Home/Federal/Federal Register/2021-18351

Proposed Rule2021-18351

Energy Conservation Program: Energy Conservation Standards for Distribution Transformers, Webinar and Availability of the Preliminary Technical Support Document

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

August 27, 2021

Issuing agencies

Energy Department

Abstract

The U.S. Department of Energy (DOE) will hold a webinar to discuss and receive comments on the preliminary analysis it has conducted for purposes of evaluating energy conservation standards for distribution transformers. The webinar will cover 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; the potential energy conservation standard levels derived from these analyses that DOE could consider for this product should it determine that proposed amendments are necessary; and any other issues relevant to the evaluation of energy conservation standards for distribution transformers. In addition, DOE encourages written comments on these subjects.

Full Text

<html>
<head>
<title>Federal Register, Volume 86 Issue 164 (Friday, August 27, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 164 (Friday, August 27, 2021)]
[Proposed Rules]
[Pages 48058-48065]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18351]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2019-BT-STD-0018]
RIN 1904-AE12

Energy Conservation Program: Energy Conservation Standards for
Distribution Transformers, Webinar and Availability of the Preliminary
Technical Support Document

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

ACTION: Notification of a webinar and availability of preliminary
technical support document.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) will hold a webinar to
discuss and receive comments on the preliminary analysis it has
conducted for purposes of evaluating energy conservation standards for
distribution transformers. The webinar will cover 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; the potential energy conservation
standard levels derived from these analyses that DOE could consider for
this product should it determine that proposed amendments are
necessary; and any other issues relevant to the evaluation of energy
conservation standards for distribution transformers. In addition, DOE
encourages written comments on these subjects.

DATES:
Meeting: DOE will hold a webinar on Wednesday, September 29, 2021,
from 10 a.m. to 2 p.m. See section IV, ``Public Participation,'' for
webinar registration information, participant instructions and
information about the capabilities available to webinar participants.
Comments: Written comments and information will be accepted on or
before, November 10, 2021.

ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a>. Follow the
instructions for submitting comments. Alternatively, interested persons
may submit comments, identified by docket number EERE-2019-BT-STD-0018,
by any of the following methods:
1. Federal eRulemaking Portal: <a href="http://www.regulations.gov">www.regulations.gov</a>. Follow the
instructions for submitting comments.
2. Email: to <a href="/cdn-cgi/l/email-protection#a1e5c8d2d5d3c8c3d4d5c8cecff5d3c0cfd2c7d3ceccc4d3d293919098f2f5e591919099e1c4c48fc5cec48fc6ced7">[email&#160;protected]</a>.
Include docket number EERE-2019-BT-STD-0018 in the subject line of the
message.

No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section IV of this document.
Although DOE has routinely accepted public comment submissions
through a variety of mechanisms, including the Federal eRulemaking
Portal, email, postal mail, or hand delivery/courier, the Department
has found it necessary to make temporary modifications to the comment
submission process in light of the ongoing Covid-19 pandemic. DOE is
currently suspending receipt of public comments via postal mail and
hand delivery/courier. If a commenter finds that this change poses an
undue hardship, please contact Appliance Standards Program staff at
(202) 586-1445 to discuss the need for alternative arrangements. Once
the Covid-19 pandemic health emergency is resolved, DOE anticipates
resuming all of its regular options for public comment submission,
including postal mail and hand delivery/courier.
Docket: The docket for this activity, which includes Federal
Register notices, comments, public meeting transcripts, and other
supporting documents/materials, is available for review at
<a href="http://www.regulations.gov">www.regulations.gov</a>. All documents in the docket are listed in the
<a href="http://www.regulations.gov">www.regulations.gov</a> index. However, some documents listed in the index,
such as those containing information that is exempt from public
disclosure, may not be publicly available.
The docket web page can be found at <a href="http://www.regulations.gov/docket?D=EERE-2019-BT-STD-0018">www.regulations.gov/docket?D=EERE-2019-BT-STD-0018</a>. The docket web page contains
instructions on how to access all documents, including public comments
in the docket. See section IV for information on how to submit comments
through <a href="http://www.regulations.gov">www.regulations.gov</a>.
To inform interested parties and to facilitate this process, DOE
has prepared an agenda, a preliminary technical support document
(``TSD''), and briefing materials, which are available on the

[[Page 48059]]

DOE website at: <a href="http://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55">www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55</a>.

FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Dommu, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000
Independence Avenue SW, Washington, DC 20585-0121. Email:
<a href="/cdn-cgi/l/email-protection#e3a293938f8a828d8086b097828d8782918790b2968690978a8c8d90a38686cd878c86cd848c95">[email&#160;protected]</a>.
Mr. Matthew Ring, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: (202) 586-2555. Email: <a href="/cdn-cgi/l/email-protection#4c212d383824293b623e25222b0c243d62282329622b233a">[email&#160;protected]</a>.
For further information on how to submit a comment, review other
public comments and the docket, contact the Appliance and Equipment
Standards Program staff at (202) 287-1445 or by email:
<a href="/cdn-cgi/l/email-protection#6d2c1d1d01040c030e083e190c03090c1f091e3c18081e190402031e2d080843090208430a021b">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
A. Authority
B. Rulemaking Process
II. Background
A. Current Standards
B. Current Process
III. Summary of the Analyses Performed by DOE
A. Engineering Analysis
B. Markups Analysis
C. Energy Use Analysis
D. Life-Cycle Cost and Payback Period Analyses
E. National Impact Analysis
IV. Public Participation
A. Participation in the Webinar
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Webinar
D. Submission of Comments
V. Approval of the Office of the Secretary

I. Introduction

A. Authority

The Energy Policy and Conservation Act, as amended (``EPCA''),\1\
(42 U.S.C. 6291-6317, as codified) authorizes DOE to regulate the
energy efficiency of a number of consumer products and certain
industrial equipment. Title III, Part B \2\ of EPCA (42 U.S.C. 6291-
6309, as codified), established the Energy Conservation Program for
``Consumer Products Other Than Automobiles.'' Title III, Part C \3\ of
EPCA (42 U.S.C. 6311-6317, as codified), added by Public Law 95-619,
Title IV, section 411(a), established the Energy Conservation Program
for Certain Industrial Equipment. The Energy Policy Act of 1992, Public
Law 102-486, amended EPCA and directed DOE to prescribe energy
conservation standards for those distribution transformers for which
DOE determines such standards would be technologically feasible,
economically justified, and would result in significant energy savings.
(42 U.S.C. 6317(a)) The Energy Policy Act of 2005, Public Law 109-58,
amended EPCA to establish energy conservation standards for low-voltage
dry-type distribution transformers. (42 U.S.C. 6295(y))
---------------------------------------------------------------------------

\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020).
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was re-designated Part A.
\3\ For editorial reasons, upon codification in the U.S. Code,
Part C was re-designated Part A-1.
---------------------------------------------------------------------------

EPCA further provides that, not later than six years after the
issuance of any final rule establishing or amending a standard, DOE
must publish either a notice of determination that standards for the
product do not need to be amended, or a notice of proposed rulemaking
(``NOPR'') including new proposed energy conservation standards
(proceeding to a final rule, as appropriate). (42 U.S.C. 6316(a); 42
U.S.C. 6295(m)(1)) Not later than three years after issuance of a final
determination not to amend standards, DOE must publish either a notice
of determination that standards for the product do not need to be
amended, or a NOPR including new proposed energy conservation standards
(proceeding to a final rule, as appropriate). (42 U.S.C. 6316(a); 42
U.S.C. 6295(m)(3)(B))
Under EPCA, any new or amended energy conservation standard must be
designed to achieve the maximum improvement in energy efficiency that
DOE determines is technologically feasible and economically justified.
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or
amended standard must result in a significant conservation of energy.
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(3)(B))
DOE is publishing this Preliminary Analysis to collect data and
information to inform its decision consistent with its obligations
under EPCA.

B. Rulemaking Process

DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products and covered equipment, including
distribution transformers.\4\ As noted, EPCA requires that any new or
amended energy conservation standard prescribed by the Secretary of
Energy (``Secretary'') be designed to achieve the maximum improvement
in energy efficiency (or water efficiency for certain products
specified by EPCA) that is technologically feasible and economically
justified. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)) Furthermore,
DOE may not adopt any standard that would not result in the significant
conservation of energy. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(3)) The
Secretary may not prescribe an amended or new standard that will not
result in significant conservation of energy, or is not technologically
feasible or economically justified. (42 U.S.C. 6316(a); 42 U.S.C.
6295(o)(3))
---------------------------------------------------------------------------

\4\ While EPCA includes provisions regarding distribution
transformers in both Part A and Part A-1, for administrative
convenience DOE has established the test procedures and standards
for distribution transformers in title 10 of the Code of Federal
Regulations (``CFR'') in part 431, Energy Efficiency Program for
Certain Commercial and Industrial Equipment. DOE refers to
distribution transformers generally as ``covered equipment'' in this
document.
---------------------------------------------------------------------------

On February 14, 2020, DOE published an update to its procedures,
interpretations, and policies for consideration in new or revised
energy conservation standards and test procedure, i.e., ``Procedures,
Interpretations, and Policies for Consideration of New or Revised
Energy Conservation Standards and Test Procedures for Consumer Products
and Certain Commercial/Industrial Equipment'' (see 10 CFR 431.4; 10 CFR
part 430, subpart C, appendix A (``Process Rule,'')).\5\ 85 FR 8626. In
the updated Process Rule, DOE established a significance threshold for
energy savings under which DOE employs a two-step approach that
considers both an absolute site energy savings threshold and a
threshold that is a percent reduction in the energy use of the covered
product. 10 CFR 431.4; section 6(a) of the Process Rule.
---------------------------------------------------------------------------

\5\ On January 20, 2021, the President issued Executive Order
13990, Protecting Public Health and the Environment and Restoring
Science to Tackle the Climate Crisis. Exec. Order No. 13,990, 86 FR
7037 (Jan. 25, 2021) (``E.O. 13990''). E.O. 13990 affirms the
Nation's commitment to empower our workers and communities; promote
and protect our public health and the environment; and conserve our
national treasures and monuments. To that end, the stated policies
of E.O. 13990 include: Improving public health and protecting our
environment; ensuring access to clean air and water; and reducing
greenhouse gas emissions. E.O. 13990 section 1. Section 2 of E.O.
13990 directs agencies, in part, to immediately review all existing
regulations, orders, guidance documents, policies, and any other
similar agency actions (``agency actions'') promulgated, issued, or
adopted between January 20, 2017, and January 20, 2021, that are or
may be inconsistent with, or present obstacles to, the policy set
forth in the Executive Order. E.O. 13990 section 2. In addition,
section 2(iii) of E.O. 13990 specifically directs DOE to, as
appropriate and consistent with applicable law, publishing for
notice and comment a proposed rule suspending, revising, or
rescinding the updated Process Rule. In response to this directive,
DOE has undertaken a review of the updated Process Rule. See, 86 FR
18901 (Apr. 12, 2021) and 86 FR 35668 (July 7, 2021).

---------------------------------------------------------------------------

[[Page 48060]]

DOE first evaluates the projected energy savings from a potential
maximum technologically feasible (``max-tech'') standard over a 30-year
period against a 0.3 quads of site energy savings threshold (Section
6(b)(2) of the Process Rule). If the 0.3 quad threshold is not met, DOE
then compares the max-tech savings to the total energy usage of the
covered product to calculate a percentage reduction in energy usage (10
CFR 431.4; section 6(b)(3) of the Process Rule). If this comparison
does not yield a reduction in site energy use of at least 10 percent
over a 30-year period, the analysis will end and DOE will propose to
determine that no significant energy savings would likely result from
setting new or amended standards (10 CFR 431.4; section 6(b)(4) of the
Process Rule). If either one of the thresholds is reached, DOE will
conduct analyses to ascertain whether a standard can be prescribed that
produces the maximum improvement in energy efficiency that is both
technologically feasible and economically justified and still
constitutes significant energy savings at the level determined to be
economically justified. 10 CFR 431.4; section 6(b)(5) of the Process
Rule. This two-step approach allows DOE to ascertain whether a
potential standard satisfies EPCA's significant energy savings
requirements in 42 U.S.C. 6316(a) and 42 U.S.C. 6295(o)(3)(B) to ensure
that DOE avoids setting a standard that ``will not result in
significant conservation of energy.''
EPCA defines ``energy efficiency'' as the ratio of the useful
output of services from an article of industrial equipment to the
energy use by such article, measured according to the Federal test
procedures (42 U.S.C. 6311(3), emphasis added). EPCA defines ``energy
use'' as the quantity of energy directly consumed by an article of
industrial equipment at the point of use, as measured by the Federal
test procedures (42 U.S.C. 6311(4)). Further, EPCA uses a household
energy consumption metric as a threshold for setting standards for new
covered products (42 U.S.C. 6316(a); 42 U.S.C. 6295(l)(1)). Given this
context, DOE relies on site energy as the appropriate metric for
evaluating the significance of energy savings.
To determine whether a standard is economically justified, EPCA
requires that DOE determine whether the benefits of the standard exceed
its burdens by considering, to the greatest extent practicable, the
following seven factors:
(1) The economic impact of the standard on the manufacturers and
consumers of the products subject to the standard;
(2) The savings in operating costs throughout the estimated average
life of the covered products in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products that are likely to result from the standard;
(3) The total projected amount of energy (or as applicable, water)
savings likely to result directly from the standard;
(4) Any lessening of the utility or the performance of the products
likely to result from the standard;
(5) The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
(6) The need for national energy and water conservation; and
(7) Other factors the Secretary of Energy (Secretary) considers
relevant.

(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

DOE fulfills these and other applicable requirements by conducting
a series of analyses throughout the rulemaking process. Table I.1 shows
the individual analyses that are performed to satisfy each of the
requirements within EPCA.

Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
EPCA requirement Corresponding DOE analysis
------------------------------------------------------------------------
Significant Energy Savings.............. <bullet> Shipments Analysis.
<bullet> National Impact
Analysis.
<bullet> Energy Analysis.
Technological Feasibility............... <bullet> Market and Technology
Assessment.
<bullet> Screening Analysis.
<bullet> Engineering Analysis.
Economic Justification:
1. Economic Impact on Manufacturers <bullet> Manufacturer Impact
and Consumers. Analysis.
<bullet> Life-Cycle Cost and
Payback Period Analysis.
<bullet> Consumer Subgroup
Analysis.
<bullet> Shipments Analysis.
2. Lifetime Operating Cost Savings <bullet> Markups for Product
Compared to Increased Cost for the Price Analysis.
Product.
<bullet> Energy Analysis.
<bullet> Life-Cycle Cost and
Payback Period Analysis.
3. Total Projected Energy Savings... <bullet> Shipments Analysis.
<bullet> National Impact
Analysis.
4. Impact on Utility or Performance. <bullet> Screening Analysis.
<bullet> Engineering Analysis.
5. Impact of Any Lessening of <bullet> Manufacturer Impact
Competition. Analysis.
6. Need for National Energy and <bullet> Shipments Analysis.
Water Conservation.
<bullet> National Impact
Analysis.
7. Other Factors the Secretary <bullet> Employment Impact
Considers Relevant. Analysis.
<bullet> Utility Impact
Analysis.
<bullet> Emissions Analysis.
<bullet> Monetization of
Emission Reductions Benefits.
<bullet> Regulatory Impact
Analysis.
------------------------------------------------------------------------

Further, EPCA establishes a rebuttable presumption that a standard
is economically justified if the Secretary finds that the additional
cost to the consumer of purchasing an equipment complying with an
energy conservation standard level will be less than three times the
value of the energy savings during the first year that the consumer
will receive as a result of the standard, as calculated under the
applicable test

[[Page 48061]]

procedure (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(iii)).
EPCA also contains what is known as an ``anti-backsliding''
provision, which prevents the Secretary from prescribing any amended
standard that either increases the maximum allowable energy use or
decreases the minimum required energy efficiency of a covered equipment
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(1)). Also, the Secretary may not
prescribe an amended or new standard if interested persons have
established by a preponderance of the evidence that the standard is
likely to result in the unavailability in the United States in any
covered equipment type (or class) of performance characteristics
(including reliability), features, sizes, capacities, and volumes that
are substantially the same as those generally available in the United
States (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(4)).
Additionally, EPCA specifies requirements when promulgating an
energy conservation standard for covered equipment that has two or more
subcategories. DOE must specify a different standard level for a type
or class of product that has the same function or intended use, if DOE
determines that products within such group: (A) Consume a different
kind of energy from that consumed by other covered products within such
type (or class); or (B) have a capacity or other performance-related
feature which other products within such type (or class) do not have
and such feature justifies a higher or lower standard (42 U.S.C.
6316(a); 42 U.S.C. 6295(q)(1)). In determining whether a performance-
related feature justifies a different standard for a group of
equipment, DOE must consider such factors as the utility to the
consumer of the feature and other factors DOE deems appropriate. Id.
Any rule prescribing such a standard must include an explanation of the
basis on which such higher or lower level was established (42 U.S.C.
6316(a); 42 U.S.C. 6295(q)(2)).
Before proposing a standard, DOE seeks public input on the
analytical framework, models, and tools that DOE intends to use to
evaluate standards for the equipment at issue and the results of
preliminary analyses DOE performed for the equipment.
DOE is examining whether to amend the current standards pursuant to
its obligations under EPCA. This notification announces the
availability of the preliminary TSD, which details the preliminary
analyses and summarizes the preliminary results of DOE's analyses. In
addition, DOE is announcing a public webinar to solicit feedback from
interested parties on its analytical framework, models, and preliminary
results.

II. Background

A. Current Standards

In a final rule published on April 18, 2013 (``April 2013 Standards
Final Rule''), DOE prescribed the current energy conservation standards
for distribution transformers manufactured on and after January 1,
2016. 78 FR 23336, 23433. These standards are set forth in DOE's
regulations at 10 CFR 431.196 and are repeated in Table II.1, Table
II.2, Table II.3 of this document.

Table II.1--Federal Energy Conservation Standards for Low-Voltage Dry-Type Distribution Transformers
----------------------------------------------------------------------------------------------------------------
Single-phase Three-phase
----------------------------------------------------------------------------------------------------------------
kVA Efficiency (%) kVA Efficiency (%)
----------------------------------------------------------------------------------------------------------------
15........................................... 97.70 15.............................. 97.89
25........................................... 98.00 30.............................. 98.23
37.5......................................... 98.20 45.............................. 98.40
50........................................... 98.30 75.............................. 98.60
75........................................... 98.50 112.5........................... 98.74
100.......................................... 98.60 150............................. 98.83
167.......................................... 98.70 225............................. 98.94
250.......................................... 98.80 300............................. 99.02
333.......................................... 98.90 500............................. 99.14
750............................. 99.23
1,000........................... 99.28
----------------------------------------------------------------------------------------------------------------

Table II.2--Federal Energy Conservation Standards for Liquid-Immersed Distribution Transformers
----------------------------------------------------------------------------------------------------------------
Single-phase Three-phase
----------------------------------------------------------------------------------------------------------------
kVA Efficiency (%) kVA Efficiency (%)
----------------------------------------------------------------------------------------------------------------
10........................................... 98.70 15.............................. 98.65
15........................................... 98.82 30.............................. 98.83
25........................................... 98.95 45.............................. 98.92
37.5......................................... 99.05 75.............................. 99.03
50........................................... 99.11 112.5........................... 99.11
75........................................... 99.19 150............................. 99.16
100.......................................... 99.25 225............................. 99.23
167.......................................... 99.33 300............................. 99.27
250.......................................... 99.39 500............................. 99.35
333.......................................... 99.43 750............................. 99.40
500.......................................... 99.49 1,000........................... 99.43
667.......................................... 99.52 1,500........................... 99.48
833.......................................... 99.55 2,000........................... 99.51
2,500........................... 99.52
----------------------------------------------------------------------------------------------------------------

[[Page 48062]]

Table II.3--Federal Energy Conservation Standards for Medium-Voltage Dry-Type Distribution Transformers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Single-phase Three-phase
--------------------------------------------------------------------------------------------------------------------------------------------------------
BIL BIL
------------------------------------------------- -----------------------------------------------
kVA 20-45 kV 46-95 kV >=96 kV kVA 20-45 kV 46-95 kV >=96 kV
------------------------------------------------- -----------------------------------------------
Efficiency (%) Efficiency (%) Efficiency (%) Efficiency (%) Efficiency (%) Efficiency (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
15............................... 98.1 97.86 ............... 15.................. 97.5 97.18 ..............
25............................... 98.33 98.12 ............... 30.................. 97.9 97.63 ..............
37.5............................. 98.49 98.3 ............... 45.................. 98.1 97.86 ..............
50............................... 98.6 98.42 ............... 75.................. 98.33 98.13 ..............
75............................... 98.73 98.57 98.53 112.5............... 98.52 98.36 ..............
100.............................. 98.82 98.67 98.63 150................. 98.65 98.51 ..............
167.............................. 98.96 98.83 98.80 225................. 98.82 98.69 98.57
250.............................. 99.07 98.95 98.91 300................. 98.93 98.81 98.69
333.............................. 99.14 99.03 98.99 500................. 99.09 98.99 98.89
500.............................. 99.22 99.12 99.09 750................. 99.21 99.12 99.02
667.............................. 99.27 99.18 99.15 1,000............... 99.28 99.2 99.11
833.............................. 99.31 99.23 99.20 1,500............... 99.37 99.3 99.21
2,000............... 99.43 99.36 99.28
2,500............... 99.47 99.41 99.33
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Current Process

On June 18, 2019, DOE published notice that it was initiating an
early assessment review to determine whether any new or amended
standards would satisfy the relevant requirements of EPCA for a new or
amended energy conservation standard for distribution transformers and
a request for information (``RFI''). 84 FR 28239 (``June 2019 Early
Assessment Review RFI''). Specifically, through the published notice
and request for information, DOE sought data and information that could
enable the agency to determine whether DOE should propose a ``no new
standard'' determination because a more stringent standard: (1) Would
not result in a significant savings of energy; (2) is not
technologically feasible; (3) is not economically justified; or (4) any
combination of foregoing. Id.
Comments received to date as part of the current process have
helped DOE identify and resolve issues related to the preliminary
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the
comments received.

III. Summary of the Analyses Performed by DOE

For the equipment covered in this preliminary analysis, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering; (2) markups to determine product price; (3) energy use;
(4) life cycle cost (``LCC'') and payback period (``PBP''); and (5)
national impacts. The preliminary TSD that presents the methodology and
results of each of these analyses is available at <a href="http://www.regulations.gov/docket/EERE-2019-BT-STD-0018">www.regulations.gov/docket/EERE-2019-BT-STD-0018</a>.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that support the major analyses or are
preliminary analyses that will be expanded if DOE determines that a
NOPR is warranted to propose amended energy conservation standards.
These analyses include: (1) The market and technology assessment; (2)
the screening analysis, which contributes to the engineering analysis;
and (3) the shipments analysis, which contributes to the LCC and PBP
analysis and the national impact analysis (``NIA''). In addition to
these analyses, DOE has begun preliminary work on the manufacturer
impact analysis and has identified the methods to be used for the
consumer subgroup analysis, the emissions analysis, the employment
impact analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the NOPR should one be
issued.

A. Engineering Analysis

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

B. Markups Analysis

The markups analysis develops appropriate markups (e.g., retailer
markups, distributor markups, contractor markups) in the distribution
chain and sales taxes to convert MSP estimates derived in the
engineering analysis to consumer prices, which are then used in the LCC
and PBP analysis. At each step in the distribution channel, companies
mark up the price of the product to cover business costs and profit
margin.
DOE developed baseline and incremental markups for each actor in
the distribution chain. Baseline markups are applied to the price of
products with baseline efficiency, while incremental markups are
applied to the difference in price between baseline and higher-
efficiency models (the

[[Page 48063]]

incremental cost increase). The incremental markup is typically less
than the baseline markup and is designed to maintain similar per-unit
operating profit before and after new or amended standards.\6\
---------------------------------------------------------------------------

\6\ Because the projected price of standards-compliant products
is typically higher than the price of baseline products, using the
same markup for the incremental cost and the baseline cost would
result in higher per-unit operating profit. While such an outcome is
possible, DOE maintains that in markets that are reasonably
competitive it is unlikely that standards would lead to a
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------

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

C. Energy Use Analysis

The energy use analysis produces energy use estimates and end-use
load shapes for distribution transformers. The energy use analysis
estimates the range of energy use of distribution transformers in the
field (i.e., as they are actually used by consumers) enabling
evaluation of energy savings from the operation of distribution
transformer equipment at various efficiency levels, while the end-use
load characterization allows evaluation of the impact on monthly and
peak demand for electricity. The energy use analysis provides the basis
for other analyses DOE performed, particularly assessments of the
energy savings and the savings in operating costs that could result
from adoption of amended or new standards.
Chapter 7 of the preliminary TSD addresses the energy use analysis.

D. Life-Cycle Cost and Payback Period Analyses

The effect of new or amended energy conservation standards on
individual consumers usually involves a reduction in operating cost and
an increase in purchase cost. DOE used the following two metrics to
measure consumer impacts:
<bullet> The LCC is the total consumer expense of an appliance or
product over the life of that product, consisting of total installed
cost (manufacturer selling price, distribution chain markups, sales
tax, and installation costs) plus operating costs (expenses for energy
use, maintenance, and repair). To compute the operating costs, DOE
discounts future operating costs to the time of purchase and sums them
over the lifetime of the product.
<bullet> The PBP is the estimated amount of time (in years) it
takes consumers to recover the increased purchase cost (including
installation) of a more-efficient product through lower operating
costs. DOE calculates the PBP by dividing the change in purchase cost
at higher efficiency levels by the change in annual operating cost for
the year that amended or new standards are assumed to take effect.
Chapter 8 of the preliminary TSD addresses the LCC and PBP
analyses.

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).\7\ DOE calculates the NES and NPV for
the potential standard levels considered based on projections of annual
equipment shipments, along with the annual energy consumption and total
installed cost data from the energy use and LCC analyses. For the
present analysis, DOE projected the energy savings, operating cost
savings, equipment costs, and NPV of consumer benefits over the
lifetime of distribution transformers sold from 2025 through 2054.
---------------------------------------------------------------------------

\7\ The NIA accounts for impacts in the 50 states and U.S.
territories.
---------------------------------------------------------------------------

DOE evaluates the impacts of new or amended standards by comparing
a case without such standards with standards-case projections (``no-
new-standards case''). The no-new-standards case characterizes energy
use and consumer costs for each equipment class in the absence of new
or amended energy conservation standards. For this projection, DOE
considers historical trends in efficiency and various forces that are
likely to affect the mix of efficiencies over time. DOE compares the
no-new-standards case with projections characterizing the market for
each equipment class if DOE adopted new or amended standards at
specific energy efficiency levels for that class. For each efficiency
level, DOE considers how a given standard would likely affect the
market shares of equipment with efficiencies greater than the standard.
DOE uses a spreadsheet model to calculate the energy savings and
the national consumer costs and savings from each efficiency level.
Interested parties can review DOE's analyses by changing various input
quantities within the spreadsheet. The NIA spreadsheet model uses
typical values (as opposed to probability distributions) as inputs.
Critical inputs to this analysis include shipments projections,
estimated product lifetimes, product installed costs and operating
costs, product annual energy consumption, the base case efficiency
projection, and discount rates.
DOE estimates a combined total of 4.0 quads of site energy savings
at the max- tech efficiency levels for distribution transformers.
Combined site energy savings at Efficiency Level 1 for all equipment
classes are estimated to be 0.3 quads. Therefore, DOE has determined
the potential available energy savings for distribution transformers
are more than the 0.3 quads of site energy threshold established by the
Process Rule and thus are considered significant under EPCA (42 U.S.C.
6316(a); 42 U.S.C. 6295(o)(3)(B)).
Chapter 10 of the preliminary TSD addresses the NIA.

IV. Public Participation

DOE invites public participation in this process through
participation in the webinar and submission of written comments and
information. After the webinar and the closing of the comment period,
DOE will consider all timely-submitted comments and additional
information obtained from interested parties, as well as information
obtained through further analyses. Following such consideration, the
Department will publish either a determination that the standards for
distribution transformers need not be amended or a NOPR proposing to
amend those standards. The NOPR, should one be issued, would include
proposed energy conservation standards for the products covered by that
rulemaking, and members of the public would be given an opportunity to
submit written and oral comments on the proposed standards.

A. Participation in the Webinar

The time and date of the webinar meeting are listed in the DATES
section at the beginning of this document. Webinar registration
information, participant instructions, and information about the
capabilities available to webinar participants will be published on
DOE's website: <a href="http://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55">www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=55</a>. Participants are responsible for ensuring
their systems are compatible with the webinar software.

B. Procedure for Submitting Prepared General Statements for
Distribution

Any person who has an interest in the topics addressed in this
notice, or who is representative of a group or class of persons that
has an interest in these issues, may request an opportunity to make an
oral presentation at the webinar. Such persons may submit such

[[Page 48064]]

request to <a href="/cdn-cgi/l/email-protection#6a2b1a1a06030b04090f391e0b040e0b180e193b1f0f191e030504192a0f0f440e050f440d051c">[email&#160;protected]</a>. Persons who wish to
speak should include with their request a computer file in WordPerfect,
Microsoft Word, PDF, or text (ASCII) file format that briefly describes
the nature of their interest in this rulemaking and the topics they
wish to discuss. Such persons should also provide a daytime telephone
number where they can be reached.
Persons requesting to speak should briefly describe the nature of
their interest in this rulemaking and provide a telephone number for
contact. DOE requests persons selected to make an oral presentation to
submit an advance copy of their statements at least two weeks before
the webinar. At its discretion, DOE may permit persons who cannot
supply an advance copy of their statement to participate, if those
persons have made advance alternative arrangements with the Building
Technologies Office. As necessary, requests to give an oral
presentation should ask for such alternative arrangements.

C. Conduct of the Webinar

DOE will designate a DOE official to preside at the webinar and may
also use a professional facilitator to aid discussion. The webinar will
not be a judicial or evidentiary-type public hearing, but DOE will
conduct it in accordance with section 336 of EPCA (42 U.S.C. 6306). A
court reporter will be present to record the proceedings and prepare a
transcript. DOE reserves the right to schedule the order of
presentations and to establish the procedures governing the conduct of
the webinar/public meeting. There shall not be discussion of
proprietary information, costs or prices, market share, or other
commercial matters regulated by U.S. anti-trust laws. After the webinar
and until the end of the comment period, interested parties may submit
further comments on the proceedings and any aspect of the rulemaking.
The webinar will be conducted in an informal, conference style. DOE
will present summaries of comments received before the webinar/public
meeting, allow time for prepared general statements by participants,
and encourage all interested parties to share their views on issues
affecting this rulemaking. Each participant will be allowed to make a
general statement (within time limits determined by DOE), before the
discussion of specific topics. DOE will permit, as time permits, other
participants to comment briefly on any general statements.
At the end of all prepared statements on a topic, DOE will permit
participants to clarify their statements briefly. Participants should
be prepared to answer questions by DOE and by other participants
concerning these issues. DOE representatives may also ask questions of
participants concerning other matters relevant to this rulemaking. The
official conducting the webinar will accept additional comments or
questions from those attending, as time permits. The presiding official
will announce any further procedural rules or modification of the above
procedures that may be needed for the proper conduct of the webinar/
public meeting.
A transcript of the webinar will be included in the docket, which
can be viewed as described in the Docket section at the beginning of
this notice. In addition, any person may buy a copy of the transcript
from the transcribing reporter.

D. Submission of Comments

DOE invites all interested parties, regardless of whether they
participate in the public meeting, to submit in writing by November 10,
2021, comments and information on matters addressed in this
notification and on other matters relevant to DOE's consideration of
amended energy conservations standards for distribution transformers.
Interested parties may submit comments, data, and other information
using any of the methods described in the ADDRESSES section at the
beginning of this document.
Submitting comments via <a href="http://www.regulations.gov">www.regulations.gov</a>. The
<a href="http://www.regulations.gov">www.regulations.gov</a> web page will require you to provide your name and
contact information. Your contact information will be viewable to DOE
Building Technologies staff only. Your contact information will not be
publicly viewable except for your first and last names, organization
name (if any), and submitter representative name (if any). If your
comment is not processed properly because of technical difficulties,
DOE will use this information to contact you. If DOE cannot read your
comment due to technical difficulties and cannot contact you for
clarification, DOE may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment itself or in any documents attached to your
comment. Any information that you do not want to be publicly viewable
should not be included in your comment, nor in any document attached to
your comment. If this instruction is followed, persons viewing comments
will see only first and last names, organization names, correspondence
containing comments, and any documents submitted with the comments.
Do not submit to <a href="http://www.regulations.gov">www.regulations.gov</a>. information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (hereinafter referred to as
Confidential Business Information (CBI)). Comments submitted through
<a href="http://www.regulations.gov">www.regulations.gov</a> cannot be claimed as CBI. Comments received through
the website will waive any CBI claims for the information submitted.
For information on submitting CBI, see the Confidential Business
Information section.
DOE processes submissions made through <a href="http://www.regulations.gov">www.regulations.gov</a> before
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that <a href="http://www.regulations.gov">www.regulations.gov</a>
provides after you have successfully uploaded your comment.
Submitting comments via email. Comments and documents submitted via
email also will be posted to <a href="http://www.regulations.gov">www.regulations.gov</a>. If you do not want
your personal contact information to be publicly viewable, do not
include it in your comment or any accompanying documents. Instead,
provide your contact information in a cover letter. Include your first
and last names, email address, telephone number, and optional mailing
address. The cover letter will not be publicly viewable as long as it
does not include any comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. No faxes will be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This

[[Page 48065]]

reduces comment processing and posting time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: One copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).

V. Approval of the Office of the Secretary

The Secretary of Energy has approved publication of this
notification of a webinar and availability of preliminary technical
support document.

Signing Authority

This document of the Department of Energy was signed on August 20,
2021, by Kelly Speakes-Backman, Principal Deputy Assistant Secretary
and Acting Assistant Secretary for Energy Efficiency and Renewable
Energy, pursuant to delegated authority from the Secretary of Energy.
That document with the original signature and date is maintained by
DOE. For administrative purposes only, and in compliance with
requirements of the Office of the Federal Register, the undersigned DOE
Federal Register Liaison Officer has been authorized to sign and submit
the document in electronic format for publication, as an official
document of the Department of Energy. This administrative process in no
way alters the legal effect of this document upon publication in the
Federal Register.

Signed in Washington, DC, on August 20, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-18351 Filed 8-26-21; 8:45 am]
BILLING CODE 6450-01-P

</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on August 27, 2021.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.