Proposed Rule2024-19072
Energy Conservation Program: Energy Conservation Standards for Commercial Refrigerators, Freezers, and Refrigerator-Freezers
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Published
August 28, 2024
Issuing agencies
Energy Department
Abstract
On October 10, 2023, the U.S. Department of Energy ("DOE") published a notice of proposed rulemaking ("NOPR"), in which DOE proposed new and amended energy conservation standards for commercial refrigerators, freezers, and refrigerator-freezers. In this notification of data availability ("NODA"), DOE is providing updated analytical results that reflect updates to the analysis that DOE is considering based on feedback received in response to the October 10, 2023, NOPR. DOE requests comments, data, and information regarding the updated analyses.
Full Text
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<title>Federal Register, Volume 89 Issue 167 (Wednesday, August 28, 2024)</title>
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[Federal Register Volume 89, Number 167 (Wednesday, August 28, 2024)]
[Proposed Rules]
[Pages 68788-68833]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19072]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[EERE-2017-BT-STD-0007]
RIN 1904-AD82
Energy Conservation Program: Energy Conservation Standards for
Commercial Refrigerators, Freezers, and Refrigerator-Freezers
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notification of data availability and request for comment.
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SUMMARY: On October 10, 2023, the U.S. Department of Energy (``DOE'')
published a notice of proposed rulemaking (``NOPR''), in which DOE
proposed new and amended energy conservation standards for commercial
refrigerators, freezers, and refrigerator-freezers. In this
notification of data availability (``NODA''), DOE is providing updated
analytical results that reflect updates to the analysis that DOE is
considering based on feedback received in response to the October 10,
2023, NOPR. DOE requests comments, data, and information regarding the
updated analyses.
DATES: DOE will accept comments, data, and information regarding this
NODA no later than September 27, 2024.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> under docket
number EERE-2017-BT-STD-0007. Follow the instructions for submitting
comments. Alternatively, interested persons may submit comments,
identified by docket number EERE-2017-BT-STD-0007, by any of the
following methods:
(1) Email: <a href="/cdn-cgi/l/email-protection#b3f0e1f681838284e0e7f783838384f3d6d69dd7dcd69dd4dcc5"><span class="__cf_email__" data-cfemail="ca89988ff8fafbfd999e8efafafafd8aafafe4aea5afe4ada5bc">[email protected]</span></a>. Include the docket number
EERE-2017-BT-STD-0007 in the subject line of the message.
(2) Postal Mail: Appliance and Equipment Standards Program, U.S.
Department of Energy, Building Technologies Office, Mailstop EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone:
(202) 287-1445. If possible, please submit all items on a compact disc
(``CD''), in which case it is not necessary to include printed copies.
(3) Hand Delivery/Courier: Appliance and Equipment Standards
Program, U.S. Department of Energy, Building Technologies Office, 950
L'Enfant Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202)
287-1445. If possible, please submit all items on a CD, in which case
it is not necessary to include printed copies.
No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section IV of this document.
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, not all
documents listed in the index may be publicly available, such as
information that is exempt from public disclosure.
The docket web page can be found at <a href="http://www.regulations.gov/docket/EERE-2017-BT-STD-0007">www.regulations.gov/docket/EERE-2017-BT-STD-0007</a>. The docket web page contains instructions on how
to access all documents, including public comments, in the docket. See
section IV of this document for information on how to submit comments
through <a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Dommu, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies Office, EE-5B,
1000
[[Page 68789]]
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202)
586-9870. Email: <a href="/cdn-cgi/l/email-protection#dc9dacacb0b5bdb2bfb98fa8bdb2b8bdaeb8af8da9b9afa8b5b3b2af9cb9b9f2b8b3b9f2bbb3aa"><span class="__cf_email__" data-cfemail="d293a2a2bebbb3bcb1b781a6b3bcb6b3a0b6a183a7b7a1a6bbbdbca192b7b7fcb6bdb7fcb5bda4">[email protected]</span></a>.
Ms. Kristin Koernig, U.S. Department of Energy, Office of the
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0121. Telephone: (202) 586-4798. Email:
<a href="/cdn-cgi/l/email-protection#19526b706a6d70773752767c6b77707e597168377d767c377e766f"><span class="__cf_email__" data-cfemail="97dce5fee4e3fef9b9dcf8f2e5f9fef0d7ffe6b9f3f8f2b9f0f8e1">[email protected]</span></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#d190a1a1bdb8b0bfb2b482a5b0bfb5b0a3b5a280a4b4a2a5b8bebfa291b4b4ffb5beb4ffb6bea7"><span class="__cf_email__" data-cfemail="367746465a5f5758555365425758525744524567435345425f5958457653531852595318515940">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Discussion
A. Engineering Analysis
1. Representative Units
2. Baseline Energy Use Estimates
3. Baseline Design Components
4. Higher Efficiency Level Design Options
a. Evaporator Fan Control
b. Microchannel Condensers
c. Variable-Speed Compressors
5. Compressor Energy Use Adjustment
6. Revised Cost Analysis
7. Equipment With Features That Affect Energy Use
B. Energy Use Analysis
1. Energy Prices
2. Repair and Maintenance Costs
3. Residual Value for Refurbished CRE
4. Energy Efficiency Distribution in the No-New-Standards Case
C. Shipments Analysis
D. National Impact Analysis
1. Sensitivity Analysis for Equipment With Unique Energy Use
Characteristics
E. Manufacturer Impact Analysis
1. Manufacturer Production Costs
2. Shipments Projections
3. Product and Capital Conversion Costs
4. Refrigerant Transition Investments
5. Manufacturer Markup Scenarios
F. Emissions Analysis, and Monetizing Emissions Impacts
III. Analytical Results
A. Compliance Period
1. Remote-Condensing Units
2. Self-Contained Condensing Units (Non-Large)
3. Self-Contained Condensing Units (Large)
4. Consumer Subgroup Analysis
5. Rebuttable Presumption Payback
B. Economic Impacts on Manufacturers
1. Industry Cashflow Analysis Results
2. Direct Impacts on Employment
C. National Impact Analysis
1. National Energy Savings
2. Net Present Value of Consumer Costs and Benefits
D. Need of the Nation To Conserve Energy
IV. Public Participation
V. Approval of the Office of the Secretary
I. Introduction
EPCA authorizes DOE to regulate the energy efficiency of a number
of consumer equipment and certain industrial equipment. (42 U.S.C.
6291-6317, as codified) Title III, Part C of EPCA,\1\ added by Public
Law 95-619, Title IV, section 441(a), established the Energy
Conservation Program for Certain Industrial Equipment, which sets forth
a variety of provisions designed to improve energy efficiency. (42
U.S.C. 6311-6317) This equipment includes commercial refrigerators,
freezers, or refrigerator-freezers (``CRE''), the subject of this
document. (42 U.S.C. 6311(1)(E))
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\1\ For editorial reasons, upon codification in the U.S. Code,
part C was redesignated part A-1.
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DOE defines a ``commercial refrigerator, freezer, or refrigerator-
freezer,'' consistent with EPCA's definition at 42 U.S.C. 6311(9) and
codified at title 10 Code of Federal Regulations (``CFR'') 431.62, as
refrigeration equipment that is not a consumer product (as defined in
10 CFR 430.2); is not designed and marketed exclusively for medical,
scientific, or research purposes; operates at a chilled, frozen,
combination chilled and frozen, or variable temperature; displays or
stores merchandise and other perishable materials horizontally, semi-
vertically, or vertically; has transparent or solid doors, sliding or
hinged doors, a combination of hinged, sliding, transparent, or solid
doors, or no doors; is designed for pull-down temperature applications
or holding temperature applications; and is connected to a self-
contained condensing unit or to a remote condensing unit.
On March 28, 2014, DOE published a final rule in the Federal
Register that prescribed the current energy conservation standards for
CRE manufactured on and after March 27, 2017 (``March 2014 Final
Rule''). 79 FR 17725. DOE initiated a rulemaking to consider amending
energy conservation standards for CRE by publishing a request for
information in the Federal Register on July 16, 2021. 86 FR 37708. DOE
subsequently published a notification of the availability of a
preliminary technical support document for CRE in the Federal Register
on June 28, 2022 (``June 2022 Preliminary Analysis''). 87 FR 38296. In
the June 2022 Preliminary Analysis, DOE sought comment on the
analytical framework, models, and tools that DOE used to evaluate
potential standards for CRE, the results of preliminary analyses
performed, and the potential energy conservation standard levels
derived from these analyses, which DOE presented in the accompanying
Preliminary Technical Support Document (``TSD'') (``June 2022
Preliminary TSD'').\2\ Id. DOE held a public meeting related to the
June 2022 Preliminary Analysis on August 8, 2022.
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\2\ The June 2022 Preliminary TSD is available in the docket for
this rulemaking at <a href="http://www.regulations.gov/document/EERE-2017-BT-STD-0007-0013">www.regulations.gov/document/EERE-2017-BT-STD-0007-0013</a>.
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On October 10, 2023, DOE published in the Federal Register a NOPR
to establish and amend energy conservation standards for CRE (``October
2023 NOPR''). 88 FR 70196. DOE also sought comment on the analytical
framework, models, and tools that DOE used to evaluate the proposed
standards for CRE, the results of the NOPR analyses performed, and the
proposed new and amended energy conservation standard levels derived
from these analyses, which DOE presented in the accompanying NOPR TSD
(``October 2023 NOPR TSD'').\3\ Id. DOE held a public meeting related
to the October 2023 NOPR on November 7, 2023 (hereafter, the ``November
2023 Public Meeting'').
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\3\ The October 2023 NOPR TSD is available in the docket for
this proposed rulemaking at <a href="http://www.regulations.gov/document/EERE-2017-BT-STD-0007-0051">www.regulations.gov/document/EERE-2017-BT-STD-0007-0051</a>.
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DOE is currently considering comments and feedback received in
response to the October 2023 NOPR and November 2023 Public Meeting. DOE
has also conducted revised analysis with regard to some of the topics
on which it received feedback, as discussed throughout this document.
Based on this feedback and DOE's additional analysis, DOE is
considering updates to certain inputs to the analysis and certain
analytical approaches as presented in the October 2023 NOPR. DOE is
publishing this NODA to show how such updates would affect the
analytical results in comparison to the results presented in the
October 2023 NOPR.
This document provides a high-level summary of the analytical
updates that DOE is considering. DOE is also publishing a separate
support document (``NODA support document'') and its engineering
spreadsheet (``NODA engineering spreadsheet''), available in the docket
for this proposed rulemaking, that provide greater details and a full
set of analytical results that include updates as compared to the
analysis conducted for the October 2023 NOPR. DOE is requesting
comments, data, and information regarding the updated analysis. DOE
also welcomes feedback and public input on the methodological and
analytical approaches used in this updated analysis.
[[Page 68790]]
DOE notes that, in this document, DOE is not summarizing or
responding to any specific comments received in response to the October
2023 NOPR and November 2023 Public Meeting. DOE is continuing to
consider all of the stakeholder comments received in response to the
October 2023 NOPR and November 2023 Public Meeting in further
development of the rulemaking. Based on consideration of all of the
public comments received, including any additional comments received in
response to this NODA, DOE may adopt energy efficiency levels that are
either higher or lower than the standards proposed in the October 2023
NOPR.
II. Discussion
A. Engineering Analysis
The purpose of the engineering analysis is to establish the
relationship between the efficiency and cost of the equipment. For each
equipment class, DOE estimates the baseline cost (i.e., the cost of
minimally compliant equipment), as well as the incremental cost for
equipment at efficiency levels above the baseline. The output of the
engineering analysis is a set of cost-efficiency ``curves'' that are
used in downstream analyses (i.e., the life-cycle cost (``LCC'') and
payback period (``PBP'') analyses, the manufacturer impact analysis
(``MIA''), and the national impact analysis (``NIA'')).
1. Representative Units
In performing the engineering analysis for CRE, DOE selected
representative units for each primary equipment class to serve as
analysis points in the development of cost-efficiency curves. In the
October 2023 NOPR, DOE presented results for a single representative
unit at a specific capacity for each CRE equipment class. 88 FR 70196,
70225. In this NODA, DOE made one change to its approach for selecting
representative units for the engineering analysis from the October 2023
NOPR.
DOE analyzed additional representative capacities for certain
equipment classes in consideration of recent updates to future
refrigerant requirements and safety standards in this NODA. In the
October 2023 NOPR, DOE stated that it expects that the use of R-290
generally will improve efficiency as compared with the refrigerants
currently in use (e.g., R-404A) because R-290 has a higher
refrigeration-cycle efficiency than the current refrigerants. 88 FR
70196, 70227. Therefore, R-290 impacts the baseline energy use,
compared to a baseline using current refrigerants, on which each
efficiency level is built for the standards analysis. In the October
2023 NOPR, DOE's engineering analysis assumed that manufacturers would
convert all self-contained CRE models to propane (designated as R-290)
in accordance with the applicable refrigerant global warming potential
(``GWP'') limits and compliance dates previously proposed by the
Environmental Protection Agency (``EPA'').\4\ 88 FR 70196, 70227. The
October 2023 NOPR analysis also assumed that all self-contained CRE
would have a refrigerant charge (i.e., the amount of refrigerant in the
CRE refrigeration system) no greater than the maximum allowable R-290
charge size specified by Underwriters Laboratories (``UL'') 60335-2-89
(corresponding to 304g for units with closed cases and 494 g for units
with open cases). Id.
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\4\ EPA published its Technology Transitions Restrictions on the
Use of Certain HFCs NOPR on December, 15, 2022 (``December 2022 EPA
NOPR''). 88 FR 70196. Since the October 2023 NOPR, EPA published a
Technology Transitions Restrictions on the Use of Certain HFCs Final
Rule on October, 24, 2023 (the ``October 2023 EPA Final Rule''). 88
FR 73098. For CRE, the refrigerant GWP limits published in the
October 2023 EPA Final Rule are consistent with the proposal in the
December 2022 EPA NOPR.
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Since publishing the October 2023 NOPR, DOE has performed
additional analysis as described below--as well as received additional
feedback from CRE manufacturers--indicating that larger CRE units,
which contain more refrigerant than smaller units, would require more
R-290 refrigerant than the maximum allowable charge size specified by
UL 60335-2-89. For such equipment, manufacturers will likely instead
need to implement other low-GWP refrigerant options to comply with the
GWP limits in the October 2023 EPA Final Rule. DOE has identified R-
454C and R-455A as alternatives that are mildly flammable (designated
``A2L'') refrigerants currently available and could be used for units
with cooling capacities greater than would be achievable using an
allowable R-290 charge size.
In recognition of this, DOE analyzed two different representative
capacities for the following 7 equipment classes: VOP.SC.M, SVO.SC.M,
HZO.SC.L, SOC.SC.M,\5\ VCT.SC.M, VCT.SC.L, and VCS.SC.L.\6\ For each of
these 7 classes, DOE would assume the use of an A2L refrigerant for the
large capacity and R-290 for the non-large capacity. DOE requests
comment on this analytical approach of assuming use of an A2L
refrigerant for the large capacity equipment classes.
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\5\ DOE notes that, for the SOC.SC.M equipment class, DOE is
considering a smaller representative capacity, as compared to the
representative capacity proposed in the October 2023 NOPR, that
would assume the use of R-290. For the large representative capacity
in the SOC.SC.M equipment class (i.e., the same representative
capacity as the October 2023 NOPR), DOE is considering an A2L
refrigerant, consistent with the approach in this NODA.
\6\ The equipment classes are designated by equipment family,
condensing unit configuration, and operating temperature. Equipment
Families: VOP--Vertical Open; SVO--Semi-Vertical Open; HZO--
Horizontal Open; VCT--Vertical Closed Transparent; HCT--Horizontal
Closed Transparent; VCS--Vertical Closed Solid; HCS--Horizontal
Closed Solid; SOC--Service Over Counter; CB--Chef Base; PD--Pull
Down. Condensing Unit Configurations: RC--Remote Condensing; SC--
Self Contained. Operating Temperatures: H--High Temperature; M--
Medium Temperature; L--Low Temperature; I--Ice Cream Temperature.
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Table II.1 presents the 7 equipment classes for which DOE analyzed
two representative capacities. This NODA presents analytical results of
this approach under consideration for each of these 7 equipment
classes.
BILLING CODE 6450-01-P
[[Page 68791]]
[GRAPHIC] [TIFF OMITTED] TP28AU24.409
BILLING CODE 6450-01-C
In support of this NODA, DOE investigated currently available
compressor performance data of compressors using R-404A, R-454C, and R-
455A to compare performance for compressors applicable to CRE in the
larger volume or TDA range of each equipment class presented in table
II.1. This investigation indicates that compressors using R-454C and R-
455A have performance similar to compressors with refrigerants already
in use (e.g., R-404A) in larger equipment, which is consistent with the
findings from other investigations conducted by a compressor
manufacturer.\7\ Accordingly, for the large representative units
considered for these 7 equipment classes, DOE is presenting in this
NODA an updated analysis that reflects the use of A2L compressors,
based on performance data of R-404A compressors as a proxy to calculate
the efficiency of this equipment. Using this approach, the baseline
energy use for the large representative capacities in these 7 classes
is set equal to the current standard.
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\7\ See p. 15 of <a href="https://e360hub.copeland.com/presentations/preparing-for-emerging-refrigerants-and-carb-compliance">https://e360hub.copeland.com/presentations/preparing-for-emerging-refrigerants-and-carb-compliance</a>.
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Based on feedback to the October 2023 NOPR and in support of this
NODA, DOE did not find compressor cost data to indicate that the price
of an A2L compressor would be different than the price of an R-290
compressor at the same cooling capacity. As a result, DOE assumes the
same cost for an A2L compressor as an R-290 compressor of the same
compressor capacity in this NODA. DOE requests comment on any
information or cost data that may indicate that the price of an A2L
compressor would be different than the price of an R-290 compressor at
the same cooling capacity.
2. Baseline Energy Use Estimates
As discussed previously, in the October 2023 NOPR, DOE assumed that
manufacturers would convert self-contained CRE models to R-290. The use
of R-290 is generally expected to provide higher efficiency performance
at the baseline level (compared to current refrigerants), such that the
baseline efficiency levels defined in the October 2023 NOPR for each
class generally reflected a lower energy use than the currently
applicable DOE standards for CRE. 88 FR 70196, 70227-70228. In the
October 2023 NOPR, DOE's analysis considered that these efficiency
improvements, equipment costs, and manufacturer investments required to
comply with the December 2022 EPA NOPR would be in effect prior to the
time of compliance for the October 2023 NOPR proposed amended DOE CRE
standards for all CRE equipment classes and sizes. 88 FR 70196, 70228.
Therefore, in the October 2023 NOPR, DOE noted that the October 2023
NOPR analysis did not consider benefits and costs resulting from the
December 2022 EPA NOPR. 88 FR 70196, 70208. DOE clarifies that DOE has
not double counted any energy savings from the October 2023 EPA
[[Page 68792]]
Final Rule in this NODA nor in the October 2023 NOPR.
In the October 2023 NOPR, DOE initially determined the energy use
associated with the defined baseline efficiency levels for each
equipment class by maximizing the single-speed compressor efficiency
achievable for each respective equipment class based on the CRE
compressors available at the time of the analysis from two commonly-
used compressor manufacturers. Id. at 88 FR 70228.
In this NODA, DOE updated its analysis of R-290 compressor
performance to reflect the average compressor efficiency from the
database of CRE compressors it has collected, instead of the maximum
compressor efficiency as considered in the October 2023 NOPR. After the
publication of the October 2023 NOPR, DOE was able to incorporate into
this NODA compressor performance data from an additional compressor
manufacturer that was not available to DOE for the October 2023 NOPR.
Based on this updated approach, on average, the medium-temperature
compressor energy savings presented in this NODA are less than the
compressor energy savings in the October 2023 NOPR and the low-
temperature compressor energy savings presented in this NODA are
greater than the compressor energy savings in the October 2023 NOPR.
Table II.2 presents the updated baseline energy use associated with
each equipment class, expressed as a reduction in energy compared to
the currently applicable standard, for both the R-290 and A2L (if
applicable) representative units for each class. As discussed in the
previous section, for the large representative capacities (which assume
the use of A2L refrigerants), the baseline energy use is set equal to
the current standard.
[GRAPHIC] [TIFF OMITTED] TP28AU24.410
3. Baseline Design Components
Based on feedback in response to the October 2023 NOPR and November
2023 Public Meeting and additional test and teardown data conducted
since the October 2023 NOPR, DOE is updating certain design
specifications and components assumed to be used in models at the
baseline efficiency level in this NODA. These updates include the
insulation R-Value (changing from 8 per inch to 6.5 per inch, which is
more representative of current baseline equipment); insulation
thickness (changing to be consistent with the thickness analyzed in the
March 2014 Final Rule, which remain applicable to current equipment);
\8\ baseline fan motor assumptions (considering electronically
commutated motors (``ECM'') for evaporator and condenser fan motors for
most classes); and use of electronic controls (to assume the use of
electronic controls at the baseline for all equipment classes).
Additional details regarding all design specification and component
updates are provided in section 2 of the NODA support document.
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\8\ See table 5A.2.2 Baseline Specifications in the 2014 Final
Rule TSD at <a href="http://www.regulations.gov/document/EERE-2010-BT-STD-0003-0102">www.regulations.gov/document/EERE-2010-BT-STD-0003-0102</a>.
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These changes result in adjustments to equipment cost at the
baseline level, as well as to the magnitude of efficiency improvement
provided by higher efficiency design options whose performance depends
on the heat load.
4. Higher Efficiency Level Design Options
In consideration of feedback received in response to the October
2023 NOPR, DOE has removed evaporator fan control and microchannel
condensers from consideration as design options and revised the
variable speed compressor coefficients, as described in the following
sections.
[[Page 68793]]
a. Evaporator Fan Control
As stated in section 3.3.7.3 of the October 2023 NOPR TSD,
evaporator fan motor controls can be programmed such that the
evaporator fan motor runs at a 100 percent duty cycle to circulate cold
air at all times and to prevent frost build up on the evaporator coil.
As a design option, evaporator fan control refers to operating the
evaporator fan at an evaporator fan duty cycle less than 100 percent.
This design option operates the evaporator fan at an evaporator fan
duty cycle that matches the compressor duty cycle, plus some additional
operating time to accomplish defrosts and stir cycles.
In the October 2023 NOPR, DOE analyzed the evaporator fan control
design option for self-contained, closed CRE. 88 FR 70196, 70222.
Feedback received in response to the October 2023 NOPR suggests that
the use of evaporator fan controls could reduce air distribution and
temperature uniformity in the refrigerated compartment, potentially
leading to higher temperatures that would exceed established tolerances
for food safety (e.g., as established by National Sanitation Foundation
(``NSF'') 7). DOE notes that NSF 7 requirements do not preclude CRE
from using evaporator fan controls and that some self-contained, closed
CRE may be able to use evaporator fan controls and still comply with
NSF 7 requirements. However, recognizing current uncertainty as to
whether such food safety requirements could be maintained in certain
applications of self-contained, closed CRE with the use of evaporator
fan controls, DOE has tentatively screened out evaporator fan control
as a design option for CRE. As a result, this NODA presents an updated
engineering analysis that does not include evaporator fan control as a
design option.
b. Microchannel Condensers
In the October 2023 NOPR, DOE considered microchannel condensers as
a design option for self-contained CRE, having observed the use of
microchannel condensers in other commercial refrigeration equipment
such as automatic commercial ice makers (``ACIMs''), including ACIMs
that use R-290. Id. DOE is not, however, aware of microchannel
condensers in use for CRE and has not observed microchannel condensers
in any of the equipment in the teardown analysis. Even though DOE
tentatively determined in the October 2023 NOPR that microchannel
condensers would be technically feasible for use in CRE, feedback from
commenters in response to the October 2023 NOPR suggests that there is
current uncertainty as to the practicability to manufacturer, install,
or service this technology on the scale necessary to serve the CRE
market at the time of the effective date of any new or amended
standards. Recognizing this uncertainty, DOE has tentatively screened
out microchannel condensers as a design option. As a result, this NODA
presents an updated engineering analysis that does not include
microchannel condensers as a design option.
c. Variable-Speed Compressors
In the October 2023 NOPR, DOE incorporated the performance data for
variable-speed R-290 compressors currently available on the market into
DOE's engineering spreadsheet. Id. at 88 FR 70219. Since publication of
the October 2023 NOPR, DOE has observed that some compressor
manufacturers have updated their variable-speed compressor
coefficients. To take into account these updates, and to maintain a
methodology consistent with that used for single-speed compressors, DOE
made updates to its engineering analysis to assume the average
efficiency of the current market for variable-speed compressors,
selecting the lower-efficiency compressor if only two compressor brands
are available at a specific cooling capacity, in this NODA. DOE also
adjusted the calculation for the difference in evaporator and condenser
temperatures when switching from single-speed to variable-speed
compressors to instead use a static temperature difference of +3 [deg]F
for the evaporator and -5 [deg]F for the condenser. Implementing these
updates results in an energy use reduction from implementing variable-
speed R-290 compressors ranging from approximately 2.5 to 19.2 percent,
depending on the representative capacity of each equipment class. DOE
notes that variable-speed compressors operate more efficiently at lower
speeds than single-speed compressors do at full-speed. Therefore,
variable-speed compressors have greater energy savings potential as
further explained in section 3.3.4.3 of the October 2023 NOPR.
Comparatively, in the October 2023 NOPR, DOE estimated approximately
0.5 to 25 percent energy consumption reduction when implementing
variable-speed R-290 compressors.\9\ Id.
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\9\ See section 5.5.3.1 of the October 2023 NOPR TSD.
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5. Compressor Energy Use Adjustment
Since publication of the October 2023 NOPR, DOE has reviewed the
Air-Conditioning, Heating, and Refrigeration Institute (``AHRI'')
January 2017 white paper, Tolerances and Uncertainties in Performance
Data of Refrigerant Compressors, which is referenced by the AHRI 540
compressor performance rating standard (``AHRI 540'').\10\ Based on
this review, DOE applied a 5 percent increase in energy use for all
compressors to account for the performance prediction uncertainty as a
result of curve-fitted compressor performance maps in this NODA. See
the NODA engineering spreadsheet for further details.
---------------------------------------------------------------------------
\10\ For the AHRI white paper see <a href="http://www.ahrinet.org/system/files/2023-06/compressors-white-paper.pdf">www.ahrinet.org/system/files/2023-06/compressors-white-paper.pdf</a>.
---------------------------------------------------------------------------
6. Revised Cost Analysis
As DOE typically does during the course of a rulemaking, DOE
considered updates to core case costs and certain design option costs
to reflect current material prices and production factors that are
relevant to the CRE industry.
As part of this update, DOE has reviewed current Krypton gas prices
and has observed that the cost differential between triple-pane doors
with Argon gas and triple pane doors with Krypton gas has increased
significantly \11\ compared to the cost differential used in the
October 2023 NOPR analysis. See chapter 5 of the October 2023 NOPR TSD.
This NODA presents updated costs for triple-pane doors with Krypton
gas.
---------------------------------------------------------------------------
\11\ The cost differential between Argon gas fill and Krypton
gas fill for triple-pane doors is approximately seven times greater
at the time of this NODA as compared to the October 2023 NOPR.
---------------------------------------------------------------------------
In the October 2023 NOPR, DOE assumed an industry average
manufacturer markup of 1.40 for all equipment classes. 88 FR 70196,
70247. Based on stakeholder comments in response to the October 2023
NOPR and market share weights, DOE updated the industry average
manufacturer markup to 1.38 for all equipment classes and uses this
updated value as the basis for the results presented in this NODA.
7. Equipment With Features That Affect Energy Use
In the October 2023 NOPR, DOE proposed less stringent energy
conservation standards for equipment of certain classes that have
unique features such as forced-air evaporators or certain special door
configurations (e.g., roll-in, roll-through, and pass-through). Id. at
88 FR 70230. The approach in the October 2023 NOPR involved use of
feature-specific multipliers greater than 1.0 that would be applied to
the proposed
[[Page 68794]]
energy conservation standard for an eligible class to provide less-
stringent standards for a feature of that eligible class. Id. at 88 FR
70231. More details can be found in tables IV.7 and IV.8 of the October
2023 NOPR.
As an alternative to the feature-specific multiplier approach, DOE
is also tentatively considering a simplified multiplier approach to the
eligible equipment classes discussed in the October 2023 NOPR,
evaluating the use of a single multiplier for all evaluated equipment
classes and feature groupings, including pass-through, sliding door,
sliding-door pass-through, roll-in, roll-through, forced-air
evaporator, and drawers. To select a single multiplier representative
of the range of features analyzed, DOE used a shipment-weighted average
of the eligible equipment class average multiplier values for each
feature. DOE applied this multiplier to the energy use at each
efficiency level for each eligible class, which implies that the
difference in energy use of each feature compared to CRE without such
feature is proportional to the equipment's energy use prior to the
addition of each feature. The result of this single multiplier analysis
yields a multiplier of 1.07.
DOE notes that EPCA, as codified, 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 product. (42 U.S.C. 6316(e)(1); 42 U.S.C.
6295(o)(1)) Therefore, any multipliers that may be applied to eligible
CRE equipment classes in any future DOE actions for this proposed
rulemaking may be limited or adjusted due to the anti-backsliding
provision. In this NODA, application of the multiplier to the energy
use of each efficiency level of a given class is adjusted accordingly,
if needed, to avoid backsliding against the current standard.
Based on consideration of all of the public comments received,
including any additional comments received in response to this NODA,
DOE may adopt the multiplier approach proposed in the October 2023
NOPR, a revised approach with higher or lower multipliers than proposed
in the October 2023 NOPR, an approach with additional or fewer
multipliers, or a simpler approach in which a single multiplier would
be used for any eligible feature for application to specific eligible
classes as presented in this NODA.
B. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of CRE at different efficiencies in representative
U.S. commercial buildings and to assess the energy savings potential of
increased CRE efficiency. The energy use analysis estimates the range
of energy use of CRE in the field (i.e., as they are actually used by
consumers). The energy use analysis provides the basis for other
analyses DOE performs, particularly assessments of the energy savings
and the savings in consumer operating costs that could result from
adoption of amended or new standards.
In the October 2023 NOPR, DOE calculated the energy consumption of
the equipment as part of the engineering analysis. Id. at 88 70196,
70237. In this NODA, DOE adjusted the annual energy consumption to
account for the field operation of occupancy sensors. Specifically, DOE
was informed that some purchasers may choose to deactivate CRE
occupancy sensors, thereby forgoing energy savings associated with this
design option. Accordingly, DOE updated its energy use analysis for CRE
at efficiency levels with occupancy sensors so that the benefit of an
occupancy sensor is applied to only 75 percent of purchasers of this
feature. The remaining 25 percent would incur the increased equipment
cost but not the associated energy savings.\12\ The analysis presented
in this NODA reflects this change under consideration. DOE requests
comments, data, and information on the fraction of CRE that may not
have the occupancy sensors activated.
---------------------------------------------------------------------------
\12\ DOE selected 25 percent as a reasonable estimation of the
fraction of CRE purchasers that may choose to deactivate their
occupancy sensors despite purchasing this feature.
---------------------------------------------------------------------------
Life-Cycle Cost and Payback Period Analysis
For this NODA, DOE conducted an LCC and PBP analysis using the same
general methodology described in the October 2023 NOPR. See Id. at 88
FR 70237-70238. Table II.3 summarizes the approach and data DOE used to
derive inputs to the LCC and PBP calculations. The following sections
discuss updates to the source of method for deriving those inputs--as
compared to the October 2023 NOPR--that DOE considered and implemented
in this NODA analysis for review and comment. Inputs that utilized the
same approach or data source as the October 2023 NOPR are not discussed
in this NODA.
BILLING CODE 6450-01-P
[[Page 68795]]
[GRAPHIC] [TIFF OMITTED] TP28AU24.411
BILLING CODE 6450-01-C
1. Energy Prices
---------------------------------------------------------------------------
\13\ For further information, see the ``Assumptions to AEO2023''
report that sets forther the major assumptions used to generate the
projections in the AEO2023. Available at <a href="http://www.eia.gov/outlooks/aeo/assumptions/">www.eia.gov/outlooks/aeo/assumptions/</a> (last accessed April 15, 2024).
---------------------------------------------------------------------------
Because marginal electricity price more accurately captures the
incremental savings associated with a change in energy use from higher
efficiency, it provides a better representation of incremental change
in consumer costs than average electricity prices. Therefore, DOE
applied average electricity prices for the energy use of the equipment
purchased in the no-new-standards case, and marginal electricity prices
for the incremental change in energy use associated with the other
efficiency levels considered in the October 2023 NOPR. Id. at 88 FR
70239.
To derive electricity prices for this NODA analysis, DOE followed
the same methodology as in the October 2023 NOPR. However, in this
NODA, DOE updated the price data for current electricity prices (from
2022 to 2023). In particular, DOE developed electricity prices in 2023
for each census division using data from Edison Electric Institute
(``EEI'') ``Typical Bills and Average Rates'' reports.
To estimate energy prices in future years, DOE followed the same
approach as in the October 2023 NOPR, i.e., DOE multiplied the 2023
electricity prices by the projection of annual average price changes
for each of the nine census divisions from the reference case in
AEO2023, which has an end year of 2050.\14\
---------------------------------------------------------------------------
\14\ EIA. Annual Energy Outlook 2023. Available at <a href="http://www.eia.gov/outlooks/aeo/">www.eia.gov/outlooks/aeo/</a> (last accessed April 15, 2024).
---------------------------------------------------------------------------
2. Repair and Maintenance Costs
Repair costs are associated with repairing or replacing components
that have failed in an appliance or equipment; maintenance costs are
associated with maintaining the operation of the equipment. Typically,
small incremental increases in equipment efficiency entail no, or only
minor, changes in repair and maintenance costs compared to baseline
efficiency equipment.
In the October 2023 NOPR, DOE calculated repair costs by
considering the typical failure rate of refrigeration system components
(compressor, lighting, and evaporator and condenser fan motors),
component manufacturer production costs (``MPCs'') and associated
markups, and the labor cost of repairs, which is assumed to be
performed by private vendors. Id. at 88 FR 70239. DOE considered the
following specific CRE components and associated failure probabilities
during typical CRE lifetime in its repair cost approach: compressor (25
percent), evaporator fan motor (50 percent), condenser fan motor (25
percent), and LED lighting (100 percent), with the presence of
occupancy sensors decreasing LED lighting repair frequency by half. Id.
In this NODA, DOE also considered repair and replacement costs
associated with night curtains and has incorporated such costs into
this NODA analysis. Specifically, DOE was informed that night curtains
are likely to
[[Page 68796]]
be replaced before the end of the lifetime of CRE. DOE contacted
retailers and manufacturers of night curtains of similar cost to the
ones contained in the engineering analysis; these manufacturers and
sellers stated that the lifetime varies according to user care. One
manufacturer reported a recent replacement from a unit that lasted 10
years. In light of these reports, DOE selected 5 years as a reasonable
estimate for the average lifetime of all night curtains. As a result,
depending on the lifetime associated with each CRE, night curtains may
be replaced once or several times during the CRE lifetime. Furthermore,
DOE assumed a half-hour night curtain replacement labor duration at the
same labor rates (according to RSMeans 2023) as other CRE components
assumed to be replaced during the CRE lifetime (e.g., compressors) in
the LCC analysis. DOE assigned these labor rates according to each
purchaser's Census division to account for national labor cost
variability.
3. Residual Value for Refurbished CRE
To model the phenomenon of CRE sold for refurbishment, DOE utilized
a residual value for such equipment in the LCC in the October 2023
NOPR. The residual value represents the remaining dollar value of
surviving CRE at the average age of refurbishment. In the October 2023
NOPR, DOE estimated that refurbishments would occur at 5 years for
small-size food-service buildings (e.g., restaurants) and 10 years for
small-size food-sales and other commercial buildings. To account for
the value of CRE with remaining life to the consumer, the LCC model
applies this residual value as a ``credit'' at the end of the CRE
lifetime and discounts it back to the start of the analysis period.
This credit was applied to a fraction of self-contained CRE, totaling
about 10 percent of all CRE in the LCC sample. Id. at 88 FR 70240.
Since the publication of the October 2023 NOPR, DOE made
adjustments to its refurbishment assumptions based on the premise that
if the refurbishment market offers a favorable economic opportunity, it
could be utilized by all businesses, not just businesses in small-size
buildings. Accordingly, for this NODA, DOE still applies a credit to
about 10 percent of all CRE in the sample; however the credit may apply
to any self-contained equipment, regardless of building size.\15\ DOE
has no reason to expect that businesses occupying larger size buildings
would have a different refurbishment schedule than those occupying
small-size buildings, and as such DOE retained the same assumptions as
in the October 2023 NOPR regarding the average CRE lifetimes at the
time of refurbishment, occurring after 5 years for food-service
buildings (e.g., restaurants) and after 10 years for food-sales, and
other building types (e.g., grocery stores). See id.
---------------------------------------------------------------------------
\15\ Due to the installation complexity of remote condensing
CRE, DOE assumed that such equipment are not likely to be
refurbished.
---------------------------------------------------------------------------
4. Energy Efficiency Distribution in the No-New-Standards Case
To accurately estimate the share of consumers that would be
affected by a potential energy conservation standard at a particular
efficiency level, DOE's LCC analysis considers the projected
distribution (market shares) of equipment efficiencies under the no-
new-standards case (i.e., the case without amended or new energy
conservation standards) in the compliance year. This approach reflects
the fact that some consumers may purchase equipment with efficiencies
greater than the baseline levels in the absence of new or amended
standards.
To estimate the energy efficiency distribution of CRE for 2028 in
the October 2023 NOPR, DOE used test data, feedback from manufacturer
interviews, surveys, and the ``Single Compartment Commercial
Refrigeration Equipment'' data from DOE's CCD, accessed in March
2024.\16\ Id. In this NODA, DOE presents the following updates to its
LCC analysis, which are incorporated into this NODA analysis: (1) using
CCD data retrieved on April 15, 2024 in place of CCD data used in the
October 2023 NOPR that was retrieved on February 21, 2023, (2) deriving
distributions for the new self-contained (large) capacities from CCD,
and (3) grouping some self-contained (non-large) categories that had
few observations in the CCD.
---------------------------------------------------------------------------
\16\ U.S. Department of Energy. Compliance Certification
Database (``CCD'') for Refrigeration Equipment--Commercial, Single
Compartment. Available at <a href="http://www.regulations.doe.gov/certification-data/">www.regulations.doe.gov/certification-data/</a> (last accessed April 15, 2024).
---------------------------------------------------------------------------
To create a robust sample for the energy efficiency distribution
used in the LCC analysis, DOE separated the analyzed CRE equipment
classes into 27 separate groups for this NODA analysis. DOE notes that
the analysis for the October 2023 NOPR was based on 21 separate groups;
DOE is considering adding new groups to account for equipment classes
with two representative capacities (discussed in section II.A.1 of this
document), and some self-contained equipment classes were grouped
together if there were few model counts in the CCD. For the equipment
classes that DOE relied on CCD model count data to formulate the
efficiency distributions, this approach was used to allow equipment
classes with a limited sample to share the efficiency distribution of a
group of similar classes with a larger sample in the CCD. DOE compared
energy use data from the CCD with energy use equations from the
engineering analysis to derive model counts at each efficiency level.
For the 7 self-contained equipment classes with large representative
capacities, model counts for each representative unit were taken from
subsets of the CCD, filtered by the appropriate volume or TDA.
Equipment classes whose efficiency distributions were derived from
aggregated data from manufacturer interviews, surveys, and test data
were assigned their own groups (these 9 classes are the same ones from
the October 2023 NOPR.) The estimated market shares for the no-new-
standards case for CRE and the corresponding groupings are shown in
table II.4.
In advance of the October 2023 NOPR, DOE conducted manufacturer
interviews and collected shipments data for several equipment classes.
The equipment classes for which DOE collected shipments data account
for 75 percent of total shipments and are marked with an asterisk in
table II.4.\17\ For the remainder of the equipment classes for which
DOE was not able to collect representative shipments data from
manufacturers due to low sample sizes, DOE utilized the CCD database to
estimate the no-new-standards-case efficiency distribution; this is the
same approach used in the October 2023 NOPR. See Id.
---------------------------------------------------------------------------
\17\ For some of these classes, such as chef bases or griddle
stands and high-temperature refrigerators, DOE also developed the
efficiency distributions based on DOE's test data, data submitted by
manufacturers, ENERGY STAR certified data, and data from DOE's CCD.
---------------------------------------------------------------------------
BILLING CODE 6450-01-P
[[Page 68797]]
[GRAPHIC] [TIFF OMITTED] TP28AU24.412
BILLING CODE 6450-01-C
The LCC Monte Carlo simulations draw from the efficiency
distributions and randomly assign an efficiency to the CRE purchased by
each sample consumer in the no-new-standards case. The resulting
percent shares within the sample match the market shares in the
efficiency distributions.
C. Shipments Analysis
DOE uses projections of annual equipment shipments to calculate the
national impacts of potential amended or new energy conservation
standards
[[Page 68798]]
on energy use, net present value (``NPV''), and future manufacturer
cashflows.\18\ The shipments model takes an accounting approach,
tracking market shares of each equipment class and the vintage of units
in the stock. Stock accounting uses equipment shipments as inputs to
estimate the age distribution of in-service equipment stocks for all
years. The age distribution of in-service equipment stocks is a key
input to calculations of both the NES and NPV because operating costs
for any year depend on the age distribution of the stock.
---------------------------------------------------------------------------
\18\ DOE uses data on manufacturer shipments as a proxy for
national sales, as aggregate data on sales are lacking. In general,
one would expect a close correspondence between shipments and sales.
---------------------------------------------------------------------------
For the shipments analysis conducted for this NODA, DOE followed
the same approach as the October 2023 NOPR, with the exception of CRE
that may be subject to refurbishment, as discussed in the following
paragraph.
To account for a potential increase in refurbished CRE as a result
of increased prices from CRE standards, in the October 2023 NOPR, DOE
assumed a price elasticity effect for a fraction of CRE shipments,
which was limited to small-sized buildings. Id. at 88 FR 70242. In this
NODA, DOE modified its price elasticity approach based on the premise
that if the refurbishment market offers a favorable economic
opportunity, it could be utilized by all businesses. Accordingly, for
this NODA, the price elasticity effect \19\ applies to all self-
contained units, regardless of the building size where those units are
installed. DOE assumed that remote condensing CRE are generally not
refurbished as they are less likely to be removed from service when
being part of a separate condensing system. DOE notes that the price
elasticity effect, and a resulting reduction in CRE shipments, is
dependent on the price difference between the price consumers pay in
the no-new-standards case and the standards case. DOE also acknowledges
that, while a CRE refurbishment market may well exist and its magnitude
may have recently increased due to supply chain and equipment price
increases, this phenomenon applies to the CRE market overall, and is
not a result of energy efficiency standards on CRE. With regard to
self-contained units, DOE estimates that their market share is
approximately 87 percent of the overall new (i.e., not refurbished) CRE
market.
---------------------------------------------------------------------------
\19\ DOE applied an elasticity constant of -0.5 to shipments for
self-contained CRE and scaled this constant down to -0.15 over a
period of 20 years from the current year of calculations, holding it
constant at that rate for the remainder of the analysis period. This
is the same constant and scaling methodology used in the October
2023 NOPR.
---------------------------------------------------------------------------
D. National Impact Analysis
The NIA assesses the national energy savings (``NES'') and the NPV
from a national perspective of total consumer costs and savings that
would be expected to result from new or amended standards at specific
efficiency levels.\20\ (``Consumer'' in this context refers to
consumers of the equipment being regulated.) 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 October 2023 NOPR, DOE projected the energy savings, operating cost
savings, equipment costs, and NPV of consumer benefits over the
lifetime of CRE sold from 2028 through 2057. Id. at 88 FR 70243.
---------------------------------------------------------------------------
\20\ The NIA accounts for impacts in the United 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. 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 the standards cases, DOE considers how a given
standard would likely affect the market shares of equipment with
efficiencies greater than the standard.
Table II.5 summarizes the inputs and methods DOE used for the NIA
for this NODA. DOE made updates to some of the key inputs to the NIA
analysis compared to the NIA analysis performed in the October 2023
NOPR. In particular, the NIA for this NODA includes slightly updated
shipments (see section II.D of this document), slightly updated
efficiency distribution (see section II.C of this document), updated
annual energy consumption per unit (see section II.A of this document)
and updated total installed costs per unit (see section II.A.6 of this
document).
[[Page 68799]]
[GRAPHIC] [TIFF OMITTED] TP28AU24.413
1. Sensitivity Analysis for Equipment With Unique Energy Use
Characteristics
As discussed in section II.A.7 of this document, to account for CRE
with certain features (e.g., pass-through, sliding door, sliding-door
pass-through, roll-in, roll-through, forced-air evaporator, and
drawers), DOE applied a single multiplier of 1.07 to the energy use of
CRE with such features.
To evaluate the impact of CRE with these unique energy use
characteristics in the NIA, DOE conducted a sensitivity analysis in
this NODA and estimated the NES and NPV for all CRE, applying a 1.07
energy use multiplier to CRE with these features. Given a lack of
market data regarding CRE with these unique energy use characteristics,
DOE relied on CCD model counts to estimate their market share. Table
II.6 presents the estimated market share of CRE with unique energy use
characteristics compared to their corresponding equipment class.
[GRAPHIC] [TIFF OMITTED] TP28AU24.414
To model this sensitivity, DOE assumed that the efficiency
distribution of the equipment with unique features is the same as that
of the overall equipment class. DOE assumed an increased energy
consumption for the affected equipment by a factor of 7 percent. DOE
modelled another sensitivity with the assumption that 5 percent of
equipment in the specified equipment classes will have unique features
instead of the market shares shown in table II.6. The results of these
sensitivity analyses are shown in the accompanying NODA support
document.
E. Manufacturer Impact Analysis
DOE uses the Government Regulatory Impact Model (``GRIM'') to
quantify the changes in cash flow due to new or amended standards that
result in a higher or lower industry value. The GRIM uses a standard,
annual, discounted cash-flow analysis that incorporates manufacturer
costs, manufacturer markups, shipments, and industry financial
information as inputs. The GRIM models changes in costs, distribution
of shipments, investments, and manufacturer margins that could result
from a new or amended energy conservation standard. The GRIM
spreadsheet uses the inputs to arrive at a series of annual cash flows,
beginning in 2024 (the base year of the analysis) and continuing 30
years after the analyzed 2028 compliance year. For this NODA analysis,
DOE calculated industry net present value (``INPV'') by summing the
stream of annual discounted cash flows during the
[[Page 68800]]
analysis period. Consistent with the October 2023 NOPR, DOE used a real
discount rate of 10.0 percent for the CRE industry. Id. at 88 FR 70246.
Key inputs to the GRIM (i.e., MPCs, shipments projections, conversion
costs, refrigerant transition expenses, and manufacturer markup
scenarios) are discussed in the following sections.
1. Manufacturer Production Costs
The changes in the MPCs of covered equipment can affect the
revenues, gross margins, and cash flow of the industry. See section
II.A of this document for details on the NODA updated engineering
analysis.
2. Shipments Projections
The GRIM estimates manufacturer revenues based on total unit
shipment projections and the distribution of those shipments by
efficiency level. Consistent with the October 2023 NOPR, the GRIM uses
the NIA's annual shipment projections derived from the shipments
analysis. Id. at 88 FR 70196, 70242-70243. See section II.D of this
document for details on the NODA updated shipments analysis.
3. Product and Capital Conversion Costs
DOE made certain refinements to the product conversion cost
analysis in the October 2023 NOPR, which are incorporated into the
analysis conducted for this NODA. 88 FR 70196, 70246-70247.
Specifically, for this NODA analysis, DOE incorporated the most recent
Department of Labor's Bureau of Labor Statistics (``BLS'') wage data
\21\ into its product conversion cost estimates and refreshed its
equipment database to include up-to-date model listings from its CCD
\22\ and California Energy Commission's Modernized Appliance Efficiency
Database System for covered CRE.\23\ Furthermore, to account for the
potential increase in testing and certification costs associated with
new safety standards (i.e., UL 60335-2-89), which go into effect
September 29, 2024, DOE doubled product conversion costs associated
with UL testing and certification. For this NODA, DOE updated its
capital conversion cost estimates from the October 2023 NOPR to 2023$
and manufacturer counts based on its refreshed model database but
otherwise maintained its capital conversion cost methodology from the
October 2023 NOPR. Id.
---------------------------------------------------------------------------
\21\ U.S. Department of Labor, ``Occupational Employment and
Wage Statistics,'' (May 2023). Available at: <a href="http://www.bls.gov/oes/current/oes_stru.htm#17-0000">www.bls.gov/oes/current/oes_stru.htm#17-0000</a> (last accessed May 22, 2024).
\22\ U.S. Department of Energy's Compliance Certification
Database is available at <a href="http://www.regulations.doe.gov/certification-data/#q=Product_Group_s%3A*">www.regulations.doe.gov/certification-data/#q=Product_Group_s%3A*</a> (last accessed Jan. 31, 2024).
\23\ California Energy Commission's Modernized Appliance
Efficiency Database System is available at
<a href="http://cacertappliances.energy.ca.gov/Pages/Search/AdvancedSearch.aspx">cacertappliances.energy.ca.gov/Pages/Search/AdvancedSearch.aspx</a>
(last accessed Jan. 31, 2024).
---------------------------------------------------------------------------
4. Refrigerant Transition Investments
As discussed in section II.A.1 of this document, the October 2023
EPA Final Rule restricts the use of hydrofluorocarbons (``HFCs'') in
specific sectors or subsectors, including use in certain CRE analyzed
in this NODA. Consistent with the October 2023 NOPR, DOE accounted for
the costs associated with redesigning CRE to make use of low-GWP
refrigerants and retrofitting production facilities to accommodate
flammable refrigerants in the GRIM in the no-new-standards case and
standards cases. DOE considered the October 2023 EPA Final Rule and the
expenses associated with the refrigerant transition in the analytical
baseline of this analysis since manufacturers would need to comply with
the October 2023 EPA Final Rule regardless of whether or not DOE
amended or established standards for CRE. Id. at 88 FR 70247. Although
refrigerant transition costs associated with the October 2023 EPA Final
Rule are not attributed to this rulemaking, DOE accounted for these
refrigerant transition costs in the no-new-standards case and standards
cases to better reflect industry finances and cash flow over the
analysis period.
In this NODA, DOE made refinements to its research and development
(``R&D'') refrigerant transition estimate to account for increased
testing costs associated with third-party laboratories, as well as
adjustments to the timeline of when manufacturers would need to make
investments related to the refrigerant transition to align with the
revised compliance dates for CRE in the October 2023 EPA Final Rule.
See Id. at 88 FR 70284. Accordingly, for this NODA, DOE assumed that
the transition to low-GWP refrigerants would require industry to invest
approximately $14.6 million in R&D and $19.0 million in capital
expenditures from 2024 (the NODA reference year) to 2026. Consistent
with the October 2023 NOPR, DOE notes that its refrigerant transition
estimates of $14.6 million in R&D and $19.0 million capital
expenditures reflect an estimate of future investments industry would
incur to comply with Federal or State refrigerant regulations. DOE
acknowledges that manufacturers have already invested a significant
amount of time and capital into transitioning CRE to low-GWP
refrigerants.
5. Manufacturer Markup Scenarios
This NODA analysis used the same manufacturer markup scenarios as
the October 2023 NOPR. See Id. at 88 FR 70247-70248.
F. Emissions Analysis, and Monetizing Emissions Impacts
For this NODA pertaining to CRE, DOE conducted the emissions
analyses using the same methodology and data sources as in the October
2023 NOPR. See Id. at 88 FR 70251-70257. However, DOE updated its
social cost of greenhouse gases (``GHG) (``SC-GHG'') estimates,
discussed as follows.
To monetize the benefits of reducing GHG emissions, the October
2023 NOPR used the interim SC-GHG estimates presented in the Technical
Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide
Interim Estimates Under Executive Order 13990 published in February
2021 by the Interagency Working Group on the Social Cost of Greenhouse
Gases (``IWG''). As a member of the IWG involved in the development of
the February 2021 SC-GHG TSD, DOE agreed that the interim SC-GHG
estimates represented the most appropriate estimate of the SC-GHG until
revised estimates were developed reflecting the latest, peer-reviewed
science. See Id. at 88 FR 70253-70255 for discussion of the development
and details of the IWG SC-GHG estimates. The IWG has continued working
on updating the interim estimates but has not published final
estimates.
Accordingly, in the regulatory analysis of its December 2023 Final
Rule, ``Standards of Performance for New, Reconstructed, and Modified
Sources and Emissions Guidelines for Existing Sources: Oil and Natural
Gas Sector Climate Review,'' EPA estimated climate benefits using a
new, updated set of SC-GHG estimates (``2023 SC-GHG estimates''). EPA
documented the methodology underlying the new estimates in the
regulatory impact analysis (``RIA'') for the December 2023 Final Rule
and in greater detail in a technical report entitled Report on the
Social Cost of Greenhouse Gases: Estimates Incorporating Recent
Scientific Advances that was presented as Supplementary Material to the
RIA.\24\ The 2023 SC-GHG estimates ``incorporate recent research
addressing recommendations of the Natural
[[Page 68801]]
Academies of Science, Engineering, and Medicine (``National
Academies''), responses to public comments on an earlier sensitivity
analysis using draft SC-GHG estimates included in the EPA's December
2022 proposal in the oil and natural gas sector standards of
performance rulemaking, and comments from a 2023 external peer review
of the accompanying technical report.'' \25\
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\24\ <a href="https://www.epa.gov/system/files/documents/2023-12/eo12866_oil-and-gas-nsps-eg-climate-review-2060-av16-final-rule-20231130.pdf">https://www.epa.gov/system/files/documents/2023-12/eo12866_oil-and-gas-nsps-eg-climate-review-2060-av16-final-rule-20231130.pdf</a>; <a href="https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf">https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf</a> (last accessed July 3, 2024).
\25\ <a href="https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf">https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf</a> (last accessed July 3, 2024).
---------------------------------------------------------------------------
On December 22, 2023, the IWG issued a memorandum directing that
``agencies should use their professional judgment to determine which
estimates of the SC-GHG reflect the best available evidence, are most
appropriate for particular analytical contexts, and best facilitate
sound decision-making'' consistent with OMB Circular No. A-4 and
applicable law.\26\
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\26\ <a href="https://www.whitehouse.gov/wp-content/uploads/2023/12/IWG-Memo-12.22.23.pdf">https://www.whitehouse.gov/wp-content/uploads/2023/12/IWG-Memo-12.22.23.pdf</a> (last accessed July 3, 2024).
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DOE has been extensively involved in the IWG process and related
work on the SC-GHGs for over a decade. This involvement includes DOE's
role as the federal technical monitor for the seminal 2017 report on
the SC-GHG issued by the National Academies, which provided extensive
recommendations on how to strengthen and update the SC-GHG
estimates.\27\ DOE has also participated in the IWG's work since 2021.
DOE technical experts involved in this work reviewed the 2023 SC-GHG
methodology and report in light of the National Academies'
recommendations and DOE's understanding of the state of the science.
---------------------------------------------------------------------------
\27\ Valuing Climate Damages: Updating Estimation of the Social
Cost of Carbon Dioxide <radical> The National Academies Press.
(available at: <a href="https://nap.nationalacademies.org/catalog/24651/valuing-climate-damages-updating-estimation-of-the-social-cost-of">https://nap.nationalacademies.org/catalog/24651/valuing-climate-damages-updating-estimation-of-the-social-cost-of</a>)
(last accessed July 3, 2024).
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Based on this review, DOE has preliminarily determined that the
updated 2023 SC-GHG estimates, including the approach to discounting,
represent a significant improvement in estimating the SC-GHG through
incorporating the most recent advancements in the scientific literature
and by addressing recommendations on prior methodologies. In
particular, the 2023 SC-GHG estimates implement the key recommendations
of the National Academies, and the 2023 SC-GHG estimates incorporate
the extensive scientific findings and methodological advances that have
occurred since the last IWG updates in 2013, 2015, and 2016.
The 2023 SC-GHG estimates have also been peer-reviewed. As
indicated by their statements, the peer reviewers strongly supported
the new methodology, calling it ``a huge advance,'' ``a real step
change'' and ``an important improvement'' in estimating the SC-GHG, and
noting that it addressed the National Academies' and others'
recommendations and ``generally represents well the emerging consensus
in the literature.''
The most significant improvements in the 2023 SC-GHG estimates
carry out recommendations made by the National Academies. In its
report, the National Academies' principal recommendation was to develop
and use ``a new framework that would strengthen the scientific basis,
provide greater transparency, and improve characterization of the
uncertainties of the estimates.'' \28\ The IWG's estimates since 2010
have relied on averaging the values produced by three integrated
assessment models, each of which generates a set of SC-GHG emissions
estimates based on the inputs and assumptions built into that
particular model.\29\ The National Academies recommended an entirely
new approach that would ``unbundle'' this process and instead use a
framework in which each step of the SC-GHG calculation is developed as
one of four separate but integrated ``modules'': the socioeconomic
module, the climate module, the damages module, and the discounting
module. The report provided detailed recommendations on developing and
using these modules, including how to address discounting,
socioeconomic projections, climate modeling, and uncertainty.
---------------------------------------------------------------------------
\28\ Report Recommends New Framework for Estimating the Social
Cost of Carbon <radical> National Academies (available at: <a href="https://www.nationalacademies.org/news/2017/01/report-recommends-new-framework-for-estimating-the-social-cost-of-carbon">https://www.nationalacademies.org/news/2017/01/report-recommends-new-framework-for-estimating-the-social-cost-of-carbon</a>) (last accessed
July 3, 2024).
\29\ See <a href="https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf">https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf</a> at p. 6, (last accessed July 3,
2024).
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DOE preliminarily concludes that the 2023 SC-GHG estimates are
consistent with the National Academies' 2017 recommendations and
represent major scientific advancements over the IWG's approach. In
addition, DOE supports the incorporation of more recent scientific
findings and data throughout the development of each of the 2023 SC-GHG
modules and the underlying components of those modules.
Thus, in accordance with the IWG memo, and having reviewed the 2023
SC-GHG methodologies and updates, DOE has preliminarily determined that
the updated 2023 SC-GHG estimates reflect the best available scientific
and analytical evidence and methodologies, are accordingly the most
appropriate for DOE analyses, and best facilitate sound decision-making
by substantially improving the transparency of the estimates and
representations of uncertainty inherent in such estimates. DOE welcomes
comment on this preliminary determination.\30\ In a final rulemaking,
DOE will determine what role, if any, these estimates will play in any
final decision adopting new and amended energy conservation standards
for CRE.
---------------------------------------------------------------------------
\30\ See EPA's SC-GHG website for all of the technical files
related to the updated estimates, including the final SC-GHG report
(provided as Supplementary Material to the Dec 2023 Oil and Gas rule
final RIA); all replication instructions and computer code for the
estimates; all files related to the public comment and peer review
process; and a workbook to assist analysts in applying the
estimates: <a href="https://www.epa.gov/environmental-economics/scghg">https://www.epa.gov/environmental-economics/scghg</a>.
---------------------------------------------------------------------------
For this NODA, DOE used these updated 2023 SC-GHG values to
monetize the climate benefits of the emissions reductions associated at
each efficiency level (``EL'') for CRE. These results are shown in the
accompanying NODA support document in table 6.7 through table 6.15.
Using these the 2023 SC-GHG estimates provides a better-informed range
of potential climate benefits associated with the proposed new and
amended standards. The EPA technical report presents SC-GHG values for
emissions years through 2080; therefore, DOE did not monetize the
climate benefits of GHG emissions reductions occurring after 2080. DOE
expects additional climate impacts to accrue from GHG emissions changes
post 2080, but due to a lack of readily available SC-GHG estimates for
emissions years beyond 2080 and the relatively small emission effects
expected from those years, DOE has not monetized these additional
impacts in this analysis. The overall climate benefits are generally
greater when using the higher, updated 2023 SC-GHG estimates, compared
to the climate benefits using the older IWG SC-GHG estimates, which
were used in the October 2023 NOPR. To facilitate a comparison, DOE
also performed a sensitivity analysis using the IWG's 2021 interim SC-
GHG estimates. The results are shown in the accompanying NODA support
document.\31\ In setting energy efficiency standards for CRE in any
subsequent final rule, DOE will, as in the NOPR, consider whether the
standards result in positive net benefits under either SC-GHG
calculation methodology, as well as in the absence
[[Page 68802]]
of the estimated, monetized climate benefits.
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\31\ See tables 6.16 through 6.17 in the NODA support document.
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For this NODA, DOE monetized NO<INF>X</INF> and SO<INF>2</INF>
using the same methodology and data sources as described in chapter 14
of the October 2023 NOPR TSD.
III. Analytical Results
A. Compliance Period
EPCA requires that amended standards would apply to CRE on or after
a date that is 3 years after the final rule is published in the Federal
Register or, if the Secretary determines that 3 years is inadequate,
not later than 5 years after the final rule is published in the Federal
Register. (See 42 U.S.C. 6313(c)(6)(C)) Consistent with the October
2023 NOPR, DOE assumed new and amended standards would apply to CRE
manufactured 3 years after the date on which any new and amended
standards are published. Currently, DOE anticipates publication of a
final rule in the second half of 2024. Therefore, for purposes of its
analysis, DOE used 2028 as the first full year of compliance with any
new or amended standards for CRE.
Extending the compliance lead-in period from 3 years to a date
between 3 to 5 years after a final rule is published in the Federal
Register would delay the compliance year analyzed in this NODA from
2028 to 2029 or 2030. With regard to the LCC analysis and the NIA, a
longer compliance period after publication of a final rule is not
expected to result in significant changes to the results of the LCC and
the NIA.
Although a number of inputs to the LCC analysis and NIA are time-
dependent (e.g., electricity prices, shipments drivers such as
floorspace projections, and costs of certain design options that
experience price learning, such as light-emitting diode (``LED'')
lighting, and electronic components of variable speed compressors),
these inputs would not result in significant changes to the results of
the LCC and NIA for a 5-year compliance date (2030) compared to a 3-
year compliance date (2028).
For the LCC, the relative changes in inputs that are time-dependent
are small over a two-year delay. Commercial electricity prices averaged
on a national level are forecast by AEO 2023 to decrease by 1 percent
from 2028 to 2030, but expected to exceed 2028 prices again in 2033 and
beyond. Equipment costs for higher efficiency levels using LED lighting
and variable-speed compressors are expected to decrease up to 0.8
percent from 2028 to 2030 due to the cost reduction associated with
price learning.\32\ These variations in LCC inputs have only minor
effects on the relative comparison of efficiency levels and, as a
consequence, would lead only to a slight increase in life-cycle cost
savings associated with higher efficiency equipment. Therefore, there
are no negative impacts for consumers by a 2-year delay of the
compliance year. Furthermore, the efficiency distribution of purchasers
does not change over time in the no-new-standards scenario, meaning
that a delay of 2 years would not change the percentage of purchasers
impacted by a new standard.
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\32\ For more details on the price learning methodology, see
chapter 8 of the October 2023 NOPR TSD.
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Regarding the NIA results, time-dependent inputs (e.g., equipment
costs and electricity prices) will cause small variations to the
undiscounted NPV. For example, a 2030 compliance date will result in a
slight increase in NPV for CRE with design options that experience
price learning because their future prices are expected to decrease
over time. A delayed compliance date will result in a minor increase in
energy savings primarily due to an overall increasing shipments trend
in future years. Regarding MIA results, extending the compliance lead-
in would allow manufacturers more flexibility to spread out investments
over a longer period. Considered in isolation, extending the compliance
lead-in could lessen reductions in annual free cash flow over the
conversion period in the standards case because the same investments
could be spread out over 4 or 5 years instead of 3 years. Because INPV
is the sum of discounted annual cash flows over the analysis period,
standards case INPV would be similarly impacted by a longer compliance
period. Holding other factors constant, the projected change in INPV at
more stringent levels would look less negative (or more positive) with
a 4 or 5 year compliance period compared to a 3-year compliance period.
B. Life-Cycle Cost and Payback Period
In this NODA, DOE analyzed the economic impacts on CRE consumers by
looking at the effects that potential new and amended standards at each
EL would have on the LCC and PBP. DOE also examined the impacts of
potential standards on selected consumer subgroups. These analyses are
discussed in the following sections.
In general, higher-efficiency equipment affect consumers in two
ways: (1) purchase price increases and (2) annual operating costs
decrease. Inputs used for calculating the LCC and PBP include total
installed costs (i.e., equipment price plus installation costs), and
operating costs (i.e., annual energy use, energy prices, energy price
trends, repair costs, and maintenance costs). The LCC calculation also
uses equipment lifetime and a discount rate. Chapter 8 of the October
2023 NOPR TSD provides detailed information on the LCC and PBP
analyses.
Table III.1 through table III.66 show the LCC and PBP results based
on the updated analysis for the ELs considered for each equipment class
in this NODA. In the first of each pair of tables, the simple payback
is measured relative to the baseline equipment. In the second table,
impacts are measured relative to the efficiency distribution in the no-
new-standards case in the compliance year (see section II.C.4 of this
document). Because some consumers purchase equipment with higher
efficiency in the no-new-standards case, the average savings are less
than the difference between the average LCC of the baseline equipment
and the average LCC at each EL. The savings refer only to consumers who
are affected by a standard at a given EL. Those who already purchase
equipment with efficiency at or above a given EL are not affected.
Consumers for whom the LCC increases at a given EL experience a net
cost.
1. Remote-Condensing Units
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4. Consumer Subgroup Analysis
In the consumer subgroup analysis in this NODA, DOE estimated the
impact of the considered ELs on small businesses. As in the October
2023 NOPR, DOE applies small business-specific discount rates, which
are mostly higher than those in the full consumer sample. For this
NODA, DOE also applied small business-specific energy prices, which are
generally higher than those in the full consumer sample. Table III.67
compares the average LCC savings and PBP at each efficiency level for
the consumer subgroups with similar metrics for the entire consumer
sample for CRE. In most cases, the average LCC savings and PBP for
small businesses at the considered efficiency levels are not
substantially different from the average for all consumers.
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5. Rebuttable Presumption Payback
EPCA establishes a rebuttable presumption that an energy
conservation standard is economically justified if the increased
purchase cost for equipment that meets the standard is less than three
times the value of the first-year energy savings resulting from the
standard. (42 U.S.C. 6316(e)(1); 42 U.S.C. 6295(o)(2)(B)(iii)) In
calculating a rebuttable presumption payback period for each of the
considered Els in this NODA, DOE used discrete values and, as required
by EPCA, based the energy use calculation on the DOE test procedure for
CRE. In contrast, the PBPs presented in section III.B of this document
were calculated using distributions that reflect the range of energy
use in the field.
Table III. presents the rebuttable-presumption payback periods for
the considered ELs for CRE.
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B. Economic Impacts on Manufacturers
Table III.69 shows the efficiency level grouping analyzed in the
GRIM in this NODA. The MIA does not present results by equipment class
and efficiency level because redesign and investments for one equipment
class may impact multiple equipment classes because different equipment
classes can share the same architecture, tooling, and production lines.
Therefore, the MIA presents results based on a representative
combination of efficiency levels for remote-condensing units, self-
contained condensing units (non-large), and self-contained condensing
units (large). The accompanying NODA support document shows the
analyzed design options and energy use equations for each considered
efficiency level.
1. Industry Cashflow Analysis Results
Table III.70 through table III.72 present the GRIM results for the
updated CRE analysis discussed in this NODA for the CRE remote-
condensing units, the CRE self-contained condensing units (non-large),
and the CRE self-contained condensing units (large). The methodology
and assumptions used in the MIA did not change from the October 2023
NOPR except for the analytical changes described in prior sections of
this document. Details of the MIA inputs and methodology are available
in chapter 12 of the October 2023 NOPR TSD.
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2. Direct Impacts on Employment
For the direct employment analysis, DOE revised the methodology
used to estimate the lower bound impacts to domestic production
employment in the October 2023 NOPR, which was incorporated into the
analysis conducted for this NODA. DOE maintained the same estimate of
U.S. labor percentage of 77 percent from the October 2023 NOPR for this
NODA. See at Id. 88 FR 70196, 70282-70283.
Using the GRIM, DOE estimated that in the absence of new and
amended energy conservation standards, there would be 1,966 domestic
production and non-production workers for CRE remote-condensing units
in 2028, 9,613 domestic production and non-production workers for CRE
self-contained condensing units (non-large) in 2028, and 928 production
and non-production workers for CRE self-contained condensing units
(large) in 2028. Table III.73 through table III.75 show the range of
impacts of energy conservation standards on U.S. manufacturing
employment in the CRE industry for remote-condensing units, self-
contained condensing units (non-large), and self-contained condensing
units (large).
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The upper bound estimate corresponds to a potential change in the
number of domestic production workers that would result from new and
amended energy conservation standards if manufacturers continue to
produce the same scope of covered equipment within the United States
after the analyzed compliance date. Most of the design options analyzed
in the engineering analysis require manufacturers to purchase more-
efficient components from suppliers. These components do not require
significant additional labor to assemble or significant production line
updates. For this NODA, DOE modeled an incremental increase in labor
content associated with implementing improved door designs (i.e.,
moving to double-pane, triple-pane, or vacuum-insulated glass door
designs).
The lower bound estimate conservatively assumes that some domestic
manufacturing either is eliminated or moves abroad at more stringent
efficiency levels. For levels that require capital investment and
higher per-unit labor content, DOE assumed that some manufacturing
could move abroad as relocating production to lower-labor cost
countries could become increasingly attractive.
The employment impacts discussed in this section are independent of
the employment impacts from the broader U.S. economy.
C. National Impact Analysis
This section presents DOE's estimates of the NES and the NPV of
consumer benefits that would result from each of the ELs considered as
potential amended standards.
1. National Energy Savings
To estimate the energy savings attributable to potential new and
amended standards for CRE, DOE compared their energy consumption under
the no-new-standards case to their anticipated energy consumption at
each EL in this NODA. The savings are measured over the entire lifetime
of equipment purchased in the 30-year period that begins in the year of
anticipated compliance with new and amended standards 2028-2057. Table
III.76 presents DOE's projections of the national energy savings for
each EL for CRE. The savings were calculated using the approach
described in section II.E of this document.
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2. Net Present Value of Consumer Costs and Benefits
DOE estimated the cumulative NPV of the total costs and savings for
consumers that would result from the ELs considered for CRE. In
accordance with OMB's guidelines on regulatory analysis,\33\ DOE
calculated NPV using both a 7-percent and a 3-percent real discount
rate. Table III.77 and table III.78 show the consumer NPV results at 3
percent and 7 percent discount rates with impacts counted over the
lifetime of equipment purchased during the period 2028-2057.
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\33\ U.S. Office of Management and Budget. Circular A-4:
Regulatory Analysis. September 17, 2003. <a href="https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/circulars/A4/a-4.pdf">https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/circulars/A4/a-4.pdf</a>
(last accessed June 6, 2024).
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D. Need of the Nation To Conserve Energy
Enhanced energy efficiency, where economically justified, improves
the Nation's energy security, strengthens the economy, and reduces the
environmental impacts (costs) of energy production. Reduced electricity
demand due to energy conservation standards is also likely to reduce
the cost of maintaining the reliability of the electricity system,
particularly during peak-load periods.
Energy conservation resulting from potential energy conservation
standards for CRE is expected to yield environmental benefits in the
form of reduced emissions of certain air pollutants and greenhouse
gases. DOE also estimated monetary benefits likely to result from the
reduced emissions that DOE estimated for each of the considered ELs for
CRE. Chapter 6 of the accompanying NODA support document provides DOE's
estimate of cumulative emissions reductions and associated monetized
benefits expected to result at each EL.
IV. Public Participation
DOE requests comment on the updated analysis for CRE presented in
the NODA. As noted in the October 2023 NOPR, DOE may adopt energy
efficiency levels that are either higher or lower than the proposed
standards in
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the October 2023 NOPR. Id. at 88 FR 70196, 70203.
DOE will accept comments, data, and information regarding this NODA
no later than the date provided in the DATES section at the beginning
of this document. Interested parties may submit comments, data, and
other information using any of the methods described in the ADDRESSES
section at the beginning of this document.
Submitting comments via <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. Otherwise, persons viewing comments will see only first
and last names, organization names, correspondence containing comments,
and any documents submitted with the comments.
Do not submit to <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, hand delivery/courier, or postal
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail 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. If you submit via postal mail
or hand delivery/courier, please provide all items on a CD, if
feasible, in which case it is not necessary to submit printed copies.
No telefacsimiles (``faxes'') will be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: one copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
notification of data availability and request for comment.
Signing Authority
This document of the Department of Energy was signed on August 17,
2024, by Jeffrey Marootian, 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 August 21, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-19072 Filed 8-27-24; 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>Indexed from Federal Register on August 28, 2024.
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.