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Federal Register / Vol. 86, No. 87 / Friday, May 7, 2021 / Proposed Rules contemplated combined equipment classes, as discussed in section III.A.1 of this document. For newly analyzed equipment classes, DOE requests energy use data to characterize the baseline efficiency level.
As part of DOEs analysis, the maximum available efficiency level is the highest efficiency unit currently available on the market. DOE also defines a max-tech efficiency level to represent the theoretical maximum possible efficiency if all available design options are incorporated in a model. In applying these design options, DOE
would only include those that are compatible with each other that when combined would represent the theoretical maximum possible efficiency. In many cases, the max-tech efficiency level is not commercially available because it is not economically feasible.
DOE seeks input on whether the maximum available efficiency levels are appropriate and technologically feasible for potential consideration as possible energy conservation standards for circulator pumpsand if not, why not.
DOE also requests feedback on which maximum efficiencies are representative of those for the other circulator pumps not included within the scope of the Term Sheets. If the range of possible efficiencies is different for such other equipment, what alternative approaches should DOE consider using for those equipment classes and why?
DOE seeks feedback on what design options would be incorporated at a maxtech efficiency level, and the efficiencies associated with those levels.
As part of this request, DOE also seeks information as to whether there are limitations on the use of certain combinations of design options.
2. Cost Analysis The cost analysis portion of the engineering analysis is conducted using one or a combination of cost approaches. The selection of cost approach depends on a suite of factors, including availability and reliability of public information, characteristics of the regulated product, and the availability and timeliness of purchasing the equipment on the market. The cost approaches are summarized as follows:

Physical teardowns: Under this approach, DOE physically dismantles a commercially available product, component-by-component, to develop a detailed bill of materials for the product.
Catalog teardowns: In lieu of physically deconstructing a product, DOE identifies each component using parts diagrams available from manufacturer websites or appliance repair websites, for example to develop the bill of materials for the product.
Price surveys: If neither a physical nor catalog teardown is feasible for example, for tightly integrated products such as fluorescent lamps, which are infeasible to disassemble and for which parts diagrams are unavailable or costprohibitive and otherwise impractical e.g., large commercial boilers, DOE
conducts price surveys using publicly available pricing data published on major online retailer websites and/or by soliciting prices from distributors and other commercial channels.
The bill of materials provides the basis for the manufacturer production cost MPC estimates. DOE then applies a manufacturer markup to convert the MPC to manufacturer selling price MSP. The manufacturer markup accounts for costs such as overhead and profit. The resulting bill of materials provides the basis for the manufacturer production cost MPC
estimates.
As described at the beginning of this section, the main outputs of the engineering analysis are cost-efficiency relationships that describe the estimated increases in manufacturer production cost associated with higher-efficiency products for the analyzed equipment classes.
DOE requests feedback on whether, and if so how, manufacturers would incorporate the technology options listed in Table III.1 to increase energy efficiency in circulator pumps beyond the baseline. This includes information in which manufacturers would incorporate the different technologies to incrementally improve the efficiencies of products. DOE also requests feedback on whether the increased energy efficiency would lead to other design changes that would not occur otherwise.
DOE is also interested in information regarding any potential impact of design options on a manufacturers ability to
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incorporate additional functions or attributes in response to consumer demand.
DOE also seeks input on the increase in MPC associated with incorporating each particular design option. DOE also requests information on the investments necessary to incorporate specific design options, including, but not limited to, costs related to new or modified tooling if any, materials, engineering and development efforts to implement each design option, and manufacturing/
production impacts.
DOE requests comment on whether certain design options may not be applicable to or incompatible with specific equipment classes.
To account for manufacturers nonproduction costs and profit margin, DOE
applies a non-production cost multiplier the manufacturer markup to the MPC.
The resulting manufacturer selling price MSP is the price at which the manufacturer distributes a unit into commerce.
DOE requests feedback on what manufacturer markups are appropriate for non-built-in and built-in products, respectively.
D. Markups Analysis DOE derives customer prices by applying a multiplier called a markup to the MSP. In deriving markups, DOE
determines the major distribution channels for product sales, the markup associated with each party in each distribution channel, and the existence and magnitude of differences between markups for baseline products baseline markups and higherefficiency products incremental markups. The identified distribution channels i.e., how the products are distributed from the manufacturer to the consumer, and estimated relative sales volumes through each channel are used in generating end-user price inputs for the LCC and PBP analyses and the national impact analysis NIA.
During the CPWG meetings, the CPWG identified distribution channels for circulator pumps and estimated their respective shares of shipments by sector residential and commercial, based on manufacturer feedback Docket No.
EERE2016BTSTD0004, No. 49 at p.
51, as shown in Table III.2:

TABLE III.2CIRCULATOR PUMPS DISTRIBUTION CHANNELS AND RESPECTIVE MARKET SHARES
Channel: From manufacturer
Residential shipments share %

Sales Rep Contractor End User

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Commercial shipments share %
37