[Federal Register Volume 79, Number 224 (Thursday, November 20, 2014)]
[Proposed Rules]
[Pages 69066-69072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27380]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2013-BT-STD-0030]
RIN 1904-AD01


Energy Conservation Standards for Commercial Packaged Boilers: 
Public Meeting and Availability of the Preliminary Technical Support 
Document

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

ACTION: Notice of public meeting and availability of preliminary 
technical support document.

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SUMMARY: The U.S. Department of Energy (DOE) will hold a public meeting 
to discuss and receive comments about the preliminary analysis it has 
conducted for purposes of considering amended energy conservation 
standards for commercial packaged boilers. The meeting will cover four 
topics: The analytical framework, models, and tools that DOE is using 
to evaluate potential standards for this equipment; the results of 
preliminary analyses performed by DOE for this equipment; potential 
energy conservation standard levels derived from these analyses that 
DOE could consider for this equipment; and any other issues relevant to 
the development of amended energy conservation standards for commercial 
packaged boilers. In addition, DOE encourages written comments about 
these subjects.

DATES: Meeting: DOE will hold a public meeting on December 9, 2014, 
from 9 a.m. to 3:30 p.m., in Washington, DC. DOE must receive requests 
to speak at the meeting before 4 p.m. ET, December 1, 2014. DOE must 
receive a signed original and an electronic copy of any statement to be 
given at the public meeting before 4 p.m. ET, November 24, 2014.
    Comments: DOE will accept comments, data, and other information 
regarding this rulemaking before or after the public meeting, but no 
later than January 20, 2015 See section IV, ``Public Participation,'' 
of this notice of public meeting (NOPM) for details.

ADDRESSES: To inform interested parties and to facilitate this process, 
DOE has prepared a preliminary technical support document (TSD) that is 
available on the DOE Web site at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/79. Additionally, 
DOE plans to allow for participation in the public meeting via webinar. 
The public meeting will be held at the U.S. Department of Energy, 
Forrestal Building, Room 8E-089, 1000 Independence Avenue SW., 
Washington, DC 20585-0121. All participants will undergo security 
processing upon building entry. Any participant with a laptop computer 
or similar device (e.g., tablets), must undergo additional screening. 
To attend via webinar, please register here: https://www1.gotomeeting.com/register/440130353.
    Interested persons may submit comments, identified by docket number 
EERE-2013-BT-STD-0030 and/or Regulation Identification Number (RIN) 
1904-AD01, by any of the following methods:
    <bullet> Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#7a2a111d1e381513161f0809484a4b49292e3e4a4a494a3a1f1f541e151f541d150c"><span class="__cf_email__" data-cfemail="93c3f8f4f7d1fcfafff6e1e0a1a3a2a0c0c7d7a3a3a0a3d3f6f6bdf7fcf6bdf4fce5">[email protected]</span></a>. Include the 
docket number EERE-2013-BT-STD-0030 and/or RIN 1904-AD01 in the subject 
line of the message.
    <bullet> Postal Mail: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Office, Mailstop EE-5B, 1000 Independence 
Avenue SW., Washington, DC 20585-0121. Comments, data, relevant 
documents and information may be submitted on printed paper or compact 
disc (CD) via postal mail. However, such will be necessarily delayed, 
and may be damaged, during the postal mail screening process.
    <bullet> Hand Delivery/Courier: Comments, data, relevant documents 
and information may be submitted in person or by courier. If possible, 
please submit all items on a CD, in which case it is not necessary to 
include printed copies. Contact Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Program, 950 L'Enfant Plaza SW., Suite 
600, Washington, DC 20024. Telephone (202) 586-2945.
    Docket: The commercial packaged boilers docket (EERE-2013-BT-STD-
0030) is available for review at www.regulations.gov. It includes 
relevant Federal Register notices, the Framework Document, public 
comments, public meeting attendee lists and transcripts, and other 
relevant documents/materials. 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 information that is exempt 
from public disclosure. The www.regulations.gov Web page contains 
instructions on how to access all documents in the docket, including 
public comments.
    Also, the DOE Web page for commercial packaged boilers (which 
includes additional information about existing standards and test 
procedures, and the history and impacts of previous DOE regulatory 
actions for this category of equipment) may be viewed at http://www1.eere.energy.gov/buildings/appliance_standards/product.aspx/productid/74, and contains links to the aforementioned docket.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section IV, ``Public 
Participation,'' of this document. For further information on how to 
submit a comment, review other public comments and the docket, or 
participate in the public meeting, contact Ms. Brenda Edwards at (202) 
586-2945 or by email: <a href="/cdn-cgi/l/email-protection#3775455259535619725340564553447752521953585219505841"><span class="__cf_email__" data-cfemail="8fcdfdeae1ebeea1caebf8eefdebfccfeaeaa1ebe0eaa1e8e0f9">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Mr. James Raba, 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) 586-8654. Email: <a href="/cdn-cgi/l/email-protection#69230004473b080b08290c0c470d060c470e061f"><span class="__cf_email__" data-cfemail="1a50737734487b787b5a7f7f347e757f347d756c">[email protected]</span></a>.
    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) 586-9507. Email: <a href="/cdn-cgi/l/email-protection#30754259531e634451437058411e545f551e575f46"><span class="__cf_email__" data-cfemail="61241308024f321500122109104f050e044f060e17">[email protected]</span></a>.

[[Page 69067]]

    For information on how to submit or review public comments and on 
how to participate in the public meeting, contact Ms. Brenda Edwards, 
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) 586-2945. Email: 
<a href="/cdn-cgi/l/email-protection#8ac8f8efe4eeeba4cfeefdebf8eef9caefefa4eee5efa4ede5fc"><span class="__cf_email__" data-cfemail="642616010a00054a210013051600172401014a000b014a030b12">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Authority
II. History of Energy Conservation Standards Rulemaking for 
Commercial Packaged Boilers
    A. Background
    B. Current Rulemaking Process
III. Summary of the Analyses Performed by DOE
    A. Engineering Analysis
    B. Markups To Determine Prices
    C. Energy Use Analysis
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis
IV. Public Participation
    A. Attendance at the Public Meeting
    B. Procedure for Submitting Requests to Speak
    C. Conduct of the Public Meeting
    D. Submission of Comments
V. Approval of the Office of the Secretary

I. Authority

    Title III, Part C \1\ of the Energy Policy and Conservation Act of 
1975 (EPCA), Public Law 94-163 (42 U.S.C. 6311-6317, as codified), 
added by Public Law 95-619, Title IV, Sec.  441(a), sets forth a 
variety of provisions designed to improve energy efficiency. It 
established the ``Energy Conservation Program for Certain Industrial 
Equipment,'' a program covering certain commercial and industrial 
equipment (hereafter referred to as ``covered equipment''), which 
includes the commercial packaged boilers that are the subject of this 
rulemaking.\2\ Part A-1 specifically includes definitions (42 U.S.C. 
6311), energy conservation standards (42 U.S.C. 6313), test procedures 
(42 U.S.C. 6314), labeling provisions (42 U.S.C. 6315), and the 
authority to require compliance information and certification reports 
from manufacturers of covered equipment (42 U.S.C. 6316).
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    \1\ For editorial reasons, upon codification in the United 
States Code (U.S.C.), Part C was re-designated Part A-1.
    \2\ All references to EPCA in this document refer to the statute 
as amended through the American Energy Manufacturing Technical 
Corrections Act (AEMTCA), Public Law 112-210 (Dec. 18, 2012).
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    EPCA established Federal energy conservation standards for 
commercial heating, air-conditioning, and water-heating equipment that 
generally correspond to the levels set in the American Society of 
Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE) 
Standard 90.1, ``Energy Standard for Buildings Except Low-Rise 
Residential Buildings,'' including commercial packaged boilers.\3\ (42 
U.S.C. 6313(a)(4)) In particular, the statute sets standards for small, 
large, and very large commercial package air-conditioning and heating 
equipment, packaged terminal air conditioners, packaged terminal heat 
pumps, warm air furnaces, packaged boilers, storage water heaters, 
instantaneous water heaters, and unfired hot water storage tanks 
(collectively ``ASHRAE equipment''). (42 U.S.C. 6313(a)) DOE 
subsequently codified the statutory energy conservation standards for 
commercial packaged boilers in DOE's regulations under subpart E of 
Title 10 of the Code of Federal Regulations (CFR), Part 431 (10 CFR 
Part 431). The standards for commercial packaged boilers specifically 
can be found at 10 CFR 431.87.
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    \3\ For more information, see www.ashrae.org.
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    EPCA directs DOE to consider amending the existing Federal energy 
conservation standard for each type of covered ASHRAE equipment 
whenever ASHRAE amends the efficiency levels in Standard 90.1. (42 
U.S.C. 6313(a)(6)(A)) For each type of listed equipment, EPCA directs 
that if ASHRAE amends Standard 90.1, DOE must adopt amended standards 
at the new ASHRAE efficiency level, unless clear and convincing 
evidence supports a determination that adoption of a more-stringent 
level would produce significant additional energy savings and would be 
technologically feasible and economically justified. (42 U.S.C. 
6313(a)(6)(A)(ii)) If DOE decides to adopt as a national standard the 
efficiency levels specified in the amended ASHRAE Standard 90.1, DOE 
must establish such standard not later than 18 months after publication 
of the amended industry standard. (42 U.S.C. 6313(a)(6)(A)(ii)(I)) 
However, if DOE determines that a more-stringent standard is justified, 
then it must establish such more-stringent standard not later than 30 
months after publication of the amended ASHRAE Standard 90.1. (42 
U.S.C. 6313(a)(6)(B)(i))
    In the event that ASHRAE does not act to amend Standard 90.1 
(thereby triggering DOE to conduct an amended standards rulemaking), 
EPCA provides an alternative statutory mechanism for initiating such 
review. More specifically, EPCA requires that every six years, the 
Secretary of Energy (Secretary) shall consider amending the energy 
conservation standards for covered commercial equipment and shall 
publish either a notice of determination that those standards do not 
need to be amended, or a notice of proposed rulemaking for more-
stringent energy efficiency standards. (42 U.S.C. 6313(a)(6)(C))
    On December 19, 2007, the Energy Independence and Security Act of 
2007 (EISA 2007), Public Law 110-140, was signed into law, which 
further revised the energy conservation standards for commercial and 
industrial equipment. EISA 2007 amended EPCA, in relevant part, to 
require that not later than six years after issuance of any final rule 
establishing or amending a standard, the Secretary of Energy shall 
publish either a notice of determination that the standards for a given 
type of equipment do not need to be amended, or a notice of proposed 
rulemaking (NOPR) including new proposed standards. (42 U.S.C. 
6313(a)(6)(C)(i)) This amendment was further modified by the American 
Energy Manufacturing Technical Corrections Act (AEMTCA), Public Law 
112-210, which was signed into law on December 18, 2012. AEMTCA, 
amended EPCA to require that ``every'' six years, the Secretary of 
Energy shall take action to determine whether or not more-stringent 
standards are needed for ASHRAE equipment. (42 U.S.C. 6313(a)(6)(C)(i)) 
In addition, AEMTCA also amended EPCA so as to trigger DOE to review 
the energy savings potential of any ASHRAE/IES Standard 90.1 amendment 
that changes the standard levels or design requirements applicable to a 
given type of equipment. (42 U.S.C. 6313(a)(6)(A)(i))
    Pursuant to EPCA, DOE's energy conservation program for covered 
equipment consists essentially of four parts: (1) Testing; (2) 
labeling; (3) the establishment of Federal energy conservation 
standards; and (4) compliance certification and enforcement procedures. 
Subject to certain criteria and conditions, DOE has authority, as 
discussed above, to adopt amended energy conservation standards for 
commercial packaged boilers. In addition, DOE is required to develop 
test procedures to measure the energy efficiency, energy use, or 
estimated annual operating cost of covered equipment. (42 U.S.C. 
6314(a)(2)) Manufacturers of covered equipment must use the prescribed 
DOE test procedure as the basis for certifying to DOE that their 
equipment comply with the applicable energy conservation standards 
adopted under EPCA and when making representations to the

[[Page 69068]]

public regarding the energy use or efficiency of such equipment. (42 
U.S.C. 6314(d)(1)) Similarly, DOE must use these test procedures to 
determine whether the equipment comply with standards adopted pursuant 
to EPCA. The DOE test procedures for commercial packaged boilers 
currently appear at 10 CFR 431.86.
    When setting standards for the ASHRAE equipment addressed by 
today's notice, EPCA, as amended by AEMTCA, prescribes certain 
statutory criteria for DOE to consider. See generally 42 U.S.C. 
6313(a)(6)(A)-(D). Any amended standard for covered equipment more 
stringent than the level contained in ASHRAE Standard 90.1 must be 
designed to achieve the maximum improvement in energy efficiency that 
is technologically feasible and economically justified. (42 U.S.C. 
6313(a)(6)(A)(ii)(II)) Furthermore, DOE may not adopt any more-
stringent standard that would not result in the significant additional 
conservation of energy. Id. In deciding whether a proposed standard is 
economically justified, DOE must determine whether the benefits of the 
standard exceed its burdens. DOE must make this determination after 
receiving comments on the proposed standard, and by considering, to the 
maximum extent practicable, the following seven factors:

    1. The economic impact of the standard on manufacturers and 
consumers of 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 equipment which are likely to result from 
the standard;
    3. The total projected amount of energy savings likely to result 
directly from the standard;
    4. Any lessening of the utility or the performance of the 
covered product 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 conservation; and
    7. Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6313(a)(6)(B)(ii)(I)-(VII))

    EPCA, as codified, also contains what is known as an ``anti-
backsliding'' provision, which prevents the Secretary of Energy from 
prescribing any amended standard that either increases the maximum 
allowable energy use or decreases the minimum required energy 
efficiency of a type of covered equipment. (42 U.S.C. 
6313(a)(6)(B)(iii)(I)) 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 of 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. 
6313(a)(6)(B)(iii)(II))
    Before proposing a standard, DOE typically seeks public input about 
the analytical framework, models, and tools that it will use to 
evaluate standards for the product or equipment at issue and the 
results of preliminary analyses DOE performed for that product or 
equipment. This NOPM announces the availability of the preliminary 
Technical Support Document (TSD), which details the preliminary 
analyses, discusses the comments DOE received from interested parties 
about the Framework Document, and summarizes the preliminary results of 
DOE's analyses. In addition, DOE is announcing a public meeting to 
solicit comments, data, and other information from interested parties 
about its analytical framework, models, and preliminary results.

II. History of Energy Conservation Standards Rulemaking for Commercial 
Packaged Boilers

A. Background

    The Energy Policy Act of 1992 (EPACT 1992), Public Law 102-486, 
amended EPCA to add commercial packaged boilers as a type of covered 
equipment. (42 U.S.C. 6311(1)(J)) EPACT 1992 also amended EPCA with 
respect to packaged boilers by providing a definition, as well as 
provisions setting forth applicable requirements for energy 
conservation standards, test procedures, labeling, and compliance 
certification. (42 U.S.C. 6311(11)(B); 6313(a)(4); 6314(a)(4); 6315(e); 
6316(b))
    Most recently, DOE amended its energy conservation standards for 
commercial packaged boilers through a final rule published in the 
Federal Register (FR) on July 22, 2009 (hereafter referred to as the 
``July 2009 final rule''). 74 FR 36312. More specifically, the July 
2009 final rule updated the energy conservation standards for 
commercial packaged boilers to correspond to the levels in the 2007 
revision of ASHRAE Standard 90.1 (i.e., ASHRAE Standard 
90.1[square]2007). Id. at 36355-56 (codified at 10 CFR 431.87). 
Compliance with the amended standards was required beginning on March 
2, 2012. These levels are shown in Table II.1 below. Also in the July 
2009 final rule, DOE again followed ASHRAE's approach in Standard 90.1-
2007 and adopted a second tier of energy conservation standards for two 
classes of commercial packaged boilers, which are shown in Table II.2 
below. Compliance with the latter standards will be required beginning 
on March 2, 2022. Id.

Table II.1--Energy Conservation Standards for Commercial Packaged Boilers Manufactured On or After March 2, 2012
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                                                                                          Efficiency level--
           Equipment type                  Subcategory       Size category  (input)    Effective date: March 2,
                                                                                                2012 *
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Hot Water Commercial Packaged        Gas-fired.............  [gteqt]300,000 Btu/h    80.0% ET.
 Boilers.                                                     and.
                                                             <=2,500,000 Btu/h.....
Hot Water Commercial Packaged        Gas-fired.............  >2,500,000 Btu/h......  82.0% EC.
 Boilers.
Hot Water Commercial Packaged        Oil-fired.............  [gteqt]300,000 Btu/h    82.0% ET.
 Boilers.                                                     and.
                                                             <=2,500,000 Btu/h.....
Hot Water Commercial Packaged        Oil-fired.............  >2,500,000 Btu/h......  84.0% EC.
 Boilers.
Steam Commercial Packaged Boilers..  Gas-fired--all, except  [gteqt]300,000 Btu/h    79.0% ET.
                                      natural draft.          and.
                                                             <=2,500,000 Btu/h.....
Steam Commercial Packaged Boilers..  Gas-fired--all, except  >2,500,000 Btu/h......  79.0% ET.
                                      natural draft.
Steam Commercial Packaged Boilers..  Gas-fired--natural      [gteqt]300,000 Btu/h    77.0% ET.
                                      draft.                  and.
                                                             <=2,500,000 Btu/h.....
Steam Commercial Packaged Boilers..  Gas-fired--natural      >2,500,000 Btu/h......  77.0% ET.
                                      draft.

[[Page 69069]]

 
Steam Commercial Packaged Boilers..  Oil-fired.............  [gteqt]300,000 Btu/h    81.0% ET.
                                                              and.
                                                             <=2,500,000 Btu/h.....
Steam Commercial Packaged Boilers..  Oil-fired.............  >2,500,000 Btu/h......  81.0% ET.
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* ET means ``thermal efficiency.'' EC means ``combustion efficiency.''


Table II.2--Energy Conservation Standards for Commercial Packaged Boilers Manufactured On or After March 2, 2022
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                                                                                          Efficiency level--
           Equipment type                  Subcategory       Size category  (input)    Effective date: March 2,
                                                                                                 2022
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Steam Commercial Packaged Boilers..  Gas-fired--natural      [gteqt]300,000 Btu/h    79.0% ET.
                                      draft.                  and.
                                                             <=2,500,000 Btu/h.....
Steam Commercial Packaged Boilers..  Gas-fired--natural      >2,500,000 Btu/h......  79.0% ET.
                                      draft.
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    DOE is initiating this rulemaking pursuant to 42 U.S.C. 
6313(a)(6)(C), which requires that every six years, DOE must publish 
either: (1) A notice of the determination that standards for the 
equipment do not need to be amended, or (2) a NOPR including proposed 
energy conservation standards. As noted above, DOE's last final rule 
for commercial packaged boilers was published on July 22, 2009, so as a 
result, DOE is required to act to publish one of the above two 
documents by July 22, 2015. If DOE publishes a NOPR, the agency must 
proceed to a final rule not later than two years after the NOPR is 
issued. (42 U.S.C. 6313(a)(6)(C)(iii)(I)) If DOE publishes a 
determination that the standards do not need to be amended, the agency 
must make a new determination regarding the need for amended standards 
not later than three years after the last determination. (42 U.S.C. 
6313(a)(6)(C)(iii)(II)) Once completed, this rulemaking will satisfy 
DOE's statutory obligation under 42 U.S.C. 6313(a)(6)(C).\4\
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    \4\ DOE notes that since DOE's last final rule in 2009, ASHRAE 
has not acted to amend Standard 90.1 in terms of commercial packaged 
boilers, as would trigger DOE rulemaking action under 42 U.S.C. 
6313(a)(6)(A).
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    In addition, DOE notes that on August 13, 2013, DOE published a 
proposed determination of coverage for natural draft commercial 
packaged boilers in order to confirm its authority to regulate those 
products. 78 FR 49202. Because there is currently no statutory 
definition of ``natural draft commercial packaged boiler,'' DOE 
proposed to define this equipment as follows: ``Natural draft 
commercial packaged boiler means a commercial packaged boiler designed 
to operate with negative pressure in the firebox and in the flue 
connection created by a chimney or the height of the unit itself, up to 
the draft control device. Such boilers do not require mechanical 
drafting equipment to vent combustion gases, but may include mechanical 
devices such as mechanical flue or stack dampers to limit the heat 
losses through the flue vent during off-cycle.'' DOE plans to include 
natural draft commercial packaged boilers within the scope of this 
rulemaking if the outcome of the proposed determination is positive. 
Accordingly, DOE has considered natural draft equipment for this 
preliminary analysis.
    Lastly, DOE is also currently conducting a separate test procedure 
rulemaking to consider amended test procedures for commercial packaged 
boilers. On February 20, 2014, DOE published a request for information 
(RFI) in the Federal Register that sought comments and information from 
stakeholders on several issues pertaining to the commercial packaged 
boiler test procedure. 79 FR 9643. Any amended standard adopted as part 
of this rulemaking would ultimately be based on the updates to the test 
procedure (if any) that are adopted in the test procedure rulemaking.

B. Current Rulemaking Process

    In initiating this rulemaking, DOE prepared a Framework Document, 
``Energy Conservation Standards Rulemaking Framework Document for 
Commercial Packaged Boilers,'' which describes the procedural and 
analytical approaches DOE anticipates using to evaluate energy 
conservation standards for commercial packaged boilers. DOE published a 
notice that announced both the availability of the Framework Document 
and a public meeting to discuss the proposed analytical framework for 
the rulemaking. That notice also invited written comments from the 
public. 78 FR 54197 (Sept. 3, 2013). The Framework Document is 
available at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/79.
    DOE held a public meeting on October 1, 2013, at which it described 
the various analyses DOE would conduct as part of the rulemaking, such 
as the engineering analysis, the life-cycle cost (LCC) and payback 
period (PBP) analyses, and the national impact analysis (NIA). 
Representatives of manufacturers, trade associations, environmental and 
energy efficiency advocates, and other interested parties attended the 
meeting. The participants discussed the following major topics, among 
others: (1) The rulemaking scope (2) test procedures for commercial 
packaged boilers; and (3) various issues related to the planned 
analyses of amended energy conservation standards.
    Comments received since publication of the Framework Document have 
helped DOE identify and resolve issues related to the preliminary 
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the 
comments received in response to the Framework Document.

III. Summary of the Analyses Performed by DOE

    For the commercial packaged boiler equipment covered in this 
rulemaking, DOE conducted in-depth technical analyses in the following 
areas: (1) Engineering; (2) markups to determine

[[Page 69070]]

equipment price; (3) energy use; (4) life-cycle cost and payback 
period; and (5) national impacts. The preliminary TSD that presents the 
methodology and results of each of these analyses is available at 
http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/79.
    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 upon for a NOPR if DOE 
determines that amended energy conservation standards are 
technologically feasible, economically justified, and would save a 
significant amount of energy, based on the information available to 
DOE. 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 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 LCC 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.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer selling price and efficiency levels of the equipment that 
DOE is evaluating as potential energy conservation standards. This 
relationship serves as the basis for cost-benefit calculations for 
individual consumers, manufacturers, and the Nation. The engineering 
analysis identifies representative baseline equipment, which is the 
starting point for analyzing technologies that provide energy 
efficiency improvements. ``Baseline equipment'' refers to a model or 
models having features and technologies typically found in minimally-
efficient equipment currently available on the market and, for 
equipment already subject to energy conservation standards, a model 
that just meets the current standard. After identifying the baseline 
models, DOE estimated manufacturer selling prices by using a consistent 
methodology and pricing scheme that includes material costs and 
manufacturer markups. DOE used these inputs to develop manufacturer 
selling prices for the baseline and more-efficient designs. Later, in 
the markups analysis to determine the installed price, DOE converts 
these manufacturer selling prices into installed prices. Chapter 5 of 
the preliminary TSD discusses the engineering analysis.

B. Markups To Determine Commercial Consumer Prices

    DOE derives commercial consumer installed prices based on 
manufacturer markups, retailer markups, distributor markups, contractor 
markups (where appropriate), and sales taxes. In deriving these 
markups, DOE determines the major distribution channels for equipment 
sales, the markup associated with each party in each distribution 
channel, and the existence and magnitude of differences between markups 
for baseline equipment (baseline markups) and higher-efficiency 
equipment (incremental markups). DOE calculates both overall baseline 
and overall incremental markups based on the equipment markups at each 
step in each distribution channel. Chapter 6 of the preliminary TSD 
addresses the markups analysis.

C. Energy Use Analysis

    The energy use analysis provides estimates of the annual energy 
consumption of commercial packaged boilers. The energy use analysis 
seeks to estimate the range of energy consumption of equipment that 
meets each of the efficiency levels considered in a given rulemaking as 
they are used in the field. DOE uses these values in the LCC and PBP 
analyses and in the NIA. Chapter 7 of the preliminary TSD addresses the 
energy use analysis.

D. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual commercial consumers. The LCC is the total cost 
to the commercial consumer of purchasing, installing, and operating the 
considered commercial packaged boiler equipment over the course of its 
lifetime. The LCC analysis compares the LCCs of equipment designed to 
meet possible energy conservation standards with the LCC of the 
equipment likely to be installed in the absence of standards. DOE 
determines LCCs by considering: (1) Total installed cost to the 
purchaser (which consists of manufacturer selling price, distribution 
chain markups, sales taxes, and installation cost); (2) the operating 
cost of the equipment (energy cost and maintenance and repair cost); 
(3) equipment lifetime; and (4) a discount rate that reflects the real 
commercial consumer cost of capital and puts the LCC in present-value 
terms. The PBP represents the number of years needed to recover the 
increase in purchase price (including installation cost) of higher-
efficiency equipment through savings in the operating cost of the 
equipment. PBP is calculated by dividing the incremental increase in 
installed cost of the higher-efficiency equipment, compared to the 
baseline equipment, by the annual savings in operating costs. Chapter 8 
of the preliminary TSD addresses the LCC and PBP analyses.

E. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total consumer costs and savings expected to 
result from amended standards at specific efficiency levels (referred 
to as candidate standard levels). DOE calculated NES and NPV for each 
candidate standard level for commercial packaged boilers as the 
difference between a base-case forecast (without amended standards) and 
the standards-case forecast (with standards). DOE determined national 
annual energy consumption by multiplying the number of units in use (by 
vintage) by the average unit energy consumption (also by vintage). 
Cumulative energy savings are the sum of the annual NES determined for 
the lifetime of the equipment shipped from 2019 to 2048. This 30-year 
analysis period begins in 2019, the expected first full year of 
compliance with the amended standards. The NPV is the sum over time of 
the discounted net savings each year, which consists of the difference 
between total operating cost savings and increases in total installed 
costs. 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. Chapter 10 of the preliminary TSD 
addresses the NIA.

IV. Public Participation

    DOE invites input from the public on all the topics described 
above. The preliminary analytical results are subject to revision 
following further review and input from the public. A complete and 
revised TSD will be made available upon issuance of a NOPR. The final 
rule establishing any amended energy conservation standards will 
contain the final analytical results and will be accompanied by a final 
rule TSD.
    DOE encourages those who wish to participate in the public meeting 
to obtain the preliminary TSD from DOE's

[[Page 69071]]

Web site and to be prepared to discuss its contents. Once again, a copy 
of the preliminary TSD is available at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/79. However, 
public meeting participants need not limit their comments to the topics 
identified in the preliminary TSD. DOE is also interested in receiving 
views concerning other relevant issues that participants believe would 
affect energy conservation standards for this equipment or that DOE 
should address in the NOPR.
    Furthermore, DOE welcomes all interested parties, regardless of 
whether they participate in the public meeting, to submit in writing by 
January 20, 2015 comments, data, and other information on matters 
addressed in the preliminary TSD and on other matters relevant to 
consideration of energy conservation standards for commercial packaged 
boilers.
    The public meeting will be conducted in an informal conference 
style. A court reporter will be present to record the proceedings. 
There shall be no discussion of proprietary information, costs or 
prices, market shares, or other commercial matters regulated by United 
States antitrust laws.
    After the public meeting 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. Afterward, DOE will publish either a 
determination that the standards for commercial packaged boilers need 
not be amended or a NOPR proposing to amend those standards. The NOPR 
would include proposed energy conservation standards for the equipment 
covered by the rulemaking, and members of the public would be given an 
opportunity to submit written and oral comments on the proposed 
standards.

A. Attendance at the Public Meeting

    The time and date of the public meeting are listed in the DATES and 
ADDRESSES sections at the beginning of this notice. The public meeting 
will be held at the U.S. Department of Energy, Forrestal Building, Room 
4A-104, 1000 Independence Avenue SW., Washington, DC 20585-0121. To 
attend the public meeting, please notify Ms. Brenda Edwards at (202) 
586-2945. Please note that foreign nationals participating in the 
public meeting are subject to advance security screening procedures 
which require advance notice prior to attendance at the public meeting. 
If a foreign national wishes to participate in the public meeting, 
please inform DOE of this fact as soon as possible by contacting Ms. 
Regina Washington at (202) 586-1214 or by email: 
<a href="/cdn-cgi/l/email-protection#441621232d2a256a1325372c2d2a23302b2a0421216a202b216a232b32"><span class="__cf_email__" data-cfemail="91c3f4f6f8fff0bfc6f0e2f9f8fff6e5feffd1f4f4bff5fef4bff6fee7">[email protected]</span></a> so that the necessary procedures can be 
completed.
    Due to the REAL ID Act implemented by the Department of Homeland 
Security (DHS), there have been recent changes regarding identification 
(ID) requirements for individuals wishing to enter Federal buildings 
from specific States and U.S. territories. As a result, driver's 
licenses from the following States or territory will not be accepted 
for building entry, and instead, one of the alternate forms of ID 
listed below will be required.
    DHS has determined that regular driver's licenses (and ID cards) 
from the following jurisdictions are not acceptable for entry into DOE 
facilities: Alaska, American Samoa, Arizona, Louisiana, Maine, 
Massachusetts, Minnesota, New York, Oklahoma, and Washington.
    Acceptable alternate forms of Photo-ID include: U.S. Passport or 
Passport Card; an Enhanced Driver's License or Enhanced ID-Card issued 
by the States of Minnesota, New York or Washington (Enhanced licenses 
issued by these States are clearly marked Enhanced or Enhanced Driver's 
License); a military ID or other Federal government-issued Photo-ID 
card.
    Attendees may participate in the public meeting via webinar. 
Registration information, participant instructions, and information 
about the capabilities available to webinar participants will be 
published on the following Web site: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/79. Participants 
are responsible for ensuring their computer systems are compatible with 
the webinar software.
    The purpose of the meeting is to receive oral and written comments, 
data, and other information that would provide understanding about 
potential issues associated with this rulemaking. DOE must receive 
requests to speak at the meeting before 4:00 p.m. ET, December 1, 2014. 
DOE must receive a signed original and an electronic copy of any 
statement to be given at the public meeting before 4:00 p.m. ET, 
November 24, 2014.

B. Procedure for Submitting Requests To Speak

    Any person who has an interest in this NOPM or who is a 
representative of a group or class of persons that has an interest in 
these issues may request an opportunity to make an oral presentation. 
Such persons may hand-deliver requests to speak, along with a computer 
diskette or CD in WordPerfect, Microsoft Word, portable data format 
(PDF), or text (ASCII) file format to Ms. Brenda Edwards at the address 
shown in the ADDRESSES section at the beginning of this NOPM between 
9:00 a.m. and 4:00 p.m. Monday through Friday, except Federal holidays. 
Requests may also be sent by mail to the address shown in the ADDRESSES 
section or email to <a href="/cdn-cgi/l/email-protection#c785b5a2a9a3a6e982a3b0a6b5a3b487a2a2e9a3a8a2e9a0a8b1"><span class="__cf_email__" data-cfemail="e3a191868d8782cda6879482918790a38686cd878c86cd848c95">[email protected]</span></a>.
    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 be heard to submit an advance 
copy of their statements at least two weeks before the public meeting. 
At its discretion, DOE may permit any person who cannot supply an 
advance copy of their statement to participate, if that person has made 
advance alternative arrangements with the Building Technologies Office. 
The request to give an oral presentation should ask for such 
alternative arrangements.

C. Conduct of the Public Meeting

    DOE will designate a DOE official to preside at the public meeting 
and may also employ 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 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. After the public meeting, interested parties may 
submit further comments on the proceedings as well as on any aspect of 
the rulemaking until the end of the comment period.
    The public meeting will be conducted in an informal conference 
style. DOE will present summaries of comments received before the 
public meeting, allow time for presentations by participants, and 
encourage all interested parties to share their views on issues 
affecting this rulemaking. Each participant will be allowed to make a 
prepared general statement (within DOE-determined time limits) prior to 
the discussion of specific topics. DOE will permit 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 from DOE and other participants concerning these issues.

[[Page 69072]]

DOE representatives may also ask questions of participants concerning 
other matters relevant to this rulemaking. The official conducting the 
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 public meeting.
    A transcript of the public meeting will be posted on the DOE Web 
site and will also be included in the docket, which can be viewed as 
described in the Docket section at the beginning of this notice. In 
addition, any person may buy a copy of the transcript from the 
transcribing reporter.

D. Submission of Comments

    DOE will accept comments, data, and other information regarding 
this rulemaking before or after the public meeting, but no later than 
the date provided at the beginning of this notice. Please submit 
comments, data, and other information as provided in the ADDRESSES 
section. Submit electronic comments in WordPerfect, Microsoft Word, 
PDF, or text (ASCII) file format and avoid the use of special 
characters or any form of encryption. Comments in electronic format 
should be identified by the Docket Number EERE-2013-BT-STD-0030 and/or 
RIN 1904-AD01 and, wherever possible, carry the electronic signature of 
the author. No telefacsimiles (faxes) will be accepted.
    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 two copies: one copy of the document including 
all the information believed to be confidential and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination as to the confidential status of the 
information and treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by or available from other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person which would result from 
public disclosure; (6) a date upon which such information might lose 
its confidential nature due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this notice of 
public meeting and availability of the preliminary technical support 
document.

    Issued in Washington, DC, on November 13, 2014.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2014-27380 Filed 11-19-14; 8:45 am]
BILLING CODE 6450-01-P


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