
    Comments received to date as part of the current process have 
helped DOE identify and resolve issues related to the preliminary 
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the 
comments received.

III. Summary of the Analyses Performed by DOE

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

[[Page 39013]]

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

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 equipment to cover business costs and profit 
margin.
    DOE developed baseline and incremental markups for each agent in 
the distribution chain. Baseline markups are applied to the price of 
products with baseline efficiency, while incremental markups are 
applied to the difference in price between baseline and higher-
efficiency models (the 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 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 walk-ins.

E. Energy Use Analysis

    The purpose of the energy use analysis is to determine the annual 
energy consumption of walk-ins at different efficiencies in 
representative U.S. commercial buildings and to assess the energy 
savings potential of increased walk-in efficiency. The energy use 
analysis estimates the range of energy use of walk-ins 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.

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 
equipment over the life of that product, consisting of total installed 
cost (MSP, 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 equipment 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

[[Page 39014]]

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 walk-ins sold from 2027 through 2056.
---------------------------------------------------------------------------

    \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 base case efficiency 
projection, and discount rates.
    DOE estimates a combined total of 3.647 quads of FFC energy savings 
at the max-tech efficiency levels for walk-in doors, panels, and 
refrigeration systems may result if amended standards are implemented.
    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 standards for walk-ins 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 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: https://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 such request 
to <a href="/cdn-cgi/l/email-protection#733203031f1a121d10162007121d17120117004f12531b0116154e" mailto:Questions@ee.doe.gov"><span class="__cf_email__" data-cfemail="217054445255484e4f526144440f454e440f464e57">[email protected]</span></a>">ApplianceStandards<a href="/cdn-cgi/l/email-protection#9ccde9f9efe8f5f3f2efdcf9f9b2f8f3f9b2fbf3ea"><span class="__cf_email__" data-cfemail="08597d6d7b7c6167667b486d6d266c676d266f677e">[email protected]</span></a></a>. Persons who wish to speak 
should include with their request a computer file in WordPerfect, 
Microsoft Word, PDF, or text (ASCII) file format that briefly describes 
the nature of their interest in this rulemaking and the topics they 
wish to discuss. Such persons should also provide a daytime telephone 
number where they can be reached.

C. Conduct of the Webinar

    DOE will designate a DOE official to preside at the webinar/public 
meeting 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 
document, allow time for prepared general statements by participants, 
and encourage all interested parties to share their views on issues 
affecting this document. Each participant will be allowed to make a 
general statement (within time limits determined by DOE), before the 
discussion of specific topics. DOE will permit, as time 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 will accept comments, data, and information regarding this 
proposed rule before or after the public meeting, but no later than the 
date provided in the DATES section at the beginning of this document. 
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 https://www.regulations.gov. The https://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

[[Page 39015]]

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. Otherwise, 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 https://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 https://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 https://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 https://www.regulations.gov provides after you have successfully uploaded your 
comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to https://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. If you submit via postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
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 the availability of the preliminary technical support 
document and request for comment.

Signing Authority

    This document of the Department of Energy was signed on June 24, 
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 June 24, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-13957 Filed 6-29-22; 8:45 am]
BILLING CODE 6450-01-P


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