Document ID: EPA-HQ-OAR-2018-0195-0240
Agency: epa
Document Type: Proposed Rule
Title: Standards of Performance for New Residential Wood Heaters, New Residential Hydronic Heaters, and Forced-Air Furnaces
Posted Date: 2020-05-22T04:00Z

[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Proposed Rules]
[Pages 31124-31130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11096]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2018-0195; FRL-10009-20-OAR]
RIN 2060-AU87

Standards of Performance for New Residential Wood Heaters, New 
Residential Hydronic Heaters and Forced-Air Furnaces

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The U.S. Environmental Protection Agency (EPA) is proposing to 
amend the Standards of Performance for New Residential Wood Heaters, 
New Residential Hydronic Heaters and Forced-Air Furnaces. In response 
to the situation created by the COVID-19 pandemic, this proposed action 
restores the retail sales opportunities that were provided by the 
original 5-year period for ``Step 1'' wood heaters, hydronic heaters, 
and forced-air furnaces that were manufactured or imported before the 
May 15, 2020, ``Step 2'' compliance date. Upon promulgation, retailers 
may continue selling Step 1 heaters through November 30, 2020.

DATES: Comments. Comments must be received on or before July 6, 2020.
    Public hearing: If anyone contacts us requesting a public hearing 
on or before May 27, 2020, the EPA will hold a virtual public hearing 
on June 8, 2020. Please refer to the SUPPLEMENTARY INFORMATION section 
for additional information on the public hearing.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2018-0195, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov/ 
(our preferred method). Follow the online instructions for submitting 
comments.
     Email: a-and-r-docket@epa.gov. Include Docket ID No. EPA-
HQ-OAR-2018-0195 in the subject line of the message.
    Instructions: All submissions received must include the Docket ID 
number for this rulemaking. Comments received may be posted without 
change to https://www.regulations.gov/, including any personal 
information provided. For

[[Page 31125]]

detailed instructions on sending comments and additional information on 
the rulemaking process, see the SUPPLEMENTARY INFORMATION section of 
this document. Out of an abundance of caution for members of the public 
and our staff, the EPA Docket Center and Reading Room was closed to 
public visitors on March 31, 2020, to reduce the risk of transmitting 
COVID-19. Our Docket Center staff will continue to provide remote 
customer service via email, phone, and webform. We encourage the public 
to submit comments via https://www.regulations.gov/ or email, as there 
is a temporary suspension of mail delivery to the EPA, and no hand 
deliveries are currently accepted. For further information on EPA 
Docket Center services and the current status, please visit us online 
at https://www.epa.gov/dockets.
    If requested, the virtual hearing will be held on June 8, 2020. The 
hearing will convene at 9:00 a.m. Eastern Standard Time (EST) and will 
conclude at 3:00 p.m. EST. The EPA will announce further details on the 
virtual public hearing website at https://www.epa.gov/residential-wood-heaters. Refer to the SUPPLEMENTARY INFORMATION section below for 
additional information.

FOR FURTHER INFORMATION CONTACT: For questions about this action, 
contact Nathan Topham, Sector Policies and Programs Division, Office of 
Air Quality Planning and Standards, U.S. Environmental Protection 
Agency, Research Triangle Park, North Carolina 27711; telephone number: 
(919) 541-0483 and email address: topham.nathan@epa.gov.

SUPPLEMENTARY INFORMATION: 
    Participation in virtual public hearing. Please note that the EPA 
is deviating from its typical approach because the President has 
declared a national emergency. Due to the current Centers for Disease 
Control and Prevention (CDC) recommendations, as well as state and 
local orders for social distancing to limit the spread of COVID-19, the 
EPA cannot hold in-person public meetings at this time.
    If a public hearing is requested, the EPA will begin pre-
registering speakers for the hearing upon publication of this document 
in the Federal Register. To register to speak at the virtual hearing, 
please use the online registration form available at https://www.epa.gov/residential-wood-heaters or contact Adrian Gates at (919) 
541-4860 or by email at gates.adrian@epa.gov to register to speak at 
the virtual hearing. The last day to pre-register to speak at the 
hearing will be June 4, 2020. On June 5, 2020, the EPA will post a 
general agenda for the hearing that will list pre-registered speakers 
in approximate order at: https://www.epa.gov/residential-wood-heaters.
    The EPA will make every effort to follow the schedule as closely as 
possible on the day of the hearing; however, please plan for the 
hearing to run either ahead of schedule or behind schedule.
    Each commenter will have 5 minutes to provide oral testimony. The 
EPA encourages commenters to provide the EPA with a copy of their oral 
testimony electronically (via email) by emailing it to Nathan Topham 
and Adrian Gates. The EPA also recommends submitting the text of your 
oral testimony as written comments to the rulemaking docket.
    The EPA may ask clarifying questions during the oral presentations 
but will not respond to the presentations at that time. Written 
statements and supporting information submitted during the comment 
period will be considered with the same weight as oral testimony and 
supporting information presented at the public hearing.
    Please note that any updates made to any aspect of the hearing will 
be posted online at https://www.epa.gov/residential-wood-heaters. While 
the EPA expects the hearing to go forward as set forth above, if 
requested, please monitor our website or contact Adrian Gates at (919) 
541-4860 or gates.adrian@epa.gov to determine if there are any updates. 
The EPA does not intend to publish a document in the Federal Register 
announcing updates.
    If you require the services of a translator or a special 
accommodation such as audio description, please pre-register for the 
hearing with Adrian Gates and describe your needs by May 29, 2020. The 
EPA may not be able to arrange accommodations without advance notice.
    Docket. The EPA has established a docket for this rulemaking under 
Docket ID No. EPA-HQ-OAR-2018-0195. All documents in the docket are 
listed on the https://www.regulations.gov/ website. Although listed, 
some information is not publicly available, e.g., Confidential Business 
Information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the internet and will be publicly available only in hard 
copy. Publicly available docket materials are available electronically 
through https://www.regulations.gov/.
    Instructions. Direct your comments to Docket ID No. EPA-HQ-OAR-
2018-0195. The EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at https://www.regulations.gov/, including any personal 
information provided, unless the comment includes information claimed 
to be CBI or other information whose disclosure is restricted by 
statute. Do not submit information that you consider to be CBI or 
otherwise protected through https://www.regulations.gov/ or email. This 
type of information should be submitted by mail as discussed below.
    The EPA may publish any comment received to its public docket. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e., on the Web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
    The https://www.regulations.gov/ website allows you to submit your 
comment anonymously, which means the EPA will not know your identity or 
contact information unless you provide it in the body of your comment. 
If you send an email comment directly to the EPA without going through 
https://www.regulations.gov/, your email address will be automatically 
captured and included as part of the comment that is placed in the 
public docket and made available on the internet. If you submit an 
electronic comment, the EPA recommends that you include your name and 
other contact information in the body of your comment and with any 
digital storage media you submit. If the EPA cannot read your comment 
due to technical difficulties and cannot contact you for clarification, 
the EPA may not be able to consider your comment. Electronic files 
should not include special characters or any form of encryption and be 
free of any defects or viruses. For additional information about the 
EPA's public docket, visit the EPA Docket Center homepage at https://www.epa.gov/dockets.
    The EPA is temporarily suspending its Docket Center and Reading 
Room for public visitors to reduce the risk of transmitting COVID-19. 
Written

[[Page 31126]]

comments submitted by mail are temporarily suspended and no hand 
deliveries will be accepted. Notwithstanding the suspension of mail 
submission of regular comments, comments containing CBI should be 
submitted by mail.\1\ Our Docket Center staff will continue to provide 
remote customer service via email, phone, and webform. We encourage the 
public to submit comments via https://www.regulations.gov/. For further 
information and updates on EPA Docket Center services, please visit us 
online at https://www.epa.gov/dockets.
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    \1\ As discussed below, CBI should not be submitted 
electronically through Regulations.gov or email. CBI should be 
submitted following the procedures specified in the ``Submitting 
CBI'' section below. We encourage commenters to submit redacted or 
non-CBI versions of comments electronically and include a statement 
in their electronic comments that they have separately submitted any 
CBI following the instructions below.
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    The EPA continues to carefully and continuously monitor information 
from the CDC, local area health departments, and our federal partners 
so that we can respond rapidly as conditions change regarding COVID-19.
    Submitting CBI. Do not submit information containing CBI to the EPA 
through https://www.regulations.gov/ or email. Clearly mark the part or 
all of the information that you claim to be CBI. For CBI information on 
any digital storage media that you mail to the EPA, mark the outside of 
the digital storage media as CBI and then identify electronically 
within the digital storage media the specific information that is 
claimed as CBI. In addition to one complete version of the comments 
that includes information claimed as CBI, you must submit a copy of the 
comments that does not contain the information claimed as CBI directly 
to the public docket through the procedures outlined above. If you 
submit any digital storage media that does not contain CBI, mark the 
outside of the digital storage media clearly that it does not contain 
CBI. Information not marked as CBI will be included in the public 
docket and the EPA's electronic public docket without prior notice. 
Information marked as CBI will not be disclosed except in accordance 
with procedures set forth in 40 Code of Federal Regulations (CFR) part 
2. Send or deliver information identified as CBI only to the following 
address: OAQPS Document Control Officer (C404-02), OAQPS, U.S. 
Environmental Protection Agency, Research Triangle Park, North Carolina 
27711, Attention Docket ID No. EPA-HQ-OAR-2018-0195. Note that written 
comments containing CBI and submitted by mail may be delayed and no 
hand deliveries will be accepted.
    Preamble acronyms and abbreviations. We use multiple acronyms and 
terms in this preamble. While this list may not be exhaustive, to ease 
the reading of this preamble and for reference purposes, the EPA 
defines the following terms and acronyms here:

BSER best system of emission reduction
CAA Clean Air Act
CBI Confidential Business Information
CDC Centers for Disease Control and Prevention
CFR Code of Federal Regulations
EPA Environmental Protection Agency
EST Eastern Standard Time
NAICS North American Industry Classification System
NSPS new source performance standards
NTTAA National Technology Transfer and Advancement Act
PRA Paperwork Reduction Act
OMB Office of Management and Budget
RFA Regulatory Flexibility Act
RWH Residential Wood Heater
UMRA Unfunded Mandates Reform Act

    Organization of this document. The information in this preamble is 
organized as follows:

I. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
II. Background
    A. Statutory Background
    B. What action is the Agency taking?
III. Why is the Agency taking this action?
IV. Summary of Cost, Environmental, and Economic Impacts
V. Labeling Provisions
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act (NTTAA)
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Application of CAA Section 307(d)

I. General Information

A. Does this action apply to me?

    Table 1 lists the categories and entities that are the subject of 
this proposal. Table 1 is not intended to be exhaustive, but rather 
provides a guide for readers regarding the entities that this proposed 
action is likely to affect. The proposed revisions, if finalized, will 
be directly applicable to the affected entities. Federal, state, local, 
and tribal government entities will not be affected by this proposed 
action. Table 1 lists the types of entities that the EPA is now aware 
could potentially be affected by this action. Other types of entities 
not listed in the table could also be affected. To determine whether 
your entity is affected by this action, you should carefully examine 
the applicability criteria found in 40 CFR part 60, subpart AAA, 40 CFR 
60.530 and 40 CFR part 60, subpart QQQQ, 40 CFR 60.5472. If you have 
questions regarding the applicability of this action to a particular 
entity, consult the person listed in the FOR FURTHER INFORMATION 
CONTACT section.

       Table 1--Source Categories Affected by This Proposed Action
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                                                   Examples of entities
            Category             NAICS code \1\   that could be affected
                                                      by this action
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Residential Wood Heating.......          333414  Manufacturers, owners,
                                                  and operators of wood
                                                  heaters, pellet
                                                  heaters/stoves, and
                                                  hydronic heaters.
                                         333415  Manufacturers, owners,
                                                  and operators of
                                                  forced-air furnaces.
Retailers......................          423730  Warm air heating and
                                                  air-conditioning
                                                  equipment and supplies
                                                  merchant wholesalers.
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\1\ North American Industry Classification System.

[[Page 31127]]

B. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this action is available on the internet. Following signature by the 
EPA Administrator, the EPA will post a copy of this proposed action at 
https://www.epa.gov/residential-wood-heaters. Following publication in 
the Federal Register, the EPA will post the Federal Register version of 
the proposal and key technical documents at this same website.
    A redline version of the regulatory language that incorporates the 
proposed changes in this action is available in the docket for this 
action (Docket ID No. EPA-HQ-OAR-2018-0195).

II. Background

A. Statutory Background

    Section 111 of the Clean Air Act (CAA) requires the EPA 
Administrator to list categories of stationary sources that, in his or 
her judgment, cause or contribute significantly to air pollution which 
may reasonably be anticipated to endanger public health or welfare. The 
EPA must then issue ``standards of performance'' for new sources in 
such source categories. The EPA has the authority to define the source 
categories, determine the pollutants for which standards should be 
developed, and identify within each source category the facilities for 
which standards of performance will be established.
    CAA section 111(a)(1) defines ``a standard of performance'' as ``a 
standard for emissions of air pollutants which reflects the degree of 
emission limitation achievable through the application of the best 
system of emission reduction which (taking into account the cost of 
achieving such reduction and any non-air quality health and 
environmental impact and energy requirement) the Administrator 
determines has been adequately demonstrated.'' This definition makes 
clear that the standard of performance must be based on ``the best 
system of emission reduction (BSER).'' The standard that the EPA 
develops, based on the BSER, is commonly a numerical emission limit, 
expressed as a performance level. As provided in CAA section 111(b)(5), 
the EPA does not prescribe a specific technology that must be used to 
comply with a standard of performance. Rather, sources generally can 
select any measure or combination of measures that will achieve the 
emission level of the standard.

B. What action is the Agency taking?

    The EPA is proposing amendments to mitigate the impact of the 
ongoing COVID-19 pandemic on retailers who have lost valuable sales 
opportunities during the closures, stay-at-home orders, and other 
precautions taken to address the pandemic. The EPA is proposing to 
amend 40 CFR 60.532(b) of 40 CFR part 60, subpart AAA, to allow an 
affected residential wood heater manufactured or imported on or before 
May 15, 2020, and certified to meet the 2015 particulate matter 
emission limit specified in 40 CFR 60.532(a), to be sold at retail on 
or before November 30, 2020. The EPA is also proposing to amend 40 CFR 
60.5474(a)(2) of 40 CFR part 60, subpart QQQQ, to allow an affected 
residential hydronic heater manufactured or imported on or before May 
15, 2020, and certified to meet the 2015 particulate matter emission 
limit specified in 40 CFR 60.5474(b)(1), to be sold at retail on or 
before November 30, 2020. Finally, the EPA is proposing to amend 40 CFR 
60.5474(a)(6) of 40 CFR part 60, subpart QQQQ, to allow an affected 
residential forced-air furnace manufactured or imported on or before 
May 15, 2020, and certified to meet the applicable 2016 and 2017 
particulate matter emission limits specified in 40 CFR 60.5474(b)(4) 
and (5), respectively, to be sold at retail on or before November 30, 
2020. The EPA is proposing to make conforming changes in the compliance 
certification requirements (40 CFR 60.533(h)(1) and (2) of 40 CFR part 
60, subpart AAA, and 40 CFR 60.5475(a)(3) through (7) and (h) of 40 CFR 
part 60, subpart QQQQ) so that the compliance certification reflects 
the November 30, 2020, proposed date when applicable.
    If these proposed revisions are finalized, we propose to make the 
revisions effective upon publication of the final rule in the Federal 
Register.
    This action is unlikely to affect the total number of Step 1 units 
available on the market because the prohibition on manufacture of these 
units after May 15, 2020, remains. Therefore, this action allows 
manufacturers and retailers, of which 90 percent are small businesses, 
to recover the sales opportunities they would have had in the absence 
of the pandemic.

III. Why is the Agency taking this action?

    Residential wood heaters were originally listed under CAA section 
111(b) on February 18, 1987 (see 52 FR 5065). Once listed, the EPA 
developed NSPS to implement section 111(b) of the CAA. The standards 
apply to new stationary sources of emissions, i.e., sources whose 
construction, reconstruction, or modification begins after a standard 
for those sources is proposed. The NSPS for wood heaters (40 CFR part 
60, subpart AAA) was proposed on February 18, 1987 (see 52 FR 4994) and 
promulgated on February 26, 1988 (see 53 FR 5859) (1988 Wood Heater 
NSPS). The NSPS was amended in 1998 to address an issue related to 
certification testing (see 63 FR 64869).
    On February 3, 2014, the EPA proposed revisions to the NSPS (see 79 
FR 6330) and promulgated revisions on March 16, 2015 (see 80 FR 13672). 
The final 2015 NSPS updated the 1988 Wood Heater NSPS emission limits, 
eliminated exemptions over a broad suite of residential wood combustion 
devices, and updated test methods and the certification process. The 
2015 NSPS also added a new subpart (40 CFR part 60, subpart QQQQ) that 
covers new wood burning residential hydronic heaters and new forced-air 
furnaces.
    The Residential Wood Heater source category is different from most 
NSPS source categories in that it regulates mass-produced residential 
consumer appliance products, rather than industrial facilities. Thus, 
important elements in determining the BSER include the costs and 
environmental impacts on consumers of delaying production while wood 
heating devices are designed, tested, field evaluated, and certified. 
Section 111(b)(1)(B) of the CAA requires that the standards be 
effective upon the promulgation of the NSPS. Considering these factors, 
as discussed more fully in the 2015 Federal Register document, the 2015 
NSPS final rule took a two-step compliance approach, in which certain 
Step 1 standards became effective on May 15, 2015, and more stringent 
Step 2 standards would become effective 5 years later, on May 15, 2020. 
In particular, one of the bases for the Step 2 limits and deadline was 
that 5 years was sufficient time for manufaturers to develop models to 
meet the more stringent Step 2 standards and for retailers to 
transition from selling Step 1 units to Step 2 units. Providing this 5 
year time period was a key aspect of the 2015 rule because, pursuant to 
CAA 111(a)(1), the stringency of a standard of performance under CAA 
111 must reflect ``the degree of emission limitation achievable'' 
through the application of the best system of emission reduction. In 
turn, what is achievable is dependent on how much ``lead time'' sources 
have to meet the standard. See Portland Cement Assn. v. Ruckelshaus, 
486 F.2d 375, 391-92 (D.C. Cir. 1973). According to industry

[[Page 31128]]

representatives, the time lost due to the pandemic has impacted 
manufacturers as well as retailers because manufacturers will be 
required to repurchase some unsold units from retailers.\2\
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    \2\ Letter from Jack Goldman, Hearth, Patio & Barbecue 
Association to Andrew Wheeler, U.S. EPA, dated March 24, 2020. See 
page 2, ``In addition, some of our members supply major home center 
chains, and report that over $10 million worth of product will not 
sell in time and must be repurchased. This may even call into 
question the continued existence of these small manufacturers.''
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    The 2015 rule provided that retailers would have until May 15, 
2020, to sell heaters and furnaces that were certified to meet the Step 
1 limits. Based on the current NSPS, all units sold after May 15, 2020, 
must meet the more stringent Step 2 standards. Hence, under the current 
rule, units certified to meet Step 1 standards may no longer be sold 
after May 15, 2020.
    On November 30, 2018, the EPA proposed (see 83 FR 61574) to amend 
40 CFR part 60, subpart QQQQ, to allow a ``sell-through'' provision to 
give retailers additional time after the May 2020 effective date of the 
Step 2 standard to sell Step 1-compliant hydronic heaters and forced-
air furnaces remaining in their inventory. The EPA also took comment on 
whether to amend 40 CFR part 60, subpart AAA, for wood heaters and 
pellet fuel heaters to provide a similar sell-through period.
    Based on the comments and data received, the EPA decided to take 
final action on the proposed sell-through provisions by not 
promulgating such provisions, because insufficient relevant data were 
submitted to substantiate a rule revision to provide a sell-through 
provision (see 85 FR 18448). The EPA solicited comment via a range of 
questions in the proposal. While manufacturers and retailers made 
qualitative statements asserting economic harm from stranded 
inventories if a retail sell-through was not allowed, these statements 
were generally not supported by actual data and did not demonstrate 
that the 5-year period provided by the 2015 rule was not sufficient 
time to meet the Step 2 deadline.
    In a recent turn of events, the COVID-19 pandemic has resulted in 
very significant losses of retail sales \3\ beginning about March 15 
and expected to continue through May 15, 2020 (the deadline for the 
Step 2 standards), due to substantial temporary closure of stores, stay 
at home directives, and the overall focus on addressing the challenges 
posed by the pandemic. This situation has resulted in a loss of about 
60 days of the remaining time retailers were authorized to sell 
remaining Step 1 units, and, thus, deprived them of the full 5-year 
time period that formed the basis for the Step 2 standards and deadline 
set in the 2015 rule. In the absence of the COVID-19 pandemic, 
retailers would have been working diligently throughout this 60-day 
period to sell Step 1 devices by offering discounts, sales events, and 
other incentives before the May 15, 2020, deadline. In this proposed 
rule, EPA is proposing to provide time for retailers to sell Step 1 
devices to ensure they get the full benefit of the 5 year ``lead time'' 
on which the Step 2 standards were based by replacing the time period 
for sales opportunities that lost due to COVID-19.
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    \3\ Letter from Jack Goldman, Hearth, Patio & Barbecue 
Association to Andrew Wheeler, U.S. EPA, dated March 24, 2020.
---------------------------------------------------------------------------

    It is difficult to precisely replace the lost sales opportunities 
resulting from the lost 60 days. First, there is still significant 
uncertainty with regard to when the pandemic will subside enough such 
that retailers can reopen, re-hire staff who have been temporarily 
laid-off, and resume a level of normal retail operations.
    Second, summer months are typically a very low selling season for 
wood heating devices.\4\ Thus, simply providing an additional 60 days 
during the summer would not replace the sales opportunities lost due to 
the steps taken to protect public health during the pandemic and, thus, 
not replace the time lost from the 5-year period that was contemplated 
in the 2015 rule.
---------------------------------------------------------------------------

    \4\ 2018 December Business Climate Report in Hearth and Home 
Magazine, dated February 2019, showing monthly sales data.
---------------------------------------------------------------------------

    For all of these reasons, to ensure retailers will regain the sales 
opportunities lost as a result of the closures, shut-down orders, and 
other precautions taken due to the pandemic during the last 60 days 
leading up to May 15, 2020, the EPA is proposing to allow retailers to 
sell Step 1 certified wood heating devices from the date of 
promulgation, if this proposal is promulgated, until November 30, 2020. 
In addition, in light of the above, during the period between May 15, 
2020, and publication of EPA's final action on this proposal, EPA will 
treat the sale of Step 1 devices as a low enforcement priority.

IV. Summary of Cost, Environmental, and Economic Impacts

    The COVID-19 pandemic is causing an unanticipated impact (mandatory 
store closures, loss of sales, excess stranded inventory) that the 
proposed rule will help to mitigate. This action roughly replaces the 
60 days of sales opportunities that retailers would have otherwise had 
in the absence of the pandemic.
    The EPA understands that there may be impacts from this proposed 
action, if it is finalized as proposed. We are unable to quantify what, 
if any, impacts there may be and seek public comments to help inform us 
of any potential impacts. We are placing the Supplemental Regulatory 
Impact Analysis (RIA) from the 2018 proposed ``sell-through'' in the 
docket as an illustration of what impacts of additional sales time 
could look like.

V. Labeling Provisions

    The EPA is aware of a potential issue that could be faced by 
retailers selling Step 1 units during the proposed sales period that 
would begin well after May 15, 2020, and run to November 30, 2020. Both 
subparts, 40 CFR part 60, subpart AAA, and 40 CFR part 60, subpart 
QQQQ, contain requirements for permanent labels to be affixed to 
affected units as required in 40 CFR 60.536(b) of 40 CFR part 60, 
subpart AAA, and 40 CFR 60.5478(b) of 40 CFR part 60, subpart QQQQ, as 
applicable. Under these provisions, such labels must display a 
statement that the unit is ``U.S. ENVIRONMENTAL PROTECTION AGENCY 
Certified to comply with the 2015 {or other applicable standard{time}  
particulate emission standards. Not approved for sale after May 15, 
2020.'' The statement that the unit is ``Not approved for sale after 
May 15, 2020'' could confuse consumers who might not understand that 
(if the proposed sell-through is finalized), such units could, in fact, 
legally be sold after May 15, 2020, and until November 30, 2020. To 
address this potential issue, if the proposed sales period is 
finalized, retailers would be allowed to notify potential customers 
with signs, decals, hangtags or other types of signage communicating 
that retailers are allowed to sell, and consumers are allowed to 
purchase, the Step 1 devices until November 30, 2020, notwithstanding 
the label that is required to be permanently affixed to the unit. The 
EPA notes that, even if the proposed sales period is finalized, no 
person may remove or alter the existing permanent label that is 
required to be affixed to the unit.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive orders 
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

[[Page 31129]]

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is a significant regulatory action that was submitted 
to the Office of Management and Budget (OMB) for review because it has 
novel legal and policy issues. Any changes made in response to OMB 
recommendations have been documented in the docket.

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. The OMB has previously approved the information 
collection activities contained in the existing regulations and has 
assigned OMB control numbers 2060-0161 (40 CFR part 60, subpart AAA) 
and 2060-0693 (40 CFR part 60, subpart QQQQ). This action is believed 
to result in no changes to the information collection requirements of 
the 2015 NSPS, so that the information collection estimate of project 
cost and hour burden from the 2015 final rule have not been revised.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden, or otherwise has a positive economic effect on the small 
entities subject to the rule. This action provides sufficient time to 
retailers of Step 1 residential wood heaters and residential hydronic 
heaters and forced-air furnaces, including the 90% of them that are 
small businesses, to sell inventory that would otherwise be stranded 
due to the lost sales time as a result of the COVID-19 pandemic 
situation without an extension of the Step 2 compliance date.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local, or tribal governments or the 
private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the National Government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. This action does not change any requirements for 
affected entities, including tribes. Thus, Executive Order 13175 does 
not apply to this action. Consistent with the EPA Policy on 
Consultation and Coordination with Indian Tribes, the EPA will provide 
outreach through the National Tribal Air Association and will offer 
consultation to tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations, and/or indigenous peoples, as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). The 
amendments will not have a significant effect on emissions.

K. Application of CAA Section 307(d)

    Pursuant to CAA section 307(d)(1)(C), this action is subject to the 
provisions of CAA section 307(d). To the extent that any aspect of this 
rule is not within the scope of CAA section 307(d)(1)(C), pursuant to 
CAA section 307(d)(1)(V), the Administrator determines that this action 
is subject to the provisions of CAA section 307(d). Section 
307(d)(1)(V) of the CAA provides that the provisions of CAA section 
307(d) apply to ``such other actions as the Administrator may 
determine.''

List of Subjects in 40 CFR Part 60

    Environmental protection, Administrative practice and procedure.

Andrew Wheeler,
Administrator.

    For the reasons set forth in the preamble, 40 CFR part 60 is 
proposed to be amended as follows:

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

0
1. The authority citation for part 60 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart AAA--Standards of Performance for New Residential Wood 
Heaters

0
2. Section 60.532 is amended by revising paragraph (b) to read as 
follows:

Sec.  60.532   What standards and associated requirements must I meet 
and by when?

* * * * *
    (b) 2020 particulate matter emission standards. Unless exempted 
under Sec.  60.530(b) or electing to use the cord wood alternative 
means of compliance option in paragraph (c) of the section, each 
affected wood heater manufactured or sold at retail for use in the 
United States on or after May 15, 2020, must not discharge into the 
atmosphere any gases that contain particulate matter in excess of a 
weighted average of 2.0 g/hr (0.0044 lb/hr). However, an affected wood 
heater manufactured or imported on or before May 15, 2020, and 
certified as of May 15, 2020, to meet the 2015 particulate matter 
emission limit in paragraph (a) of this section may be sold at retail 
on or before November 30, 2020. Compliance for all heaters must be 
determined by the test methods and procedures in Sec.  60.534.
* * * * *
0
3. Section 60.533 is amended by revising paragraphs (h)(1) and (2) to 
read as follows:

[[Page 31130]]

Sec.  60.533   What compliance and certification requirements must I 
meet and by when?

* * * * *
    (h) * * *
    (1) For a model line that was previously certified as meeting the 
1990 Phase II emission standards under the 1988 new source performance 
standards (NSPS), in effect prior to May 15, 2015, at an emission level 
equal to or less than the 2015 emission standards in Sec.  60.532(a), 
the model line is deemed to have a certificate of compliance for the 
2015 emission standards in Sec.  60.532(a), which is valid until the 
effective date for the 2020 standards in Sec.  60.532(b) (i.e., until 
May 15, 2020). However, a model line, manufactured or imported on or 
before May 15, 2020, with a certificate of compliance for the 2015 
emission standards that was in effect as of May 15, 2020, may be sold 
at retail on or before November 30, 2020.
    (2) For a model line certified as meeting emission standards in 
Sec.  60.532, a certificate of compliance will be valid for 5 years 
from the date of issuance or until a more stringent standard comes into 
effect, whichever is sooner. However, a model line, manufactured or 
imported on or before May 15, 2020, with a certificate of compliance 
for the 2015 emission standards that was in effect as of May 15, 2020, 
may be sold at retail on or before November 30, 2020.
* * * * *

Subpart QQQQ--Standards of Performance for New Residential Hydronic 
Heaters and Forced-Air Furnaces

0
4. Section 60.5474 is amended by revising paragraphs (a)(2) and (6) to 
read as follows:

Sec.  60.5474   What standards and requirements must I meet and by 
when?

    (a) * * *
    (2) On or after May 15, 2020, manufacture or sell at retail a 
residential hydronic heater unless it has been certified to meet the 
2020 particulate matter emission limit in paragraph (b)(2) or (3) of 
this section, except that a residential hydronic heater manufactured or 
imported on or before May 15, 2020, and certified as of May 15, 2020, 
to meet the 2015 particulate matter emission limit in paragraph (b)(1) 
of this section, may be sold at retail on or before November 30, 2020.
* * * * *
    (6) On or after May 15, 2020, manufacture or sell at retail a small 
or large residential forced-air furnace unless it has been certified to 
meet the 2020 particulate matter emission limit in paragraph (b)(6) of 
this section, except that a small or large residential forced-air 
furnace manufactured or imported on or before May 15, 2020, and 
certified as of May 15, 2020, to meet the applicable particulate matter 
emission limit in paragraph (b)(4) or (5) of this section, 
respectively, may be sold at retail on or before November 30, 2020.
* * * * *
0
5. Section 60.5475 is amended by revising paragraphs (a)(3) through (7) 
and (h) to read as follows:

Sec.  60.5475   What compliance and certification requirements must I 
meet and by when?

    (a) * * *
    (3) Models qualified as meeting the Phase 2 emission levels under 
the 2011 EPA hydronic heater partnership agreement are automatically 
deemed to have a certificate of compliance for the 2015 particulate 
matter emission standards and be valid until the effective date for the 
2020 particulate matter emission standards in Sec.  60.5474. However, a 
model line, manufactured or imported on or before May 15, 2020, with a 
certificate of compliance for the 2015 emission standards that was in 
effect as of May 15, 2020, may be sold at retail on or before November 
30, 2020.
    (4) Models certified by the New York State Department of 
Environment and Conservation to meet the emission levels in Sec.  
60.5474(b) are automatically deemed to have a certificate of compliance 
for the 2015 particulate matter emission standards and be valid until 
the effective date for the 2020 particulate matter emission standards 
in Sec.  60.5474. However, a model line, manufactured or imported on or 
before May 15, 2020, with a certificate of compliance for the 2015 
emission standards that was in effect as of May 15, 2020, may be sold 
at retail on or before November 30, 2020.
    (5) Models approved by the New York State Energy Research and 
Development Authority under the Renewable Heat New York (RHNY) Biomass 
Boiler Program are automatically deemed to have a certificate of 
compliance for the 2015 particulate matter emission standards and be 
valid until the effective date for the 2020 particulate matter emission 
standards in Sec.  60.5474 provided that they comply with the thermal 
storage requirements in the RHNY program. However, a model line, 
manufactured or imported on or before May 15, 2020, with a certificate 
of compliance for the 2015 emission standards that was in effect as of 
May 15, 2020, may be sold at retail on or before November 30, 2020.
    (6) Small forced-air furnace models that are certified under CSA 
B415.1-10 (IBR, see Sec.  60.17), by an EPA approved third-party 
certifier, to meet the 2016 particulate matter emission level will be 
automatically deemed to have a certificate of compliance for the 2016 
particulate matter emission standards and be valid until the effective 
date for the 2020 particulate matter emission standards in Sec.  
60.5474. However, a model line, manufactured or imported on or before 
May 15, 2020, with a certificate of compliance for the 2016 emission 
standards that was in effect as of May 15, 2020, may be sold at retail 
on or before November 30, 2020.
    (7) Large forced-air furnace models that are certified under CSA 
B415.1-10 (IBR, see Sec.  60.17), by an EPA approved third-party 
certifier, to meet the 2017 particulate matter emission level will be 
automatically deemed to have a certificate of compliance for the 2017 
particulate matter emission standards and be valid until the effective 
date of the 2020 particulate matter emission standards in Sec.  
60.5474. However, a model line, manufactured or imported on or before 
May 15, 2020, with a certificate of compliance for the 2017 emission 
standards that was in effect as of May 15, 2020, may be sold at retail 
on or before November 30, 2020.
* * * * *
    (h) Certification period. Unless revoked sooner by the 
Administrator, a certificate of compliance will be valid for 5 years 
from the date of issuance or until a more stringent standard comes into 
effect, whichever is sooner. However, a model line, manufactured or 
imported on or before May 15, 2020, with a certificate of compliance 
for the applicable 2015, 2016, or 2017 emission standards that was in 
effect as of May 15, 2020, may be sold at retail on or before November 
30, 2020.
* * * * *
[FR Doc. 2020-11096 Filed 5-21-20; 8:45 am]
 BILLING CODE 6560-50-P