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Proposed Rule2022-01765

Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces

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Published

January 28, 2022

Issuing agencies

Energy Department

Abstract

The U.S. Department of Energy ("DOE") is initiating an effort to determine whether to amend the current energy conservation standards for certain classes of consumer furnaces. Under the Energy Policy and Conservation Act, as amended, DOE must review these standards at least once every six years and publish either a notice of proposed rulemaking ("NOPR") to propose new standards or a notification of determination that the existing standards do not need to be amended. This request for information ("RFI") solicits information from the public to help DOE determine whether amended standards for non-weatherized oil-fired, mobile home oil-fired, weatherized oil-fired, weatherized gas, and electric consumer furnaces would result in significant energy savings and whether such standards would be technologically feasible and economically justified. DOE also welcomes written comments from the public on any subject within the scope of this document (including those topics not specifically raised), as well as the submission of data and other relevant information.

Full Text

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[Federal Register Volume 87, Number 19 (Friday, January 28, 2022)]
[Proposed Rules]
[Pages 4513-4520]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01765]

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Proposed Rules
Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 /
Proposed Rules

[[Page 4513]]

DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2021-BT-STD-0031]
RIN 1904-AF19

Energy Conservation Program: Energy Conservation Standards for
Consumer Furnaces

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

ACTION: Request for information.

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

SUMMARY: The U.S. Department of Energy (``DOE'') is initiating an
effort to determine whether to amend the current energy conservation
standards for certain classes of consumer furnaces. Under the Energy
Policy and Conservation Act, as amended, DOE must review these
standards at least once every six years and publish either a notice of
proposed rulemaking (``NOPR'') to propose new standards or a
notification of determination that the existing standards do not need
to be amended. This request for information (``RFI'') solicits
information from the public to help DOE determine whether amended
standards for non-weatherized oil-fired, mobile home oil-fired,
weatherized oil-fired, weatherized gas, and electric consumer furnaces
would result in significant energy savings and whether such standards
would be technologically feasible and economically justified. DOE also
welcomes written comments from the public on any subject within the
scope of this document (including those topics not specifically
raised), as well as the submission of data and other relevant
information.

DATES: Written comments and information are requested and will be
accepted on or before February 28, 2022.

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-2021-BT-STD-0031,
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#e6a9a3b1a1a093948887858395d4d6d4d7b5b2a2d6d6d5d7a68383c8828983c8818990">[email&#160;protected]</a>. Include docket
number EERE-2021-BT-STD-0031 in the subject line of the message.
No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section IV of this document.
Although DOE has routinely accepted public comment submissions
through a variety of mechanisms, including postal mail and hand
delivery/courier, the Department has found it necessary to make
temporary modifications to the comment submission process in light of
the ongoing coronavirus 2019 (``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, 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/EERE-2021-BT-STD-0031">www.regulations.gov/docket/EERE-2021-BT-STD-0031</a>. The docket web page contains instructions on how
to access all documents, including public comments, in the docket. See
section III for information on how to submit comments through
<a href="http://www.regulations.gov">www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT:
Ms. Julia Hegarty, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies Office, EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone:
(240) 597-6737. Email: <a href="/cdn-cgi/l/email-protection#561726263a3f3738353305223738323724322507233325223f3938251633337832393378313920">[email&#160;protected]</a>.
Ms. Amelia Whiting, U.S. Department of Energy, Office of the
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0121. Telephone: (202) 586-2588. Email:
<a href="/cdn-cgi/l/email-protection#c3a2aea6afaaa2edb4abaab7aaada483abb2eda7aca6eda4acb5">[email&#160;protected]</a>.
For further information on how to submit a comment or 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#3e7f4e4e52575f505d5b6d4a5f505a5f4c5a4d6f4b5b4d4a5751504d7e5b5b105a515b10595148">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
A. Authority
B. Rulemaking History
C. Deviation From Appendix A
II. Request for Information
A. Scope & Product Classes
B. Significant Savings of Energy
1. Energy Use Analysis
2. Shipments
C. Technological Feasibility
1. Technology Options
2. Screening Analysis
3. Engineering Efficiency Analysis
D. Economic Justification
1. Life-Cycle Cost and Payback Period Analysis
2. Manufacturer Impact Analysis
III. Submission of Comments

I. Introduction

A. Authority and Background

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

[[Page 4514]]

directed DOE to conduct two cycles of rulemakings to determine whether
to amend these standards. (42 U.S.C. 6295(f)).
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020).
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
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Under EPCA, DOE's energy conservation program consists essentially
of four parts: (1) Testing, (2) labeling, (3) Federal energy
conservation standards, and (4) certification and enforcement
procedures. Relevant provisions of EPCA include definitions (42 U.S.C.
6291), test procedures (42 U.S.C. 6293), labeling provisions (42 U.S.C.
6294), energy conservation standards (42 U.S.C. 6295), and the
authority to require information and reports from manufacturers (42
U.S.C. 6296).
Federal energy efficiency requirements for covered products
established under EPCA generally supersede State laws and regulations
concerning energy conservation testing, labeling, and standards. (42
U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of Federal
preemption in limited instances for particular State laws or
regulations, in accordance with the procedures and other provisions set
forth under. (42 U.S.C. 6297(d)).
As previously noted, EPCA established energy conservation standards
for consumer furnaces, which are expressed in terms of minimum annual
fuel utilization efficiency (``AFUE''). (42 U.S.C. 6295(f)(1)-(2))
Pursuant to EPCA, DOE was required to conduct two rounds of rulemaking
to consider amended energy conservation standards for consumer
furnaces. (42 U.S.C. 6295(f)(4)(B) and (C)) In satisfaction of the
first round of rulemaking under 42 U.S.C. 6295(f)(4)(B), DOE published
a final rule on November 19, 2007 (``November 2007 final rule'') that
revised the initial standards for four classes of consumer furnaces
(i.e., non-weatherized gas furnaces (``NWGFs''), mobile home gas
furnaces (``MHGFs''), weatherized gas furnaces (``WGFs''), and non-
weatherized oil-fired furnaces (``NWOFs''), but left them in place for
two product classes (i.e., mobile home oil-fired furnaces (``MHOFs'')
and weatherized oil-fired furnaces (``WOFs'')). 72 FR 65136, 65137.
Compliance with the amended standards established in the November 2007
final rule was to be required beginning November 19, 2015. Id. at 72 FR
65136, 65169.
On June 27, 2011, DOE published a direct final rule (``DFR'')
(``June 2011 DFR'') revising the energy conservation standards for
consumer furnaces pursuant to the voluntary remand in State of New
York, et al. v. Department of Energy, et al. 76 FR 37408, 37415. In the
June 2011 DFR, DOE addressed the energy conservation standards for the
same six product classes addressed in the November 2007 final rule
(i.e., NWGFs, MHGFs, WGFs, NWOF, MHOFs, and WOFs) plus electric
furnaces. The June 2011 DFR amended the existing AFUE energy
conservation standards for NWGFs, MHGFs, and NWOFs, and amended the
compliance date (but left the existing standards in place) for WGFs.
The June 2011 DFR also established electrical standby mode and off mode
standards for NWGFs, MHGFs, NWOFs, MHOFs, and electric furnaces. DOE
confirmed the standards and compliance dates promulgated in the June
2011 DFR in a notice of effective date and compliance dates published
on October 31, 2011 (``October 2011 notice''). 76 FR 67037. After
publication of the October 2011 notice, the American Public Gas
Association sued DOE to invalidate the rule as it pertained to NWGFs.
Petition for Review, American Public Gas Association, et al. v.
Department of Energy, et al., No. 11-1485 (D.C. Cir. filed Dec. 23,
2011). On April 24, 2014, the Court granted a motion that approved a
settlement agreement that was reached between DOE, APGA, and the
various intervenors in the case, in which DOE agreed to a remand of the
non-weatherized gas furnace and mobile home gas furnace portions of the
June 2011 direct final rule in order to conduct further notice-and-
comment rulemaking. Accordingly, the Court's order vacated the June
2011 DFR in part (i.e., those portions relating to non-weatherized gas
furnaces and mobile home gas furnaces) and remanded to the agency for
further rulemaking. 86 FR 43120, 43124 (Aug. 6, 2021). As a result, the
standards established by the June 2011 DFR for NWGFs and MHGFs did not
go into effect. The court order left in place the standards for WGFs,
NWOFs, MHOFs, WOFs, and electric furnaces. Amended standards for NWGFs
and MHGFs are being addressed in a separate rulemaking. This RFI covers
WGFs, NWOFs, MHOFs, WOFs, and electric furnaces.
On January 15, 2021, in response to a petition for rulemaking
submitted by the American Public Gas Association, Spire, Inc., the
Natural Gas Supply Association, the American Gas Association, and the
National Propane Gas Association (83 FR 544883; Nov. 1, 2018) DOE
published a final interpretive rule determining that, in the context of
residential furnaces, commercial water heaters, and similarly situated
products/equipment, use of non-condensing technology (and associated
venting constitutes a performance-related ``feature'' under EPCA that
cannot be eliminated through adoption of an energy conservation
standard. 86 FR 4776 (``January 2021 Final Interpretive Rule'').
However, on December 29, 2021, DOE subsequently published a final
interpretive rule that returns to the previous and long-standing
interpretation (in effect prior to the January 15, 2021 final
interpretive rule), under which the technology used to supply heated
air or hot water is not a performance-related ``feature'' that provides
a distinct consumer utility under EPCA. 86 FR 73947 (``December 2021
Final Interpretive Rule'').
EPCA also requires that, not later than 6 years after the issuance
of any final rule establishing or amending a standard, DOE evaluate the
energy conservation standards for each type of covered product,
including those at issue here, and publish either a notification of
determination that the standards do not need to be amended, or a NOPR
that includes new proposed energy conservation standards (proceeding to
a final rule, as appropriate). (42 U.S.C. 6295(m)(1)) If DOE determines
not to amend a standard based on the statutory criteria, not later than
3 years after the issuance of a final determination not to amend
standards, DOE must publish either a notification of determination that
standards for the product do not need to be amended, or a NOPR
including new proposed energy conservation standards (proceeding to a
final rule, as appropriate). (42 U.S.C. 6295(m)(3)(B)) DOE must make
the analysis on which a determination is based publicly available and
provide an opportunity for written comment. (42 U.S.C. 6295(m)(2)).
In proposing new standards, DOE must evaluate that proposal against
the criteria of 42 U.S.C. 6295(o), as described in the following
section, and follow the rulemaking procedures set out in 42 U.S.C.
6295(p). (42 U.S.C. 6295(m)(1)(B)) If DOE decides to amend the standard
based on the statutory criteria, DOE must publish a final rule not
later than two years after energy conservation standards are proposed.
(42 U.S.C. 6295(m)(3)(A)).
DOE is publishing this RFI 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. EPCA requires that any new or
amended

[[Page 4515]]

energy conservation standard prescribed by the Secretary of Energy
(``Secretary'') be designed to achieve the maximum improvement in
energy or water efficiency that is technologically feasible and
economically justified. (42 U.S.C. 6295(o)(2)(A)) 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. 6295(o)(3)).
To adopt any new or amended standards for a covered product, DOE
must determine that such action would result in significant energy
savings. (42 U.S.C. 6295(o)(3)(B)) The significance of energy savings
offered by a new or amended energy conservation standard cannot be
determined without knowledge of the specific circumstances surrounding
a given rulemaking.\3\ For example, the United States has now rejoined
the Paris Agreement on February 19, 2021. As part of that agreement,
the United States has committed to reducing GHG emissions in order to
limit the rise in mean global temperature. As such, energy savings that
reduce GHG emission have taken on greater importance. Additionally,
some covered products and equipment have most of their energy
consumption occur during periods of peak energy demand. The impacts of
these products on the energy infrastructure can be more pronounced than
products with relatively constant demand. In evaluating the
significance of energy savings, DOE considers differences in primary
energy and FFC effects for different covered products and equipment
when determining whether energy savings are significant. Primary energy
and FFC effects include the energy consumed in electricity production
(depending on load shape), in distribution and transmission, and in
extracting, processing, and transporting primary fuels (i.e., coal,
natural gas, petroleum fuels), and thus present a holistic picture of
the impacts of energy conservation standards. Accordingly, DOE
evaluates the significance of energy savings on a case-by-case basis.
---------------------------------------------------------------------------

\3\ See 86 FR 70892, 70901 (Dec. 13, 2021).
---------------------------------------------------------------------------

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 affected products;
(2) The savings in operating costs throughout the estimated
average life of the product compared to any increases in the initial
cost, or maintenance expenses likely to result from the standard;
(3) The total projected amount of energy and water (if
applicable) 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 considers relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

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

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 and Water Use
Determination.
Technological Feasibility............ <bullet> Market and Technology
Assessment.
<bullet> Screening Analysis.
<bullet> Engineering Analysis.
Economic Justification:
1. Economic Impact on <bullet> Manufacturer Impact
Manufacturers and Consumers. Analysis.
<bullet> Life-Cycle Cost and
Payback Period Analysis.
<bullet> Life-Cycle Cost Subgroup
Analysis.
<bullet> Shipments Analysis.
2. Lifetime Operating Cost <bullet> Markups for Product
Savings Compared to Increased Price Determination.
Cost for the Product.
<bullet> Energy and Water Use
Determination.
<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 <bullet> Screening Analysis.
Performance.
<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.
------------------------------------------------------------------------

[[Page 4516]]

As detailed throughout this RFI, DOE is publishing this document
seeking input and data from interested parties to aid in the
development of the technical analyses on which DOE will ultimately rely
to determine whether (and if so, how) to amend the standards for WGFs,
NWOFs, MHOFs, WOFs, and electric furnaces.

C. Deviation From Appendix A

In accordance with Section 3(a) of 10 CFR part 430, subpart C,
appendix A, DOE notes that it is deviating from that appendix's
provision requiring a 75-day comment period for all pre-NOPR standards
documents. 10 CFR part 430, subpart C, appendix A, section 6(d)(2). DOE
is opting to deviate from this step because DOE believes that 30 days
is a sufficient time to respond to this initial rulemaking document
because the market and available technologies have not changed
substantially from the previous rulemaking.

II. Request for Information

In the following sections, DOE has identified a variety of issues
on which it seeks input to aid in the development of the technical and
economic analyses regarding whether amended standards for WGFs, NWOFs,
MHOFs, WOFs, and electric furnaces may be warranted.

A. Scope & Product Classes

When evaluating and establishing energy conservation standards, DOE
divides covered products into product classes by the type of energy
used, or by capacity or other performance-related features that justify
differing standards. (42 U.S.C. 6295(q)) In making a determination
whether a performance-related feature justifies a different standard,
DOE must consider such factors as the utility of the feature to the
consumer and other factors DOE determines are appropriate. (Id.) As
discussed in Section I.A, DOE has recently published the December 2021
Final Interpretive Rule that returns to the previous and long-standing
interpretation (in effect prior to the January 15, 2021 final
interpretive rule), under which the technology used to supply heated
air or hot water is not a performance-related ``feature'' that provides
a distinct utility under EPCA. 86 FR 73947 (Dec. 29, 2021).
A ``furnace'' is ``a product which utilizes only single-phase
electric current, or single-phase electric current or DC current in
conjunction with natural gas, propane, or home heating oil, and which--

(1) Is designed to be the principal heating source for the
living space of a residence;
(2) Is not contained within the same cabinet with a central air
conditioner whose rated cooling capacity is above 65,000 British
thermal units (``Btu'') per hour;
(3) Is an electric central furnace, electric boiler, forced-air
central furnace, gravity central furnace, or low-pressure steam or
hot water boiler; and
(4) Has a heat input rate of less than 300,000 Btu per hour for
electric boilers and low-pressure steam or hot water boilers and
less than 225,000 Btu per hour for forced-air central furnaces,
gravity central furnaces, and electric central furnaces. 10 CFR
430.2. (See also 42 U.S.C. 6291(23)).\4\
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\4\ In turn, a forced-air central furnace is defined as a gas or
oil burning furnace designed to supply heat through a system of
ducts with air as the heating medium. The heat generated by
combustion of gas or oil is transferred to the air within a casing
by conduction through heat exchange surfaces and is circulated
through the duct system by means of a fan or blower. 10 CFR 430.2. A
gravity central furnace is defined as a gas fueled furnace which
depends primarily on natural convection for circulation of heated
air and which is designed to be used in conjunction with a system of
ducts. 10 CFR 430.2. An electric central furnace is defined as a
furnace designed to supply heat through a system of ducts with air
as the heating medium, in which heat is generated by one or more
electric resistance heating elements and the heated air is
circulated by means of a fan or blower. 10 CFR 430.2.

DOE divides consumer furnaces into seven classes for the purpose of
setting energy conservation standards: (1) NWGFs, (2) MHGFs, (3) WGFs,
(4) NWOFs, (5) MHOFs, (6) WOFs, and (7) electric furnaces. 10 CFR
430.32(e)(ii). As discussed in section I.B of this document, NWGFs and
MHGFs were the subject of a lawsuit that resulted in an order to remand
the standards to DOE for further analysis. As a result, DOE has been
analyzing amended standards for those two consumer furnace classes as
part of a separate, ongoing rulemaking covering only those two classes
(see Docket No. EERE-BT-STD-2014-0031 \5\). Therefore, DOE is not
considering NWGFs and MHGFs as part of this review. The product classes
that DOE considered for this document are NWOFs, WGFs, MHOFs, WOFs, and
electric furnaces. The current standards for WGFs, NWOFs, MHOFs, WOFs,
and electric furnaces are shown in Table II-1.
---------------------------------------------------------------------------

\5\ The rulemaking docket is available online at:
<a href="http://www.regulations.gov/docket/EERE-2014-BT-STD-0031">www.regulations.gov/docket/EERE-2014-BT-STD-0031</a>.

Table II-1--Energy Conservation Standards for Consumer Furnaces Covered
in This RFI
------------------------------------------------------------------------
PW,SB and PW,OFF
Product class AFUE (percent) (watts)
------------------------------------------------------------------------
Non-weatherized oil-fired 83 11
furnaces (not including mobile
home furnaces).................
Mobile Home oil-fired furnaces.. 75 11
Weatherized gas furnaces........ 81 N/A
Weatherized oil-fired furnaces.. 78 N/A
Electric furnaces............... 78 10
------------------------------------------------------------------------

Issue 1: DOE seeks comment on whether there are any products that
are covered by the definition of ``furnace'' and should be regulated by
DOE, but are not covered by any of the current classes of consumer
furnaces that are regulated by DOE.
Issue 2: DOE seeks information regarding any other new product
classes it should consider for inclusion in its analysis. DOE also
requests relevant data detailing the corresponding impacts on energy
use that would justify separate product classes (i.e., explanation for
why the presence of these performance-related features would increase
or decrease energy consumption).

B. Significant Savings of Energy

On June 27, 2011, DOE adopted amended energy conservations standard
for consumer furnaces, central air conditioners, and heat pumps that
are expected to result in an estimated 3.36 to 4.38 quadrillion Btu
(``quads'') of cumulative energy savings over a 30-year period for the
three products. 76 FR 37408, 37412 (June 27, 2011). Of this, 0.012
quads were from the efficiency standards adopted for NWOFs at 83
percent AFUE. Additionally, in the June 2011 DFR, DOE estimated that an
energy conservation standard established at the maximum technologically
feasible (``max-tech'') AFUE level, which was

[[Page 4517]]

determined to be 97 percent, would have resulted in 0.376 additional
quads of savings for NWOFs.\6\ Potential energy savings for MHOFs,
WOFs, and electric furnaces from amended AFUE standards were not
considered in the June 2011 DFR. (EERE-2011-BT-STD-0011-0012, Technical
Support Document: Chapter 10. National and Regional Impact Analyses at
pp. 10-96-10-97) For MHOFs and WOFs, DOE found that only a very small
number of these products are shipped, resulting in de minimis potential
for energy savings from amended AFUE standards. Because electric
furnace efficiency already approaches 100-percent AFUE, DOE concluded
that electric furnaces would also have de minimis energy savings
potential and did not consider amending the AFUE standards. 76 FR
37408, 37443, 37445.
---------------------------------------------------------------------------

\6\ This value was calculated by subtracting the energy savings
in quads for furnaces at the standard level adopted in the June 2011
DFR (i.e., 83 percent AFUE which corresponded to efficiency level 1
in that analysis) from the energy savings in quads associated with
max-tech level (i.e., 97 percent AFUE, which corresponded to
efficiency level 4).
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While DOE's RFI is not limited to the following issues, DOE is
particularly interested in comment, information, and data on energy use
and shipments, as outlined in sections II.B.1 and II.B.2 of this
document, to inform whether potential amended energy conservation
standards would result in a significant savings of energy.
1. Energy Use Analysis
As part of the rulemaking process, DOE conducts an energy use
analysis to identify how products are used by consumers, and thereby
determine the energy savings potential of energy efficiency
improvements. The energy use analysis is meant to represent typical
energy consumption in the field.
Issue 3: DOE requests feedback on the levels of energy savings that
could be expected from the adoption of more-stringent standards for
consumer furnaces, specifically for those classes of consumer furnaces
covered by this notice (WGFs, NWOFs, MHOFs, WOFs, and electric
furnaces).
Issue 4: DOE requests data on the typical operating conditions for
WGFs, NWOFs, MHOFs, WOFs, and electric furnaces in high heating and
reduced heating modes.
Issue 5: DOE requests feedback and sources of data or
recommendations to support sizing criteria of WGFs, NWOFs, MHOFs, WOFs,
and electric furnaces for typical consumer space-heating applications.
2. Shipments
DOE develops shipments forecasts of consumer furnaces to calculate
the national impacts of potential amended energy conservation standards
on energy consumption, net present value (``NPV''), and future
manufacturer cash flows. DOE shipments projections are based on
available historical data broken out by product class and efficiency.
Current sales estimates allow for a more accurate model that captures
recent trends in the market.
Issue 6: DOE requests historical consumer furnace shipments data
for each product class covered by this notice (i.e., WGFs, NWOFs,
MHOFs, WOFs, and electric furnaces). DOE is interested in shipments
data, broken out by product class, efficiency level, and region. If
disaggregated shipments data are not available at the product class
level, DOE requests shipments data at any broader available category.

C. Technological Feasibility

1. Technology Options
In the development of the June 2011 DFR, DOE considered a number of
technology options that manufacturers could use to reduce energy
consumption in NWOFs, WGFs, MHOFs, WOFs, and electric furnaces.
However, as discussed in section II.B of this document, DOE did not
consider amended AFUE standards for MHOFs, WOFs, and electric furnaces
in the June 2011 DFR. Regarding NWOFs and WGFs, DOE considered 13
technology options that would be expected to impact the AFUE of
consumer furnaces: (1) Condensing secondary heat exchanger for non-
weatherized furnaces, (2) heat exchanger improvements for non-
weatherized furnaces, (3) condensing and near-condensing technologies
for WGFs, (4) two-stage or modulating combustion, (5) pulse combustion,
(6) low NO<INF>X</INF> premix burners, (7) burner derating, (8)
insulation improvements, (9) off-cycle dampers, (10) concentric
venting, (11) low-pressure, air-atomized oil burners, (12) high-static
oil burners, and (13) delayed-action oil pump solenoid valves. 76 FR
37408, 37449. DOE seeks comment on any changes to these technology
options that could affect whether DOE could propose a ``no-new-
standards'' determination, such as an insignificant increase in the
range of efficiencies and performance characteristics of these
technology options. DOE also seeks comment on whether there are any
other technology options that DOE should consider in its analysis.
Issue 7: DOE seeks information on the aforementioned technologies,
including their applicability to the current market and how these
technologies may impact the energy use of consumer furnaces as measured
according to the DOE test procedure. DOE also seeks information on how
these technologies may have changed since they were considered in the
June 2011 DFR analysis.
Additionally, the June 2011 DFR established separate standby mode
and off mode energy conservation standards for NWOFs and electric
furnaces. 76 FR 37408, 37433. WGFs and WOFs were not considered in the
analysis of standby mode and off mode energy consumption because DOE
did not find any weatherized furnaces that were not sold as part of a
single package air conditioner or ``dual fuel'' single package heat
pump systems, and determined that the existing test procedures for
central air conditioners and heat pumps account for standby mode power
consumption within the seasonal energy efficiency ratio (``SEER'')
rating. MHOFs were not considered in the analysis of standby mode and
off mode standards due to de minimis potential for energy savings. 76
FR 37408, 37433. For the standby/off mode metric, DOE considered three
technology options that would be expected to impact the standby/off
mode efficiency rating: (1) Switching mode power supplies, (2) toroidal
transformers, and (3) a relay that disconnects power to the blower's
brushless permanent magnet \7\ (``BPM'') motor while in standby mode.
76 FR 37408, 37450.
---------------------------------------------------------------------------

\7\ In the June 2011 DFR, DOE referred to these motors as
electronically commutated motors (``ECM''). BPM is a more
generalized term for the same type of motor.
---------------------------------------------------------------------------

Issue 8: DOE seeks information on the aforementioned technologies,
including their applicability to the current market and how these
technologies may impact the standby mode and/or off mode energy use of
NWOFs and electric furnaces as measured according to the DOE test
procedure. DOE also seeks information on how these technologies may
have changed since they were considered in the June 2011 DFR analysis.
Issue 9: DOE request information on whether other standby mode and
off mode technologies are available to reduce energy consumption of
consumer furnaces in standby mode and/or off mode.
2. Screening Analysis
The purpose of the screening analysis is to evaluate the
technologies that improve product efficiency to determine which
technologies will be eliminated

[[Page 4518]]

from further consideration and which will be passed to the engineering
analysis for further consideration. DOE determines whether to eliminate
certain technology options from further consideration based on the
following criteria: (1) Technological feasibility; (2) practicability
to manufacture, install, and service; (3) adverse impacts on product
utility or product availability; (4) adverse impacts on health or
safety; and (5) unique-pathway proprietary technologies. 10 CFR part
430, subpart C, appendix A, 7(b).
The technology options screened out in the June 2011 DFR for both
AFUE and standby/off mode power consumption are summarized in Table
II.2. 76 FR 37408, 37448-37450.

Table II.2--Previous Screening Analysis From the June 2011 DFR
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reason for screening
------------------------------------------------------------------------------------
Adverse impacts
Technology option Technological Practicability on product Adverse impacts Unique pathway
feasibility to manufacture utility or on health and proprietary
availability safety technologies
--------------------------------------------------------------------------------------------------------------------------------------------------------
Condensing and near-condensing technologies for WGFs............... X
Pulse combustion................................................... X
Low NOX premix burners............................................. X
Burner derating.................................................... X
Advanced forms of insulation....................................... X
Low-pressure, air-atomized oil burners............................. X
Relay that disconnects power to the blower's BPM motor *........... X
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This technology option applies to standby mode and off mode power consumption.

As displayed in Table II.2, a condensing secondary heat exchanger
was screened out for WGFs in the June 2011 DFR. As of the publication
of the June 2011 DFR, DOE was not aware of any WGFs that included a
condensing secondary heat exchanger. For WGFs, condensate disposal
presented challenges for using condensing technology. In particular,
condensate can freeze in cold climates, which could cause the unit to
malfunction. However, DOE has since identified one such model on the
market, which suggests that technical challenges associated with
condensate disposal in WGFs have been overcome. While DOE's RFI is not
limited to the following issues, DOE is particularly interested in
comment, information, and data on the following.
Issue 10: DOE requests feedback on what impact, if any, the
screening criteria described in this section would have on each of the
aforementioned technology options. Similarly, DOE seeks information
regarding how these same criteria would affect any other technology
options not already identified in this document with respect to their
potential use in consumer furnaces.
Issue 11: DOE requests data and information on WGFs that include a
condensing secondary heat exchanger. In particular, DOE requests
information on methods for condensate disposal and preventing
condensate freezing and any associated increase in installation or
maintenance costs. Additionally, DOE seeks comment on whether this
technology and associated condensing efficiency levels would be
appropriate for consideration as a national standard for WGFs.
3. Engineering Efficiency Analysis
The engineering analysis estimates the cost-efficiency relationship
of equipment at different levels of increased energy efficiency
(``efficiency levels''). This relationship serves as the basis for the
cost-benefit calculations for consumers, manufacturers, and the Nation.
The current energy conservation standard for each consumer furnace
product class is based on AFUE and determined according to appendix N
to subpart B of 10 CFR part 430. The current standards for consumer
furnaces are found at 10 CFR 430.32(e). As part of DOE's analysis, DOE
develops efficiency levels as potential energy conservation standards
to evaluate in the rulemaking analyses. Among these, DOE typically
establishes efficiency levels at the maximum-available and max-tech
efficiencies. The maximum-available efficiency level represents the
highest efficiency units currently available on the market. The max-
tech efficiency level represents the theoretical maximum possible
efficiency if all available design options are incorporated in a model.
In applying these design options, DOE would only include those that are
compatible with each other that when combined, would represent the
theoretical maximum possible efficiency.
In the energy efficiency analysis in the June 2011 DFR, the max-
tech level for NWOFs was determined to incorporate a condensing
secondary heat exchanger at 97-percent AFUE. (EERE-2011-BT-STD-0011-
0012, Technical Support Document: Chapter 5. Engineering Analysis at p.
5-7). As discussed in section II.C.2 of this document, a condensing
secondary heat exchanger was screened out as a design option for WGFs,
so the max-tech level was determined to incorporate non-condensing
technology at a level of 81-percent AFUE. 76 FR 37408, 37439. As
discussed in section IV.A.1.a of this document, MHOFs, WOFs, and
electric furnaces were not analyzed for amended AFUE standards and
therefore no max-tech level was determined for those classes. For the
analysis of standby mode and off mode in the June 2011 DFR, which as
discussed in section III.E.1 of this document applied only to NWOFs and
electric furnaces, DOE determined the max-tech level to be 10 and 9
watts, respectively. 76 FR 37408, 37463.
Issue 12: DOE seeks input on whether the maximum-available AFUE
levels are appropriate and technologically feasible for consideration
as possible energy conservation standards for consumer furnaces for
each current product class. DOE seeks information on the design options
incorporated into these maximum-available models, and also on the order
in which manufacturers incorporate each design option when improving
efficiency from the baseline to the maximum-available efficiency level
(i.e., which design options would be included at intermediate
efficiency levels between the baseline and maximum-available).
Issue 13: DOE seeks feedback on the max-tech AFUE level for each
product class, and on the design options that

[[Page 4519]]

would be incorporated at the max-tech AFUE level. As part of this
request, DOE also seeks information as to whether there are limitations
on the use of certain combinations of design options. DOE is
particularly interested in any design options that may have become
available since the June 2011 DFR that would allow greater energy
savings relative to the max-tech efficiency levels assessed for each
product class in that rulemaking. Specifically, DOE requests comment
and data regarding whether max-tech AFUE levels and associated
technologies considered in the June 2011 DFR for NWOFs and WGFs are
still appropriate.
Issue 14: DOE seeks feedback on the max-tech standby mode and off
mode power consumption (i.e., the lowest power consumption possible)
for each product class, and on the design options that would be
incorporated at the max-tech level. As part of this request, DOE also
seeks information as to whether there are limitations on the use of
certain combinations of design options. DOE is particularly interested
in any design options that may have become available since the June
2011 DFR that would allow greater energy savings relative to the max-
tech levels assessed for each product class in that rulemaking. DOE
also seeks comment and data on whether the standby mode and off mode
power consumption levels considered in the June 2011 DFR for NWOFs and
electric furnaces are still appropriate.

D. Economic Justification

In determining whether a proposed energy conservation standard is
economically justified, DOE analyzes, among other things, the potential
economic impact on consumers, manufacturers, and the Nation. DOE seeks
comment on whether there are economic barriers to the adoption of more-
stringent energy conservation standards. DOE also seeks comment and
data on any aspects of its economic justification analysis from the
June 2011 DFR that may indicate whether a more-stringent energy
conservation standard would be economically justified or cost
effective.
While DOE's request for information is not limited to the following
issues, DOE is particularly interested in comment, information, and
data on the following.
1. Life-Cycle Cost and Payback Period Analysis
DOE conducts the life-cycle cost (``LCC'') and payback period
(``PBP'') analysis to evaluate the economic effects of potential energy
conservation standards for consumer furnaces on individual consumers.
For any given efficiency level, DOE measures the PBP and the change in
LCC relative to an estimated baseline level. The LCC is the total
consumer expense over the life of the equipment, consisting of
purchase, installation, and operating costs (expenses for energy use,
maintenance, and repair). Inputs to the calculation of total installed
cost include the cost of the equipment--which includes the manufacturer
selling price, distribution channel markups, and sales taxes--and
installation costs. Inputs to the calculation of operating expenses
include annual energy consumption, energy prices and price projections,
repair and maintenance costs, equipment lifetimes, discount rates, and
the year that compliance with new and amended standards is required.
Issue 15: DOE requests feedback on the typical distribution
channels for consumer furnaces. DOE further seeks comment on whether
there is a significant retail distribution channel for consumer
furnaces.
Issue 16: DOE requests shipments data for consumer furnaces, broken
down by product class, that show current market shares by efficiency
level. DOE also seeks input on similar historic data.
Issue 17: DOE requests comment on the anticipated future market
share of higher-efficiency products as compared to less-efficient
products for each consumer furnace product class, in the absence of
amended efficiency standards.
2. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (``MIA'') is to
estimate the financial impact of amended energy conservation standards
on manufacturers of consumer furnaces, and to evaluate the potential
impact of such standards on direct employment and manufacturing
capacity. As part of the MIA, DOE would analyze impacts of amended
energy conservation standards on subgroups of manufacturers of covered
equipment, including small business manufacturers. DOE uses the Small
Business Administration's (``SBA'') small business size standards to
determine whether manufacturers qualify as small businesses, which are
listed by the North American Industry Classification System
(``NAICS'').\8\ Manufacturing of consumer furnaces is classified under
NAICS 333415, ``Air-conditioning and warm air heating equipment and
commercial and industrial refrigeration equipment manufacturing,'' and
the SBA sets a threshold of 1,250 employees or less for a domestic
entity to be considered as a small business. This employee threshold
includes all employees in a business' parent company and any other
subsidiaries.
---------------------------------------------------------------------------

\8\ Available online at: <a href="http://www.sba.gov/document/support-table-size-standards">www.sba.gov/document/support-table-size-standards</a>.
---------------------------------------------------------------------------

One aspect of assessing manufacturer burden involves examining the
cumulative impact of multiple DOE standards and the product-specific
regulatory actions of other Federal agencies that affect the
manufacturers of a covered product or equipment. Multiple regulations
affecting the same manufacturer can strain profits and lead companies
to abandon product lines or markets with lower expected future returns
than competing products. For these reasons, DOE conducts an analysis of
cumulative regulatory burden as part of its rulemakings pertaining to
appliance efficiency.
Issue 18: To the extent feasible, DOE seeks the names and contact
information of any domestic or foreign-based manufacturers in the
United States of the consumer furnaces that are the subject of this
notification.
Issue 19: DOE requests the names and contact information of small
business manufacturers, as defined by the SBA's size threshold that
distribute in the United States consumer furnaces that are the subject
of this notification. In addition, DOE requests comment on any other
manufacturer subgroups that could disproportionally be impacted by
amended energy conservation standards. DOE requests feedback on any
potential approaches that could be considered to address impacts on
manufacturers, including small businesses.
Issue 20: DOE requests information regarding the cumulative
regulatory burden impacts on manufacturers of consumer furnaces
associated with (1) other DOE standards applying to different products
or equipment that these manufacturers may also make, and (2) product-
specific regulatory actions of other Federal agencies. DOE also
requests comment on its methodology for computing cumulative regulatory
burden and whether there are any flexibilities it can consider that
would reduce this burden while remaining consistent with the
requirements of EPCA.

III. Submission of Comments

DOE invites all interested parties to submit in writing by the date
under the DATES heading, comments and information on matters addressed
in this notification and on other matters relevant to DOE's
consideration of

[[Page 4520]]

amended energy conservation standards for the consumer furnaces covered
by this notification (specifically, WGFs, NWOFs, WOFs, MHOFs, and
electric furnaces). After the close of the comment period, DOE will
review the public comments received and may begin collecting data and
conducting the analyses discussed in 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 requires 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 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. Faxes will not be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, or text (ASCII) file format. Provide documents that are not
secured, written in English, and free of any defects or viruses.
Documents should not contain special characters or any form of
encryption and, if possible, they should carry the electronic signature
of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: One copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
DOE considers public participation to be a very important part of
the process for developing test procedures and energy conservation
standards. DOE actively encourages the participation and interaction of
the public during the comment period in each stage of this process.
Interactions with and between members of the public provide a balanced
discussion of the issues and assist DOE in the process. Anyone who
wishes to be added to the DOE mailing list to receive future notices
and information about this process should contact Appliance and
Equipment Standards Program staff at (202) 287-1445 or via email at
<a href="/cdn-cgi/l/email-protection#f7b687879b9e96999492a48396999396859384a6829284839e989984b79292d9939892d9909881">[email&#160;protected]</a>.

Signing Authority

This document of the Department of Energy was signed on January 23,
2022, by Kelly J. Speakes-Backman, Principal Deputy Assistant Secretary
for Energy Efficiency and Renewable Energy, pursuant to delegated
authority from the Secretary of Energy. That document with the original
signature and date is maintained by DOE. For administrative purposes
only, and in compliance with requirements of the Office of the Federal
Register, the undersigned DOE Federal Register Liaison Officer has been
authorized to sign and submit the document in electronic format for
publication, as an official document of the Department of Energy. This
administrative process in no way alters the legal effect of this
document upon publication in the Federal Register.

Signed in Washington, DC, on January 25, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-01765 Filed 1-27-22; 8:45 am]
BILLING CODE 6450-01-P

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