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Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations
the potential energy savings would be significant for the purpose of 42 U.S.C.
6295n2.

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E. Cost Effectiveness In making a determination of whether amended energy conservation standards are needed, EPCA requires DOE to consider the cost effectiveness of amended standards in the context of the savings in operating costs throughout the estimated average life of the covered equipment class compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the covered equipment that are likely to result from a standard. 42 U.S.C.
6316a; 42 U.S.C. 6295m1A; 42
U.S.C. 6295n2
In determining cost effectiveness, DOE conducted LCC and PBP analyses that estimate the costs and benefits to users from standards. The LCC is the sum of the initial price of equipment including its installation and the operating expense including energy, maintenance, and repair expenditures discounted over the lifetime of the equipment. The LCC analysis requires a variety of inputs, such as equipment prices, equipment energy consumption, energy prices, maintenance and repair costs, equipment lifetime, and discount rates appropriate for consumers. To account for uncertainty and variability in specific inputs, such as equipment lifetime and discount rate, DOE uses a distribution of values, with probabilities attached to each value.
The PBP is the estimated amount of time in years it takes consumers to recover the increased purchase cost including installation of more-efficient equipment through lower operating costs. DOE calculates the PBP by dividing the change in purchase cost due to a more-stringent standard by the change in annual operating cost for the year that standards are assumed to take effect.
For its LCC and PBP analyses, DOE
assumes that consumers would purchase the covered equipment in the first year of compliance with any amended standards. The LCC savings for the considered efficiency levels are calculated relative to the case that reflects projected market trends in the absence of amended standards. DOEs LCC and PBP analysis is discussed in
further detail in section IV.F of this final determination.
IV. Methodology and Discussion of Related Comments This section addresses the analyses DOE performed for this final determination regarding SEMs. Separate subsections address each component of DOEs analyses and responses to related comments. DOE used a spreadsheet tool that calculates the LCC savings and PBP
of potential energy conservation standards. This spreadsheet tool is available on the website: https
www.regulations.gov/docket?EERE2019-BT-STD-0008.
Lennox supported DOEs proposed determination not to amend energy conservation standards for SEMs.
Lennox, No. 21 at p. 1 NEMA
concurred with DOE that it is not cost effective to increase the stringency of SEM energy conservation standards.
NEMA, No. 22 at p. 5; NEMA, No. 32
at p. 23 CA IOUs also concurred with DOE that there is limited opportunity for additional energy efficiency in the current scope of regulation for SEMs.
CA IOUs, No. 24 at p. 2; CA IOUs, No.
33 at p. 2 As discussed previously, based on the analyses summarized in section V of this document, DOE has determined that more stringent energy conservation standards would not be cost effective. Therefore, DOE has determined that the current standards for SEMs do not need to be amended under the relevant criteria in 42 U.S.C.
6295m1A and 42 U.S.C. 6295n2.
See also 42 U.S.C. 6316a applying 42
U.S.C. 6295m and 42 U.S.C. 6295n to small electric motors.
A. Market and Technology Assessment DOE has conducted a market and technology assessment in support of the final determination for SEMs. DOE
develops information in the market and technology assessment that provides an overall picture of the market for the equipment concerned, including the purpose of the equipment, the industry structure, manufacturers, market characteristics, and technologies used in the equipment. This activity includes both quantitative and qualitative assessments, based primarily on publicly available information. The subjects addressed in the market and
technology assessment for this final determination include 1 a determination of the scope and equipment classes, 2 manufacturers and industry structure, 3 existing efficiency programs, 4 shipments information, 5 market and industry trends, and 6 technologies or design options that could improve the energy efficiency of SEMs. The key findings of DOEs market assessment are summarized in the following sections.
See chapter 3 of the final determination technical support document TSD for further discussion of the market and technology assessment.
1. Scope of Coverage By statute, a small electric motor is a NEMA general purpose alternatingcurrent single-speed induction motor, built in a two-digit frame number series in accordance with NEMA Standards Publication MG 11987. 42 U.S.C.
631113G DOE later clarified by regulation that this definition also includes IEC metric equivalent motors i.e., those motors that otherwise satisfy the statutory definition of small electric motor but that happen to be built in accordance with metric units.
See 10 CFR 431.442. Equipment meeting this definition are within DOEs scope of coverage but not all may be subject to DOEs current standards.
DOEs standards regulate the energy efficiency of those SEMs that fall within three topologies i.e., arrangements of component parts: Capacitor-start induction-run CSIR, capacitor-start capacitor-run CSCR, and polyphase motors. See 10 CFR 431.446. EPCA
prescribes that standards for SEMs do not apply to any SEM which is a component of a covered product or covered equipment under EPCA. 42
U.S.C. 6317b3 DOEs current energy conservation standards only apply to SEMs manufactured alone or as a component of another piece of noncovered equipment. 10 CFR 431.446a.
Subpart X of part 431 includes energy conservation standards and test procedures for the SEMs listed in Table IV1. In the April 2020 NOPD, DOE did not propose any changes to the scope of SEMs subject to energy conservation standards i.e., scope of applicability.

TABLE IV1SMALL ELECTRIC MOTORS CURRENTLY SUBJECT TO ENERGY CONSERVATION STANDARDS
Manufactured alone or as a component of another piece of non-covered equipment Pole configuration
Motor topology Single-phase:
CSIR

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Motor output power
0.253 hp. 0.182.2 kW.